Is safety and protective apparel furnished to production employees at a chemical plant exempt from Kansas sales tax?

Plain-English summary

A chemical manufacturer asked whether the safety equipment it uses at its facility is exempt from Kansas sales tax. The Department ruled that safety and protective apparel furnished free to production employees is exempt, but general uniforms and weather gear are not.

The expanded manufacturing exemption. "Effective July 1, 2000, K.S.A. 79-3606(kk)(1) exempts (A) all sales of machinery and equipment used in Kansas as an integral or essential part of an integrated production operation by a manufacturing or processing plant or facility, (B) all sales of installation, repair and maintenance services performed on such machinery and equipment; and (C) all sales of repair and replacement parts and accessories for such machinery and equipment."

It reaches employer-furnished protective apparel. The Department explained that "the exemption contained in (kk) applies to safety and protective apparel that is purchased by an employer and furnished without charge to employees who are involved in production or research activities." So the exemption is not limited to machines - it covers the protective gear that production and research workers need.

But not ordinary uniforms or weather gear. "The exemption does not apply to general uniforms and weather related apparel." That line separates protective equipment from everyday clothing.

The Department's item-by-item list. Exempt if supplied without charge to employees: "rubber boots, gloves, goggles, plano safety glasses, face shields, rubber & protective aprons (all to protect from chemicals); ear muffs (hearing protection); hard hats, safety shoes; prescription safety glasses; respirators." Not exempt: "sweat bands, stocking caps (for weather protection) and uniforms (long sleeve shirts and long pants)." The Department enclosed a copy of Notice 00-08.

Bottom line: protective safety apparel a manufacturer buys and gives free to its production or research employees is exempt under K.S.A. 79-3606(kk)(1); items that are general uniforms or weather protection are taxable.

What this means for you

Manufacturers and processors buying employee safety gear

Safety and protective apparel you purchase and furnish without charge to employees involved in production or research is exempt from Kansas sales tax under the expanded manufacturing exemption. Give your supplier the appropriate exemption certificate.

Know which items qualify

Exempt examples include rubber boots, gloves, goggles, plano and prescription safety glasses, face shields, protective aprons, ear muffs, hard hats, safety shoes, and respirators. Not exempt: sweat bands, stocking caps, and general uniforms such as long-sleeve shirts and long pants.

"Furnished without charge" and "production or research" matter

The exemption is framed around protective apparel the employer buys and provides free to workers engaged in production or research activities. General clothing and weather gear fall outside it.

Common questions

Q: Is employee safety equipment exempt from Kansas sales tax at a manufacturing plant?
A: Yes, when it is safety and protective apparel the employer buys and furnishes free to production or research employees - it falls under the expanded manufacturing exemption in K.S.A. 79-3606(kk)(1).

Q: Which items are exempt?
A: Examples the Department listed include rubber boots, gloves, goggles, plano/prescription safety glasses, face shields, protective aprons, ear muffs, hard hats, safety shoes, and respirators.

Q: Which items are taxable?
A: General uniforms and weather-related apparel - the Department listed sweat bands, stocking caps, and uniforms (long-sleeve shirts and long pants).

Citations and references

• K.S.A. 79-3606(kk)(1) - effective July 1, 2000, exempts machinery and equipment that is an integral or essential part of a manufacturing or processing plant's integrated production operation, along with installation/repair/maintenance services and repair/replacement parts. The Department applied it to safety and protective apparel an employer purchases and furnishes free to production or research employees (exempt), but not to general uniforms or weather-related apparel (taxable). It also referenced Department Notice 00-08.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2000-049

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

September 26, 2000

XXXXXXXX
XXXXXXXXXX

Dear XXXXXXXXXXX:

The purpose of this letter is to respond to your letter dated July 26, 2000. In it, you request advice on the taxability of safety equipment used at a chemical manufacturing facility.

Effective July 1, 2000, K.S.A. 79-3606(kk)(1) exempts (A) all sales of machinery and equipment used in Kansas as an integral or essential part of an integrated production operation by a manufacturing or processing plant or facility, (B) all sales of installation, repair and maintenance services performed on such machinery and equipment; and (C) all sales of repair and replacement parts and accessories for such machinery and equipment.

The exemption contained in (kk) applies to safety and protective apparel that is purchased by an employer and furnished without charge to employees who are involved in production or research activities.

The exemption does not apply to general uniforms and weather related apparel.

Therefore, the following items are exempt from tax if supplied without charge to your employees: rubber boots, gloves, goggles, plano safety glasses, face shields, rubber & protective aprons (all to protect from chemicals); ear muffs (hearing protection); hard hats, safety shoes; prescription safety glasses; respirators.

Sweat bands, stocking caps (for weather protection) and uniforms (long sleeve shirts and long pants) do not qualify for exemption.

I have enclosed a copy Notice 00-08.

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 by operation of law without further department action if there is a change in the controlling statutes, administrative regulations, revenue rulings or case law that materially effects this determination.

Sincerely,

Mark D. Ciardullo
Tax Specialist

Date Composed: 09/28/2000 Date Modified: 10/11/2001

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