Form Pub. Ks-1525 - Kansas Sales & Use Tax For Contractors Subcontracotrs & Repairmen Page 4
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49using materials provided by the property owner or by
Additional information may be obtained from Information
another contractor. Contractor means general
Guide, EDU-28, Sales Tax Guidelines for Businesses
that Sell and Service Appliances and Electronic Products.
contractor, subcontractor, or specialty contractor, unless
the context indicates otherwise. In general, contractors
are required to pay sales tax on their materials and
Fabricator means a person or business that
produces an article of tangible personal property to the
collect sales tax from their customer on the fee they
charge for installing or applying the materials. See the
special order of a customer. In essence, the sales by
following Contractor Purchases section for a discussion
fabricators are treated as retail sales. When the article
of the specific rules pertaining to contractors. Additional
is delivered to a buyer in Kansas, the fabricator is
information may be obtained from Information Guide,
required to collect state and local Kansas sales or use
tax on the selling price of the fabricated article. Examples
EDU-26, Sales Tax Guidelines for Contractors and
Contractor-Retailers.
of businesses that are treated as “fabricators” for sales
tax purposes include: Copy and Duplicating Services,
NOTE: Throughout this guide the term contractor will be
Desktop Publishing Companies, Dental Laboratories,
used. Unless otherwise specifically noted, the term
Drapery Makers, Meat Cutting and Butchering Services,
contractor will also include subcontractors and contractor-
Photographers, Sign Makers, Tailors and Seamstresses,
retailers performing the services described under the
and Taxidermists. Additional information may be obtained
contractor definition.
from Information Guide, EDU-27, Sales Tax Guidelines
Contractor-retailer means a person or business
for Fabricators.
that acts as a contractor when it performs construction
contracts and as a retailer when it sells tangible personal
Contractor-Fabricator and Contractor-Manu-
property at retail. A contractor-retailer holds itself out as
facturers are businesses that enter into construction
providing construction services and operates a retail
contracts and, in the course of performing a contract,
showroom or otherwise maintains an untaxed resale
install articles that the business fabricated or
inventory to sell merchandise from. A contractor-retailer
manufactured. Examples of fabricated or manufactured
withdraws merchandise from the untaxed resale inventory
articles include prefabricated roof and floor trusses, wall
to use in their construction projects and to sell at retail.
panels, stairs, windows, cabinets, doors, precast
In general, when a contractor-retailer withdraws
concrete floors, and heating and air-conditioning ducts.
merchandise from inventory to install for another, the
Additional information may be obtained from Information
contractor-retailer must accrue sales tax on the cost of
Guide, EDU-29, Sales Tax Guidelines for Contractor-
the materials and collect sales tax from its customer on
Fabricators and Contractor-Manufacturers.
the fee they charge for installing or applying the
materials. The discussion of the specific rules pertaining
to contractors apply equally to contractor-retailers when
CONTRACTOR PURCHASES
the contractor-retailer is acting as a contractor by
installing materials for others. Additional information may
be obtained from Information Guide, EDU-26, Sales Tax
Guidelines for Contractors and Contractor-Retailers.
MATERIALS
Repairmen means a person or business whose
work involves the repair, service, alteration or
maintenance of tangible personal property – either in
G
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: M
T
ENERAL
ULE
ATERIALS ARE
AXABLE
connection with real property, or as a repair of tangible
personal property. In general, the sales tax rules that
All contractors (whether contractors or contractor-
apply to contractors do not apply to repairman. In
retailers) are considered to be the final user or consumer
general, repairman follow the same rules as retailers
of the materials they install for others, and must pay
(i.e., they purchase materials and parts exempt from
Kansas sales or use tax on them. Under K.S.A. 79-
sales tax and charge their customer sales tax on the
3603(l), sales tax applies to:
total bill). See page 11 for a discussion of the specific
“......the gross receipts received from the sales of tangible
rules pertaining to repairmen. Additional information may
personal property to all contractors, subcontractors and
be obtained from Information Guide, EDU-28, Sales Tax
repairmen for use by them in erecting structures, or
Guidelines for Businesses that Sell and Service
building on or otherwise improving, altering, or repairing
Appliances and Electronic Products.
real or personal property.”
Retailer includes a person or business that sells
Contractors
building materials and other tangible personal property
at retail. Contractor-retailers are treated like retailers
Contractors buying materials and supplies from a
when they sell or repair tangible personal property at
Kansas retailer must, by law, pay the retailer (and the
retail without agreeing to install it and when they sell or
retailer must collect) the appropriate Kansas state and
repair appliances, electronic products, and certain other
local sales tax on this retail sale. Retailers may offer
contractor discounts, but the sale of materials to a
listed items at retail and agree to provide set up services.
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