Information Guide

Identifying Information:Interior Design Services Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Interior Design Services Self-Audit Fact Sheet
Keywords:
Approval Date:01/25/2006


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
INTERIOR DESIGN SERVICES SELF-AUDIT FACT SHEET



INTERIOR DESIGN SERVICES
Purchases by Interior Design Services:
The taxability of purchases of tangible personal property and labor services by Interior Design 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 purchases made without tax.
Office and Art Supplies, such as, paper, pens, pencils, markers, paints, poster board, glue, easels, etc.
Taxable
Office furniture and fixtures, including but not limited to: desks, lamps, tables, chairs, shelving, plants, planters, artwork, signs
Taxable
Copiers, printers, and fax machines
Taxable
Laptop, desktop computers and drafting equipment/software
Taxable
Canned software & software upgrades and labor services to modify, alter, update or maintain 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
Newspaper and magazine subscriptions, reference books and materials, forms, printed matter (including promotional brochures, etc.), business cards, notepads
Taxable
Lease or rental of any tangible personal property - copier, fax, vehicle
Taxable
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
Parts and labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, etc.
Taxable
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, security equipment, etc.
Taxable
Cleaning services, plant watering and care
Exempt
Advertising as in newspapers, radio, television, etc
Exempt
Continuing education courses
Exempt
Professional services such as legal or accounting services
Exempt
Office utilities
Taxable
Complimentary items such as balloons, stickers, pens and candy
Taxable
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticks
Taxable
Trash removal
Exempt
Promotional items including but not limited to calendars, mugs, and items of clothing
Taxable
All job materials to be installed on a job site such as lumber, nails, screws, concrete, paint, moldings, etc.
Taxable at time of purchase
Items purchased for resale (see taxability of these sales below) including but not limited to: furniture, carpeting, rugs, wall coverings, artwork, plants, pillows, accessories, lighting equipment, picture framing, etc.
Exempt
Sales by Interior Design Services:
The taxability of sales of tangible personal property and labor services by Interior Design service providers is summarized below. The applicable sales tax must be collected unless the purchaser provides a proper exemption certificate.
Consulting
Exempt
Art Direction (supervision of work-in-process)
Exempt
Design
Exempt
Illustrations (finished visual images or graphics)
Taxable
Labor services for installing or maintaining tangible personal property at a residence or commercial property
Taxable
Furnishings including but not limited to: furniture, carpeting, rugs, wall coverings, artwork, plants, pillows, accessories, lighting equipment, picture framing, etc.
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
Taxable




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