Information Guide

Identifying Information:Real Estate Agents/Brokers/Property Management Firms Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Real Estate Agents/Brokers/Property Management Firms Self-Audit Fact Sheet
Keywords:
Approval Date:06/26/2006


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
REAL ESTATE AGENTS/BROKERS/PROPERTY MANAGEMENT FIRMS
SELF-AUDIT FACT SHEET


Real Estate Agents/Brokers/Property Management Firms
Purchases by Real Estate Agents/Brokers/Property Management Firms
The taxability of purchases of tangible personal property and labor services by Real Estate Agents/Broker service providers is summarized below. Sales tax should be paid to the vendor or accrued and paid directly to the State of Kansas. A properly completed exemption certificate should be provided to your vendor for all qualified purchases made without sales tax, unless item is specifically exempted by statute.
Furniture and fixtures, including but not limited to: desks, lamps, tables, chairs, shelving, plants, planters, artwork, signs, flooring Taxable
Copiers, printers, and fax machines Taxable
Laptop and desktop computers Taxable
Calculators Taxable
Cameras of any type, printers and other similar equipment Taxable
Software and software upgrades and labor services to modify, alter, update or maintain canned software. Taxable
Customized software, software upgrades and labor services to modify, alter, update or maintain customized software - "customized" software = software originally developed for a single end user. Taxable on and after July 1, 2002 through December 31, 2004 - Exempt all other periods
Taxable
Lease or rental of any tangible personal property - copier, fax, vehicle Taxable
Security cameras and other security equipment Taxable
Office utilities Taxable
Promotional items including but not limited to: calendars, mugs and items of clothing Taxable
Complimentary items such as balloons, stickers, pens and candy Taxable
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticks Taxable
Advertising as in newspapers, radio, television, signs, etc Exempt
Shredding services Exempt
Cleaning services, plant watering and care Exempt
Trash removal Exempt
Continuing education courses (course materials are taxable) Exempt
Purchase or lease of real estate, Insurance Exempt
Repair and remodeling labor services to commercial real estate Taxable
Labor services on original construction of new building or facility Exempt
Repair and remodeling labor services to residential real estate Exempt
Materials and labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, ATMs, security equipment, etc. Taxable
Warranty or service agreements for tangible personal property such as computers, printers, copiers, ATMs, security equipment, etc. Taxable
Newspaper and magazine subscriptions, reference books and materials, forms, printed matter (including promotional brochures, etc.), business cards, notepads Taxable
Professional services such as accounting or legal services Exempt
Tangible property to be given away or donated Taxable
Sales by Real Estate Agents/Brokers/Property Management Firms
The taxability of sales of tangible personal property and labor services by Real Estate Agents/Broker providers is summarized below. The applicable sales tax must be collected unless the purchaser provides the proper exemption certificate, if applicable.
Real Estate Exempt
Consulting, accounting and bookkeeping services Exempt
Sale of company vehicles Taxable "isolated or occasional sale," the
buyer is required to pay the sales tax upon registration
registration
Software and software upgrades and labor services to modify alter, update or maintain canned software
Taxable
Labor services on real property:(Note: To calculate the taxable portion of a job use the following formula; Gross Sales, Less Subcontractors, Less Taxed Job Materials = Total Labor)
Total labor for improvement to real property at a residence Exempt
Total labor for improvement to real property at a commercial location (unless labor is for the original construction of a building or facility) Taxable




Date Composed: 07/06/2006 Date Modified: 07/06/2006