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KANSAS DEPARTMENT OF REVENUE

RETAILER/CONTRACTOR EXEMPTION CERTIFICATE

The undersigned contractor-retailer certifies that the tangible personal property purchased from:

Seller

_________________________________________________________________________________________________

Business Name

Address:

_________________________________________________________________________________________________

Street, RR, or P. O. Box

City

State

Zip + 4

is exempt from Kansas sales and compensating use tax for the following reason:

K.S.A. 79-3603(l)(2) provides that a contractor, subcontractor or repairman who maintains an inventory of tangible personal

property both for resale and for use by them for the purpose of erecting structures, or improving altering or repairing real

or personal property, shall be deemed a retailer with respect to purchases for and sales from such inventory.

Description of tangible personal property or services purchased: ___________________________________

__________________________________________________________________________________________

I hereby certify that I hold a valid Kansas Sales Tax Registration Number: ___________________________ , and that

I am in the business of selling: _______________________________________ , and that the location of my retail outlet is:

__________________________________________________________________________. The undersigned understands

and agrees that if the tangible personal property or services are used other than as stated above or for any other purpose

that is not exempt from Kansas sales or compensating tax, the undersigned purchaser becomes liable for the tax.

Purchaser

: _________________________________________________________________________________________________

Business Name

Address:

_________________________________________________________________________________________________

Street, RR, or P. O. Box

City

State

Zip + 4

Authorized Signature: _____________________________________________________

Date

: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY

WHO MAY USE THIS EXEMPTION? Only those contractors, subcontractors, or repairmen who maintain an inventory of merchandise for

the purpose of making retail sales to the public may use this exemption certificate. A retail sale is a sale that does not include installing

the item purchased. A contractor, subcontractor, or repairman who purchases materials for installation on a job-by-job basis and who

does not maintain an inventory for the purpose of making retail sales is not a contractor-retailer, but is a contractor. A contractor may

not use this certificate. A contractor is considered to be the final consumer of the materials purchased from a supplier for a job and,

therefore, must pay sales tax on them when purchased. For more detailed information on how sales tax applies to the construction

industry, consult Information Guide EDU-26, Sales Tax Guidelines for Contractors and Contractor-Retailers, which is available from our

web site:

WHAT PURCHASES ARE EXEMPT? Only merchandise of the type that the contractor-retailer holds in its resale inventory may be

purchased tax exempt with this certificate. Materials and supplies that may be purchased using this certificate include (but are not limited

to): electrical supplies, lumber, nails, paints, plumbing supplies, screws, sheet rock, stains, varnishes, and wallpaper.

WHAT PURCHASES ARE TAXABLE? Tools and equipment necessary to perform a job (often considered overhead items) are TAXABLE.

Contractors and contractor-retailers are the final users or consumers of any tools used in their trade or business and must pay sales tax

on them when purchased. (If purchased from another state, a Kansas compensating use tax will be due if a sales tax equal to at least the

state and local sales tax rate in effect where the item will b e used, stored or consumed has not been paid on the purchase price). For

additional information download Publication KS-1510, Sales and Compensating Use Tax, from the department’s web site. Items such as

drills, drill bits, hammers, nail guns, saws, screwdrivers, tool belts and wrenches are taxable. Tools and construction equipment leased or

rented for a job are also taxable to the contractor or contractor-retailer unless the customer has furnished a Project Exemption Certificate.

LABOR SERVICES. This certificate applies ONLY to items of tangible personal property. Taxable labor services performed by a contractor,

subcontractor or a contractor-retailer can only be purchased exempt from sales tax with a Project Exemption Certificate issued by the

department or its authorized agent.

RETAINING THIS CERTIFICATE. Sellers should retain a completed copy of this certificate in their records for at least three years from the

date of sale. A seller is relieved of liability for the tax if it obtains a completed exemption certificate from a purchaser with which the seller has

a recurring business relationship. A certificate need not be renewed or updated when there is a recurring business relationship between the

buyer and seller. A recurring business relationship exists when a period of no more than 12 months elapses between sales transactions.

ST-28W (Rev. 7/08)

Form Pub. Ks-1525 - Kansas Sales & Use Tax For Contractors Subcontracotrs & Repairmen Page 36

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