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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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