Do you live in Kansas City? Do you want to remodel your home? If so, you are taking the right decision for your home.
Now, you might already know that Kansas City sits between two states, namely, Missouri and Kansas. Combined, they are called the Kansas City Metropolitan Area.
Why is this important to know before remodeling your house?
Knowing this can save you time and money. The biggest challenge when hiring a remodeling contractor in Kansas City is the State Line. Kansas City covers many municipalities spanning across state borders. Hence, the rules governing your remodeling project will change depending on where your home is located: Missouri or Kansas.
For example, a remodeling contractor legally working in Prairie Village might not have the permit to work in Kansas City, MO (KCMO) and vice versa.
Hence, before you hire a remodeling contractor, you must keep these bi-state cautionary tips in mind.
No provision of “State-wide” License
Licensing for remodeling contractors is hyper-local. You won’t find any provision for a state-level license for contractors in either state. Here’s how licensing works:
- In Kansas, counties issue contractor’s licenses. Each county has its own process to provide a license. For example, a contractor from Johnson County must hold a Johnson County Contractor License to work in Leawood, Overland Park, Olathe, etc.
- In Missouri, if the contractor is based in KCMO, they must have a license issued by the City Planning and Development Department. If the contractor is based in other areas such as Blue Springs, they have separate licensing provisions.
Note: If a contractor claims to be licensed in Kansas City, always ask them the exact areas and municipalities they can work in. A contractor licensed in Kansas State can’t provide its services in Missouri State.
The 5% Tax Withholding Law for Out-of-State Contractors
This law is specific to Kansas State. If your house is in Kansas State and you hire a remodeling contractor from Missouri, the contractor must pay 5% taxes on the total contract amount. This ensures the state taxes are paid.
If this is the case, you might have to pay more than anticipated. Hence, always ask the contractors where they are licensed. And try to hire remodeling contractors in Prairie Village if you live in Kansas.
Note: If a contractor from Missouri ignores these compliance regulations and doesn’t pay the 5% withholding tax, they are barred from working in the region. Hence, ask the contractor for a license to work in your area.
Also Read: Connecting with Reliable Remodeling Contractors for Excellent Results
Liability Insurance Across State Borders
Each contractor has liability insurance, often known as workers’ compensation insurance. If a worker gets injured on the job site, the customer is not liable for any charges. The contractor can take care of their injured worker.
This gets tricky in the bi-state Kansas City. If a contractor from Missouri is working on your home in Kansas, his liability insurance won’t automatically extend to the state. If a worker gets injured in your Kansas home, you could be liable for the damage and for their injuries.
Don’t let that happen to you. Always ensure the contractor has a multi-state endorsement. In fact, ask the contractor’s insurance agency to send a Certificate of Insurance (COI). This certificate will tell you the areas the insurance is valid in and the types of injuries it covers.
The Permit Deception
Structural permits differ in each suburb. Minor changes, such as siding or window replacement, might not require permits in some regions. However, even minor structural changes or deck building need a permit.
Hence, it is crucial to ask your contractor to pull the required permits before starting the work. A licensed contractor in Kansas or Missouri will gladly pull all the permits.
Red Flag: If a contractor in the KC metropolitan area asks you to pull permits as an “owner-builder, ” it is a red flag. Don’t hire them. Such contractors aren’t licensed in your area and hence can’t pull permits in their name.
Note: Always insist that the contractor pull the permits. This ensures you are not legally responsible for anything, and the contractor is legally responsible for ensuring the work passes the permit requirements.
The Right to Cancel
If you have signed a remodeling contract, don’t worry! You have a 3-day cooling period to re-evaluate and cancel the contract if you find something suspicious.
Moreover, as a consumer, you must know that Kansas and Missouri protect the rights of consumers in their own way.
- In Missouri, your rights are protected under the Missouri Merchandising Practices Act (MMPA).
- In Kansas, your rights are protected under the Kansas Consumer Protection Act (KCPA). They penalize the contractor for deceptive information on licensing and permits.
Conclusion
Kansas City is a wonderful city to live in. However, having a house that needs remodeling requires a cautious approach. Always consider these cautionary tips to ensure you hire a remodeling contractor in Kansas City, MO, or Kansas. They must be licensed in their area of service. Avoid hiring a contractor licensed in another state.
If you are looking for a remodeling contractor in Prairie Village, Overland Park, Leawood, and nearby, contact us at NextGen Remodeling. We are a leading company providing kitchen, bathroom, and basement remodeling services. Our team is experienced and will deliver licensed and insured services to you. Contact us now.
Key Takeaways
- Kansas City is a bi-state city, spanning across Kansas and Missouri.
- Be cautious when hiring a remodeling contractor.
- Consider some cautionary tips to ensure you hire a remodeling contractor licensed in your state.
- There is no provision for a state-wide license for the contractors.
- A contractor from Missouri must pay a 5% withholding tax when working in Kansas.
- The contractor must have multi-state workers’ compensation insurance.
- Always ask the contractor to pull permits under their company name.
- Your rights as consumers are protected under state-specific laws.
Frequently Asked Questions
My house is in Kansas. Can I hire a remodeling contractor from Missouri?
Technically, you can! But you must be cautious when hiring a Missouri contractor for your Kansas home remodeling. They must have a license to work in your state. And they must be insured in Kansas.
Should I pull the permits for home remodeling?
No, you shouldn’t! As a homeowner, you are not liable to pull the permits. The contractor is responsible for collecting the permits and ensuring the work passes the requirements. If a contractor has asked you to pull the permits, don’t hire them.
Are my consumer rights protected in Kansas?
Yes, they are! You have a 3-day cooling period to cancel your contract if you aren’t satisfied with the proof of work. Both Kansas and Missouri will protect your consumer rights.
