Private Letter Ruling

Ruling Number:P-2005-017
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Destination-based sourcing rules for roofing business.
Approval Date:06/23/2005

Office of Policy & Research

June 23, 2005


During our telephone conversations last year, we discussed which local sales tax applies to your roofing business under the destination-based sourcing rules. Your letters describe your business as "an onsite roll-former and installer of standard seam metal roofs." You fabricate all of the needed roof panels, framework, and flashing at the job site. Roofing and flashing materials are fabricated from a wide coil, while frame work is fabricated from flat materials that comes in twenty-foot lengths. You ask if you should pay sales tax when you take delivery of the coils and flat materials or when you fabricate the materials at the job site.

The department recently issued several new guidelines for contractors and contractor-retailers. The Sales Tax Guidelines for Contractor-Fabricators and Contractor-Manufacturers contains a section that discusses how businesses such as yours should pay sales tax on their purchases:

This discussion shows that contractors like you are required to pay sales tax when you take delivery of your materials. Your letter states that you take delivery at your warehouse in Dog Jaw, Kansas. Accordingly, the state and local tax that you pay on the coils you buy is be state and local tax in place at your warehouse.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially effects this private letter ruling. Please let me know if you have additional questions. Enclosures

Date Composed: 06/27/2005 Date Modified: 06/27/2005