Kansas Retailers' Sales Tax
Taxation of Farrier Services
REVENUE RULING 19-1997-2
August 14, 1997
Application of Sales Tax to Farriers
K.S.A. 79-3603(p), K.S.A. 79-3603(q).
The purpose of this revenue ruling is to clarify the application of state and local sales tax to charges for farrier's services performed in Kansas. A farrier is someone who shoes horses and trims their hooves.
Effective October 1, 1997, all resident and non-resident farriers who perform work in Kansas must register as retailers and collect and remit sales tax on their services performed here. Farriers who have previously registered with the department as retailers need not re-register.
Farrier services performed on racehorses, competition horses, recreational horses and other horses not specifically exempted below are subject to sales tax. Farrier services are exempt when performed on plow horses and on horses used primarily for herding. Farrier services for horse-breeding operations are exempt only if the horse-breeder is registered as a Kansas retailer to collect tax on its horse sales. Farriers must document all exempt sales by securing and maintaining an exemption certificate from each customer that claims exemption.
Special rules determine the local sales tax that must be charged and collected by service providers such as farriers. Generally, Kansas service providers must charge customers the local sales tax that is in place at the provider's business location. K.S.A. 12-191. This rule applies even when a service provider performs services in a county that has no local sales tax. Out-of-state farriers generally are not required to charge local taxes. K.S.A. 12-191a. When a contract for services exceeds $10,000, different rules apply for collection of local sales tax.
Farriers who register with the department for sales tax purposes may purchase horseshoes, shoe nails and other items that are transferred as a part of their services exempt from sales tax.
Anyone who has questions or wishes to discuss this ruling may contact the Taxpayer Assistance Bureau, Kansas Department of Revenue, Topeka, Kansas 66625-0001 at (913) 296-0222.
John D. LaFaver
Secretary of Revenue
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