Private Letter Ruling

Ruling Number:P-2001-095
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Labor services.
Keywords:
Approval Date:09/06/2001



Body:
Office of Policy & Research


September 6, 2001

XXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX

Dear XXXXXXXXXXXXX:

The purpose of this letter is to respond to your letter dated July 23, 2001.

Kansas taxes labor service to install, apply, alter, maintain, service and repair tangible personal property that remains tangible personal property or has been incorporated into real property. There are exclusions to the imposition. The first or initial construction of a building or facility or the remodeling of a residence. Allow to explain in detail.

In your letter you stated:
Your letter continues with the following questions:

Is labor taxed in this state?

Answer: Yes.

Is mileage taxed in this state?

Answer: Yes, the law taxes the gross receipt of the retailer. The gross receipt includes all charges including mileage.

Is this a Phillips County specific tax?

Answer: The State of Kansas has a retailers’ sales tax in the amount of 4.9% and Philips County does not have a county sales tax.

We thought that only product or materials used/purchased were to
be taxed. (sand, cement, etc.)

Is a service such as handyman to be taxed?

Answer: Generally yes, however if the repair is to a residence the service is exempt. Any materials or repair parts would be taxable.

Is a service such as washing the air conditioner out with a hose and charging mileage to do so, taxed?

Answer: This service would be exempt if performed at a residence.

My elderly parents have much of this work done for them and they pay taxes inclusive on all of the receipts. Thank you for any answers you may find.

This private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to make an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially affects this private letter ruling.


Sincerely,



Mark D. Ciardullo
Tax Specialist

MDC


Date Composed: 09/14/2001 Date Modified: 10/11/2001