Questions and Answers
Kansas Retailers' Sales Tax
CATERERS #15 (8/91)
STATUS: The general rule is that a sales tax is assessed upon the gross receipts received from the sale of food, meals, drinks and labor services (including tips) connected to the catering. Beer (cereal malt beverages, K.S.A. 41-2701), as in all other sales transactions, is subject to both excise and sales tax when catered. Alcoholic liquor (K.S.A. 41-102) upon which no excise tax has been paid is also subject to sales tax when catered.
imposes a sales tax, "upon the gross receipts received from the sale of tangible personal property at retail within this state".
'"Retailer" means a person regularly engaged in the business of selling tangible personal property at retail or furnishing electrical energy, gas, water, services or entertainment, and selling only to the user or consumer and not for resale.'
K.A.R. 92-19-69. Caterers
. "(a) Each person engaged in the business of catering is a retailer as defined in K.S.A. 1986 Supp. 79-3602(d). Each retailer shall collect sales tax on the total gross receipts received from the sale of food, meals and drinks, other than alcoholic liquor as defined in K.S.A. 41-102 as amended by L. 1987, Ch. 182, Sec. 1 and amendments, and cereal malt beverages as defined in K.S.A. 41-2701 as amendments, and L. 1987, Ch. 182, Sec. 97, and amendments, unless specifically exempt. Sales tax shall be imposed on the total selling price of the transaction without any deduction or exclusion for labor or services expended, skill, time spent, overhead and other expenses incurred by the caterer in producing the tangible personal property or profit thereon, regardless of how any contract, invoice or other evidence of the transaction is stated or computed, and whether separately billed or segregated on the same bill.
(b) Each amount designated as a service charge added to the price of food, meals or drinks, shall be a part of the selling price of the food, meals or drinks, and shall be included in the total selling price subject to sales tax, even though such charges are made in lieu of tips and are paid over by the retailer in whole or in part to the retailer's employees.
(c) The gross receipts receive by a person holding a temporary permit as defined in K.S.A. 41-2601 as amended by L. 1987, Ch. 182, Sec. 60, from each sale of alcoholic liquor as defined in K.S.A. 41-102 as amended by L. 1987, Ch. 182, Sec. 1 and amendments, and cereal malt beverages as defined in K.S.A. 41-2701 as amended by L. 1987, Ch. 182, Sec. 97 and amendments, upon which no Kansas excise tax has been paid, shall be subject to sales tax.
LOCAL: All retail sales shall be considered to have been consummated at the place of business of the retailer. (
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