Are watch and clock repair labor, cleaning, and replacement parts subject to Kansas state and local sales tax?

Plain-English summary

A caller asked whether watch-repair services and parts were taxable. The Department answered yes.

Watch and clock repair labor and replacement parts remained subject to state and local sales tax. Cleaning a watch was a taxable maintenance service.

The 1998 residential repair exemption did not change the result. It did not cover portable property — including clocks, stereos, televisions, washers, dryers, air conditioners, doors, windows, or built-in furniture — removed from a home and taken elsewhere for repair.

The residential exemption covered building repairs and certain identified appliances presumed to be fixtures only when the repairs were performed at the owner's residence. Notice 98-02 provided more detail.

What this means for you

Watch and clock repair shops

Collect state and local sales tax on the total charge for repair labor, cleaning, and parts.

Appliance and property repairers

Do not apply the residential exemption merely because the item came from a home. Location and fixture status mattered under the opinion.

Consumers

Taking a watch or clock out for repair did not qualify as an exempt residential repair.

Common questions

Q: Is watch cleaning taxable?
A: Yes. The Department classified it as maintenance.

Q: Are repair parts taxable?
A: Yes. Tax applied to the total service-and-parts charge.

Q: Does the residential repair exemption apply?
A: No to portable items removed from the residence for repair.

Citations and references

• Notice 98-02 — residential repair exemption guidance cited by the Department

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-2001-014

Original ruling text

Opinion Letter

Body:

Office of Policy & Research

April 11, 2001

XXXX
XXXX
XXXX

RE: Your telephone request

Dear XXXX:

During our telephone conversation yesterday, you asked me if watch repair services and sales of repair parts are taxable in Kansas. Please be advised that they are. Taxable watch repair services include watch cleaning, which is considered to be a taxable maintenance service.

You told me that someone had told you that these services were exempted 1998, when the Kansas legislature enacted an exemption for residential repair services. This information is incorrect. Charges for watch and clock repair services and parts have not been exempted and continue to be taxable.

The 1998 exemption for residential repairs does not extend to anything, including a clock, a stereo, a television, a washer, a dryer, a clock, an air conditioner, a door, a window, a built-in-furniture, etc., that is removed from the owner’s residence and taken out for repair. The exemption only extends to the repair of buildings and certain identified appliances, that are presumed to be fixtures, when the repairs are done at the owner’s residence.

I have enclosed a copy of Notice 98-02 which explains the exemption in more detail. As stated, the total amount that you charge to customers for watch and clock repair services and parts is subject to state and local sales tax.

Sincerely,

Thomas E. Hatten
Attorney/Policy & Research

Enclosure

Date Composed: 04/17/2001 Date Modified: 10/10/2001

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