Private Letter Ruling

Ruling Number:P-1999-144
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Demolition of existing structure and construction of new building.
Approval Date:06/28/1999

Office of Policy and Research

June 28, 1999


Re: Kansas Sales Tax


Your correspondence of April 26, 1999, has been referred to me for response. Thank you for your inquiry, and please accept my apologies for the delay in responding.

Your letter indicates your company will be building a XXXXXXXXXXXXXX on an existing lot where the original building was torn down. You ask whether this is considered “new construction” or is it considered remodel work since the new owners are maintaining the same address as the previous building and owners.

The question you present deals with the issue of “original construction.” The controlling statute, K.S.A. 79-3603(p) provides for the imposition of sales tax on:
The statute is interpreted, in part, by K.A.R. 92-19-66b. Subsection (d) of the regulation provides:
Based on the statute and regulation, the project you describe would be considered original construction and so labor services would not be subject to Kansas sales tax. Your purchases of materials and supplies to perform the contract are subject to sales tax.

This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.

I trust this information is of assistance. If I can be of further service, please feel free to contact me.


Jim Weisgerber
Tax Specialist


Date Composed: 07/07/1999 Date Modified: 10/11/2001