Form Pub. Ks-1525 - Kansas Sales & Use Tax For Contractors Subcontracotrs & Repairmen Page 12
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49While at the dealer’s service department,
As a plumbing contractor, you are hired to
a car’s windshield is accidentally broken.
install a new septic tank for a farmer. Your
The dealer brings the car to you for repair.
charge for the excavation work, backfilling,
Since the dealer is the final consumer of
and grading around the installed septic tank
this windshield repair (he will not bill the car’s owner for
are not taxable. The contractor should pay sales tax on
it), this repair for the dealer is subject to sales tax.
the septic tank at the time of purchase and collect sales
tax from the farmer on the fee to install.
THIRD-PARTY INSTALLERS
CAUTION: If excavation or other nontaxable
services are not separately stated on the invoice,
Taxable labor services may also be resold when
then all charges are taxable. In above example,
performed by repairmen working as third party installers
if the excavation services to the farmer are not separately
for a retailer. As with repair and warranty work, this is
stated, then the entire charge is subject to sales tax.
only allowed when the retailer is collecting sales tax from
the customer on the entire job (retail sale of property
Lawn and Landscaping Services
with installation).
Services provided by the lawn care profession may be
You deliver and install appliances for a
either taxable or not taxable. If the service involves the
number of retailers. Since each retailer
installation or application of tangible personal property,
has collected the state and local sales tax
the service is generally TAXABLE. However, the installation
on the total price of the appliance plus
or application of tangible personal property at a residence
installation (whether separately stated on the invoice
or in connection with the original construction of a building
or not) from the customer, you may accept a Resale
or facility is exempt. (See Residential Labor Services and
Exemption Certificate from the retailer in order to exempt
Original Construction section of this booklet.)
your appliance installation services.
The following list contains some common lawn care
NON-TAXABLE SERVICES
services that are not taxable under any circumstance. For
more information on this subject, consult EDU-30, Sales
This section discusses representative examples of
Tax Guidelines for Lawn & Garden Care, Pest Control,
services surrounding the construction and repair
Fertilizer Application, Landscaping and Retail Sales.
industries that are not taxable because they are not
Aerating
Lawn cleanup
Rototilling
services to install, apply, maintain, service, or alter
Dethatching
Mowing
Trimming/Edging
tangible personal property. Services that are not taxable
Soil Testing
Tilling/Plowing
Tree/Stump Removal
include but are not limited to:
Backflow Testing
Raking
Snow Removal
Architect fees
Real estate sales fees
Engineering fees
Surveying fees
IMPORTANT: The application of pesticides,
Laboratory fees
Testing fees (radon, etc.)
herbicides and fertilizers to residential lawns is
Site/Structural inspection fees
taxable. Applicators should purchase the pesticides,
Additional information and examples are in the Policy
herbicides and fertilizers exempt from sales tax and charge
Information Library (PIL) on our KDOR web site. For
their customers (residential and commercial) sales tax on
questions about the tax treatment of a specific service,
the total charge (materials and labor), even when these
consult the PIL and/or contact KDOR using the tools in
services are performed in conjunction with the first or
the Taxation Resources section of this booklet.
original construction of a building or facility, or at a residence.
Excavation Services
Cleaning Services
The services of excavating, bulldozing, back-hoeing,
Cleaning services, such as air-duct cleaning, carpet
trenching, grading, and backfilling are not taxable. These
cleaning, chimney sweeping, dusting, drain cleaning,
are services to prepare land (realty) and do not involve
house cleaning, septic tank cleaning, snow removal,
the installation or application of tangible personal property.
swimming pool cleaning, and vacuuming are exempt if the
only service provided is that of cleaning. Note: As with
However, if you buy dirt, rock, or sand to apply to an
excavation services, any nontaxable work must be
area, these materials are subject to tax, and your labor
separately stated on the invoice when done in
to apply or spread these materials is also taxable (unless
conjunction with taxable work.
done in connection a residential or original construction
project). When you enter into one contract for both
CAUTION: Cleaning services that involve the
installation and excavation services, the invoice may
application of tangible personal property, such
be divided into taxable installations of personal property
as waxing, varnishing, applying fabric treatments
(such as applying dirt or installing pipe) and nontaxable
excavation services.
or protective coatings to furniture or carpet, are taxable.
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