Form St-44 - Nonresident Contractors Information Form (Page 2 of 2) in pdf

NONRESIDENT CONTRACTORS TAX ACT

K.S.A. 79-1008 THROUGH 79-1015

NONRESIDENT CONTRACT ACT DEFINED: The purpose of the Nonresident Contractors Act is to ensure the receipt of all taxes

due the State of Kansas, political subdivisions thereof, and contributions due under the Employment security Law by contractors and

subcontractors who are nonresidents of this state. The act defines a contractor as individuals, partnerships, firms, corporations or other

associations of persons engaged in the business of construction, alteration, repairing, dismantling, or construction of real or personal

property.

REGISTRATION: Nonresident contractors or nonresident subcontractors desiring to engage in, prosecute, follow or carry on the

business of contracting shall register with the Director of Taxation for each contract where the total contract price or compensation

received amounts to more than ten thousand dollars ($10,000). Provided, a foreign corporation, authorized to do business in this state,

by the Secretary of State, shall no be required to register with the Director of Taxation.

FAILURE TO REGISTER OR FILE BOND: Every contractor or subcontractor failing to comply with this act by being registered and

bonded before beginning performance of any contract shall be denied the right to perform such contract(s), by injunction proceeding,

until all requirements have been met. The injunction may be initiated to prevent any activity in the performance of the contract until

registration is made and a bond executed and filed.

Any contractor or subcontractor failing to register or comply with the provisions of this act shall not be entitled to maintain an action

to recover payment for performance in the courts of this state on such contract and shall be guilty of a misdemeanor.

SURETY BOND: Every contractor or subcontractor required to register any contract(s) shall before entering the performance of such

contract(s), execute and file with the Director of Taxation a good and valid bond in a surety company authorized to do business in

Kansas or with sufficient sureties to be approved by the Director of Taxation. The bond must be filed with the Director of Taxation

before beginning any contract in the State of Kansas.

AMOUNT OF BOND: If a nonresident contractor of subcontractor is not registered with the Secretary of State as a foreign

corporation and the amount of the contract is greater than ten thousand dollars ($10,000), the contractor or subcontractor must execute

and file a bond with the Director of Taxation for the amount not less than one thousand dollars ($1,000). If eight percent (8%) of the

contract amount is an amount greater the one thousand dollars ($1,000), a bond for the greater amount must be executed and filed with

the Director of Taxation. In those instances where there is sales tax exempt project, the amount of the bond need only be four percent

(4%) of the contract price or one thousand dollars ($1,000), whichever is greater. A copy of the project exemption certificate must

accompany this information for. The original bond must be sent to the Director of Taxation. A copy of the information form must

accompany the original bond.

SURETY BOND AND SUBSEQUENT CONTRACTS: A surety bond filed with the Director of Taxation may encompass more than

one contract, provided the other contract(s) were commenced during the same calendar year and the bond was submitted as a “blanket

bond”. The Director of Taxation shall, if necessary, require such bond to be increased in the amount sufficient to cover the tax

liabilities accruing to Kansas or the political subdivisions thereof or upon written request from the Employment Security Division.

RELEASE OF SURETY BOND: When any contractor or subcontractor shall have fully performed all contracts registered during the

current calendar year, the bond may be released by the Director of Taxation upon the payment of all applicable taxes and contributions

to the Employment Security Division. In order to expedite the release of the bond, the contractor should request form the Business

Tax Bureau, Tax Registration Section, sixty (60) days prior to the expected completion date. Appropriate forms will be mailed for the

bond release.

LIABILITY OF GENERAL CONTRACTORS: The general contractor should make sure any and all subcontractors who are subject

to the act are also duly registered and bonded in order to protect the contractor from liability for the subcontractors’ tax liabilities.

OTHER TAX LIABILITIES: Any contractor or subcontractor, in addition to registering each contract with this department, may be

liable for sales tax, consumers use tax, individual or corporate income tax, withholding tax, contributions due for employment security

and personal property tax. Enclosed is a Business Tax application. For additional information, direct your call to the officers listed

below:

Registration and Bond Information

785-296-5313

Sales & Consumers Use Tax Information

785-368-8222 or 1-877-526-7738

Individual Income and Corporate Tax

785-368-8222 or 1-877-526-7738

Employment Security Contributions

785-296-7082

Secretary of State

785-296-4564

For information regarding personal property tax, contact the County Treasurer’s office in the county where the contract is located.

Form St-44 - Nonresident Contractors Information Form Page 2

Related Articles

Related forms

Related Categories