Are horse and horsemanship training services subject to Kansas sales tax?

Plain-English summary

A provider of horse and horsemanship training services asked whether those services are subject to Kansas Retailers' Sales Tax. The Department said they are not taxable.

The service is not taxed. The Department advised that horse and horsemanship training services would not be subject to sales tax in Kansas. Kansas taxes services only when they are specifically enumerated in the sales-tax act, and training of this kind is not among the enumerated taxable services.

But the provider pays tax on its supplies. Because the provider is furnishing a nontaxable service, it is treated as the final consumer of what it buys — so it must pay sales tax on all articles of tangible personal property it purchases to provide the service.

Bottom line: horse and horsemanship training is a nontaxable service in Kansas; the trainer does not charge sales tax on the training, but does pay sales tax on the goods it buys to deliver it.

What this means for you

Horse trainers and riding instructors

You do not charge Kansas sales tax on horse or horsemanship training services. Treat the training itself as a nontaxable service.

You are the consumer of your supplies

Because your service is nontaxable, you pay sales (or compensating use) tax on the tangible personal property you buy to provide it — feed, tack, equipment, and other supplies. You cannot buy those items for resale, since you are consuming them to deliver a nontaxable service.

Watch for separately sold goods

This ruling covers the training service. If you also sell tangible personal property to customers (for example, retail sales of tack or equipment), those sales are a separate matter and may be taxable under the ordinary rules.

Common questions

Q: Do I charge Kansas sales tax on horse training or horsemanship lessons?
A: No. The Department ruled that horse and horsemanship training services are not subject to Kansas sales tax.

Q: Do I owe tax on the supplies I buy to run the training?
A: Yes. As the provider of a nontaxable service, you must pay sales tax on all tangible personal property you purchase to provide the service.

Q: Does this cover items I resell to customers?
A: No. The ruling addresses the training service; separate retail sales of goods are governed by the ordinary sales-tax rules and may be taxable.

Citations and references

• The Department did not cite a specific statutory section. Its conclusion rests on the general Kansas rule that services are taxed only when specifically enumerated in the sales-tax act — and horse and horsemanship training is not enumerated, so it is a nontaxable service on which the provider pays tax on its own supplies.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2001-078

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

July 25, 2001

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Dear Ms. TTTTTTTT:

We wish to acknowledge receipt of your letter dated July 23, 2001, regarding the application of Kansas Retailers’ Sales tax.

Please be advised that horse and horsemanship training services would not be subject to sales tax in the state of Kansas.

Since, you are providing a nontaxable service, you would need to pay sales tax on all articles of tangible personal property purchased to provide the nontaxable service.

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: 07/30/2001 Date Modified: 10/11/2001

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