Form Pub. Ks-1525 - Kansas Sales & Use Tax For Contractors Subcontracotrs & Repairmen Page 9
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494) the work would have been performed at the time
Labor services to install lighting or signs, or to seed
or reseed right-of-ways adjacent to the road or bridge
of original construction except for circumstances
are exempt when performed in conjunction with bridge
beyond the owner’s control*.
or highway work. The services of grading, leveling, filling,
*
Circumstances beyond the owner’s control include unavailability of
and other roadbed preparation are not subject to sales
material, weather, death, or bankruptcy of the contractor. They DO
tax since they are performed on real property. See also
NOT include instances where the owner merely falls short of funds or
Nontaxable Services herein.
when, after taking possession, contracts for additional services.
A developer builds a new shopping mall,
Bridge and highway projects are usually performed
for a governmental entity. See Exempt Projects herein.
but only part of the area is leased when
the mall opens. The interior finish work
on the unleased portion of the project is
TAXABLE LABOR SERVICES
completed as leases with tenants are signed. Labor
services to complete the unfinished portion of the new
Taxable labor services in Kansas are the services of
shopping mall are exempt from sales tax as original
installing, applying, servicing, repairing, altering, or
construction, but only for the first tenant of that space.
maintaining tangible personal property that are
The labor services performed after the initial completion
performed on real property projects in the general
of the unfinished portion are TAXABLE.
category of commercial remodel work. The rate of sales
tax due on the labor portion on the invoice is the rate of
4. Damage due to fire, flood,
sales tax in effect where the installation/application took
tornado, lightning, explosion, ice
place. These are projects that are not considered to be
loading and attendant winds,
residential, original construction or exempt for another
windstorm, terrorism or earthquake
reason (see Exempt Projects).
Original
construction
includes
restoration,
Examples of taxable labor services performed in, on
reconstruction or replacement of a building, facility or
or around an existing commercial building or facility
utility structure when the damage is the result of fire,
include but are not limited to:
flood, tornado, lightning, explosion, windstorm, ice
• remodeling its interior or exterior
loading and attendant winds, terrorism or
• painting or wallpapering
earthquake. A utility structure is a transmission,
• repairing damage caused by a broken water line
distribution line owned by an independent transmission
• installing or repairing its driveways, fences, parking
company or cooperative, the Kansas electric
lots, and sidewalks
transmission authority or natural gas or electric public
• landscaping — planting trees, shrubs, and flowers,
utility. A windstorm means straight line winds of at least
installing irrigation, timbers
80 miles per hour as determined by a recognized
• plumbing, electrical or HVAC work
meteorological reporting agency or organization. The
• roofing, siding and guttering
utility structure, windstorm, ice loading and
• changing light bulbs
attendant winds, terrorism provisions were effective
July 1, 2007. Restoration, repair or replacement work
Examples of the taxable services of servicing, altering,
done on commercial property damaged by hail, ice,
repairing, or maintaining tangible personal property,
straight winds (other than windstorm or ice loading, as
include but are not limited to service work performed on:
defined above), rain, snow, vandalism, age,
• existing oil, gas or water wells
deterioration, or any other cause is TAXABLE.
• appliances
• furniture
NOTE: Repairs to a residence (as defined herein) are exempt
• machinery and equipment
regardless of the cause of the damage.
• vehicles
When performing labor services under this
Contractors, subcontractors and repairmen must
exemption, you should obtain a notarized affidavit from
charge sales tax whenever they are performing these
the owner of the commercial building or facility stating
and other taxable labor services discussed in this section.
that the damage was caused by one or more of these
(See Contractor’s Liability and The Sales Tax Base.)
reasons. Often this type of work is documented with an
insurance claim.
Demolition
5. Bridge or highway work
Services performed to dismantle, demolish, raze or
destroy a building or facility or a portion of a building or
Labor services to construct, reconstruct, restore,
facility are TAXABLE. However, if the demolition services
replace, or repair a bridge or highway in Kansas are
are performed in connection with the original construction
exempt from sales tax. A highway is any way or place
of a building (residential or commercial) or facility on the
used for public vehicular travel, but does not include
same site, the charge for demolishing the existing
any roadway or driveway on property owned by private
structure becomes exempt from sales tax as original
owners or by colleges, universities, or other institutions.
construction.
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