Kansas – Tax Guidance for Residential and Commercial Rental Companies

SALT Report 3079 – The Kansas Department of Revenue released a new self-audit fact sheet to provide guidance regarding the application of sales and use tax to sales and purchases made by residential and commercial rental companies.

Generally, tax does not apply when a rental company rents an apartment, office space, conference room, storage unit, flea market space, or mobile home park space. However, tax applies when a rental company rents tangible personal property, such as tables and chairs, or when these companies charge their tenants for labor services for commercial property maintenance or repairs.

In addition, sales or rentals to an exempt entity that provides an exemption certificate are exempt from sales tax.  The exemption certificate should be kept in the rental company’s books and records to substantiate the non-taxed transactions.

Finally, the bulletin provides a list of items taxable and nontaxable items commonly purchased or sold by residential and commercial rental companies.

For Further Information

Kansas Department of Revenue – Information Guide: Residential and Commercial Property Rental Self-Audit Fact Sheet