Ezel / Tax Rulings / KS
KS P-1998-85 Kansas Retailers' Sales Tax 1998-08-21

Does a nursing home count as a 'residence' for the Kansas sales tax exemption on residential construction and repair labor?

Short answer: Yes. Under K.S.A. 79-3603(p), as amended by 1998 Senate Bill 493, installation or application labor services for the construction, reconstruction, restoration, remodeling, renovation, repair, or replacement of a residence are exempt from Kansas sales tax. Per Notice 98-02, the Department defines 'residence' to include nursing homes, so a nursing home qualifies for the residential exclusion.

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This page answers the general question as of 1998. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 1998
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Private Letter Ruling (issued under K.A.R. 92-19-59). It binds the Department only as to the specific retailer who requested it and the facts stated; taxpayer-identifying details are redacted. It may not be cited or relied upon as precedent by any other person, and it ceases to be valid if a statute, regulation, or interpretation it relied upon changes substantially. Kansas state and local sales and use taxes are administered centrally by the Department, so there is no self-collected home-rule city tax outside its scope. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

The Department was asked whether a nursing home is a "residence" for the new residential construction and repair labor exemption.

The exemption. "As amended by SB 493, K.S.A. 79-3603(p) exempts charges for installation or application labor services when such services are performed in connection with 'the original construction, reconstruction, restoration, remodeling, renovation, repair or replacement of a residence.'"

"Residence" includes nursing homes. "Per Notice 98-02, the department defines 'residence' to include nursing homes."

The conclusion. "It is the opinion of the Kansas Department of Revenue that a nursing home would qualify for exclusion from Kansas retailers' sales tax for residences as contained in SB 493, K.S.A. 79-3603(p)."

Bottom line: because the Department treats a nursing home as a "residence," installation and application labor for the construction, remodeling, renovation, or repair of a nursing home is exempt from Kansas sales tax under K.S.A. 79-3603(p) as amended by 1998 Senate Bill 493.

What this means for you

The residential labor exemption applies to nursing homes

The exemption in K.S.A. 79-3603(p) for labor to install or apply property in connection with residential construction, remodeling, renovation, or repair extends to nursing homes, because the Department defines "residence" to include them.

The Department's definition comes from Notice 98-02

The classification is grounded in Notice 98-02, in which the Department defines "residence" to include nursing homes for purposes of this exemption.

The exemption is about labor services

K.S.A. 79-3603(p) exempts the installation or application labor charges. Whether related materials are taxable is a separate question the ruling does not resolve here.

Confirm the work fits an enumerated category

The exemption covers original construction, reconstruction, restoration, remodeling, renovation, repair, or replacement. The labor should fall within one of those categories for a qualifying residence.

Common questions

Is labor to remodel or repair a nursing home exempt in Kansas?
Yes. Because a nursing home is a "residence," installation and application labor for its construction, remodeling, renovation, or repair is exempt under K.S.A. 79-3603(p), as amended by SB 493.

Where does the "residence includes nursing homes" definition come from?
From Notice 98-02, in which the Department defines "residence" to include nursing homes.

What kinds of work qualify?
Installation or application labor performed in connection with the original construction, reconstruction, restoration, remodeling, renovation, repair, or replacement of the residence.

Does the exemption cover materials?
This ruling addresses the labor-service exemption under K.S.A. 79-3603(p); it does not rule that materials are exempt.

Citations and references

  • K.S.A. 79-3603(p) (as amended by 1998 Senate Bill 493) — exempts charges for installation or application labor services performed in connection with the original construction, reconstruction, restoration, remodeling, renovation, repair, or replacement of a residence.
  • Notice 98-02 — the Department defines "residence" to include nursing homes for purposes of the exemption.
  • K.A.R. 92-19-59 — authorizes Kansas private letter rulings; this ruling binds the Department only as to the requesting taxpayer and the facts presented.
  • Issued August 21, 1998 by Mark D. Ciardullo, Tax Specialist, Kansas Department of Revenue.

Source

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

August 21, 1998

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Dear XXXXXXXXXXXXXXXXXX:

The purpose of this letter is to respond to your letter dated August 4, 1998. This is a private letter ruling pursuant to Kansas Administrative Regulation 92-19-59.

As amended by SB 493, K.S.A. 79-3603(p) exempts charges for installation or application labor services when such services are performed in connection with “the original construction, reconstruction, restoration, remodeling, renovation, repair or replacement of a residence.”

Per Notice 98-02, the department defines “residence” to include nursing homes.

It is the opinion of the Kansas Department of Revenue that a nursing home would qualify for exclusion from Kansas retailers’ sales tax for residences as contained in SB 493, K.S.A. 79-3603(p).

This response private letter ruling is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This private letter ruling will be revoked in the future by operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or a published revenue ruling, that materially effects this private letter ruling.

Sincerely,

Mark D. Ciardullo
Tax Specialist

MDC

encl.

Date Composed: 08/28/1998 Date Modified: 10/10/2001

Table 1

Ruling Number: P-1998-85

Table 2

Tax Type: Kansas Retailers' Sales Tax
Brief Description: Definition of residence includes nursing homes.
Keywords:
Approval Date: 08/21/1998

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