Private Letter Ruling

Ruling Number:P-2001-087
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Materials purchased by a community action group to repair or weatherize low-income housing.
Keywords:
Approval Date:08/17/2001



Body:
Office of Policy & Research


August 17, 2001

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Dear XXXXXXXXX:

The purpose of this letter is to respond to your letter dated July 26, 2001.

In your letter you stated:

K.S.A. 79-3606(oo) exempts from sales tax: “all sales of tangible personal property purchased by a community action group or agency for the exclusive purpose of repairing or weatherizing housing occupied by low income individuals. . .”

Therefore, materials purchased by your organization to repair or weatherize housing occupied by low-income individuals may be purchased exempt from sales tax in the state of Kansas.

1998 Senate Bill No. 493 exempts certain construction services that were formerly subject to Kansas sales tax. Effective July 1, 1998, services performed to install or apply tangible personal property are exempt from sales tax when the services involve the original construction, reconstruction, restoration, remodeling, renovation, repair or replacement of a residence.

Services rendered at a residence to repair or weatherize housing occupied by low income individuals, would not be subject to sales tax in the state of Kansas, since the legislation contained in 1998 Senate Bill No. 493, would exempt these services from taxation.

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.


Sincerely,



Mark D. Ciardullo
Tax Specialist

MDC


Date Composed: 08/17/2001 Date Modified: 10/11/2001