Form Pub. Ks-1540 - Kansas Business Taxes For Hotels Motels & Restaurants Page 6
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42Dry Cleaning Environmental Surcharge
price received, including any shipping or handling fee
charged by the hotel. The rate of tax due on the sale of
In addition to the state and local sales tax on dry
tangible personal property is the rate in effect where
cleaning or laundering services, there is also a Dry
the customer takes delivery/possession. If the customer
Cleaning Environmental Surcharge of 2.5%. If you
takes possession of the purchased item in your hotel,
provide dry cleaning and/or laundry services for your
the rate of tax due is the rate in effect at your hotel. If
customers whether in-house or sent out, you must be
you ship the item — it is the rate in effect at the Kansas
registered to collect the Dry Cleaning Environmental
shipping address. See Pub. KS-1700 for the sales tax
Surcharge on these services.
rates in other Kansas jurisdictions.
An Anytown, KS hotel guest requests dry
Shipping, handling and freight charges themselves
cleaning services that the hotel provides.
are not subject to sales tax. However, shipping fees
The hotel guest is charged $10.00 plus
charged in conjunction with the sale of tangible personal
7.525% sales tax, plus the 2.5% Dry
property are taxable when shipped to a customer in
Cleaning Environmental Surcharge for this service.
Kansas.
$10.00 + $0.75 sales tax + 25 cents dry cleaning charge.
Total due = $11.00.
A guest buys a glass vase for $50 plus a
$10 shipping charge from a hotel gift shop
NOTE: When a sale is subject to more than one tax, each tax
in Lakin, KS, and requests that it be
should be separately stated on the bill. If the 2.5% dry
shipped to Havana, KS. The hotel will
cleaning surcharge is included in your charge for the service
($10.25), then the $10.25 becomes the tax base for
charge sales tax on the $60; the Havana, KS rate
computing the sales tax. $10.25 X 7.525% sales tax =
(currently 6.3%), rather than the hotel’s Lakin, KS rate
$0.77, for a total due of $11.02.
of 7.3%. The hotel has arranged for UPS to pick up
packages every day. No sales tax is paid to UPS.
When a hotel sends its guests’ clothing out to a third
party laundry or dry cleaner, the hotel may purchase
Shipments Out of State
this service exempt from the sales tax and the surcharge
with a Dry Cleaning and Laundry Retailer Exemption
Kansas sales tax is not due on the sale of the item
Certificate (ST-28X) on page 31. The hotel operator
(or any shipping or freight charge) if it is shipped,
will collect the Dry Cleaning Environmental Surcharge
transported or delivered to a point outside of Kansas.
and the sales tax on the total cleaning bill to its guest.
The guest buying the glass vase in the
A hotel guest requests laundry services
previous example requests that the item
which the hotel sends out to Anne’s
be shipped to Kansas City, MO. Since it is
Laundry. The hotel should give Anne’s
being mailed outside Kansas, Kansas
Laundry a completed Dry Cleaning and
sales tax is not due on either the vase or the shipping.
Laundry Retailer Exemption Certificate (pay no sales
However, the consumer of the vase in Kansas City,
tax or environmental surcharge to Anne’s Laundry) and
MO may owe a Missouri Use Tax — contact the Missouri
then charge its guest sales tax plus the Dry Cleaning
Department of Revenue for that information.
Environmental Surcharge on the $10 it charges for dry
cleaning and/or laundry services.
AMUSEMENT AND ENTERTAINMENT
The Dry Cleaning Environmental Surcharge is not
collected on: 1) services provided to the public through
The sale of admissions to places providing
coin operated devices; 2) laundering and rentals of
amusement, entertainment or recreation is subject to
uniforms, linens, dust control materials and other textiles
Kansas sales tax. A cover charge is an example of a
for commercial purposes that are cleaned without using
taxable admission.
dry cleaning solvents; and 3) services purchased
directly by entities exempt from paying sales tax (see
A Topeka hotel charges $25 per couple to
pages 4 and 5).
attend a New Year’s Eve celebration.
Food and drinks are billed separately.
More information about the Dry Cleaning Environ-
Kansas sales tax is due on the $25
mental Surcharge is in KDOR’s Notice 99-10, available
admission fee. The food and nonalcoholic drinks are
in the Policy Information Library on our web site.
also subject to sales tax.
GIFT SHOPS
A Topeka hotel charges $125 per couple
to attend a New Year’s Eve celebration.
Sales of items from gift shops, newsstands, etc. are
The separately stated items on the billing
subject to sales tax. All items that a hotel purchases for
include two dinners (valued at $40), a
the purpose of reselling to its guests (inventory) can be
sleeping room (valued at $70) and one bottle of
purchased tax free with a completed Kansas Resale
champagne (valued at $15). Kansas sales tax is due
Exemption Certificate (ST-28A), given to the hotel’s
on the $40 dinner and the $70 sleeping room. Transient
supplier(s). You then collect sales tax on the total sales
guest tax is also due on the $70 sleeping room (see
6
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