Kan. Admin. Regs. § 92-19-66 - Contractors, subcontractors and repairmen; purchases of material
(a) Sales of
building material or other property to contractors, subcontractors or repairmen
for use by them in building, constructing, erecting, equipping, furnishing,
repairing, servicing, altering, maintaining, enlarging, reconstructing or
remodeling shall be taxable. Material used by a contractor, subcontractor or
repairman for a project under original construction shall be subject to sales
tax. Each contractor, subcontractor or repairman is deemed to be the final user
or consumer of material used by the contractor, subcontractor, and repairman in
construction projects. Each contractor, subcontractor or repairman shall not
give, and each retailer shall not accept, a resale exemption certificate to
purchase material without sales tax.
(b) Each contractor, subcontractor or
repairman shall be responsible for the payment of sales tax on all materials
and supplies purchased for use by the contractor, subcontractor or repairman in
erecting structures for others, or for building on, or otherwise improving,
altering or repairing real or personal property of others.
(c) Each retailer whose principal line of
business is the retail selling of tangible personal property to the final user
or consumer, but who also performs contractor services, may purchase material
exempt from sales tax for resale purposes. When the retailer engages in a
construction project as a contractor and removes material from inventory to
perform the project, the retailer shall report and pay the proper sales tax on
the cost of the material on the retailer's sales tax return.
(d) The taxing event shall be deemed to occur
at the time a contractor purchases material, or when a retailer who is also a
contractor removes material from inventory to perform a construction project.
Therefore, bulk purchases of all material by persons who are contractors only,
and all material removed from inventory by a retailer to perform a construction
project shall be subject to sales tax at the time of purchase or at the time
the material is removed from inventory, even though the material may be used in
a construction project outside of Kansas. No deduction, exclusion, refund or
credit for sales tax shall be allowed when a contractor purchases material in
Kansas, or when a retailer who is also a contractor removes material from
inventory as a sale in interstate commerce, even though the material may be
used in a construction project outside of Kansas.
Notes
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