Are massage therapy services subject to Kansas sales tax?

Plain-English summary

A massage therapist asked whether massage therapy services are subject to Kansas sales tax. The answer is no.

Kansas sales tax applies to sales of tangible personal property and to certain enumerated services — that is, only the services specifically listed in the imposition statute, K.S.A. 79-3603, are taxable. Massage therapy is not on that list, so the therapist should not collect tax on massage fees.

Two related points: the therapist's own business purchases — massage tables, lotions, and similar supplies — are taxable when bought (the therapist is the consumer of those items). And if the business later sells products (such as lotions) to customers, it must register as a retailer and collect sales tax on those product sales, even though the massage services themselves remain untaxed.

What this means for you

Massage therapists

Don't charge sales tax on your massage services. Do pay tax on the tables, lotions, and supplies you buy for your practice, and register to collect tax if you start selling retail products.

Other service providers

Kansas taxes only the services listed in K.S.A. 79-3603. If your service isn't listed, it isn't taxed — but you still pay tax on the goods you consume to provide it.

Common questions

Q: Do I collect sales tax on massage therapy?
A: No. Massage therapy is not an enumerated taxable service under K.S.A. 79-3603.

Q: Do I pay tax on my tables and lotions?
A: Yes. Those business supplies are taxable to you when you buy them.

Q: What if I start selling lotions to clients?
A: Then you must register as a retailer and collect sales tax on those product sales.

Citations and references

• K.S.A. 79-3603 — the imposition statute listing taxable services; the Department stated "all taxable services are listed in the imposition section, K.S.A. 79-3603," and "[m]assage therapy services are not among the services listed," so they are not taxed. The therapist's purchases of business supplies are taxable, and product sales to customers would require registration and tax collection.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2005-023

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

September 19, 2005

XXXX
XXXX
XXXX

RE: You letter dated September 15, 2005

Dear XXXX:

Thank you for your recent letter. You ask if massage therapy services are subject to sales tax. The answer is no. Kansas sales tax is not imposed on charges for massage therapy services.

The Kansas retailers' sales tax act taxes sales of tangible personal property and charges for sales of certain enumerated services. This means that all taxable services are listed in the imposition section, K.S.A. 79-3603. Massage therapy services are not among the services listed in K.S.A. 79-3603 as being taxable.

This means that you should not collect tax on the fees charged for your massage services. All of your purchases for use in your business, such as massage tables or lotions, are taxable when you buy them. If you expand your business in the future to sell lotions or other things to customers, you must register as a retailer and collect sales tax on those sales even though the massage services are not taxed.

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. Please let me know if you have additional questions.

Sincerely,

Thomas E. Hatten
Attorney/Policy & Research

Date Composed: 09/27/2005 Date Modified: 09/27/2005

Table 1

Table 2