Are mowing, hauling, snow plowing, and grading taxable in Kansas, and what about welding or log splitting?

Plain-English summary

A service provider asked how Kansas retailers' sales tax applies to a mix of outdoor jobs. The Department drew a line between two groups.

Not taxed. Kansas taxes only enumerated services. Mowing, dirt and tree-branch hauling, snow plowing, and grading are not among them, so they are not currently subject to Kansas sales tax. As usual, the provider must pay sales tax on the tangible personal property and taxable services it buys to perform those nontaxable jobs.

Taxed. The Department added that welding and log splitting do come within the scope of taxable services because they involve the altering of tangible personal property. Those charges are taxable unless the customer provides a properly completed exemption certificate. The ruling quotes K.S.A. 79-3603(q) (taxing repairing, servicing, altering, or maintaining property) and attributes the welding/log-splitting result to K.S.A. 79-3603(p).

What this means for you

If you offer a mix of grounds services and fabrication-type work in Kansas, bill them differently.

• Mowing, hauling, plowing, grading — no tax on the service. These are not taxed enumerated services; you don't collect sales tax on them.
• Welding and log splitting — taxable. The ruling treats these as altering tangible personal property, so the charges are taxable unless the customer gives you a completed exemption certificate.
• You pay tax on your inputs for the nontaxable jobs. As the final consumer, you owe tax on equipment, fuel-related taxable items, and supplies used to provide the nontaxable services.
• Keep exemption certificates on file. For welding/log splitting that a customer claims is exempt, collect and retain a properly completed certificate.

Common questions

Is snow plowing or mowing taxable in Kansas?
No. These are not taxed enumerated services, so you don't collect sales tax on them; you do pay tax on your own inputs.

Is welding taxable?
Yes. The Department treated welding (and log splitting) as altering tangible personal property, so those services are taxable unless the customer provides a completed exemption certificate.

What statutes does the ruling cite?
It quotes K.S.A. 79-3603(q) for taxing repairing/servicing/altering/maintaining property and cites K.S.A. 79-3603(p) in tying welding and log splitting to taxable altering of property.

Can other providers rely on this ruling?
Not directly. A private letter ruling binds the Department only for the requesting taxpayer and stated facts; treat it as guidance.

Citations and references

• K.S.A. 79-3603(q) — quoted for the tax on "the service of repairing, servicing, altering or maintaining tangible personal property."
• K.S.A. 79-3603(p) — cited by the Department in concluding that welding and log splitting are taxable because they involve the altering of tangible personal property, unless the customer gives a completed exemption certificate.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1999-73.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

March 9, 1999

TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT

Dear Mr. TTTTTT:

We wish to acknowledge receipt of your letter dated January 29, 1999, regarding the application of Kansas Retailers’ Sales tax.

The state of Kansas taxes only enumerated services. The mowing, dirt and tree branch hauling, snow plowing and grading 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 and all taxable services purchased to provide the nontaxable services.

K.S.A. 79-3603(q) imposes a sales tax: “upon the gross receipts received for the service of repairing, servicing, altering or maintaining tangible personal property. . .”

In closing, welding and log splitting services would come within the scope of taxable services, pursuant to K.S.A. 79-3603(p), since these respective services involve the altering of tangible personal property, unless the purchaser can provide you with a properly completed exemption certificate.

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: 03/29/1999 Date Modified: 10/11/2001

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