Dry Cleaning Environmental Surcharge; Dry Cleaning Solvent Fee; Kansas Retailers' Sales Tax
1995 Legislative Changes
STATE OF KANSAS
BILL GRAVES, GOVERNOR
Wayne C. Vennard, Jr.,
915 SW Harrison Street
Topeka, Kansas 66625-0001
FAX (913) 291-3614
Department of Revenue
JOHN D. LaFAVER, SECRETARY
Taxpayer Assistance Bureau
The 1995 Kansas Legislature repealed the sales taxes on new construction labor and utilities used in manufacturing. In addition, the Legislature passed several new exemptions from sales tax. Lawmakers also approved the Kansas Dry Cleaner Environmental Response Act, establishing a dry cleaning environmental surcharge and solvent fee.
This notice summarizes the new laws. The Kansas Department of Revenue has issued other notices to specific industries, explaining changes in greater detail. The Department encourages you to obtain copies of notices that affect your particular business.
REPEAL OF THE 2.5% SALES TAX
(Senate Bill 14)
: As of April 15, 1995, sales tax does not have to be collected
on labor services in connection with the original construction of a building or facility.
Notice 95-03 was sent to the construction industry April 13, 1995. The notice details how the construction industry is affected by the law.
As of June 1, 1995, sales tax does not have to be collected on gas, water and electricity used in the following instances:
— when producing, manufacturing, processing, mining, drilling, refining or compounding tangible personal property intended for resale
— in providing taxable services
— when irrigating crops
Notice 95-04 was sent to utility companies and municipalities May 12, 1995. The notice explains the impact of the law on utility companies and municipalities furnishing utility services.
SALES TAX EXEMPTIONS
(Senate Bill 88)
Sales tax does not have to be collected on these transactions, beginning July 1, 1995:
Isolated or occasional sales of a motor vehicle or trailer to direct ascendants and descendants and their spouses. Examples of transfers that qualify include parent to offspring and grandparent to grandchild. Transfers to aunts and uncles, nieces and nephews and siblings do not qualify.
Sales of materials, such as chemicals, used to treat waste products resulting from the production of tangible personal property.
Sales of motor vehicle attachments designed to assist the disabled. (For example, sales tax does not have to be collected when an individual buys a wheelchair lift for a vehicle.)
Sales of farm machinery and equipment used in the operation of a nursery.
Sales of fumigants used in commercial or agricultural production.
Sales of propane gas for agricultural use.
SALES TAX EXEMPTIONS
Natural gas, electricity, heat and water sold directly to certain groups that do not pay property tax. This exemption may include, but is not limited to the following properties:
— adult care homes
— private children's homes
— group housing for certain handicapped persons
— housing for the elderly
THE KANSAS DRY CLEANER ENVIRONMENTAL RESPONSE ACT
(House Bill 2256)
The 1995 Kansas Dry Cleaner Environmental Response Act establishes a statewide trust fund to help pay for cleanup of contaminated property. The fund is financed by a 2% environmental surcharge applied to customers for dry cleaning services. Dry cleaners and launderers must also pay a user fee on all dry cleaning solvents. The surcharge and fee will be collected beginning July 1, 1995.
Notice 95-05 was sent to dry cleaners and laundry retailers June 2, 1995. The notice provides a detailed explanation of the surcharge and fee.
If you have questions regarding these new laws or would like copies of specific notices, call (913) 296-0222 or write to the Taxpayer Assistance Bureau, Kansas Department of Revenue, 915 SW Harrison St., Topeka, KS 66625-0001.
NOTICE 95-07 (6/12/95)
TO: Kansas Registered Retailers
RE: 1995 Legislative Changes
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