Are drain cleaning services subject to Kansas sales tax?

Plain-English summary

A drain cleaning business asked whether its services are subject to Kansas sales tax. The Department ruled the services are not taxable — but the provider owes tax on the things it buys to perform them.

The service is not taxed. "The services that you are providing are not currently subject to sales tax in the state of Kansas." Kansas taxes only services that the statute specifically lists, and drain cleaning is not among them.

But the provider pays tax on its inputs. "However, you must pay sales tax on all articles of tangible personal property and all taxable services purchased to provide the nontaxable services." Because the provider is the final consumer of the supplies and taxable services it uses, it pays the tax on those purchases rather than passing sales tax through to customers.

What this means for you

Drain cleaning and similar service providers

Do not charge your customers Kansas sales tax on drain cleaning services. The service is not one of the enumerated taxable services, so the receipts are not taxed.

You are the consumer of your supplies

The flip side is that you pay sales tax when you buy the tangible personal property and taxable services you use to do the job — you cannot buy those tax-free for resale, because you are not reselling them; you are consuming them to provide a nontaxable service.

"Not currently" is a reminder to re-check

The ruling said drain cleaning is "not currently" taxable. Kansas can add services to the taxable list, so confirm the service is still non-enumerated before relying on this today.

Common questions

Q: Do I charge sales tax to customers for drain cleaning in Kansas?
A: No. The Department ruled drain cleaning services are not currently subject to Kansas sales tax.

Q: Do I pay sales tax on the supplies I use?
A: Yes. You must pay sales tax on all tangible personal property and taxable services you purchase to provide the nontaxable service.

Q: Could that change?
A: Possibly. The ruling said the service is "not currently" taxable; Kansas can add services to the taxable list, so re-check current law.

Citations and references

• The Department did not cite a specific K.S.A. exemption. The holding rests on Kansas taxing only enumerated services: because drain cleaning is not an enumerated taxable service, the receipts are not taxed, while the provider pays tax on the property and taxable services it buys to perform the work.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-05

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

January 12, 1999

TTTTTTTTTTT
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RE: Drain Cleaning Services

Dear Mr. TTTTTT:

We wish to acknowledge receipt of your letter dated November 22, 1998, regarding the application of Kansas Retailers’ Sales tax.

The services that you are providing are not currently subject to sales tax in the state of Kansas. However, you must pay sales tax on all articles of tangible personal property and all taxable services purchased to provide the nontaxable services.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It 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 ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially effects this private letter ruling. If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

Date Composed: 01/21/1999 Date Modified: 10/11/2001

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