In Re Tax Appeal of Bernie's Excavating Co.

Brazil, J.:

The Kansas Department of Revenue (Department) timely appeals a Board of Tax Appeals (BOTA) order directing that construction contracts be severed into taxable and nontaxable components in order to determine the appropriate retailers’ sales tax due on labor services. The Department contends that (1) the BOTA did not make findings of fact as required by K.S.A. 1988 Supp. 74-2426(a), (2) as a matter of law, K.S.A. 1988 Supp. 79-3603(p) imposes a sales tax on excavation services which are an integral part of the installation of sewer and water pipe and other similar materials, and (3)…