Are towing, winching, unlocking vehicles, changing tires, and jump starts subject to Kansas sales tax?

Plain-English summary

A provider of roadside vehicle services asked whether towing and winching, unlocking vehicles, changing tires, and jump starts are subject to Kansas sales tax. The Department ruled most are not taxable, but changing tires is.

Kansas taxes goods and only listed services. The ruling repeats the standard two-step framework: sales tax applies to all transfers of tangible personal property, but "[w]ith services, however, tax is imposed only on those transactions which are specifically enumerated in the sales tax act."

Towing, winching, unlocking, and jump-starting are not enumerated. The Department concluded that "[t]owing, winching, the unlocking and jump-starting of vehicles are not specifically enumerated as taxable services in the sales tax act. Therefore, these services are not subject to Kansas sales tax." As always, the provider "must pay sales tax on all articles of tangible personal property and all taxable services to provide the nontaxable services."

Changing tires is taxable. The Department drew the line at tire changing: "the changing of tires would be subject to the appropriate Kansas sales tax(es), pursuant to K.S.A. 79-3603(q)." That subsection taxes the service of repairing, servicing, altering, or maintaining tangible personal property - which reaches the tire-changing service on a customer's vehicle.

Bottom line: towing, winching, unlocking, and jump-starting are nontaxable in Kansas, while changing tires is a taxable service under K.S.A. 79-3603(q); the provider pays tax on its own purchases for the nontaxable services.

What this means for you

Tow operators and roadside-assistance providers

Your towing, winching, lockout (unlocking), and jump-start charges are generally not subject to Kansas sales tax, because those services are not specifically enumerated. Do not collect tax on them - but do pay tax on the equipment and supplies you buy to provide them.

Tire changing is different

Changing tires is a taxable service under K.S.A. 79-3603(q). If you offer tire changes alongside nontaxable services, charge tax on the tire-change service.

The rule for services is "enumerated only"

For any roadside service, the question is whether a Kansas statute specifically lists it as taxable. If it is not enumerated (like towing), it is not taxed; if it fits the repair/service category in 79-3603(q) (like tire changing), it is.

Common questions

Q: Is towing taxable in Kansas?
A: No. Towing, winching, unlocking, and jump-starting are not enumerated taxable services, so they are not subject to Kansas sales tax.

Q: Is changing a tire taxable?
A: Yes. The Department ruled that changing tires is taxable under K.S.A. 79-3603(q).

Q: Does the provider owe tax on its own purchases?
A: Yes - for the nontaxable services, the provider must pay sales tax on the tangible personal property and taxable services it buys to provide them.

Citations and references

• K.S.A. 79-3603(q) - imposes sales tax on the service of repairing, servicing, altering, or maintaining tangible personal property; the Department applied it to make the changing of tires taxable. By contrast, towing, winching, unlocking, and jump-starting are not specifically enumerated taxable services and are not subject to sales tax, though the provider must pay tax on the property and taxable services it buys to provide them.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2001-032

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

April 5, 2001

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Dear Mr. TTTTTT:

We wish to acknowledge receipt of your letter dated April 5, 2001, regarding the application of Kansas Retailers’ Sales tax.

By your letter you make inquiry with regard to K.S.A. 79-3603. Specifically, you ask whether towing and winching services, unlocking vehicles, changing tires and jump starts would be subject to sales tax in the state of Kansas.

In deciding whether a particular transaction is subject to sales tax, a two step analysis is generally necessary. The first step is to determine whether the sales tax act generally imposes tax on the type of transaction in question. The second step is to determine whether the act provides an exemption for the particular type of transaction.

As a rule, sales tax is imposed on all transactions involving the transfer of tangible personal property. With services, however, tax is imposed only on those transactions which are specifically enumerated in the sales tax act. Exemptions for transactions involving either tangible personal property or services are allowed as specifically enumerated.

Towing, winching, the unlocking and jump-starting of vehicles are not specifically enumerated as taxable services in the sales tax act. Therefore, these services are not subject to Kansas sales tax. However, you must pay sales tax on all articles of tangible personal property and all taxable services to provide the nontaxable services.

In closing, the changing of tires would be subject to the appropriate Kansas sales tax(es), pursuant to K.S.A. 79-3603(q).

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: 04/12/2001 Date Modified: 10/11/2001

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