Form St-28w - Contractor-Retailer Exemption Certificate
ADVERTISEMENT
1KANSAS DEPARTMENT OF REVENUE
CONTRACTOR-RETAILER EXEMPTION CERTIFICATE
The undersigned contractor-retailer certifies that the tangible personal property purchased from:
Seller
:
_________________________________________________________________________________________________
Business Name
Address:
_________________________________________________________________________________________________
Street, RR, or P. O. Box
City
State
Zip + 4
is exempt from Kansas sales and compensating use tax for the following reason:
K.S.A. 79-3603(l)(2) provides that a contractor, subcontractor or repairman who maintains an inventory of tangible
personal property both for resale and for use by them for the purpose of erecting structures, or improving altering or
repairing real or personal property, shall be deemed a retailer with respect to purchases for and sales from such
inventory. (emphasis added)
Description of tangible personal property or services purchased: ___________________________________
__________________________________________________________________________________________
I hereby certify that I hold a valid Kansas Sales Tax Registration Number: ___________________________ , and that
I am in the business of selling: _______________________________________ , and that the location of my retail outlet is:
__________________________________________________________________________. The undersigned understands
and agrees that if the tangible personal property or services are used other than as stated above or for any other purpose
that is not exempt from Kansas sales or compensating tax, the undersigned purchaser becomes liable for the tax.
Purchaser
: _________________________________________________________________________________________________
Business Name
Address:
_________________________________________________________________________________________________
Street, RR, or P. O. Box
City
State
Zip + 4
Authorized Signature: _____________________________________________________
Date
: ___________________
THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY
WHO MAY USE THIS EXEMPTION?
Only those contractors, subcontractors, or repairmen who maintain an inventory of merchandise for the purpose of making retail sales to
the public may use this exemption certificate. A retail sale is a sale that does not include installing the item purchased. A contractor,
subcontractor, or repairman who purchases materials for installation on a job-by-job basis and who does not maintain an inventory for the
purpose of making retail sales is not a contractor-retailer, but is a contractor. A contractor may not use this certificate. A contractor
is considered to be the final consumer of the materials purchased from a supplier for a job and, therefore, must pay sales tax on them
when purchased. For more detailed information on how sales tax applies to the construction industry, consult Information Guide EDU-26,
Sales Tax Guidelines for Contractors and Contractor-Retailers, which is available from our web site:
WHAT PURCHASES ARE EXEMPT?
Only merchandise of the type that the contractor-retailer holds in its resale inventory may be purchased tax exempt with this certificate.
Materials and supplies that may be purchased using this certificate include (but are not limited to): electrical supplies, lumber, nails,
paints, plumbing supplies, screws, sheet rock, stains, varnishes, and wallpaper.
WHAT PURCHASES ARE TAXABLE?
Tools and equipment necessary to perform a job (often considered overhead items) are TAXABLE. Contractors and contractor-retailers
are the final users or consumers of any tools used in their trade or business and must pay sales tax on them when purchased. (If
purchased from another state, a Kansas compensating use tax will be due if a sales tax equal to at least the state and local sales tax rate
in effect where the item will b e used, stored or consumed has not been paid on the purchase price). For additional information on Kansas
Compensating Use Tax consult Publication KS-1510, which is available from the department’s web site. Items such as drills, drill bits,
hammers, nail guns, saws, screwdrivers, tool belts and wrenches are taxable. Tools and construction equipment leased or rented for a job
are also taxable to the contractor or contractor-retailer unless the customer has furnished a Project Exemption Certificate.
LABOR SERVICES.
This certificate applies ONLY to items of tangible personal property. Taxable labor services performed by a contractor, subcontractor or a
contractor-retailer can only be purchased exempt from sales tax with a Project Exemption Certificate issued by the department or its
authorized agent.
ST-28W (Rev. 3/06)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Legal