Which roadside services — towing, winching, unlocking, jump starts, tire changes — are subject to Kansas sales tax?

Plain-English summary

A roadside-service provider asked which of its services — towing, winching, unlocking vehicles, changing tires, jump starts — are subject to Kansas sales tax. The Department applied its usual two-step analysis and sorted the services into taxable and non-taxable.

Services are taxed only if enumerated. The Department repeated the core rule: tax is imposed on all transfers of tangible personal property, but "with services... tax is imposed only on those transactions which are specifically enumerated in the sales tax act." So the question for each service is whether the statute names it.

Not taxable — not enumerated. The Department ruled that towing, winching, the unlocking and jump-starting of vehicles, and the delivery of fuel are not specifically enumerated as taxable services and are therefore not subject to Kansas sales tax. Important caveat: the provider must still pay sales tax on the tangible personal property and taxable services it buys to perform these non-taxable services (it is the consumer of those inputs).

Taxable — under 79-3603(q). The Department ruled that changing tires, the sale of keys, and the delivery of air are taxable under K.S.A. 79-3603(q). These involve a taxable sale of property or an enumerated taxable service.

Also non-taxable. The Department added that removing trees from a residence is not subject to Kansas sales tax.

Refunds and liability. The Department closed with two practical points:

• If the provider paid tax directly to the Department and did not state on its invoices that the tax was included in the selling price, it can seek a refund of that sales tax for the last thirty-six months.
• If the provider fails to collect and remit the tax it should, it becomes liable for the tax, plus penalty and interest.

Bottom line: the "muscle" roadside services (towing, winching, unlocking, jump-starting, fuel delivery) are non-taxable, while the ones that sell or change property (tires, keys, air) are taxable under 79-3603(q). The provider pays tax on its own supplies for the non-taxable jobs and can pursue a 36-month refund for tax it wrongly paid.

What this means for you

Towing and roadside operators

Your core towing, winching, unlocking, jump-start, and fuel-delivery services are not taxable in Kansas — they are not enumerated services. But you are the consumer of the parts and taxable services you use for those jobs, so pay tax on those inputs.

Sort the taxable add-ons

Changing tires, selling keys, and delivering air are taxable under K.S.A. 79-3603(q). Bill and collect tax on those, and keep them distinct from your non-taxable service charges.

Fix past over- or under-collection

If you overpaid, you may claim a refund for the last 36 months — but only if your invoices did not state that tax was included in the price. If you under-collected, you are on the hook for the tax plus penalty and interest, so correct your billing going forward.

Common questions

Q: Is towing taxable in Kansas?
A: No. The Department ruled that towing, winching, unlocking and jump-starting vehicles, and fuel delivery are not specifically enumerated taxable services, so they are not subject to Kansas sales tax.

Q: What roadside charges are taxable?
A: Changing tires, selling keys, and delivering air are taxable under K.S.A. 79-3603(q).

Q: Do I owe tax on anything for the non-taxable jobs?
A: Yes. You must pay sales tax on the tangible personal property and taxable services you buy to perform the non-taxable services.

Q: Can I get back sales tax I wrongly paid?
A: You can seek a refund for the last 36 months if you paid the tax directly and did not indicate on your invoices that tax was included in the selling price.

Citations and references

• K.S.A. 79-3603 — the imposition statute; taxes all sales of tangible personal property but reaches services only when specifically enumerated, which towing, winching, unlocking, jump-starting, and fuel delivery are not.
• K.S.A. 79-3603(q) — the basis for taxing the changing of tires, the sale of keys, and the delivery of air.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2001-091

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

September 6, 2001

TTTTTTTTTTT
TTTTTTTTTTT
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Dear Mr. TTTTTTTT:

We wish to acknowledge receipt of your letter dated May 21, 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, and the delivery of fuel 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.

The changing of tires, the sale of keys and the delivery of air would be subject to the appropriate Kansas sales tax(es), pursuant to K.S.A. 79-3603(q).

The removal of trees from a residence would not be subject to sales tax in the state of Kansas.

In closing, if you paid the tax directly to the department and you did not indicate on your sales invoices that the tax was included in the selling price, then you would be able to seek a refund of said sales tax(es) for the last thirty-six months. If you do not collect and remit the appropriate Kansas sales tax(es), then you would be subject to the tax, along with penalty and interest.

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: 09/14/2001 Date Modified: 10/11/2001

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