Are snow removal services subject to Kansas retailers' sales tax?

Plain-English summary

A business that removes snow asked whether its snow removal services are subject to Kansas retailers' sales tax. The Department's answer was short: snow removal services are not currently subject to Kansas sales tax.

The reason is that Kansas taxes only enumerated services — the specific services the sales tax act lists — and snow removal is not among them. The Department added the standard caveat for a nontaxable-service provider: it must pay sales tax on all articles of tangible personal property and all taxable services it purchases to provide those nontaxable services.

What this means for you

If you plow or shovel snow for customers in Kansas, you generally do not charge sales tax on the service — but you do bear tax on your own inputs.

• Snow removal is not a taxed enumerated service. You don't collect Kansas sales tax on the snow removal charge.
• You pay tax on your inputs. As the final consumer, you owe sales or use tax on the plows, blades, salt or ice-melt you consume, equipment, and taxable services you buy to run the business.
• Watch for bundled taxable work. If you also perform a taxable service or sell tangible goods, those components can be taxable in their own right — the ruling addresses snow removal as such.
• "Not currently" is a real qualifier. The answer reflects the law as of the ruling; if the taxability of snow removal changes, so could the answer.

Common questions

Is snow removal taxable in Kansas?
No. The Department ruled that snow removal services are not currently subject to Kansas sales tax, because Kansas taxes only enumerated services.

Does the snow removal company owe any Kansas tax?
Yes — on its own purchases. It must pay sales or use tax on the tangible personal property and taxable services it buys to provide the snow removal.

Is ice-melt or salt I apply taxable to me?
Yes. Materials you consume to provide a nontaxable service are taxable to you as the final consumer; you owe the tax when you buy them.

Can other snow removal companies rely on this ruling?
Not directly. A private letter ruling binds the Department only for the requesting taxpayer and stated facts; treat it as guidance.

Citations and references

• The ruling states that snow removal services are not currently subject to Kansas sales tax (Kansas taxes only enumerated services) and that the provider must pay tax on its own taxable inputs; it does not cite a specific numbered statute.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1999-75.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

March 8, 1999

TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT

RE: Snow Removal

Dear Ms. TTTTT:

We wish to acknowledge receipt of your letter dated January 29, 1999, regarding the application of Kansas Retailers’ Sales tax.

The snow removal 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: 03/29/1999 Date Modified: 10/11/2001

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