Are laboratory and analytical testing services (chemical, metallurgical, calibration) subject to Kansas sales tax?

Plain-English summary

A tax representative asked whether a client's testing services are subject to Kansas sales tax. The client provides:

1. chemical analysis on samples, plating, and other process solutions;
2. analysis of mechanical properties;
3. metallurgical testing on samples;
4. pressure, load, hardness, and conductivity testing; and
5. accuracy testing for thermometers, pressure gauges, weights, and load cells.

The Department ruled that these services are not currently subject to Kansas sales tax. But it added the standard caveat for a nontaxable-service provider: the client must pay sales tax on all of its taxable purchases, including tangible personal property and taxable services used to provide those nontaxable testing services.

What this means for you

If you run a testing or calibration lab in Kansas doing this kind of analytical work, you generally do not charge sales tax on the testing service itself.

• The service output is nontaxable. Chemical, metallurgical, mechanical, and instrument-calibration testing were all treated as non-enumerated services outside the sales tax.
• You still pay tax on your inputs. As the final consumer of the equipment, supplies, and taxable services you use to run the lab, you owe sales or use tax on those purchases — you cannot buy them tax-free for "resale."
• "Not currently" is a real qualifier. The Department's answer reflects the law as of the ruling; if the taxability of these services changes, the answer can change with it.

If your business bundles testing with the sale of tangible personal property or another taxable service, that other component may still be taxable — the ruling addresses the testing services as described.

Common questions

Are laboratory testing services taxable in Kansas?
The Department ruled that the described testing services (chemical, metallurgical, mechanical-property, and calibration testing) are not currently subject to Kansas sales tax.

Does the lab owe any tax at all?
Yes — on its own purchases. The provider must pay sales tax on the tangible personal property and taxable services it buys to perform the nontaxable testing.

Is instrument calibration (accuracy testing) taxed?
The ruling lists accuracy testing for thermometers, pressure gauges, weights, and load cells among the services that are not currently subject to sales tax.

Can other testing labs rely on this ruling?
Not directly. A private letter ruling binds the Department only for the requesting taxpayer and the stated facts. Treat it as guidance and confirm your own situation.

Citations and references

• The ruling states the Department's conclusion that the described testing services are not currently subject to Kansas sales tax and that the provider owes tax on its own taxable inputs; it does not quote a specific numbered statute.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1998-28.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

March 18, 1998

XXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXX
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RE: Kansas Sales Tax On Testing Services

Dear XXXXXXXXXXXXX:

We wish to acknowledge receipt of your letter dated March 6, 1998, regarding the application of Kansas Retailers’ Sales tax on various forms of testing.

According to your letter your client provides the following services:

1. chemical analysis on samples, plating and other process solutions
2. analysis of mechanical properties
3. metallurgical testing on samples
4. pressure, load, hardness, and conductivity testing
5. accuracy testing for thermometers, pressure gages, weights and load cells

The services that are described above are not currently subject to sales tax in the state of Kansas. However, your client must pay sales tax on all their taxable purchases, including purchases of tangible personal property and taxable services used to provide the nontaxable services listed above.

If you have any additional questions please contact this office.

Sincerely,

Carol Ireland

Date Composed: 03/19/1998 Date Modified: 10/10/2001

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