Form Pub. Ks-1540 - Kansas Business Taxes For Hotels Motels & Restaurants Page 8
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42• Fees for personal services performed on corporeal
sheets, signs, sinks, solvents, stoves, swimming pool
(physical) body – and not tangible personal
chemicals, tables, telephones, televisions, toasters,
property –such as haircuts, manicures, massages,
toilets, towels, uniforms for employees, vacuum
shampoos, perms, styling and sculptured nails.
cleaners, vacuum cleaner bags, VCRs, wash cloths,
• Safe or security box fees.
water fountains, water heaters and wastebaskets.
• Shuttle or transportation fees.
• Return check fees.
Utilities such as water, gas, electricity and fuel, are
• Parking fees.
subject to the state and local sales tax rate in effect at
• Fees to fax documents.
the customer’s location. These utilities, as well as phone
• Internet and computer fees. Each sleeping room
service, cable TV, etc., which are for a hotel’s own use
has a computer jack. The hotel charges its guest
are subject to the state and local sales tax. This would
a fee for its use – the fee is not subject to sales
include water, gas, electricity and fuel used in the hotel’s
tax. Any fee the hotel charges its guest for
common areas, offices, meeting rooms, banquet rooms,
Internet access is also not subject to sales tax.
swimming pools, etc. Exceptions to this general rule are
discussed on page 10, Exempt Purchases – Consumed
In Production.
These fees are not taxed because they do not
involve the sale, application, installation, etc. of tangible
Telephone Service
personal property (see Labor Services that follows).
Kansas sales tax is charged on all in-state calls, no
matter where the customer is billed, and on interstate
PURCHASES
calls that either originate or terminate in Kansas and
MADE BY HOTELS
are billed to a Kansas customer. Therefore, hotels must
pay sales tax on all of its phone services, including phone
service used in the rooms it rents out for sleeping
accommodations. Other telephone services that are
TAXABLE PURCHASES
taxed include telephone answering services, mobile
phone, beeper, cellular phone and other similar services.
Hotels are required to pay sales (or compensating
For details, see Revenue Ruling on page 35.
use) tax on every purchase of tangible personal property
and/or taxable services, unless the purchase is
Charges to guests by hotels for telephone access
specifically exempted from sales tax by law. Items and
(local telephone calls) are taxable. For example, if a
enumerated services purchased in Kansas are subject
hotel charges 50 cents per local call, it is an access
to Kansas Retailers’ Sales Tax. Items purchased from
charge and is taxable – the phone company doesn't
vendors located outside of Kansas are subject to a
charge that amount for local calls, but the hotel charges
Kansas Compensating Use Tax. (See page 16.)
the 50 cent fee to guests for accessing telephone
service. When a hotel is charged for a guest's long
A Salina, Kansas motel operator buys five
distance call, the charge billed to the guest to reimburse
television sets from a Kansas appliance
the hotel for the cost of the call is not taxable if the
store for installation in her motel. The
charge equals the amount that the provider billed to
motel operator must pay Kansas sales tax
the hotel for the call. This charge includes the sales tax
on the TVs and any installation charge.
that the provider billed to the hotel on the charge for
the call. Any mark-up that is added to a guest's charge
A hotel must pay sales (or use) tax on its equipment
for a long distance call is taxable as an access charge.
fixtures and supplies. Examples of items a hotel would
typically purchase that are subject to sales tax because
The services of an Internet provider (such as AOL)
the hotel is the final consumer include: air-conditioners,
are not subject to sales tax.
appliances, art work, ashtrays, bathtubs, beds, bedding,
bed skirts, blankets, building materials, booster-chairs,
LABOR SERVICES
carpet, chairs, cleaning supplies, clocks, coffee makers,
comforters, computer equipment and software,
cookware, contractor’s labor, copiers, countertops,
As a general rule, the labor services fee charged by
contractors, subcontractors and repairmen is subject
curtains, deep fryers, desks, dishes, dishwashers,
to sales tax. Specifically, the labor services of installing
drapes, drawers, dressers, equipment, exercise
or applying tangible personal property, and the labor
equipment, door knob hangers, floor cleaners, floor wax,
services of repairing, altering, maintaining or
flowers, freezers, furniture, furnaces, glassware, guest
servicing tangible personal property – whether or not
receipts, grills, hair-dyers, high-chairs, hot water
heaters, ice machines, ice trays and tubs, keys, lamps,
said tangible personal property is attached to or
becomes part of real estate – are subject to sales tax.
laundry soap, linens, locks, luggage racks and carts,
magazine subscriptions, mattresses, mattress covers,
A Pittsburg, KS motel operator calls A1
menus, microwaves, mirrors, newspaper subscriptions,
Heating Co. to repair a furnace in one of
office furniture and supplies, ovens, paint, pillows, pillow
its sleeping rooms and a furnace which
covers, plants, pool tables, radios, ranges, refrigerators,
heats its offices. Since both labor fees
registration cards, silverware, showers, shower curtains,
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