Is installing a new swimming pool at a residence exempt from Kansas sales tax as residential remodeling?

Plain-English summary

The Department applied the new residential remodeling exemption to building a swimming pool at a home. It first laid out the general framework: under "1998 Senate Bill No. 493," effective July 1, 1998, install/apply services are exempt for the "original construction, reconstruction, restoration, remodeling, renovation, repair or replacement of a residence," and the Department "will construe and administer K.S.A. 79-3603(p)(4) as exempting the land improvements that immediately surround a residence" — with "swimming pools" among the listed land improvements that must be "immediately near and … principally serve the residence."

New pools and structures qualify. "Installation of a new swimming pool, tool shed, or other structure near an existing residence shall qualify as residential remodeling when the pool, shed or structure is intended to serve the residence."

Repairs qualify too. "Repairs services done to swimming pools, tools sheds, and other nearby structures that serve the residence shall qualify as the exempt repair of residential land improvements."

Bottom line: installing a new swimming pool that serves an existing residence is exempt residential remodeling, and repairing such a pool or nearby structure is exempt as a repair of a residential land improvement.

What this means for you

A new pool at a home is exempt residential remodeling

Installing a new swimming pool near an existing residence qualifies as residential remodeling — and the install/apply services are exempt — when the pool is intended to serve the residence.

Other new structures can qualify too

The same treatment applies to a new tool shed or other structure near the residence, so long as it is intended to serve the home.

Repairs to these land improvements are exempt

Repair services to swimming pools, tool sheds, and other nearby structures that serve the residence qualify as exempt repair of residential land improvements.

The "serves the residence" test governs

The exemption depends on the pool or structure being immediately near and principally serving the residence — the same test the Department applies to residential land improvements generally.

Common questions

Is building a new residential swimming pool taxable in Kansas?
The install/apply services are exempt as residential remodeling when the pool is near and intended to serve an existing residence.

Does a new tool shed qualify?
Yes, if it is a structure near the residence intended to serve it — the Department lists tool sheds alongside swimming pools.

Are pool repairs exempt?
Yes. Repairs to swimming pools and other nearby structures that serve the residence qualify as exempt repair of residential land improvements.

What is the key requirement?
The pool or structure must be immediately near and principally serve the residence to fall within the residential exemption.

Citations and references

• K.S.A. 79-3603(p)(4) — the residential remodeling exemption; the Department construes it to exempt land improvements (including swimming pools) that immediately surround and principally serve a residence, covering both new installation and repair.
• 1998 Senate Bill No. 493 — effective July 1, 1998, exempts install/apply services for residential construction, remodeling, renovation, and repair.
• K.A.R. 92-19-59 — authorizes Kansas private letter rulings; this ruling binds the Department only as to the requesting taxpayer and the facts presented.
• Issued June 23, 1998 by Thomas P. Browne, Jr., Tax Specialist, Kansas Department of Revenue.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1998-56

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

June 23, 1998

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Dear Mr. TTTTT:

We wish to acknowledge receipt of your letter dated June 4, 1998, regarding the application of Kansas Retailers’ Sales tax.

1998 Senate Bill No. 493 exempts certain construction services that were formerly subject to Kansas sales tax. Effective July 1, 1998, services performed to install or apply tangible personal property are exempt from sales tax when the services involve the original construction, reconstruction, restoration, remodeling, renovation, repair or replacement of a residence.

The department has determined that it will construe and administer K.S.A. 79-3603(p)(4) as exempting the land improvements that immediately surround a residence. This means the exemption for residential repair and remodeling services generally will be coextensive with the exemption for the original construction of the residence.

The test for whether something is a “land improvement” shall be whether tangible personal property has been erected upon or affixed to the land. To qualify as residential, the land improvement must be immediately near and must principally serve the residence. This means that repairs to a yard fence are exempt but that repairs to a fence designed to corral pleasure horses are not. Barns and machine sheds for farm equipment shall not be considered to be land improvement that principally serve the residence.

Land improvements shall include, but not be limited to, sidewalks, driveways, patios, fences, sodding, tree planting, utility pipes and wires, septic tanks, swimming pools, and tool sheds. Repair services to structures such as steps, stairs, access ramps, porches, and decks shall be exempt whether they are considered to be part of the residence because they are attached to it, or a land improvement because they are immediately nearby. Installation of a new swimming pool, tool shed, or other structure near an existing residence shall qualify as residential remodeling when the pool, shed or structure is intended to serve the residence. Repairs services done to swimming pools, tools sheds, and other nearby structures that serve the residence shall qualify as the exempt repair of residential land improvements.

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: 07/01/1998 Date Modified: 10/10/2001

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