Kansas Department of Revenue Clarifies Taxability of Christmas Decorating Services
The Kansas Department of Revenue released a question and answers document regarding the taxability of Christmas decorating services.
The release explains that sales or use tax treatment of the following:
- Purchase or rental of Christmas decorations
- Purchase of decorations for reseal or rental by a decorating business
- Charges for storing decorations
- Purchase of trees and plants by a decorating business that will be planted by the decorating company
- Purchase of light and decoration hangers by the decorating business
- Installation or removal charges for wreaths, removable trees, removable lights, garland, table settings, window decorations, yard decorations, any other decorations, light or decoration hangers
- Labor charges for planting trees and plants, plants at a residence or in conjunction with original construction of a building or facility
Here are a few examples of Christmas decorating services that are taxable:
- Installation charges for wreaths, removable trees, removable lights, garland, table settings, window decorations, yard decorations, and any other decorations that will or can be removed after the season
- The purchase or rental of Christmas decorations
- The purchase of light or decoration hangers by the decorating business that are nailed, screwed, or permanently affixed to the building or land
- The labor to install light or decoration hangers by the decorating business that are nailed, screwed, or permanently affixed to an existing commercial building or land
- The purchase of trees and plants purchased by the decorating company that will be planted by the decorating company
- The labor to plant trees and plants at an existing commercial building
Here are a few examples of Christmas decorating services that are exempt:
- The purchase of decorations by the decorating business to sell or rent
- Charges for storing decorations
- The labor to plant trees and plants at a residence or in conjunction with original construction of a building or facility
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