Information Guide

Identifying Information:Boat/Watercraft Dealers and Marina's Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Boat/Watercraft Dealers and Marina's Self-Audit Fact Sheet
Keywords:


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
Boat/Watercraft Dealers and Marina’s
SELF-AUDIT FACT SHEET

The taxability of sales and purchases of tangible personal property and labor services by Boat Dealers and Marinas is summarized below. This list is not all-inclusive.

Purchases by Boat/Watercraft Dealers and Marinas:
Kansas sales or compensating use tax applies to those purchases recorded as taxable in the chart below. The applicable Kansas sales or Kansas consumers’ use tax must be paid to the vendor or accrued and remitted directly to the Kansas Department of Revenue. Purchases from Kansas vendors may be reported using the retailers sales tax return. Purchases from outside this state which are delivered to this state are to be reported on the Kansas consumer’s compensating use tax return.

Purchases for use
Equipment used to service boats and/or trailers such as boatlifts, engine hoists, tools and associated equipment.Taxable
Boatyard equipment including powerboat and sailboat standsTaxable
Dock accessories including de-icers, water agitator systems, fish cleaning stations, lights and laddersTaxable
Repairs and maintenance to existing buildings, and existing covered structuresTaxable
Portable toilets, waste removal and hauling and setting upTaxable
Tangible property to be given away or donated. (Items that are given away or donated to a tax exempt entity are not subject to sales tax as of April 2007)Taxable
Uniforms, Shop apparelTaxable
Educational materials, posters, maps or other literatureTaxable
Docking and docking systemsTaxable
Motor vehicle fuel (gas & diesel) purchased for off road use when purchased without paying the motor fuel excise tax. This includes fuel in which the motor fuel tax (road tax) has been refunded to you.Taxable
Motor vehicles and accessories (including forklifts and other equipment) Taxable
Maintenance/repair of motor vehicles and accessories including lifts and other mechanical equipmentTaxable
Furniture and fixtures, including but not limited to: desks, lamps, tables, chairs, shelving, plants, planters, artwork, signsTaxable
Linen servicesTaxable
Laptop and desktop computers, copiers, printers, fax machines, calculators and other similar equipmentTaxable
Printed materials production and distribution (such as direct mail items)Taxable
Security systems monitoring serviceExempt
Canned Software and software upgrades and labor services to modify, alter, update or maintain software.Taxable
Custom software, custom software upgrades and labor services to modify, alter, update or maintain customized software.
"Custom" software = software developed for a single end user.
Exempt
Newspaper and magazine subscriptionsTaxable
Lease or rental of any tangible personal property - copier, fax, vehicleTaxable
Advertising in newspapers, radio, television, etc.Exempt
Security cameras and other security equipment purchasedTaxable
Promotional items including but not limited to: calendars, mugs and items of clothingTaxable
Plumbing, wiring, cabinets and other installation and repair servicesTaxable
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticks, balloons stickers, pens and candyTaxable
Pest control materials and suppliesTaxable
Janitorial suppliesTaxable
Trash removal, shredding services, cleaning services, plant watering and careExempt
Utilities including but not limited to electricity, gas and waterTaxable
Utilities used in providing a taxable service (such as used in powering equipment used in repairing a boat).Exempt
Continuing Education courses (books and other course materials are taxable)Exempt
Repair and remodeling labor services to commercial real estateTaxable
Labor services on original construction of new building or facilityExempt
Parts and labor services of repairing, servicing, altering or maintaining tangible personal property, such as boats, 4 wheelers, tractors, computers, printers, copiers, security equipment, etc.Taxable
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, security equipment, etc.Taxable
Professional services such as legal or accounting servicesExempt
Telephone answering servicesTaxable

The taxability of sales of tangible personal property and labor services Boat/Watercraft Dealers and Marinas is summarized below. This list is not all inclusive. The applicable sales tax must be collected unless the purchaser provides a proper exemption certificate.

Sales by Boat/Watercraft Dealers and Marinas

Boat Slip or vehicle/trailer parking rental fees (separately stated)Exempt
Retail sales of tangible personal property including snacks, beverages, boating equipment, dock supplies, skis, lifejackets, fishing bait, fishing equipment, etc.Taxable
Association membership fees when payment allows use of facilities for recreation or entertainment.Taxable
Motor fuel dispensed to boats where the marina’s fuel supplier has billed and collected the appropriate Kansas fuel excise tax.Exempt
Association membership fees that include, and do not separately itemize a boat slip, boat maintenance or space rental.Taxable
Sale of Boats, Trailers, 4 wheelers, wave runners, jet skis and all associated equipment, including brokering the sale, regardless of state of residency of purchaser when picked up at the dealership/marina. (1)Taxable
Sale of Boats, Trailers, 4 wheelers, wave runners, jet skis and all associated equipment, including brokering the sale, when delivered to the customer outside the State of Kansas. (Subject to other states taxing requirements)Exempt
Winterization, summarization and general maintenance services of boats and trailers including battery charging.Taxable
Repair, painting, tune-ups, fiberglass and hull repair, of boats and/or trailersTaxable
Repair work done under a warranty (deductible portion paid by customer is taxable)Exempt
Admissions for swimming, concessions and towel rentalsTaxable
Rental of Equipment including wave runners, ski equipment, boats, life vests, canoes, paddle boats and fishing equipment.Taxable
Boat waxing, polishing and detailing.Taxable
Boat/trailer summer or winter storage fees. (When charges separately stated from other taxable services including maintenance charges).Exempt

(1) Manufacturers’ rebates extended on purchases or leases of boats, trailers, off-highway equipment, and other merchandise shall be treated as a form of payment and shall not reduce the selling price of the merchandise even if the right to receive payment of the rebate is assigned to the retailer. The full original sales price, prior to the applying of the rebate, shall be used as the taxable base.

Note: Kansas tax applies to the “gross receipts” from the sale of taxable goods or services in Kansas. Gross receipts include any amounts collected from the customer including any charges billed for freight, delivery or special handling.


Date Composed: 08/12/2009 Date Modified: 08/12/2009