In the realm of Kansas business operations, especially within the construction and retail sectors, the Kansas Department of Revenue Retailer/Contractor Exemption Certificate, known as the Form ST-28W, plays a crucial role. This form allows eligible contractors, subcontractors, or repairmen who maintain an inventory of tangible personal property for resale and use in their projects, to purchase such inventory exempt from Kansas sales and compensating use tax. The legislation, under K.S.A. 79-3603(l)(2), classifies these professionals as retailers for the purchases and sales from their inventory designated for constructing, improving, altering, or repairing real or personal property. It's imperative that these individuals provide their Kansas Sales Tax Registration Number to validate their exemption status. Understanding this form's stipulations is essential for ensuring compliance with state tax laws. For those not maintaining an inventory, such as job-by-job purchasers, the exemption doesn't apply, categorizing them as the final consumers who must pay sales tax on their purchases. Thereby, the form delineates clear distinctions between tax-exempt purchases, like materials intended for resale or specific project use, and taxable items, including tools and equipment deemed necessary overhead, underscoring the importance of accurate classification and adherence to tax obligations. Furthermore, the exemption strictly pertains to tangible goods, excluding labor services unless accompanied by a Project Exemption Certificate. Navigating these intricacies is vital for businesses aiming to leverage this exemption effectively while ensuring tax compliance.
| Question | Answer |
|---|---|
| Form Name | Kansas St 28W Form |
| Form Length | 1 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 15 sec |
| Other names | Retailer Contractor ST 28W kansas st 28w form |
KANSASDEPARTMENTOFREVENUE
RETAILER/CONTRACTOREXEMPTIONCERTIFICATE
Theundersignedretailer/contractorcertifiesthatthetangiblepersonalpropertypurchasedfrom:
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isexemptfromKansassalesandcompensatingusetaxforthefollowingreason:
K.S.A.
Descriptionoftangiblepersonalpropertyorservicespurchased: ___________________________________
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I hereby certify that I hold a valid Kansas SalesTaxRegistrationNumber: _____________________________________
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 sales or compensating tax, the undersigned purchaser becomes liable for the tax.
Purchaser:_________________________________________________________________________________________________
BusinessName
Address: _________________________________________________________________________________________________
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AuthorizedSignature: _____________________________________________________ |
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Date: ___________________ |
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THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.
WHOMAYUSE THISEXEMPTION?
Onlythosecontractors,subcontractors,orrepairmenwhomaintainaninventoryofgoodsandmerchandiseandwhoprovidetheirKansas salestaxnumbermayusethiscertificatetopurchasematerialinventoryexemptfromsalestax. Acontractor,subcontractor,orrepairman
WHATPURCHASESAREEXEMPT?
Only goods or merchandise intended for resale (inventory) are exempt. Direct materials 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.
WHATPURCHASESARETAXABLE?
Tools and equipment necessary to perform a job (often considered overhead items) are TAXABLE. Contractors and retailer/contractors 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 purchasedfromanotherstate,aKansascompensatingusetaxwillbedueifasalestaxequaltoatleastthestateandlocalsalestaxrate ineffectwheretheitemwillbeused,storedorconsumerhasnotbeenpaidonthepurchaseprice). Foradditionalinformation onKansas
LABORSERVICES.
This certificate applies ONLY to items of tangible personal property. Taxable labor services performed by a contractor or a retailer/ contractor can only be purchased exempt from sales tax with a Project Exemption Certificate issued by the department or its authorized agent.