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SB 148

Excluding from sales taxation the service of installing or applying tangible personal property for the reconstruction, restoration, remodeling, renovation, repair or replacement of a building or facility.

2025-2026 Regular Session

Kansas bill exempts labor costs for building installation, renovation, and repair work from sales tax while keeping material costs taxable.

Died in Committee
#taxation
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Bill Summary · SB 148

Legislative bill overview

SB 148 would exempt labor services related to installing or applying materials during building reconstruction, restoration, remodeling, renovation, repair, or replacement projects from Kansas sales tax. Currently, these installation services are taxable; the bill would create a new exclusion for this category of work while materials themselves would remain subject to tax.

Why is this important

This change would reduce construction costs for building projects by eliminating sales tax on labor, potentially making renovation and repair work more affordable for property owners and businesses. The fiscal impact depends on construction volume in Kansas, and the exemption could affect state revenue while potentially stimulating the construction sector.

Potential points of contention

  • Revenue impact: Removing sales tax on installation labor could reduce state tax revenue, requiring clarification on estimated fiscal effect and whether offsetting measures are needed
  • Scope definition: The bill's language covering "reconstruction, restoration, remodeling, renovation, repair or replacement" is broad and could create ambiguity about which projects qualify, potentially leading to disputes between contractors and tax authorities
  • Competitive fairness: The exemption applies only to tangible property installation, potentially creating unequal tax treatment between different construction services and raising questions about why labor is excluded while materials remain taxed

Compiled from official sources — confirm details with the bill’s official record.

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