Soil Excavation and Disposal Services Exempt from Tax in Kansas

Monday, March 26th, 2012

 
 
Share
Link
Kansas
General

The Kansas Department of Revenue recently issued a private letter ruling explaining that soil excavation and disposal services are generally not subject to Kansas sales tax. Kan. Priv. Ltr. Rul. No. P-2011-011 (Dept. of Revenue Feb. 22, 2012).

The party who sought the ruling is a business that performs soil remediation services, including soil excavation and disposal. Petroleum producers hired the soil remediation provider to remove soil contaminated by saline produced water (brine) that is brought to surface during the petroleum production process. Without this remediation process, soil contaminated with brine deteriorates and kills off surrounding plant-life. The soil remediation provider goes on-site and either (1) removes and disposes of the contaminated soil or (2) removes and transforms the soil into a slurry (a thick suspension of solids turned in a liquid) that can be pumped into decommissioned gas caverns.

The Department advised that Kansas generally does not impose its retailers' sales tax on soil excavation services. However, excavation services will be subject to tax if the charge for the service is lumped together as part of a taxable installation service. Therefore, sales tax will not apply to separately stated charges for excavating brine contaminated soil. Additionally, excavated soil that is turned into slurry will qualify as a nontaxable disposal service.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Announces Imported Goods Will Now Be Taxed

Thursday, March 21st, 2019 -The Washington Department of Revenue recently announced that effective March 14, 2019, a retail sales exemptio...

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...