Revenue Ruling

Ruling Number:19-2006-1
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Sales taxation of wireless communication towers, broadcast towers and antenna and relay sites ("towers"), and related equipment.
Keywords:
Approval Date:06/20/2006


Body:
Office of the Secretary
REVENUE RULING 19-2006-1

Sales taxation of wireless communication towers, broadcast towers and antenna and relay sites (“towers”), and related equipment.

June 20, 2006

Issue: Application of Kansas sales and compensating (use) tax to installation and construction of wireless communication towers, broadcast towers and antenna and relay sites (“towers”), and related equipment. Due to Kansas property tax statutory changes, questions have been directed to the Department of Revenue concerning sales treatment of such towers.

Relevant Statutes: K.S.A. 79-3603(p), K.S.A.79-3603(q), K.S.A. 79-3603(r); K.S.A. 79-1439d.

(1) Sales to tower contractors. Taxable sales include sales to tower contractors of materials and equipment for use in constructing or repairing towers and equipping said sites. Taxable sales include services provided to tower contractors by their subcontractors who work on tower construction or repair.

(2) Tax collection duties of tower contractors. When installing, constructing or repairing towers for cellular and wireless radio, tower contractors shall always charge sales tax on their labor services.

This revenue ruling replaces and supersedes all prior notices and rulings that have been issued regarding the taxability of the sale of services and tangible personal property used to construct wireless communication towers, broadcast towers and antenna and relay sites.




Joan Wagnon
Secretary of Revenue


Date Composed: 07/05/2006 Date Modified: 07/05/2006