Private Letter Ruling

Ruling Number:P-2000-051
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Computer repair and maintenance services performed at a home or other residence.
Keywords:
Approval Date:10/03/2000



Body:
Office of Policy & Research


October 3, 2000

XXXX
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XXXX Dear XXXX:

I have been asked to answer your letter about computer repair and maintenance. Historically, all repair and maintenance services were taxed under K.S.A. 79-3603(q) and K.S.A. 79-3603(r). These subsections tax service charges for repairing and maintaining tangible personal property.

You ask if computer services performed at a home or other residence continue to be subject to sales tax. You indicate that you were advised that computer repair and maintenance services are exempt when performed at a residence. This advice is incorrect.

The controlling law is 1998 Senate Bill 493. This bill became law on July 1, 1998 and exempts residential repair and remodel work. Before the law took effect, the department issued Notice 98-02 to explain how it would be administered. I have enclosed a copy of the Notice for you to have and review.

Whether Senate Bill 493 now exempts computer repair and maintenance services performed at a residence is answered in Notice 98-02, at Paragraph III:

Normally, repair work done at a residence may be assumed to be exempt. This assumption applies since items repaired in a home are either built into or connected to the residence. As the quoted discussion in the notice shows, this is not the case with computers, televisions, or with almost all furniture. The exemption for residential repair and remodeling does not apply to computers, since they are considered to be tangible personal property located in the residence. Accordingly, computer repair and maintenance services continue to be subject to Kansas sales tax whether done at a residence or elsewhere.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked by operation of law without further department action if there is a change in the controlling statutes, administrative regulations, revenue rulings or case law that materially effects this determination. Enclosure


Date Composed: 10/09/2000 Date Modified: 10/11/2001