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Sales Tax Exemptions in KansasAll construction materials and prescription drugs (including prosthetics and devices used to increase mobility) are considered to be exempt. While groceries are not tax exempt, any food that is used to provide meals for the elderly or homebound is considered to be exempt from taxes.
5 Key Elements Every Construction Contract Should Contain1) The project's scope.2) The cost and payment terms.3) The project's time frame.4) Protection against lien law.5) Dispute resolution clauses.
GENERAL RULE: MATERIALS ARE TAXABLE All contractors (whether contractors or contractor-retailers) are considered to be the final user or consumer of the materials they install for others, and must pay Kansas sales or use tax on them.
Elements of a Construction ContractName of contractor and contact information.Name of homeowner and contact information.Describe property in legal terms.List attachments to the contract.The cost.Failure of homeowner to obtain financing.Description of the work and the completion date.Right to stop the project.More items...
What should be included in a Contractor Agreement?Statement of Relationship.Project Description.Payment and Billing Terms.Responsibilities of Each Party.Project Timeline and Deadlines.Termination Conditions.Nondisclosure Terms, and Confidentiality and Non-Compete Clauses.
The 4 Different Types of Construction ContractsLump Sum Contract. A lump sum contract sets one determined price for all work done for the project.Unit Price Contract.Cost Plus Contract.Time and Materials Contract.
What Should Be in a Construction Contract?Identifying/Contact Information.Title and Description of the Project.Projected Timeline and Completion Date.Cost Estimate and Payment Schedule.Stop-Work Clause and Stop-Payment Clause.Act of God Clause.Change Order Agreement.Warranty.More items...
How do I create an Independent Contractor Agreement?State the location.Describe the type of service required.Provide the contractor's and client's details.Outline compensation details.State the agreement's terms.Include any additional clauses.State the signing details.
As a general rule, all of these items are subject to sales tax when purchased by contractors and subcontractors. Labor services of installing or applying tangible personal property is subject to sales tax (as a general rule).