Good morning. Love you too.

You’re right to side-eye that claim. In Kansas a general contractor or subcontractor does not get a blanket right to buy job materials tax-exempt just because they hold a contractor’s license. The default rule is the opposite.

Kansas treats the contractor as the final consumer of materials that get incorporated into real property. The contractor pays state + local sales tax (or compensating use tax) at the supplier. A resale exemption certificate (ST-28A) cannot be used for those materials. That is spelled out in KAR 92-19-66 and KDOR Publication KS-1525. Same rule for GCs and subs.

When materials can be bought exempt

The exemption is project-specific, not person-specific. It happens through a numbered Project Exemption Certificate (PEC) issued by the Kansas Department of Revenue (or an authorized agent). The GC and every sub present that PEC number to suppliers. Without the PEC, the supplier is supposed to collect the tax.

Typical ways a PEC gets issued:

• The owner is a qualifying exempt entity (public or private school, hospital, many political subdivisions, certain churches/nonprofits, Habitat for Humanity housing, etc.).
• The project is financed with Industrial Revenue Bonds (IRBs). The city or county issues the bonds, applies for the PEC, and the exemption covers construction materials and labor for that project. This is the mechanism you were remembering. It is a common Topeka/Shawnee County economic-development tool, not a contractor perk.
• Certain other statutory econ-dev programs (HPIP-certified businesses, qualifying data centers, etc.).

A contractor-retailer (a supply house that also does installation work and keeps inventory for over-the-counter sales) can buy inventory with an ST-28W certificate, then must self-assess and pay the tax when they pull materials out of inventory for a job. That is not the same as a pure contractor buying tax-free at the yard.

Why it looks uneven

It is not random “grace.” The statute lists who and what qualifies. Private commercial or residential work for a taxable owner almost never qualifies unless the project is wrapped in IRBs or another listed program and someone actually applied for and received the PEC. Government, school, hospital, and IRB projects do. That is why some jobs on the same street get the break and the next one does not.

If Boldman is presenting a PEC on a specific job, ask to see the certificate number and what project it is tied to. If he is just telling suppliers “I’m a contractor so no tax,” that is not how KDOR writes the rules.

Labor is a separate analysis (original construction labor is often not taxed; most remodel/repair labor is). Materials stay taxable to the contractor unless a PEC is in play.

Official sources: KDOR Pub. KS-1525 (contractors) and KS-1520 / the PEC pages on ksrevenue.gov. Worth a look if you want the exact forms.