§ 5.18.210. Exemptions/waivers—Exemption for sales for resale.

The following sales of tangible personal property, intermediate services, and rentals are exempt under this chapter:

A.

Sales to a wholesale or retail dealer who deals in the property sold, for the purpose of resale by the dealer.

B.

Sales of personal property as raw material to a person engaged in manufacturing for sale, where the property sold is consumed in the manufacturing process of, or becomes an ingredient or component part of a product manufactured for sale by the manufacturer.

C.

Sale of personal property as raw material to a licensed building contractor where the property sold becomes part of the permanent structure.

D.

Sales of intermediate services to a business the charge for which will be passed directly by that business to a specific buyer are exempt under this chapter; except that

1.

Utilities shall in no case fall within this exemption; and

2.

Booking commissions, contracted or subcontracted guides, and lodging or other services sold as components of a recreational package are considered intermediate sales for resale, taxable at the final sale of the package to the buyer. All components of any such package sale shall be taxed in accordance with KPB 5.18.430.

(Ord. No. 2016-31 , § 4, 9-6-16; Ord. No. 2002-39, § 6, 12-10-02; Ord. No. 90-48, § 1(part), 1990; Ord. No. 87-10, § 8, 1987; Ord. No. 84-74, § 1(part), 1985)

Note— It should be noted that § 16 of Ord. No. 2002-39 provides for an effective date of April 1, 2003.