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Kansas Revises Tax Guidelines for Hotels, Restaurants

  • Nov 2, 2012 | Gail Cole

The Kansas Department of Revenue has released updated guidelines regarding business taxes for hotels, motels, and restaurants. The guidelines are intended to help hotel, motel, or restaurant operators "understand how the various Kansas taxes apply to … daily business activities… ."

These businesses are required to collect the following taxes:

  • Kansas Retailers' Sales Tax on the rental of sleeping rooms and sales of Tangible Personal Property.
  • Transient Guest tax upon hotels and motels (imposed by some counties and cities).
  • Liquor Drink Tax, for hotel restaurants or clubs that sell alcoholic beverages.

In general, hotels, motels and restaurants must pay sales or use tax on purchases. Some purchases, however, are exempt from these taxes.

Kansas Business Taxes for Hotels, Motels & Restaurants is a comprehensive guide regarding Kansas sales tax, sales by hotels, purchases made by hotels, the transient guest tax, restaurant sales, restaurant purchases, other taxes, filing and payment information, and tax exemptions. Its 42 pages include examples and forms. This is the place to find nitty gritty details, such as how to tax cancellation charges (you can't) and early departure charges (you can).

If you're not in a hurry, it makes for interesting reading. It's interesting to note that certain hotel charges are subject to both Kansas sales tax and the Transient Guest Tax:

  • "Charges for a sleeping room.
  • Charges for additional guests in a sleeping room.
  • Charges for pets in a sleeping room.
  • Charges for placing a cot, roll-away bed, or a crib in a guest's room.
  • Charges for providing additional bedding or linens to a guest's room.
  • Lost key and lock-out charges.
  • No-show charges.
  • Early departure charges.
  • A flat, non-negotiable separately-stated charge for having a telephone or television in a sleeping room.
  • Charges for package-deals, unless charges for meals, drinks, admissions, or other items in the package are invoiced separately from charges for the sleeping accommodations.
  • The cost of "incidental services and facilities" and other non-taxable services when the costs are not recovered as separately-listed charges on an invoice for a sleeping room."

There's a charge for having a television in a sleeping room? That's an option?

Other hotel charges are subject to Kansas sales tax but are not subject to the transient guest tax.

  • "Charges for meal service provided to a guest's room.
  • Charges for food, non-alcoholic drinks, and cereal malt liquor… that a guest removes from an in-room refrigerator or bar and consumes.
  • Dry cleaning and laundry charges.
  • Charges for telephone access in a guest's room.
  • Rental charges for placing a small refrigerator, exercise equipment, an in-room safe, or other equipment in a guest's room.
  • Charges for pay-per-view or on-demand television programming. 
  • Charges to a guest for use of a hotel's athletic club, pool, spa, sauna, or exercise room.
  • Photocopy fees."

Then there are incidental services that are not subject to either Kansas sales tax or the transient guest tax. These include, but are not limited to:

  • "Charges for ballrooms, banquet rooms, meeting rooms, office space, or other areas not use (sic) as sleeping accommodations.
  • Charges for a guest room that is converted for use as a display room, meeting room, or other use provided the room is not also used for sleeping.
  • Fees for personal services, such as haircuts, manicures, and massages.
  • Charges for use of a hotel safe or security box located outside a guest's room.
  • Charges for valet services.
  • Shuttle and other transportation fees.
  • Parking fees. 
  • Charges for returned checks.
  • Charges to fax documents.
  • Internet access charges."

The guideline is intended for people who own and operate hotels, motels, and restaurants in Kansas. Nonetheless, anyone who spends time  hotels, motels, or restaurants anywhere might find it interesting.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.