Kansas St 28W Form – Fill Out and Use This PDF

KANSASDEPARTMENTOFREVENUE

RETAILER/CONTRACTOREXEMPTIONCERTIFICATE

Theundersignedretailer/contractorcertifiesthatthetangiblepersonalpropertypurchasedfrom:

Seller:	_________________________________________________________________________________________________
		BusinessName
Address:	_________________________________________________________________________________________________
	Street,RR,orP.O.Box	City	State	Zip+4

isexemptfromKansassalesandcompensatingusetaxforthefollowingreason:

K.S.A. 79-3603(l)(2) provides that a contractor, subcontractor or repairman who maintains an inventory of tangible personalpropertybothforresaleandforusebythemforthepurposeoferectingstructures,orimprovingalteringor repairing real or personal property, shall be deemed a retailer with respect to purchases for and sales from such inventory.

Descriptionoftangiblepersonalpropertyorservicespurchased: ___________________________________

__________________________________________________________________________________________

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: _________________________________________________________________________________________________

Street,RR,orP.O.Box	City	State	Zip+4
AuthorizedSignature: _____________________________________________________			Date: ___________________

THIS CERTIFICATE MUST BE COMPLETED IN ITS ENTIRETY.

WHOMAYUSE THISEXEMPTION?

Onlythosecontractors,subcontractors,orrepairmenwhomaintainaninventoryofgoodsandmerchandiseandwhoprovidetheirKansas salestaxnumbermayusethiscertificatetopurchasematerialinventoryexemptfromsalestax. Acontractor,subcontractor,orrepairman (suchasacarpenter,electrician,orplumber)whopurchasespartsandmaterialsonajob-by-jobbasisanddoesnotmaintainaninventory is not a retailer/contractor, but 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 the Policy Information Library on our web site, www.ksrevenue.org.

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 CompensatingUseTaxconsultPublicationKS-1510,whichisavailablefromthedepartment’s web site: www.ksrevenue.org Itemssuch asdrills,drillbits,hammers,nailguns,saws,screwdrivers,toolbeltsandwrenchesaretaxable. Toolsandconstructionequipmentleased or rented for a job are also taxable to the contractor or retailer/contractor unless the customer has furnished a Project Exemption Certifi- cate number.

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.

ST-28W (Rev. 5/05)