Questions and Answers

Identifying Information:Portable toilets - port-a-potties
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Portable toilets, portable offices, and PEC's
Keywords:
Approval Date:11/13/2008



Body:
Office of Policy & Research

How are charges for portable toilets taxed in Kansas?

Charges for furnishing portable toilets for temporary use are subject to Kansas sales tax as charges for the lease or rental of tangible personal property. The tax base for these transactions includes:

A business that buys portable toilets to lease exclusively to third parties may claim a resale exemption when it buys the toilets. A business that buys portable toilets to use in its own business operations and to lease on occasion may not claim an exemption when buying toilets. An exemption may not be claimed on the purchase of trailers and dollies that are used to haul or move the toilets or on the purchase of equipment used to remove waste.

A business that may claim a resale exemption when it buys a portable toilet may also claim a resale exemption when it buys toilet paper, hand soap or hand sanitizer, or paper hand towels that it furnishes with the toilet under the lease agreement. However, the business may not claim an exemption when it buys cleaning supplies, cleaning solutions, or chemicals that it will use to clean or deodorize the portable toilet or when removing waste.

Are leases of portable toilets exempt under a project exemption certificate? Do such leases qualify for an agricultural exemption?

No. The lease of portable toilets, portable offices, office equipment, construction trailers, and storage containers are always taxable even when leased or rented for a project that is exempt under a project exemption certificate. When renting or leasing portable toilets, portable offices, office equipment, construction trailers, and storage containers, a contractor shall not claim that a project exemption certificate exempts the lease or rental charges, and a leasing or rental company shall not honor such an exemption claim if one is made.

A lease of a portable toilet to a farmer or rancher is taxable since a portable toilet is not equipment that is used directly in agricultural production. A leasing or rental company should not honor a agricultural exemption certificate when renting or leasing portable toilets. Similarly, the agricultural exemption also does not exempt the lease or rental of tents, tables, cooking equipment, and other equipment that is used to feed custom cutters and other farm laborers in the field.




Date Composed: 11/13/2008 Date Modified: 11/13/2008