CCH Tax Day Report
A Kansas sales and use tax exemption for all installation services connected with the reconstruction, restoration, remodeling, renovation, repair, or replacement of a residence applied to the installation of various built-ins provided by a home improvement retailer taxpayer in customer residences. The appellate court held that the decision by the Board of Tax Appeals that: (1) the taxpayer was acting as a contractor and not a retailer when it installed the built-ins into customer’s homes; (2) all of the transactions at issue were real property improvements; and (3) the exemption applied, was correct. There is no exception in the statutory exemption that distinguishes the installation of built-ins from other residential home improvements.
In the Matter of the Appeal of Lowe’s Home Centers, LLC, Kansas Court of Appeals, No. 115,254, April 14, 2017, ¶201-911