Were snow and ice removal charges subject to Kansas sales tax, and was tax due on salt, sand, and other inputs?

Plain-English summary

Snow and ice removal charges were not subject to Kansas sales tax, but the service provider had to pay tax on sand, salt, other property, and taxable services used in the work.

The Department treated snow and ice removal as a nontaxable service. The contractor therefore did not collect sales tax on the customer charge under this ruling.

The contractor was still the consumer of its inputs. Tangible personal property—including sand and salt—and taxable services purchased to provide the removal service were subject to tax.

What this means for you

Snow-removal contractors

Do not confuse a nontaxable customer service with an exemption for business purchases. Pay tax on taxable supplies and services used in the job.

Property managers and customers

The removal charge itself was nontaxable under the stated historical rule. Separately sold property or other services may need their own analysis.

Common questions

Q: Was snow removal taxable?
A: No under this ruling.

Q: Was ice removal taxable?
A: No under this ruling.

Q: Were sand and salt tax-free?
A: No. The provider had to pay sales tax on them.

Q: Did taxable input services remain taxable?
A: Yes.

Citations and references

• K.A.R. 92-19-59 — Kansas Private Letter Ruling procedure

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2004-039

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

July 1, 2004

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Dear Mr. TTTT:

We wish to acknowledge receipt of your letter dated January 27, 2004, regarding the application of Kansas Retailers’ Sales tax.

The snow and ice 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, such as sand and salt, 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.

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: 07/21/2004 Date Modified: 07/21/2004

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