Kansas 2023-2024 Regular Session

Kansas House Bill HB2416 Compare Versions

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1	1	Session of 2023
2	2	HOUSE BILL No. 2416
3	3	By Committee on Taxation
4	4	2-14
5	5	AN ACT concerning taxation; relating to sales and compensating use tax;
6	6	providing for a sales tax exemption for area agencies on aging;
7	7	amending K.S.A. 2022 Supp. 79-3606 and repealing the existing
8	8	section.
9	9	Be it enacted by the Legislature of the State of Kansas:
10	10	Section 1. K.S.A. 2022 Supp. 79-3606 is hereby amended to read as
11	11	follows: 79-3606. The following shall be exempt from the tax imposed by
12	12	this act:
13	13	(a) All sales of motor-vehicle fuel or other articles upon which a sales
14	14	or excise tax has been paid, not subject to refund, under the laws of this
15	15	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
16	16	3301, and amendments thereto, including consumable material for such
17	17	electronic cigarettes, cereal malt beverages and malt products as defined
18	18	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
19	19	malt syrup and malt extract, that is not subject to taxation under the
20	20	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
21	21	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
22	22	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
23	23	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
24	24	thereto, and gross receipts from regulated sports contests taxed pursuant to
25	25	the Kansas professional regulated sports act, and amendments thereto;
26	26	(b) all sales of tangible personal property or service, including the
27	27	renting and leasing of tangible personal property, purchased directly by the
28	28	state of Kansas, a political subdivision thereof, other than a school or
29	29	educational institution, or purchased by a public or private nonprofit
30	30	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
31	31	nonprofit integrated community care organization and used exclusively for
32	32	state, political subdivision, hospital, public hospital authority, nonprofit
33	33	blood, tissue or organ bank or nonprofit integrated community care
34	34	organization purposes, except when: (1) Such state, hospital or public
35	35	hospital authority is engaged or proposes to engage in any business
36	36	specifically taxable under the provisions of this act and such items of
37	37	tangible personal property or service are used or proposed to be used in
38	38	such business; or (2) such political subdivision is engaged or proposes to
39	39	engage in the business of furnishing gas, electricity or heat to others and
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76	76	such items of personal property or service are used or proposed to be used
77	77	in such business;
78	78	(c) all sales of tangible personal property or services, including the
79	79	renting and leasing of tangible personal property, purchased directly by a
80	80	public or private elementary or secondary school or public or private
81	81	nonprofit educational institution and used primarily by such school or
82	82	institution for nonsectarian programs and activities provided or sponsored
83	83	by such school or institution or in the erection, repair or enlargement of
84	84	buildings to be used for such purposes. The exemption herein provided
85	85	shall not apply to erection, construction, repair, enlargement or equipment
86	86	of buildings used primarily for human habitation, except that such
87	87	exemption shall apply to the erection, construction, repair, enlargement or
88	88	equipment of buildings used for human habitation by the cerebral palsy
89	89	research foundation of Kansas located in Wichita, Kansas, and multi
90	90	community diversified services, incorporated, located in McPherson,
91	91	Kansas;
92	92	(d) all sales of tangible personal property or services purchased by a
93	93	contractor for the purpose of constructing, equipping, reconstructing,
94	94	maintaining, repairing, enlarging, furnishing or remodeling facilities for
95	95	any public or private nonprofit hospital or public hospital authority, public
96	96	or private elementary or secondary school, a public or private nonprofit
97	97	educational institution, state correctional institution including a privately
98	98	constructed correctional institution contracted for state use and ownership,
99	99	that would be exempt from taxation under the provisions of this act if
100	100	purchased directly by such hospital or public hospital authority, school,
101	101	educational institution or a state correctional institution; and all sales of
102	102	tangible personal property or services purchased by a contractor for the
103	103	purpose of constructing, equipping, reconstructing, maintaining, repairing,
104	104	enlarging, furnishing or remodeling facilities for any political subdivision
105	105	of the state or district described in subsection (s), the total cost of which is
106	106	paid from funds of such political subdivision or district and that would be
107	107	exempt from taxation under the provisions of this act if purchased directly
108	108	by such political subdivision or district. Nothing in this subsection or in
109	109	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
110	110	deemed to exempt the purchase of any construction machinery, equipment
111	111	or tools used in the constructing, equipping, reconstructing, maintaining,
112	112	repairing, enlarging, furnishing or remodeling facilities for any political
113	113	subdivision of the state or any such district. As used in this subsection,
114	114	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
115	115	political subdivision" shall mean general tax revenues, the proceeds of any
116	116	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
117	117	purpose of constructing, equipping, reconstructing, repairing, enlarging,
118	118	furnishing or remodeling facilities that are to be leased to the donor. When
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162	162	any political subdivision of the state, district described in subsection (s),
163	163	public or private nonprofit hospital or public hospital authority, public or
164	164	private elementary or secondary school, public or private nonprofit
165	165	educational institution, state correctional institution including a privately
166	166	constructed correctional institution contracted for state use and ownership
167	167	shall contract for the purpose of constructing, equipping, reconstructing,
168	168	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
169	169	shall obtain from the state and furnish to the contractor an exemption
170	170	certificate for the project involved, and the contractor may purchase
171	171	materials for incorporation in such project. The contractor shall furnish the
172	172	number of such certificate to all suppliers from whom such purchases are
173	173	made, and such suppliers shall execute invoices covering the same bearing
174	174	the number of such certificate. Upon completion of the project the
175	175	contractor shall furnish to the political subdivision, district described in
176	176	subsection (s), hospital or public hospital authority, school, educational
177	177	institution or department of corrections concerned a sworn statement, on a
178	178	form to be provided by the director of taxation, that all purchases so made
179	179	were entitled to exemption under this subsection. As an alternative to the
180	180	foregoing procedure, any such contracting entity may apply to the
181	181	secretary of revenue for agent status for the sole purpose of issuing and
182	182	furnishing project exemption certificates to contractors pursuant to rules
183	183	and regulations adopted by the secretary establishing conditions and
184	184	standards for the granting and maintaining of such status. All invoices
185	185	shall be held by the contractor for a period of five years and shall be
186	186	subject to audit by the director of taxation. If any materials purchased
187	187	under such a certificate are found not to have been incorporated in the
188	188	building or other project or not to have been returned for credit or the sales
189	189	or compensating tax otherwise imposed upon such materials that will not
190	190	be so incorporated in the building or other project reported and paid by
191	191	such contractor to the director of taxation not later than the 20
192	192	th
193	193	day of the
194	194	month following the close of the month in which it shall be determined
195	195	that such materials will not be used for the purpose for which such
196	196	certificate was issued, the political subdivision, district described in
197	197	subsection (s), hospital or public hospital authority, school, educational
198	198	institution or the contractor contracting with the department of corrections
199	199	for a correctional institution concerned shall be liable for tax on all
200	200	materials purchased for the project, and upon payment thereof it may
201	201	recover the same from the contractor together with reasonable attorney
202	202	fees. Any contractor or any agent, employee or subcontractor thereof, who
203	203	shall use or otherwise dispose of any materials purchased under such a
204	204	certificate for any purpose other than that for which such a certificate is
205	205	issued without the payment of the sales or compensating tax otherwise
206	206	imposed upon such materials, shall be guilty of a misdemeanor and, upon
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250	250	conviction therefor, shall be subject to the penalties provided for in K.S.A.
251	251	79-3615(h), and amendments thereto;
252	252	(e) all sales of tangible personal property or services purchased by a
253	253	contractor for the erection, repair or enlargement of buildings or other
254	254	projects for the government of the United States, its agencies or
255	255	instrumentalities, that would be exempt from taxation if purchased directly
256	256	by the government of the United States, its agencies or instrumentalities.
257	257	When the government of the United States, its agencies or
258	258	instrumentalities shall contract for the erection, repair, or enlargement of
259	259	any building or other project, it shall obtain from the state and furnish to
260	260	the contractor an exemption certificate for the project involved, and the
261	261	contractor may purchase materials for incorporation in such project. The
262	262	contractor shall furnish the number of such certificates to all suppliers
263	263	from whom such purchases are made, and such suppliers shall execute
264	264	invoices covering the same bearing the number of such certificate. Upon
265	265	completion of the project the contractor shall furnish to the government of
266	266	the United States, its agencies or instrumentalities concerned a sworn
267	267	statement, on a form to be provided by the director of taxation, that all
268	268	purchases so made were entitled to exemption under this subsection. As an
269	269	alternative to the foregoing procedure, any such contracting entity may
270	270	apply to the secretary of revenue for agent status for the sole purpose of
271	271	issuing and furnishing project exemption certificates to contractors
272	272	pursuant to rules and regulations adopted by the secretary establishing
273	273	conditions and standards for the granting and maintaining of such status.
274	274	All invoices shall be held by the contractor for a period of five years and
275	275	shall be subject to audit by the director of taxation. Any contractor or any
276	276	agent, employee or subcontractor thereof, who shall use or otherwise
277	277	dispose of any materials purchased under such a certificate for any purpose
278	278	other than that for which such a certificate is issued without the payment
279	279	of the sales or compensating tax otherwise imposed upon such materials,
280	280	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
281	281	subject to the penalties provided for in K.S.A. 79-3615(h), and
282	282	amendments thereto;
283	283	(f) tangible personal property purchased by a railroad or public utility
284	284	for consumption or movement directly and immediately in interstate
285	285	commerce;
286	286	(g) sales of aircraft including remanufactured and modified aircraft
287	287	sold to persons using directly or through an authorized agent such aircraft
288	288	as certified or licensed carriers of persons or property in interstate or
289	289	foreign commerce under authority of the laws of the United States or any
290	290	foreign government or sold to any foreign government or agency or
291	291	instrumentality of such foreign government and all sales of aircraft for use
292	292	outside of the United States and sales of aircraft repair, modification and
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336	336	replacement parts and sales of services employed in the remanufacture,
337	337	modification and repair of aircraft;
338	338	(h) all rentals of nonsectarian textbooks by public or private
339	339	elementary or secondary schools;
340	340	(i) the lease or rental of all films, records, tapes, or any type of sound
341	341	or picture transcriptions used by motion picture exhibitors;
342	342	(j) meals served without charge or food used in the preparation of
343	343	such meals to employees of any restaurant, eating house, dining car, hotel,
344	344	drugstore or other place where meals or drinks are regularly sold to the
345	345	public if such employees' duties are related to the furnishing or sale of
346	346	such meals or drinks;
347	347	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
348	348	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
349	349	delivered in this state to a bona fide resident of another state, which motor
350	350	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
351	351	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
352	352	remain in this state more than 10 days;
353	353	(l) all isolated or occasional sales of tangible personal property,
354	354	services, substances or things, except isolated or occasional sale of motor
355	355	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
356	356	amendments thereto;
357	357	(m) all sales of tangible personal property that become an ingredient
358	358	or component part of tangible personal property or services produced,
359	359	manufactured or compounded for ultimate sale at retail within or without
360	360	the state of Kansas; and any such producer, manufacturer or compounder
361	361	may obtain from the director of taxation and furnish to the supplier an
362	362	exemption certificate number for tangible personal property for use as an
363	363	ingredient or component part of the property or services produced,
364	364	manufactured or compounded;
365	365	(n) all sales of tangible personal property that is consumed in the
366	366	production, manufacture, processing, mining, drilling, refining or
367	367	compounding of tangible personal property, the treating of by-products or
368	368	wastes derived from any such production process, the providing of
369	369	services or the irrigation of crops for ultimate sale at retail within or
370	370	without the state of Kansas; and any purchaser of such property may
371	371	obtain from the director of taxation and furnish to the supplier an
372	372	exemption certificate number for tangible personal property for
373	373	consumption in such production, manufacture, processing, mining,
374	374	drilling, refining, compounding, treating, irrigation and in providing such
375	375	services;
376	376	(o) all sales of animals, fowl and aquatic plants and animals, the
377	377	primary purpose of which is use in agriculture or aquaculture, as defined in
378	378	K.S.A. 47-1901, and amendments thereto, the production of food for
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422	422	human consumption, the production of animal, dairy, poultry or aquatic
423	423	plant and animal products, fiber or fur, or the production of offspring for
424	424	use for any such purpose or purposes;
425	425	(p) all sales of drugs dispensed pursuant to a prescription order by a
426	426	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
427	427	1626, and amendments thereto. As used in this subsection, "drug" means a
428	428	compound, substance or preparation and any component of a compound,
429	429	substance or preparation, other than food and food ingredients, dietary
430	430	supplements or alcoholic beverages, recognized in the official United
431	431	States pharmacopeia, official homeopathic pharmacopoeia of the United
432	432	States or official national formulary, and supplement to any of them,
433	433	intended for use in the diagnosis, cure, mitigation, treatment or prevention
434	434	of disease or intended to affect the structure or any function of the body,
435	435	except that for taxable years commencing after December 31, 2013, this
436	436	subsection shall not apply to any sales of drugs used in the performance or
437	437	induction of an abortion, as defined in K.S.A. 65-6701, and amendments
438	438	thereto;
439	439	(q) all sales of insulin dispensed by a person licensed by the state
440	440	board of pharmacy to a person for treatment of diabetes at the direction of
441	441	a person licensed to practice medicine by the state board of healing arts;
442	442	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
443	443	enteral feeding systems, prosthetic devices and mobility enhancing
444	444	equipment prescribed in writing by a person licensed to practice the
445	445	healing arts, dentistry or optometry, and in addition to such sales, all sales
446	446	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
447	447	and repair and replacement parts therefor, including batteries, by a person
448	448	licensed in the practice of dispensing and fitting hearing aids pursuant to
449	449	the provisions of K.S.A. 74-5808, and amendments thereto. For the
450	450	purposes of this subsection: (1) "Mobility enhancing equipment" means
451	451	equipment including repair and replacement parts to same, but does not
452	452	include durable medical equipment, which is primarily and customarily
453	453	used to provide or increase the ability to move from one place to another
454	454	and which is appropriate for use either in a home or a motor vehicle; is not
455	455	generally used by persons with normal mobility; and does not include any
456	456	motor vehicle or equipment on a motor vehicle normally provided by a
457	457	motor vehicle manufacturer; and (2) "prosthetic device" means a
458	458	replacement, corrective or supportive device including repair and
459	459	replacement parts for same worn on or in the body to artificially replace a
460	460	missing portion of the body, prevent or correct physical deformity or
461	461	malfunction or support a weak or deformed portion of the body;
462	462	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
463	463	all sales of tangible personal property or services purchased directly or
464	464	indirectly by a groundwater management district organized or operating
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508	508	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
509	509	by a rural water district organized or operating under the authority of
510	510	K.S.A. 82a-612, and amendments thereto, or by a water supply district
511	511	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
512	512	3522 et seq. or 19-3545, and amendments thereto, which property or
513	513	services are used in the construction activities, operation or maintenance of
514	514	the district;
515	515	(t) all sales of farm machinery and equipment or aquaculture
516	516	machinery and equipment, repair and replacement parts therefor and
517	517	services performed in the repair and maintenance of such machinery and
518	518	equipment. For the purposes of this subsection the term "farm machinery
519	519	and equipment or aquaculture machinery and equipment" shall include a
520	520	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
521	521	thereto, and is equipped with a bed or cargo box for hauling materials, and
522	522	shall also include machinery and equipment used in the operation of
523	523	Christmas tree farming but shall not include any passenger vehicle, truck,
524	524	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
525	525	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
526	526	machinery and equipment" includes precision farming equipment that is
527	527	portable or is installed or purchased to be installed on farm machinery and
528	528	equipment. "Precision farming equipment" includes the following items
529	529	used only in computer-assisted farming, ranching or aquaculture
530	530	production operations: Soil testing sensors, yield monitors, computers,
531	531	monitors, software, global positioning and mapping systems, guiding
532	532	systems, modems, data communications equipment and any necessary
533	533	mounting hardware, wiring and antennas. Each purchaser of farm
534	534	machinery and equipment or aquaculture machinery and equipment
535	535	exempted herein must certify in writing on the copy of the invoice or sales
536	536	ticket to be retained by the seller that the farm machinery and equipment
537	537	or aquaculture machinery and equipment purchased will be used only in
538	538	farming, ranching or aquaculture production. Farming or ranching shall
539	539	include the operation of a feedlot and farm and ranch work for hire and the
540	540	operation of a nursery;
541	541	(u) all leases or rentals of tangible personal property used as a
542	542	dwelling if such tangible personal property is leased or rented for a period
543	543	of more than 28 consecutive days;
544	544	(v) all sales of tangible personal property to any contractor for use in
545	545	preparing meals for delivery to homebound elderly persons over 60 years
546	546	of age and to homebound disabled persons or to be served at a group-
547	547	sitting at a location outside of the home to otherwise homebound elderly
548	548	persons over 60 years of age and to otherwise homebound disabled
549	549	persons, as all or part of any food service project funded in whole or in
550	550	part by government or as part of a private nonprofit food service project
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594	594	available to all such elderly or disabled persons residing within an area of
595	595	service designated by the private nonprofit organization, and all sales of
596	596	tangible personal property for use in preparing meals for consumption by
597	597	indigent or homeless individuals whether or not such meals are consumed
598	598	at a place designated for such purpose, and all sales of food products by or
599	599	on behalf of any such contractor or organization for any such purpose;
600	600	(w) all sales of natural gas, electricity, heat and water delivered
601	601	through mains, lines or pipes: (1) To residential premises for
602	602	noncommercial use by the occupant of such premises; (2) for agricultural
603	603	use and also, for such use, all sales of propane gas; (3) for use in the
604	604	severing of oil; and (4) to any property which is exempt from property
605	605	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
606	606	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
607	607	and amendments thereto. For all sales of natural gas, electricity and heat
608	608	delivered through mains, lines or pipes pursuant to the provisions of
609	609	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
610	610	on December 31, 2005;
611	611	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
612	612	for the production of heat or lighting for noncommercial use of an
613	613	occupant of residential premises occurring prior to January 1, 2006;
614	614	(y) all sales of materials and services used in the repairing, servicing,
615	615	altering, maintaining, manufacturing, remanufacturing, or modification of
616	616	railroad rolling stock for use in interstate or foreign commerce under
617	617	authority of the laws of the United States;
618	618	(z) all sales of tangible personal property and services purchased
619	619	directly by a port authority or by a contractor therefor as provided by the
620	620	provisions of K.S.A. 12-3418, and amendments thereto;
621	621	(aa) all sales of materials and services applied to equipment that is
622	622	transported into the state from without the state for repair, service,
623	623	alteration, maintenance, remanufacture or modification and that is
624	624	subsequently transported outside the state for use in the transmission of
625	625	liquids or natural gas by means of pipeline in interstate or foreign
626	626	commerce under authority of the laws of the United States;
627	627	(bb) all sales of used mobile homes or manufactured homes. As used
628	628	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
629	629	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
630	630	"sales of used mobile homes or manufactured homes" means sales other
631	631	than the original retail sale thereof;
632	632	(cc) all sales of tangible personal property or services purchased prior
633	633	to January 1, 2012, except as otherwise provided, for the purpose of and in
634	634	conjunction with constructing, reconstructing, enlarging or remodeling a
635	635	business or retail business that meets the requirements established in
636	636	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
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679	679	43 HB 2416 9
680	680	machinery and equipment purchased for installation at any such business
681	681	or retail business, and all sales of tangible personal property or services
682	682	purchased on or after January 1, 2012, for the purpose of and in
683	683	conjunction with constructing, reconstructing, enlarging or remodeling a
684	684	business that meets the requirements established in K.S.A. 74-50,115(e),
685	685	and amendments thereto, and the sale and installation of machinery and
686	686	equipment purchased for installation at any such business. When a person
687	687	shall contract for the construction, reconstruction, enlargement or
688	688	remodeling of any such business or retail business, such person shall
689	689	obtain from the state and furnish to the contractor an exemption certificate
690	690	for the project involved, and the contractor may purchase materials,
691	691	machinery and equipment for incorporation in such project. The contractor
692	692	shall furnish the number of such certificates to all suppliers from whom
693	693	such purchases are made, and such suppliers shall execute invoices
694	694	covering the same bearing the number of such certificate. Upon
695	695	completion of the project the contractor shall furnish to the owner of the
696	696	business or retail business a sworn statement, on a form to be provided by
697	697	the director of taxation, that all purchases so made were entitled to
698	698	exemption under this subsection. All invoices shall be held by the
699	699	contractor for a period of five years and shall be subject to audit by the
700	700	director of taxation. Any contractor or any agent, employee or
701	701	subcontractor thereof, who shall use or otherwise dispose of any materials,
702	702	machinery or equipment purchased under such a certificate for any
703	703	purpose other than that for which such a certificate is issued without the
704	704	payment of the sales or compensating tax otherwise imposed thereon, shall
705	705	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
706	706	to the penalties provided for in K.S.A. 79-3615(h), and amendments
707	707	thereto. As used in this subsection, "business" and "retail business" mean
708	708	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
709	709	exemption certificates that have been previously issued under this
710	710	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
711	711	and amendments thereto, but not including K.S.A. 74-50,115(e), and
712	712	amendments thereto, prior to January 1, 2012, and have not expired will be
713	713	effective for the term of the project or two years from the effective date of
714	714	the certificate, whichever occurs earlier. Project exemption certificates that
715	715	are submitted to the department of revenue prior to January 1, 2012, and
716	716	are found to qualify will be issued a project exemption certificate that will
717	717	be effective for a two-year period or for the term of the project, whichever
718	718	occurs earlier;
719	719	(dd) all sales of tangible personal property purchased with food
720	720	stamps issued by the United States department of agriculture;
721	721	(ee) all sales of lottery tickets and shares made as part of a lottery
722	722	operated by the state of Kansas;
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765	765	43 HB 2416 10
766	766	(ff) on and after July 1, 1988, all sales of new mobile homes or
767	767	manufactured homes to the extent of 40% of the gross receipts, determined
768	768	without regard to any trade-in allowance, received from such sale. As used
769	769	in this subsection, "mobile homes" and "manufactured homes" mean the
770	770	same as defined in K.S.A. 58-4202, and amendments thereto;
771	771	(gg) all sales of tangible personal property purchased in accordance
772	772	with vouchers issued pursuant to the federal special supplemental food
773	773	program for women, infants and children;
774	774	(hh) all sales of medical supplies and equipment, including durable
775	775	medical equipment, purchased directly by a nonprofit skilled nursing home
776	776	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
777	777	and amendments thereto, for the purpose of providing medical services to
778	778	residents thereof. This exemption shall not apply to tangible personal
779	779	property customarily used for human habitation purposes. As used in this
780	780	subsection, "durable medical equipment" means equipment including
781	781	repair and replacement parts for such equipment, that can withstand
782	782	repeated use, is primarily and customarily used to serve a medical purpose,
783	783	generally is not useful to a person in the absence of illness or injury and is
784	784	not worn in or on the body, but does not include mobility enhancing
785	785	equipment as defined in subsection (r), oxygen delivery equipment, kidney
786	786	dialysis equipment or enteral feeding systems;
787	787	(ii) all sales of tangible personal property purchased directly by a
788	788	nonprofit organization for nonsectarian comprehensive multidiscipline
789	789	youth development programs and activities provided or sponsored by such
790	790	organization, and all sales of tangible personal property by or on behalf of
791	791	any such organization. This exemption shall not apply to tangible personal
792	792	property customarily used for human habitation purposes;
793	793	(jj) all sales of tangible personal property or services, including the
794	794	renting and leasing of tangible personal property, purchased directly on
795	795	behalf of a community-based facility for people with intellectual disability
796	796	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
797	797	amendments thereto, and licensed in accordance with the provisions of
798	798	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
799	799	personal property or services purchased by contractors during the time
800	800	period from July, 2003, through June, 2006, for the purpose of
801	801	constructing, equipping, maintaining or furnishing a new facility for a
802	802	community-based facility for people with intellectual disability or mental
803	803	health center located in Riverton, Cherokee County, Kansas, that would
804	804	have been eligible for sales tax exemption pursuant to this subsection if
805	805	purchased directly by such facility or center. This exemption shall not
806	806	apply to tangible personal property customarily used for human habitation
807	807	purposes;
808	808	(kk) (1) (A) all sales of machinery and equipment that are used in this
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851	851	43 HB 2416 11
852	852	state as an integral or essential part of an integrated production operation
853	853	by a manufacturing or processing plant or facility;
854	854	(B) all sales of installation, repair and maintenance services
855	855	performed on such machinery and equipment; and
856	856	(C) all sales of repair and replacement parts and accessories
857	857	purchased for such machinery and equipment.
858	858	(2) For purposes of this subsection:
859	859	(A) "Integrated production operation" means an integrated series of
860	860	operations engaged in at a manufacturing or processing plant or facility to
861	861	process, transform or convert tangible personal property by physical,
862	862	chemical or other means into a different form, composition or character
863	863	from that in which it originally existed. Integrated production operations
864	864	shall include: (i) Production line operations, including packaging
865	865	operations; (ii) preproduction operations to handle, store and treat raw
866	866	materials; (iii) post production handling, storage, warehousing and
867	867	distribution operations; and (iv) waste, pollution and environmental
868	868	control operations, if any;
869	869	(B) "production line" means the assemblage of machinery and
870	870	equipment at a manufacturing or processing plant or facility where the
871	871	actual transformation or processing of tangible personal property occurs;
872	872	(C) "manufacturing or processing plant or facility" means a single,
873	873	fixed location owned or controlled by a manufacturing or processing
874	874	business that consists of one or more structures or buildings in a
875	875	contiguous area where integrated production operations are conducted to
876	876	manufacture or process tangible personal property to be ultimately sold at
877	877	retail. Such term shall not include any facility primarily operated for the
878	878	purpose of conveying or assisting in the conveyance of natural gas,
879	879	electricity, oil or water. A business may operate one or more manufacturing
880	880	or processing plants or facilities at different locations to manufacture or
881	881	process a single product of tangible personal property to be ultimately sold
882	882	at retail;
883	883	(D) "manufacturing or processing business" means a business that
884	884	utilizes an integrated production operation to manufacture, process,
885	885	fabricate, finish or assemble items for wholesale and retail distribution as
886	886	part of what is commonly regarded by the general public as an industrial
887	887	manufacturing or processing operation or an agricultural commodity
888	888	processing operation. (i) Industrial manufacturing or processing operations
889	889	include, by way of illustration but not of limitation, the fabrication of
890	890	automobiles, airplanes, machinery or transportation equipment, the
891	891	fabrication of metal, plastic, wood or paper products, electricity power
892	892	generation, water treatment, petroleum refining, chemical production,
893	893	wholesale bottling, newspaper printing, ready mixed concrete production,
894	894	and the remanufacturing of used parts for wholesale or retail sale. Such
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937	937	43 HB 2416 12
938	938	processing operations shall include operations at an oil well, gas well,
939	939	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
940	940	sand or gravel that has been extracted from the earth is cleaned, separated,
941	941	crushed, ground, milled, screened, washed or otherwise treated or prepared
942	942	before its transmission to a refinery or before any other wholesale or retail
943	943	distribution. (ii) Agricultural commodity processing operations include, by
944	944	way of illustration but not of limitation, meat packing, poultry slaughtering
945	945	and dressing, processing and packaging farm and dairy products in sealed
946	946	containers for wholesale and retail distribution, feed grinding, grain
947	947	milling, frozen food processing, and grain handling, cleaning, blending,
948	948	fumigation, drying and aeration operations engaged in by grain elevators
949	949	or other grain storage facilities. (iii) Manufacturing or processing
950	950	businesses do not include, by way of illustration but not of limitation,
951	951	nonindustrial businesses whose operations are primarily retail and that
952	952	produce or process tangible personal property as an incidental part of
953	953	conducting the retail business, such as retailers who bake, cook or prepare
954	954	food products in the regular course of their retail trade, grocery stores,
955	955	meat lockers and meat markets that butcher or dress livestock or poultry in
956	956	the regular course of their retail trade, contractors who alter, service, repair
957	957	or improve real property, and retail businesses that clean, service or
958	958	refurbish and repair tangible personal property for its owner;
959	959	(E) "repair and replacement parts and accessories" means all parts
960	960	and accessories for exempt machinery and equipment, including, but not
961	961	limited to, dies, jigs, molds, patterns and safety devices that are attached to
962	962	exempt machinery or that are otherwise used in production, and parts and
963	963	accessories that require periodic replacement such as belts, drill bits,
964	964	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
965	965	other refractory items for exempt kiln equipment used in production
966	966	operations;
967	967	(F) "primary" or "primarily" mean more than 50% of the time.
968	968	(3) For purposes of this subsection, machinery and equipment shall
969	969	be deemed to be used as an integral or essential part of an integrated
970	970	production operation when used to:
971	971	(A) Receive, transport, convey, handle, treat or store raw materials in
972	972	preparation of its placement on the production line;
973	973	(B) transport, convey, handle or store the property undergoing
974	974	manufacturing or processing at any point from the beginning of the
975	975	production line through any warehousing or distribution operation of the
976	976	final product that occurs at the plant or facility;
977	977	(C) act upon, effect, promote or otherwise facilitate a physical change
978	978	to the property undergoing manufacturing or processing;
979	979	(D) guide, control or direct the movement of property undergoing
980	980	manufacturing or processing;
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1023	1023	43 HB 2416 13
1024	1024	(E) test or measure raw materials, the property undergoing
1025	1025	manufacturing or processing or the finished product, as a necessary part of
1026	1026	the manufacturer's integrated production operations;
1027	1027	(F) plan, manage, control or record the receipt and flow of inventories
1028	1028	of raw materials, consumables and component parts, the flow of the
1029	1029	property undergoing manufacturing or processing and the management of
1030	1030	inventories of the finished product;
1031	1031	(G) produce energy for, lubricate, control the operating of or
1032	1032	otherwise enable the functioning of other production machinery and
1033	1033	equipment and the continuation of production operations;
1034	1034	(H) package the property being manufactured or processed in a
1035	1035	container or wrapping in which such property is normally sold or
1036	1036	transported;
1037	1037	(I) transmit or transport electricity, coke, gas, water, steam or similar
1038	1038	substances used in production operations from the point of generation, if
1039	1039	produced by the manufacturer or processor at the plant site, to that
1040	1040	manufacturer's production operation; or, if purchased or delivered from
1041	1041	off-site, from the point where the substance enters the site of the plant or
1042	1042	facility to that manufacturer's production operations;
1043	1043	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
1044	1044	solvents or other substances that are used in production operations;
1045	1045	(K) provide and control an environment required to maintain certain
1046	1046	levels of air quality, humidity or temperature in special and limited areas
1047	1047	of the plant or facility, where such regulation of temperature or humidity is
1048	1048	part of and essential to the production process;
1049	1049	(L) treat, transport or store waste or other byproducts of production
1050	1050	operations at the plant or facility; or
1051	1051	(M) control pollution at the plant or facility where the pollution is
1052	1052	produced by the manufacturing or processing operation.
1053	1053	(4) The following machinery, equipment and materials shall be
1054	1054	deemed to be exempt even though it may not otherwise qualify as
1055	1055	machinery and equipment used as an integral or essential part of an
1056	1056	integrated production operation: (A) Computers and related peripheral
1057	1057	equipment that are utilized by a manufacturing or processing business for
1058	1058	engineering of the finished product or for research and development or
1059	1059	product design; (B) machinery and equipment that is utilized by a
1060	1060	manufacturing or processing business to manufacture or rebuild tangible
1061	1061	personal property that is used in manufacturing or processing operations,
1062	1062	including tools, dies, molds, forms and other parts of qualifying machinery
1063	1063	and equipment; (C) portable plants for aggregate concrete, bulk cement
1064	1064	and asphalt including cement mixing drums to be attached to a motor
1065	1065	vehicle; (D) industrial fixtures, devices, support facilities and special
1066	1066	foundations necessary for manufacturing and production operations, and
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1109	1109	43 HB 2416 14
1110	1110	materials and other tangible personal property sold for the purpose of
1111	1111	fabricating such fixtures, devices, facilities and foundations. An exemption
1112	1112	certificate for such purchases shall be signed by the manufacturer or
1113	1113	processor. If the fabricator purchases such material, the fabricator shall
1114	1114	also sign the exemption certificate; (E) a manufacturing or processing
1115	1115	business' laboratory equipment that is not located at the plant or facility,
1116	1116	but that would otherwise qualify for exemption under subsection (3)(E);
1117	1117	(F) all machinery and equipment used in surface mining activities as
1118	1118	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
1119	1119	from the time a reclamation plan is filed to the acceptance of the
1120	1120	completed final site reclamation.
1121	1121	(5) "Machinery and equipment used as an integral or essential part of
1122	1122	an integrated production operation" shall not include:
1123	1123	(A) Machinery and equipment used for nonproduction purposes,
1124	1124	including, but not limited to, machinery and equipment used for plant
1125	1125	security, fire prevention, first aid, accounting, administration, record
1126	1126	keeping, advertising, marketing, sales or other related activities, plant
1127	1127	cleaning, plant communications and employee work scheduling;
1128	1128	(B) machinery, equipment and tools used primarily in maintaining
1129	1129	and repairing any type of machinery and equipment or the building and
1130	1130	plant;
1131	1131	(C) transportation, transmission and distribution equipment not
1132	1132	primarily used in a production, warehousing or material handling
1133	1133	operation at the plant or facility, including the means of conveyance of
1134	1134	natural gas, electricity, oil or water, and equipment related thereto, located
1135	1135	outside the plant or facility;
1136	1136	(D) office machines and equipment including computers and related
1137	1137	peripheral equipment not used directly and primarily to control or measure
1138	1138	the manufacturing process;
1139	1139	(E) furniture and other furnishings;
1140	1140	(F) buildings, other than exempt machinery and equipment that is
1141	1141	permanently affixed to or becomes a physical part of the building, and any
1142	1142	other part of real estate that is not otherwise exempt;
1143	1143	(G) building fixtures that are not integral to the manufacturing
1144	1144	operation, such as utility systems for heating, ventilation, air conditioning,
1145	1145	communications, plumbing or electrical;
1146	1146	(H) machinery and equipment used for general plant heating, cooling
1147	1147	and lighting;
1148	1148	(I) motor vehicles that are registered for operation on public
1149	1149	highways; or
1150	1150	(J) employee apparel, except safety and protective apparel that is
1151	1151	purchased by an employer and furnished gratuitously to employees who
1152	1152	are involved in production or research activities.
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1195	1195	43 HB 2416 15
1196	1196	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
1197	1197	of the machinery and equipment that qualify or do not qualify as an
1198	1198	integral or essential part of an integrated production operation. When
1199	1199	machinery or equipment is used as an integral or essential part of
1200	1200	production operations part of the time and for nonproduction purposes at
1201	1201	other times, the primary use of the machinery or equipment shall
1202	1202	determine whether or not such machinery or equipment qualifies for
1203	1203	exemption.
1204	1204	(7) The secretary of revenue shall adopt rules and regulations
1205	1205	necessary to administer the provisions of this subsection;
1206	1206	(ll) all sales of educational materials purchased for distribution to the
1207	1207	public at no charge by a nonprofit corporation organized for the purpose of
1208	1208	encouraging, fostering and conducting programs for the improvement of
1209	1209	public health, except that for taxable years commencing after December
1210	1210	31, 2013, this subsection shall not apply to any sales of such materials
1211	1211	purchased by a nonprofit corporation which performs any abortion, as
1212	1212	defined in K.S.A. 65-6701, and amendments thereto;
1213	1213	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
1214	1214	herbicides, germicides, pesticides and fungicides; and services, purchased
1215	1215	and used for the purpose of producing plants in order to prevent soil
1216	1216	erosion on land devoted to agricultural use;
1217	1217	(nn) except as otherwise provided in this act, all sales of services
1218	1218	rendered by an advertising agency or licensed broadcast station or any
1219	1219	member, agent or employee thereof;
1220	1220	(oo) all sales of tangible personal property purchased by a community
1221	1221	action group or agency for the exclusive purpose of repairing or
1222	1222	weatherizing housing occupied by low-income individuals;
1223	1223	(pp) all sales of drill bits and explosives actually utilized in the
1224	1224	exploration and production of oil or gas;
1225	1225	(qq) all sales of tangible personal property and services purchased by
1226	1226	a nonprofit museum or historical society or any combination thereof,
1227	1227	including a nonprofit organization that is organized for the purpose of
1228	1228	stimulating public interest in the exploration of space by providing
1229	1229	educational information, exhibits and experiences, that is exempt from
1230	1230	federal income taxation pursuant to section 501(c)(3) of the federal
1231	1231	internal revenue code of 1986;
1232	1232	(rr) all sales of tangible personal property that will admit the
1233	1233	purchaser thereof to any annual event sponsored by a nonprofit
1234	1234	organization that is exempt from federal income taxation pursuant to
1235	1235	section 501(c)(3) of the federal internal revenue code of 1986, except that
1236	1236	for taxable years commencing after December 31, 2013, this subsection
1237	1237	shall not apply to any sales of such tangible personal property purchased
1238	1238	by a nonprofit organization which performs any abortion, as defined in
1239	1239	1
1240	1240	2
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1278	1278	40
1279	1279	41
1280	1280	42
1281	1281	43 HB 2416 16
1282	1282	K.S.A. 65-6701, and amendments thereto;
1283	1283	(ss) all sales of tangible personal property and services purchased by
1284	1284	a public broadcasting station licensed by the federal communications
1285	1285	commission as a noncommercial educational television or radio station;
1286	1286	(tt) all sales of tangible personal property and services purchased by
1287	1287	or on behalf of a not-for-profit corporation that is exempt from federal
1288	1288	income taxation pursuant to section 501(c)(3) of the federal internal
1289	1289	revenue code of 1986, for the sole purpose of constructing a Kansas
1290	1290	Korean War memorial;
1291	1291	(uu) all sales of tangible personal property and services purchased by
1292	1292	or on behalf of any rural volunteer fire-fighting organization for use
1293	1293	exclusively in the performance of its duties and functions;
1294	1294	(vv) all sales of tangible personal property purchased by any of the
1295	1295	following organizations that are exempt from federal income taxation
1296	1296	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
1297	1297	for the following purposes, and all sales of any such property by or on
1298	1298	behalf of any such organization for any such purpose:
1299	1299	(1) The American heart association, Kansas affiliate, inc. for the
1300	1300	purposes of providing education, training, certification in emergency
1301	1301	cardiac care, research and other related services to reduce disability and
1302	1302	death from cardiovascular diseases and stroke;
1303	1303	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
1304	1304	advocacy for persons with mental illness and to education, research and
1305	1305	support for their families;
1306	1306	(3) the Kansas mental illness awareness council for the purposes of
1307	1307	advocacy for persons who are mentally ill and for education, research and
1308	1308	support for them and their families;
1309	1309	(4) the American diabetes association Kansas affiliate, inc. for the
1310	1310	purpose of eliminating diabetes through medical research, public education
1311	1311	focusing on disease prevention and education, patient education including
1312	1312	information on coping with diabetes, and professional education and
1313	1313	training;
1314	1314	(5) the American lung association of Kansas, inc. for the purpose of
1315	1315	eliminating all lung diseases through medical research, public education
1316	1316	including information on coping with lung diseases, professional education
1317	1317	and training related to lung disease and other related services to reduce the
1318	1318	incidence of disability and death due to lung disease;
1319	1319	(6) the Kansas chapters of the Alzheimer's disease and related
1320	1320	disorders association, inc. for the purpose of providing assistance and
1321	1321	support to persons in Kansas with Alzheimer's disease, and their families
1322	1322	and caregivers;
1323	1323	(7) the Kansas chapters of the Parkinson's disease association for the
1324	1324	purpose of eliminating Parkinson's disease through medical research and
1325	1325	1
1326	1326	2
1327	1327	3
1328	1328	4
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1333	1333	9
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1337	1337	13
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1366	1366	42
1367	1367	43 HB 2416 17
1368	1368	public and professional education related to such disease;
1369	1369	(8) the national kidney foundation of Kansas and western Missouri
1370	1370	for the purpose of eliminating kidney disease through medical research
1371	1371	and public and private education related to such disease;
1372	1372	(9) the heartstrings community foundation for the purpose of
1373	1373	providing training, employment and activities for adults with
1374	1374	developmental disabilities;
1375	1375	(10) the cystic fibrosis foundation, heart of America chapter, for the
1376	1376	purposes of assuring the development of the means to cure and control
1377	1377	cystic fibrosis and improving the quality of life for those with the disease;
1378	1378	(11) the spina bifida association of Kansas for the purpose of
1379	1379	providing financial, educational and practical aid to families and
1380	1380	individuals with spina bifida. Such aid includes, but is not limited to,
1381	1381	funding for medical devices, counseling and medical educational
1382	1382	opportunities;
1383	1383	(12) the CHWC, Inc., for the purpose of rebuilding urban core
1384	1384	neighborhoods through the construction of new homes, acquiring and
1385	1385	renovating existing homes and other related activities, and promoting
1386	1386	economic development in such neighborhoods;
1387	1387	(13) the cross-lines cooperative council for the purpose of providing
1388	1388	social services to low income individuals and families;
1389	1389	(14) the dreams work, inc., for the purpose of providing young adult
1390	1390	day services to individuals with developmental disabilities and assisting
1391	1391	families in avoiding institutional or nursing home care for a
1392	1392	developmentally disabled member of their family;
1393	1393	(15) the KSDS, Inc., for the purpose of promoting the independence
1394	1394	and inclusion of people with disabilities as fully participating and
1395	1395	contributing members of their communities and society through the
1396	1396	training and providing of guide and service dogs to people with
1397	1397	disabilities, and providing disability education and awareness to the
1398	1398	general public;
1399	1399	(16) the lyme association of greater Kansas City, Inc., for the purpose
1400	1400	of providing support to persons with lyme disease and public education
1401	1401	relating to the prevention, treatment and cure of lyme disease;
1402	1402	(17) the dream factory, inc., for the purpose of granting the dreams of
1403	1403	children with critical and chronic illnesses;
1404	1404	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
1405	1405	students and families with education and resources necessary to enable
1406	1406	each child to develop fine character and musical ability to the fullest
1407	1407	potential;
1408	1408	(19) the international association of lions clubs for the purpose of
1409	1409	creating and fostering a spirit of understanding among all people for
1410	1410	humanitarian needs by providing voluntary services through community
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1452	1452	42
1453	1453	43 HB 2416 18
1454	1454	involvement and international cooperation;
1455	1455	(20) the Johnson county young matrons, inc., for the purpose of
1456	1456	promoting a positive future for members of the community through
1457	1457	volunteerism, financial support and education through the efforts of an all
1458	1458	volunteer organization;
1459	1459	(21) the American cancer society, inc., for the purpose of eliminating
1460	1460	cancer as a major health problem by preventing cancer, saving lives and
1461	1461	diminishing suffering from cancer, through research, education, advocacy
1462	1462	and service;
1463	1463	(22) the community services of Shawnee, inc., for the purpose of
1464	1464	providing food and clothing to those in need;
1465	1465	(23) the angel babies association, for the purpose of providing
1466	1466	assistance, support and items of necessity to teenage mothers and their
1467	1467	babies; and
1468	1468	(24) the Kansas fairgrounds foundation for the purpose of the
1469	1469	preservation, renovation and beautification of the Kansas state fairgrounds;
1470	1470	(ww) all sales of tangible personal property purchased by the habitat
1471	1471	for humanity for the exclusive use of being incorporated within a housing
1472	1472	project constructed by such organization;
1473	1473	(xx) all sales of tangible personal property and services purchased by
1474	1474	a nonprofit zoo that is exempt from federal income taxation pursuant to
1475	1475	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
1476	1476	of such zoo by an entity itself exempt from federal income taxation
1477	1477	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
1478	1478	contracted with to operate such zoo and all sales of tangible personal
1479	1479	property or services purchased by a contractor for the purpose of
1480	1480	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1481	1481	furnishing or remodeling facilities for any nonprofit zoo that would be
1482	1482	exempt from taxation under the provisions of this section if purchased
1483	1483	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
1484	1484	this subsection shall be deemed to exempt the purchase of any construction
1485	1485	machinery, equipment or tools used in the constructing, equipping,
1486	1486	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1487	1487	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
1488	1488	the purpose of constructing, equipping, reconstructing, maintaining,
1489	1489	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
1490	1490	from the state and furnish to the contractor an exemption certificate for the
1491	1491	project involved, and the contractor may purchase materials for
1492	1492	incorporation in such project. The contractor shall furnish the number of
1493	1493	such certificate to all suppliers from whom such purchases are made, and
1494	1494	such suppliers shall execute invoices covering the same bearing the
1495	1495	number of such certificate. Upon completion of the project the contractor
1496	1496	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
1497	1497	1
1498	1498	2
1499	1499	3
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1538	1538	42
1539	1539	43 HB 2416 19
1540	1540	to be provided by the director of taxation, that all purchases so made were
1541	1541	entitled to exemption under this subsection. All invoices shall be held by
1542	1542	the contractor for a period of five years and shall be subject to audit by the
1543	1543	director of taxation. If any materials purchased under such a certificate are
1544	1544	found not to have been incorporated in the building or other project or not
1545	1545	to have been returned for credit or the sales or compensating tax otherwise
1546	1546	imposed upon such materials that will not be so incorporated in the
1547	1547	building or other project reported and paid by such contractor to the
1548	1548	director of taxation not later than the 20
1549	1549	th
1550	1550	day of the month following the
1551	1551	close of the month in which it shall be determined that such materials will
1552	1552	not be used for the purpose for which such certificate was issued, the
1553	1553	nonprofit zoo concerned shall be liable for tax on all materials purchased
1554	1554	for the project, and upon payment thereof it may recover the same from
1555	1555	the contractor together with reasonable attorney fees. Any contractor or
1556	1556	any agent, employee or subcontractor thereof, who shall use or otherwise
1557	1557	dispose of any materials purchased under such a certificate for any purpose
1558	1558	other than that for which such a certificate is issued without the payment
1559	1559	of the sales or compensating tax otherwise imposed upon such materials,
1560	1560	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1561	1561	subject to the penalties provided for in K.S.A. 79-3615(h), and
1562	1562	amendments thereto;
1563	1563	(yy) all sales of tangible personal property and services purchased by
1564	1564	a parent-teacher association or organization, and all sales of tangible
1565	1565	personal property by or on behalf of such association or organization;
1566	1566	(zz) all sales of machinery and equipment purchased by over-the-air,
1567	1567	free access radio or television station that is used directly and primarily for
1568	1568	the purpose of producing a broadcast signal or is such that the failure of
1569	1569	the machinery or equipment to operate would cause broadcasting to cease.
1570	1570	For purposes of this subsection, machinery and equipment shall include,
1571	1571	but not be limited to, that required by rules and regulations of the federal
1572	1572	communications commission, and all sales of electricity which are
1573	1573	essential or necessary for the purpose of producing a broadcast signal or is
1574	1574	such that the failure of the electricity would cause broadcasting to cease;
1575	1575	(aaa) all sales of tangible personal property and services purchased by
1576	1576	a religious organization that is exempt from federal income taxation
1577	1577	pursuant to section 501(c)(3) of the federal internal revenue code, and used
1578	1578	exclusively for religious purposes, and all sales of tangible personal
1579	1579	property or services purchased by a contractor for the purpose of
1580	1580	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1581	1581	furnishing or remodeling facilities for any such organization that would be
1582	1582	exempt from taxation under the provisions of this section if purchased
1583	1583	directly by such organization. Nothing in this subsection shall be deemed
1584	1584	to exempt the purchase of any construction machinery, equipment or tools
1585	1585	1
1586	1586	2
1587	1587	3
1588	1588	4
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1626	1626	42
1627	1627	43 HB 2416 20
1628	1628	used in the constructing, equipping, reconstructing, maintaining, repairing,
1629	1629	enlarging, furnishing or remodeling facilities for any such organization.
1630	1630	When any such organization shall contract for the purpose of constructing,
1631	1631	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1632	1632	remodeling facilities, it shall obtain from the state and furnish to the
1633	1633	contractor an exemption certificate for the project involved, and the
1634	1634	contractor may purchase materials for incorporation in such project. The
1635	1635	contractor shall furnish the number of such certificate to all suppliers from
1636	1636	whom such purchases are made, and such suppliers shall execute invoices
1637	1637	covering the same bearing the number of such certificate. Upon
1638	1638	completion of the project the contractor shall furnish to such organization
1639	1639	concerned a sworn statement, on a form to be provided by the director of
1640	1640	taxation, that all purchases so made were entitled to exemption under this
1641	1641	subsection. All invoices shall be held by the contractor for a period of five
1642	1642	years and shall be subject to audit by the director of taxation. If any
1643	1643	materials purchased under such a certificate are found not to have been
1644	1644	incorporated in the building or other project or not to have been returned
1645	1645	for credit or the sales or compensating tax otherwise imposed upon such
1646	1646	materials that will not be so incorporated in the building or other project
1647	1647	reported and paid by such contractor to the director of taxation not later
1648	1648	than the 20
1649	1649	th
1650	1650	day of the month following the close of the month in which it
1651	1651	shall be determined that such materials will not be used for the purpose for
1652	1652	which such certificate was issued, such organization concerned shall be
1653	1653	liable for tax on all materials purchased for the project, and upon payment
1654	1654	thereof it may recover the same from the contractor together with
1655	1655	reasonable attorney fees. Any contractor or any agent, employee or
1656	1656	subcontractor thereof, who shall use or otherwise dispose of any materials
1657	1657	purchased under such a certificate for any purpose other than that for
1658	1658	which such a certificate is issued without the payment of the sales or
1659	1659	compensating tax otherwise imposed upon such materials, shall be guilty
1660	1660	of a misdemeanor and, upon conviction therefor, shall be subject to the
1661	1661	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
1662	1662	Sales tax paid on and after July 1, 1998, but prior to the effective date of
1663	1663	this act upon the gross receipts received from any sale exempted by the
1664	1664	amendatory provisions of this subsection shall be refunded. Each claim for
1665	1665	a sales tax refund shall be verified and submitted to the director of taxation
1666	1666	upon forms furnished by the director and shall be accompanied by any
1667	1667	additional documentation required by the director. The director shall
1668	1668	review each claim and shall refund that amount of sales tax paid as
1669	1669	determined under the provisions of this subsection. All refunds shall be
1670	1670	paid from the sales tax refund fund upon warrants of the director of
1671	1671	accounts and reports pursuant to vouchers approved by the director or the
1672	1672	director's designee;
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1715	1715	43 HB 2416 21
1716	1716	(bbb) all sales of food for human consumption by an organization that
1717	1717	is exempt from federal income taxation pursuant to section 501(c)(3) of
1718	1718	the federal internal revenue code of 1986, pursuant to a food distribution
1719	1719	program that offers such food at a price below cost in exchange for the
1720	1720	performance of community service by the purchaser thereof;
1721	1721	(ccc) on and after July 1, 1999, all sales of tangible personal property
1722	1722	and services purchased by a primary care clinic or health center the
1723	1723	primary purpose of which is to provide services to medically underserved
1724	1724	individuals and families, and that is exempt from federal income taxation
1725	1725	pursuant to section 501(c)(3) of the federal internal revenue code, and all
1726	1726	sales of tangible personal property or services purchased by a contractor
1727	1727	for the purpose of constructing, equipping, reconstructing, maintaining,
1728	1728	repairing, enlarging, furnishing or remodeling facilities for any such clinic
1729	1729	or center that would be exempt from taxation under the provisions of this
1730	1730	section if purchased directly by such clinic or center, except that for
1731	1731	taxable years commencing after December 31, 2013, this subsection shall
1732	1732	not apply to any sales of such tangible personal property and services
1733	1733	purchased by a primary care clinic or health center which performs any
1734	1734	abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
1735	1735	in this subsection shall be deemed to exempt the purchase of any
1736	1736	construction machinery, equipment or tools used in the constructing,
1737	1737	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1738	1738	remodeling facilities for any such clinic or center. When any such clinic or
1739	1739	center shall contract for the purpose of constructing, equipping,
1740	1740	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1741	1741	facilities, it shall obtain from the state and furnish to the contractor an
1742	1742	exemption certificate for the project involved, and the contractor may
1743	1743	purchase materials for incorporation in such project. The contractor shall
1744	1744	furnish the number of such certificate to all suppliers from whom such
1745	1745	purchases are made, and such suppliers shall execute invoices covering the
1746	1746	same bearing the number of such certificate. Upon completion of the
1747	1747	project the contractor shall furnish to such clinic or center concerned a
1748	1748	sworn statement, on a form to be provided by the director of taxation, that
1749	1749	all purchases so made were entitled to exemption under this subsection.
1750	1750	All invoices shall be held by the contractor for a period of five years and
1751	1751	shall be subject to audit by the director of taxation. If any materials
1752	1752	purchased under such a certificate are found not to have been incorporated
1753	1753	in the building or other project or not to have been returned for credit or
1754	1754	the sales or compensating tax otherwise imposed upon such materials that
1755	1755	will not be so incorporated in the building or other project reported and
1756	1756	paid by such contractor to the director of taxation not later than the 20
1757	1757	th
1758	1758	day of the month following the close of the month in which it shall be
1759	1759	determined that such materials will not be used for the purpose for which
1760	1760	1
1761	1761	2
1762	1762	3
1763	1763	4
1764	1764	5
1765	1765	6
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1792	1792	33
1793	1793	34
1794	1794	35
1795	1795	36
1796	1796	37
1797	1797	38
1798	1798	39
1799	1799	40
1800	1800	41
1801	1801	42
1802	1802	43 HB 2416 22
1803	1803	such certificate was issued, such clinic or center concerned shall be liable
1804	1804	for tax on all materials purchased for the project, and upon payment
1805	1805	thereof it may recover the same from the contractor together with
1806	1806	reasonable attorney fees. Any contractor or any agent, employee or
1807	1807	subcontractor thereof, who shall use or otherwise dispose of any materials
1808	1808	purchased under such a certificate for any purpose other than that for
1809	1809	which such a certificate is issued without the payment of the sales or
1810	1810	compensating tax otherwise imposed upon such materials, shall be guilty
1811	1811	of a misdemeanor and, upon conviction therefor, shall be subject to the
1812	1812	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
1813	1813	(ddd) on and after January 1, 1999, and before January 1, 2000, all
1814	1814	sales of materials and services purchased by any class II or III railroad as
1815	1815	classified by the federal surface transportation board for the construction,
1816	1816	renovation, repair or replacement of class II or III railroad track and
1817	1817	facilities used directly in interstate commerce. In the event any such track
1818	1818	or facility for which materials and services were purchased sales tax
1819	1819	exempt is not operational for five years succeeding the allowance of such
1820	1820	exemption, the total amount of sales tax that would have been payable
1821	1821	except for the operation of this subsection shall be recouped in accordance
1822	1822	with rules and regulations adopted for such purpose by the secretary of
1823	1823	revenue;
1824	1824	(eee) on and after January 1, 1999, and before January 1, 2001, all
1825	1825	sales of materials and services purchased for the original construction,
1826	1826	reconstruction, repair or replacement of grain storage facilities, including
1827	1827	railroad sidings providing access thereto;
1828	1828	(fff) all sales of material handling equipment, racking systems and
1829	1829	other related machinery and equipment that is used for the handling,
1830	1830	movement or storage of tangible personal property in a warehouse or
1831	1831	distribution facility in this state; all sales of installation, repair and
1832	1832	maintenance services performed on such machinery and equipment; and
1833	1833	all sales of repair and replacement parts for such machinery and
1834	1834	equipment. For purposes of this subsection, a warehouse or distribution
1835	1835	facility means a single, fixed location that consists of buildings or
1836	1836	structures in a contiguous area where storage or distribution operations are
1837	1837	conducted that are separate and apart from the business' retail operations,
1838	1838	if any, and that do not otherwise qualify for exemption as occurring at a
1839	1839	manufacturing or processing plant or facility. Material handling and
1840	1840	storage equipment shall include aeration, dust control, cleaning, handling
1841	1841	and other such equipment that is used in a public grain warehouse or other
1842	1842	commercial grain storage facility, whether used for grain handling, grain
1843	1843	storage, grain refining or processing, or other grain treatment operation;
1844	1844	(ggg) all sales of tangible personal property and services purchased
1845	1845	by or on behalf of the Kansas academy of science, which is exempt from
1846	1846	1
1847	1847	2
1848	1848	3
1849	1849	4
1850	1850	5
1851	1851	6
1852	1852	7
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1854	1854	9
1855	1855	10
1856	1856	11
1857	1857	12
1858	1858	13
1859	1859	14
1860	1860	15
1861	1861	16
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1870	1870	25
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1874	1874	29
1875	1875	30
1876	1876	31
1877	1877	32
1878	1878	33
1879	1879	34
1880	1880	35
1881	1881	36
1882	1882	37
1883	1883	38
1884	1884	39
1885	1885	40
1886	1886	41
1887	1887	42
1888	1888	43 HB 2416 23
1889	1889	federal income taxation pursuant to section 501(c)(3) of the federal
1890	1890	internal revenue code of 1986, and used solely by such academy for the
1891	1891	preparation, publication and dissemination of education materials;
1892	1892	(hhh) all sales of tangible personal property and services purchased
1893	1893	by or on behalf of all domestic violence shelters that are member agencies
1894	1894	of the Kansas coalition against sexual and domestic violence;
1895	1895	(iii) all sales of personal property and services purchased by an
1896	1896	organization that is exempt from federal income taxation pursuant to
1897	1897	section 501(c)(3) of the federal internal revenue code of 1986, and such
1898	1898	personal property and services are used by any such organization in the
1899	1899	collection, storage and distribution of food products to nonprofit
1900	1900	organizations that distribute such food products to persons pursuant to a
1901	1901	food distribution program on a charitable basis without fee or charge, and
1902	1902	all sales of tangible personal property or services purchased by a
1903	1903	contractor for the purpose of constructing, equipping, reconstructing,
1904	1904	maintaining, repairing, enlarging, furnishing or remodeling facilities used
1905	1905	for the collection and storage of such food products for any such
1906	1906	organization which is exempt from federal income taxation pursuant to
1907	1907	section 501(c)(3) of the federal internal revenue code of 1986, that would
1908	1908	be exempt from taxation under the provisions of this section if purchased
1909	1909	directly by such organization. Nothing in this subsection shall be deemed
1910	1910	to exempt the purchase of any construction machinery, equipment or tools
1911	1911	used in the constructing, equipping, reconstructing, maintaining, repairing,
1912	1912	enlarging, furnishing or remodeling facilities for any such organization.
1913	1913	When any such organization shall contract for the purpose of constructing,
1914	1914	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1915	1915	remodeling facilities, it shall obtain from the state and furnish to the
1916	1916	contractor an exemption certificate for the project involved, and the
1917	1917	contractor may purchase materials for incorporation in such project. The
1918	1918	contractor shall furnish the number of such certificate to all suppliers from
1919	1919	whom such purchases are made, and such suppliers shall execute invoices
1920	1920	covering the same bearing the number of such certificate. Upon
1921	1921	completion of the project the contractor shall furnish to such organization
1922	1922	concerned a sworn statement, on a form to be provided by the director of
1923	1923	taxation, that all purchases so made were entitled to exemption under this
1924	1924	subsection. All invoices shall be held by the contractor for a period of five
1925	1925	years and shall be subject to audit by the director of taxation. If any
1926	1926	materials purchased under such a certificate are found not to have been
1927	1927	incorporated in such facilities or not to have been returned for credit or the
1928	1928	sales or compensating tax otherwise imposed upon such materials that will
1929	1929	not be so incorporated in such facilities reported and paid by such
1930	1930	contractor to the director of taxation not later than the 20
1931	1931	th
1932	1932	day of the
1933	1933	month following the close of the month in which it shall be determined
1934	1934	1
1935	1935	2
1936	1936	3
1937	1937	4
1938	1938	5
1939	1939	6
1940	1940	7
1941	1941	8
1942	1942	9
1943	1943	10
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1945	1945	12
1946	1946	13
1947	1947	14
1948	1948	15
1949	1949	16
1950	1950	17
1951	1951	18
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1953	1953	20
1954	1954	21
1955	1955	22
1956	1956	23
1957	1957	24
1958	1958	25
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1960	1960	27
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1964	1964	31
1965	1965	32
1966	1966	33
1967	1967	34
1968	1968	35
1969	1969	36
1970	1970	37
1971	1971	38
1972	1972	39
1973	1973	40
1974	1974	41
1975	1975	42
1976	1976	43 HB 2416 24
1977	1977	that such materials will not be used for the purpose for which such
1978	1978	certificate was issued, such organization concerned shall be liable for tax
1979	1979	on all materials purchased for the project, and upon payment thereof it
1980	1980	may recover the same from the contractor together with reasonable
1981	1981	attorney fees. Any contractor or any agent, employee or subcontractor
1982	1982	thereof, who shall use or otherwise dispose of any materials purchased
1983	1983	under such a certificate for any purpose other than that for which such a
1984	1984	certificate is issued without the payment of the sales or compensating tax
1985	1985	otherwise imposed upon such materials, shall be guilty of a misdemeanor
1986	1986	and, upon conviction therefor, shall be subject to the penalties provided for
1987	1987	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
1988	1988	July 1, 2005, but prior to the effective date of this act upon the gross
1989	1989	receipts received from any sale exempted by the amendatory provisions of
1990	1990	this subsection shall be refunded. Each claim for a sales tax refund shall be
1991	1991	verified and submitted to the director of taxation upon forms furnished by
1992	1992	the director and shall be accompanied by any additional documentation
1993	1993	required by the director. The director shall review each claim and shall
1994	1994	refund that amount of sales tax paid as determined under the provisions of
1995	1995	this subsection. All refunds shall be paid from the sales tax refund fund
1996	1996	upon warrants of the director of accounts and reports pursuant to vouchers
1997	1997	approved by the director or the director's designee;
1998	1998	(jjj) all sales of dietary supplements dispensed pursuant to a
1999	1999	prescription order by a licensed practitioner or a mid-level practitioner as
2000	2000	defined by K.S.A. 65-1626, and amendments thereto. As used in this
2001	2001	subsection, "dietary supplement" means any product, other than tobacco,
2002	2002	intended to supplement the diet that: (1) Contains one or more of the
2003	2003	following dietary ingredients: A vitamin, a mineral, an herb or other
2004	2004	botanical, an amino acid, a dietary substance for use by humans to
2005	2005	supplement the diet by increasing the total dietary intake or a concentrate,
2006	2006	metabolite, constituent, extract or combination of any such ingredient; (2)
2007	2007	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
2008	2008	liquid form, or if not intended for ingestion, in such a form, is not
2009	2009	represented as conventional food and is not represented for use as a sole
2010	2010	item of a meal or of the diet; and (3) is required to be labeled as a dietary
2011	2011	supplement, identifiable by the supplemental facts box found on the label
2012	2012	and as required pursuant to 21 C.F.R. § 101.36;
2013	2013	(lll) all sales of tangible personal property and services purchased by
2014	2014	special olympics Kansas, inc. for the purpose of providing year-round
2015	2015	sports training and athletic competition in a variety of olympic-type sports
2016	2016	for individuals with intellectual disabilities by giving them continuing
2017	2017	opportunities to develop physical fitness, demonstrate courage, experience
2018	2018	joy and participate in a sharing of gifts, skills and friendship with their
2019	2019	families, other special olympics athletes and the community, and activities
2020	2020	1
2021	2021	2
2022	2022	3
2023	2023	4
2024	2024	5
2025	2025	6
2026	2026	7
2027	2027	8
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2056	2056	37
2057	2057	38
2058	2058	39
2059	2059	40
2060	2060	41
2061	2061	42
2062	2062	43 HB 2416 25
2063	2063	provided or sponsored by such organization, and all sales of tangible
2064	2064	personal property by or on behalf of any such organization;
2065	2065	(mmm) all sales of tangible personal property purchased by or on
2066	2066	behalf of the Marillac center, inc., which is exempt from federal income
2067	2067	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2068	2068	for the purpose of providing psycho-social-biological and special
2069	2069	education services to children, and all sales of any such property by or on
2070	2070	behalf of such organization for such purpose;
2071	2071	(nnn) all sales of tangible personal property and services purchased
2072	2072	by the west Sedgwick county-sunrise rotary club and sunrise charitable
2073	2073	fund for the purpose of constructing a boundless playground which is an
2074	2074	integrated, barrier free and developmentally advantageous play
2075	2075	environment for children of all abilities and disabilities;
2076	2076	(ooo) all sales of tangible personal property by or on behalf of a
2077	2077	public library serving the general public and supported in whole or in part
2078	2078	with tax money or a not-for-profit organization whose purpose is to raise
2079	2079	funds for or provide services or other benefits to any such public library;
2080	2080	(ppp) all sales of tangible personal property and services purchased
2081	2081	by or on behalf of a homeless shelter that is exempt from federal income
2082	2082	taxation pursuant to section 501(c)(3) of the federal income tax code of
2083	2083	1986, and used by any such homeless shelter to provide emergency and
2084	2084	transitional housing for individuals and families experiencing
2085	2085	homelessness, and all sales of any such property by or on behalf of any
2086	2086	such homeless shelter for any such purpose;
2087	2087	(qqq) all sales of tangible personal property and services purchased
2088	2088	by TLC for children and families, inc., hereinafter referred to as TLC,
2089	2089	which is exempt from federal income taxation pursuant to section 501(c)
2090	2090	(3) of the federal internal revenue code of 1986, and such property and
2091	2091	services are used for the purpose of providing emergency shelter and
2092	2092	treatment for abused and neglected children as well as meeting additional
2093	2093	critical needs for children, juveniles and family, and all sales of any such
2094	2094	property by or on behalf of TLC for any such purpose; and all sales of
2095	2095	tangible personal property or services purchased by a contractor for the
2096	2096	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2097	2097	remodeling facilities for the operation of services for TLC for any such
2098	2098	purpose that would be exempt from taxation under the provisions of this
2099	2099	section if purchased directly by TLC. Nothing in this subsection shall be
2100	2100	deemed to exempt the purchase of any construction machinery, equipment
2101	2101	or tools used in the constructing, maintaining, repairing, enlarging,
2102	2102	furnishing or remodeling such facilities for TLC. When TLC contracts for
2103	2103	the purpose of constructing, maintaining, repairing, enlarging, furnishing
2104	2104	or remodeling such facilities, it shall obtain from the state and furnish to
2105	2105	the contractor an exemption certificate for the project involved, and the
2106	2106	1
2107	2107	2
2108	2108	3
2109	2109	4
2110	2110	5
2111	2111	6
2112	2112	7
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2117	2117	12
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2119	2119	14
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2130	2130	25
2131	2131	26
2132	2132	27
2133	2133	28
2134	2134	29
2135	2135	30
2136	2136	31
2137	2137	32
2138	2138	33
2139	2139	34
2140	2140	35
2141	2141	36
2142	2142	37
2143	2143	38
2144	2144	39
2145	2145	40
2146	2146	41
2147	2147	42
2148	2148	43 HB 2416 26
2149	2149	contractor may purchase materials for incorporation in such project. The
2150	2150	contractor shall furnish the number of such certificate to all suppliers from
2151	2151	whom such purchases are made, and such suppliers shall execute invoices
2152	2152	covering the same bearing the number of such certificate. Upon
2153	2153	completion of the project the contractor shall furnish to TLC a sworn
2154	2154	statement, on a form to be provided by the director of taxation, that all
2155	2155	purchases so made were entitled to exemption under this subsection. All
2156	2156	invoices shall be held by the contractor for a period of five years and shall
2157	2157	be subject to audit by the director of taxation. If any materials purchased
2158	2158	under such a certificate are found not to have been incorporated in the
2159	2159	building or other project or not to have been returned for credit or the sales
2160	2160	or compensating tax otherwise imposed upon such materials that will not
2161	2161	be so incorporated in the building or other project reported and paid by
2162	2162	such contractor to the director of taxation not later than the 20
2163	2163	th
2164	2164	day of the
2165	2165	month following the close of the month in which it shall be determined
2166	2166	that such materials will not be used for the purpose for which such
2167	2167	certificate was issued, TLC shall be liable for tax on all materials
2168	2168	purchased for the project, and upon payment thereof it may recover the
2169	2169	same from the contractor together with reasonable attorney fees. Any
2170	2170	contractor or any agent, employee or subcontractor thereof, who shall use
2171	2171	or otherwise dispose of any materials purchased under such a certificate
2172	2172	for any purpose other than that for which such a certificate is issued
2173	2173	without the payment of the sales or compensating tax otherwise imposed
2174	2174	upon such materials, shall be guilty of a misdemeanor and, upon
2175	2175	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2176	2176	79-3615(h), and amendments thereto;
2177	2177	(rrr) all sales of tangible personal property and services purchased by
2178	2178	any county law library maintained pursuant to law and sales of tangible
2179	2179	personal property and services purchased by an organization that would
2180	2180	have been exempt from taxation under the provisions of this subsection if
2181	2181	purchased directly by the county law library for the purpose of providing
2182	2182	legal resources to attorneys, judges, students and the general public, and
2183	2183	all sales of any such property by or on behalf of any such county law
2184	2184	library;
2185	2185	(sss) all sales of tangible personal property and services purchased by
2186	2186	catholic charities or youthville, hereinafter referred to as charitable family
2187	2187	providers, which is exempt from federal income taxation pursuant to
2188	2188	section 501(c)(3) of the federal internal revenue code of 1986, and which
2189	2189	such property and services are used for the purpose of providing
2190	2190	emergency shelter and treatment for abused and neglected children as well
2191	2191	as meeting additional critical needs for children, juveniles and family, and
2192	2192	all sales of any such property by or on behalf of charitable family
2193	2193	providers for any such purpose; and all sales of tangible personal property
2194	2194	1
2195	2195	2
2196	2196	3
2197	2197	4
2198	2198	5
2199	2199	6
2200	2200	7
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2202	2202	9
2203	2203	10
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2206	2206	13
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2208	2208	15
2209	2209	16
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2213	2213	20
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2215	2215	22
2216	2216	23
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2218	2218	25
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2220	2220	27
2221	2221	28
2222	2222	29
2223	2223	30
2224	2224	31
2225	2225	32
2226	2226	33
2227	2227	34
2228	2228	35
2229	2229	36
2230	2230	37
2231	2231	38
2232	2232	39
2233	2233	40
2234	2234	41
2235	2235	42
2236	2236	43 HB 2416 27
2237	2237	or services purchased by a contractor for the purpose of constructing,
2238	2238	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2239	2239	the operation of services for charitable family providers for any such
2240	2240	purpose which would be exempt from taxation under the provisions of this
2241	2241	section if purchased directly by charitable family providers. Nothing in
2242	2242	this subsection shall be deemed to exempt the purchase of any construction
2243	2243	machinery, equipment or tools used in the constructing, maintaining,
2244	2244	repairing, enlarging, furnishing or remodeling such facilities for charitable
2245	2245	family providers. When charitable family providers contracts for the
2246	2246	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2247	2247	remodeling such facilities, it shall obtain from the state and furnish to the
2248	2248	contractor an exemption certificate for the project involved, and the
2249	2249	contractor may purchase materials for incorporation in such project. The
2250	2250	contractor shall furnish the number of such certificate to all suppliers from
2251	2251	whom such purchases are made, and such suppliers shall execute invoices
2252	2252	covering the same bearing the number of such certificate. Upon
2253	2253	completion of the project the contractor shall furnish to charitable family
2254	2254	providers a sworn statement, on a form to be provided by the director of
2255	2255	taxation, that all purchases so made were entitled to exemption under this
2256	2256	subsection. All invoices shall be held by the contractor for a period of five
2257	2257	years and shall be subject to audit by the director of taxation. If any
2258	2258	materials purchased under such a certificate are found not to have been
2259	2259	incorporated in the building or other project or not to have been returned
2260	2260	for credit or the sales or compensating tax otherwise imposed upon such
2261	2261	materials that will not be so incorporated in the building or other project
2262	2262	reported and paid by such contractor to the director of taxation not later
2263	2263	than the 20
2264	2264	th
2265	2265	day of the month following the close of the month in which it
2266	2266	shall be determined that such materials will not be used for the purpose for
2267	2267	which such certificate was issued, charitable family providers shall be
2268	2268	liable for tax on all materials purchased for the project, and upon payment
2269	2269	thereof it may recover the same from the contractor together with
2270	2270	reasonable attorney fees. Any contractor or any agent, employee or
2271	2271	subcontractor thereof, who shall use or otherwise dispose of any materials
2272	2272	purchased under such a certificate for any purpose other than that for
2273	2273	which such a certificate is issued without the payment of the sales or
2274	2274	compensating tax otherwise imposed upon such materials, shall be guilty
2275	2275	of a misdemeanor and, upon conviction therefor, shall be subject to the
2276	2276	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2277	2277	(ttt) all sales of tangible personal property or services purchased by a
2278	2278	contractor for a project for the purpose of restoring, constructing,
2279	2279	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
2280	2280	remodeling a home or facility owned by a nonprofit museum that has been
2281	2281	granted an exemption pursuant to subsection (qq), which such home or
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2321	2321	40
2322	2322	41
2323	2323	42
2324	2324	43 HB 2416 28
2325	2325	facility is located in a city that has been designated as a qualified
2326	2326	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
2327	2327	amendments thereto, and which such project is related to the purposes of
2328	2328	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
2329	2329	exempt from taxation under the provisions of this section if purchased
2330	2330	directly by such nonprofit museum. Nothing in this subsection shall be
2331	2331	deemed to exempt the purchase of any construction machinery, equipment
2332	2332	or tools used in the restoring, constructing, equipping, reconstructing,
2333	2333	maintaining, repairing, enlarging, furnishing or remodeling a home or
2334	2334	facility for any such nonprofit museum. When any such nonprofit museum
2335	2335	shall contract for the purpose of restoring, constructing, equipping,
2336	2336	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2337	2337	a home or facility, it shall obtain from the state and furnish to the
2338	2338	contractor an exemption certificate for the project involved, and the
2339	2339	contractor may purchase materials for incorporation in such project. The
2340	2340	contractor shall furnish the number of such certificates to all suppliers
2341	2341	from whom such purchases are made, and such suppliers shall execute
2342	2342	invoices covering the same bearing the number of such certificate. Upon
2343	2343	completion of the project, the contractor shall furnish to such nonprofit
2344	2344	museum a sworn statement on a form to be provided by the director of
2345	2345	taxation that all purchases so made were entitled to exemption under this
2346	2346	subsection. All invoices shall be held by the contractor for a period of five
2347	2347	years and shall be subject to audit by the director of taxation. If any
2348	2348	materials purchased under such a certificate are found not to have been
2349	2349	incorporated in the building or other project or not to have been returned
2350	2350	for credit or the sales or compensating tax otherwise imposed upon such
2351	2351	materials that will not be so incorporated in a home or facility or other
2352	2352	project reported and paid by such contractor to the director of taxation not
2353	2353	later than the 20
2354	2354	th
2355	2355	day of the month following the close of the month in
2356	2356	which it shall be determined that such materials will not be used for the
2357	2357	purpose for which such certificate was issued, such nonprofit museum
2358	2358	shall be liable for tax on all materials purchased for the project, and upon
2359	2359	payment thereof it may recover the same from the contractor together with
2360	2360	reasonable attorney fees. Any contractor or any agent, employee or
2361	2361	subcontractor thereof, who shall use or otherwise dispose of any materials
2362	2362	purchased under such a certificate for any purpose other than that for
2363	2363	which such a certificate is issued without the payment of the sales or
2364	2364	compensating tax otherwise imposed upon such materials, shall be guilty
2365	2365	of a misdemeanor and, upon conviction therefor, shall be subject to the
2366	2366	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2367	2367	(uuu) all sales of tangible personal property and services purchased
2368	2368	by Kansas children's service league, hereinafter referred to as KCSL,
2369	2369	which is exempt from federal income taxation pursuant to section 501(c)
2370	2370	1
2371	2371	2
2372	2372	3
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2409	2409	40
2410	2410	41
2411	2411	42
2412	2412	43 HB 2416 29
2413	2413	(3) of the federal internal revenue code of 1986, and which such property
2414	2414	and services are used for the purpose of providing for the prevention and
2415	2415	treatment of child abuse and maltreatment as well as meeting additional
2416	2416	critical needs for children, juveniles and family, and all sales of any such
2417	2417	property by or on behalf of KCSL for any such purpose; and all sales of
2418	2418	tangible personal property or services purchased by a contractor for the
2419	2419	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2420	2420	remodeling facilities for the operation of services for KCSL for any such
2421	2421	purpose that would be exempt from taxation under the provisions of this
2422	2422	section if purchased directly by KCSL. Nothing in this subsection shall be
2423	2423	deemed to exempt the purchase of any construction machinery, equipment
2424	2424	or tools used in the constructing, maintaining, repairing, enlarging,
2425	2425	furnishing or remodeling such facilities for KCSL. When KCSL contracts
2426	2426	for the purpose of constructing, maintaining, repairing, enlarging,
2427	2427	furnishing or remodeling such facilities, it shall obtain from the state and
2428	2428	furnish to the contractor an exemption certificate for the project involved,
2429	2429	and the contractor may purchase materials for incorporation in such
2430	2430	project. The contractor shall furnish the number of such certificate to all
2431	2431	suppliers from whom such purchases are made, and such suppliers shall
2432	2432	execute invoices covering the same bearing the number of such certificate.
2433	2433	Upon completion of the project the contractor shall furnish to KCSL a
2434	2434	sworn statement, on a form to be provided by the director of taxation, that
2435	2435	all purchases so made were entitled to exemption under this subsection.
2436	2436	All invoices shall be held by the contractor for a period of five years and
2437	2437	shall be subject to audit by the director of taxation. If any materials
2438	2438	purchased under such a certificate are found not to have been incorporated
2439	2439	in the building or other project or not to have been returned for credit or
2440	2440	the sales or compensating tax otherwise imposed upon such materials that
2441	2441	will not be so incorporated in the building or other project reported and
2442	2442	paid by such contractor to the director of taxation not later than the 20
2443	2443	th
2444	2444	day of the month following the close of the month in which it shall be
2445	2445	determined that such materials will not be used for the purpose for which
2446	2446	such certificate was issued, KCSL shall be liable for tax on all materials
2447	2447	purchased for the project, and upon payment thereof it may recover the
2448	2448	same from the contractor together with reasonable attorney fees. Any
2449	2449	contractor or any agent, employee or subcontractor thereof, who shall use
2450	2450	or otherwise dispose of any materials purchased under such a certificate
2451	2451	for any purpose other than that for which such a certificate is issued
2452	2452	without the payment of the sales or compensating tax otherwise imposed
2453	2453	upon such materials, shall be guilty of a misdemeanor and, upon
2454	2454	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2455	2455	79-3615(h), and amendments thereto;
2456	2456	(vvv) all sales of tangible personal property or services, including the
2457	2457	1
2458	2458	2
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2498	2498	42
2499	2499	43 HB 2416 30
2500	2500	renting and leasing of tangible personal property or services, purchased by
2501	2501	jazz in the woods, inc., a Kansas corporation that is exempt from federal
2502	2502	income taxation pursuant to section 501(c)(3) of the federal internal
2503	2503	revenue code, for the purpose of providing jazz in the woods, an event
2504	2504	benefiting children-in-need and other nonprofit charities assisting such
2505	2505	children, and all sales of any such property by or on behalf of such
2506	2506	organization for such purpose;
2507	2507	(www) all sales of tangible personal property purchased by or on
2508	2508	behalf of the Frontenac education foundation, which is exempt from
2509	2509	federal income taxation pursuant to section 501(c)(3) of the federal
2510	2510	internal revenue code, for the purpose of providing education support for
2511	2511	students, and all sales of any such property by or on behalf of such
2512	2512	organization for such purpose;
2513	2513	(xxx) all sales of personal property and services purchased by the
2514	2514	booth theatre foundation, inc., an organization, which is exempt from
2515	2515	federal income taxation pursuant to section 501(c)(3) of the federal
2516	2516	internal revenue code of 1986, and which such personal property and
2517	2517	services are used by any such organization in the constructing, equipping,
2518	2518	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2519	2519	of the booth theatre, and all sales of tangible personal property or services
2520	2520	purchased by a contractor for the purpose of constructing, equipping,
2521	2521	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2522	2522	the booth theatre for such organization, that would be exempt from
2523	2523	taxation under the provisions of this section if purchased directly by such
2524	2524	organization. Nothing in this subsection shall be deemed to exempt the
2525	2525	purchase of any construction machinery, equipment or tools used in the
2526	2526	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
2527	2527	furnishing or remodeling facilities for any such organization. When any
2528	2528	such organization shall contract for the purpose of constructing, equipping,
2529	2529	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2530	2530	facilities, it shall obtain from the state and furnish to the contractor an
2531	2531	exemption certificate for the project involved, and the contractor may
2532	2532	purchase materials for incorporation in such project. The contractor shall
2533	2533	furnish the number of such certificate to all suppliers from whom such
2534	2534	purchases are made, and such suppliers shall execute invoices covering the
2535	2535	same bearing the number of such certificate. Upon completion of the
2536	2536	project the contractor shall furnish to such organization concerned a sworn
2537	2537	statement, on a form to be provided by the director of taxation, that all
2538	2538	purchases so made were entitled to exemption under this subsection. All
2539	2539	invoices shall be held by the contractor for a period of five years and shall
2540	2540	be subject to audit by the director of taxation. If any materials purchased
2541	2541	under such a certificate are found not to have been incorporated in such
2542	2542	facilities or not to have been returned for credit or the sales or
2543	2543	1
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2584	2584	42
2585	2585	43 HB 2416 31
2586	2586	compensating tax otherwise imposed upon such materials that will not be
2587	2587	so incorporated in such facilities reported and paid by such contractor to
2588	2588	the director of taxation not later than the 20
2589	2589	th
2590	2590	day of the month following
2591	2591	the close of the month in which it shall be determined that such materials
2592	2592	will not be used for the purpose for which such certificate was issued, such
2593	2593	organization concerned shall be liable for tax on all materials purchased
2594	2594	for the project, and upon payment thereof it may recover the same from
2595	2595	the contractor together with reasonable attorney fees. Any contractor or
2596	2596	any agent, employee or subcontractor thereof, who shall use or otherwise
2597	2597	dispose of any materials purchased under such a certificate for any purpose
2598	2598	other than that for which such a certificate is issued without the payment
2599	2599	of the sales or compensating tax otherwise imposed upon such materials,
2600	2600	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2601	2601	subject to the penalties provided for in K.S.A. 79-3615(h), and
2602	2602	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
2603	2603	to the effective date of this act upon the gross receipts received from any
2604	2604	sale which would have been exempted by the provisions of this subsection
2605	2605	had such sale occurred after the effective date of this act shall be refunded.
2606	2606	Each claim for a sales tax refund shall be verified and submitted to the
2607	2607	director of taxation upon forms furnished by the director and shall be
2608	2608	accompanied by any additional documentation required by the director.
2609	2609	The director shall review each claim and shall refund that amount of sales
2610	2610	tax paid as determined under the provisions of this subsection. All refunds
2611	2611	shall be paid from the sales tax refund fund upon warrants of the director
2612	2612	of accounts and reports pursuant to vouchers approved by the director or
2613	2613	the director's designee;
2614	2614	(yyy) all sales of tangible personal property and services purchased
2615	2615	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
2616	2616	which is exempt from federal income taxation pursuant to section 501(c)
2617	2617	(3) of the federal internal revenue code of 1986, and which such property
2618	2618	and services are used for the purpose of encouraging private philanthropy
2619	2619	to further the vision, values, and goals of TLC for children and families,
2620	2620	inc.; and all sales of such property and services by or on behalf of TLC
2621	2621	charities for any such purpose and all sales of tangible personal property or
2622	2622	services purchased by a contractor for the purpose of constructing,
2623	2623	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2624	2624	the operation of services for TLC charities for any such purpose that would
2625	2625	be exempt from taxation under the provisions of this section if purchased
2626	2626	directly by TLC charities. Nothing in this subsection shall be deemed to
2627	2627	exempt the purchase of any construction machinery, equipment or tools
2628	2628	used in the constructing, maintaining, repairing, enlarging, furnishing or
2629	2629	remodeling such facilities for TLC charities. When TLC charities contracts
2630	2630	for the purpose of constructing, maintaining, repairing, enlarging,
2631	2631	1
2632	2632	2
2633	2633	3
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2673	2673	43 HB 2416 32
2674	2674	furnishing or remodeling such facilities, it shall obtain from the state and
2675	2675	furnish to the contractor an exemption certificate for the project involved,
2676	2676	and the contractor may purchase materials for incorporation in such
2677	2677	project. The contractor shall furnish the number of such certificate to all
2678	2678	suppliers from whom such purchases are made, and such suppliers shall
2679	2679	execute invoices covering the same bearing the number of such certificate.
2680	2680	Upon completion of the project the contractor shall furnish to TLC
2681	2681	charities a sworn statement, on a form to be provided by the director of
2682	2682	taxation, that all purchases so made were entitled to exemption under this
2683	2683	subsection. All invoices shall be held by the contractor for a period of five
2684	2684	years and shall be subject to audit by the director of taxation. If any
2685	2685	materials purchased under such a certificate are found not to have been
2686	2686	incorporated in the building or other project or not to have been returned
2687	2687	for credit or the sales or compensating tax otherwise imposed upon such
2688	2688	materials that will not be incorporated into the building or other project
2689	2689	reported and paid by such contractor to the director of taxation not later
2690	2690	than the 20
2691	2691	th
2692	2692	day of the month following the close of the month in which it
2693	2693	shall be determined that such materials will not be used for the purpose for
2694	2694	which such certificate was issued, TLC charities shall be liable for tax on
2695	2695	all materials purchased for the project, and upon payment thereof it may
2696	2696	recover the same from the contractor together with reasonable attorney
2697	2697	fees. Any contractor or any agent, employee or subcontractor thereof, who
2698	2698	shall use or otherwise dispose of any materials purchased under such a
2699	2699	certificate for any purpose other than that for which such a certificate is
2700	2700	issued without the payment of the sales or compensating tax otherwise
2701	2701	imposed upon such materials, shall be guilty of a misdemeanor and, upon
2702	2702	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2703	2703	79-3615(h), and amendments thereto;
2704	2704	(zzz) all sales of tangible personal property purchased by the rotary
2705	2705	club of shawnee foundation, which is exempt from federal income taxation
2706	2706	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2707	2707	as amended, used for the purpose of providing contributions to community
2708	2708	service organizations and scholarships;
2709	2709	(aaaa) all sales of personal property and services purchased by or on
2710	2710	behalf of victory in the valley, inc., which is exempt from federal income
2711	2711	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2712	2712	for the purpose of providing a cancer support group and services for
2713	2713	persons with cancer, and all sales of any such property by or on behalf of
2714	2714	any such organization for any such purpose;
2715	2715	(bbbb) all sales of entry or participation fees, charges or tickets by
2716	2716	Guadalupe health foundation, which is exempt from federal income
2717	2717	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2718	2718	for such organization's annual fundraising event which purpose is to
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2757	2757	39
2758	2758	40
2759	2759	41
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2761	2761	43 HB 2416 33
2762	2762	provide health care services for uninsured workers;
2763	2763	(cccc) all sales of tangible personal property or services purchased by
2764	2764	or on behalf of wayside waifs, inc., which is exempt from federal income
2765	2765	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2766	2766	for the purpose of providing such organization's annual fundraiser, an
2767	2767	event whose purpose is to support the care of homeless and abandoned
2768	2768	animals, animal adoption efforts, education programs for children and
2769	2769	efforts to reduce animal over-population and animal welfare services, and
2770	2770	all sales of any such property, including entry or participation fees or
2771	2771	charges, by or on behalf of such organization for such purpose;
2772	2772	(dddd) all sales of tangible personal property or services purchased
2773	2773	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
2774	2774	of which are exempt from federal income taxation pursuant to section
2775	2775	501(c)(3) of the federal internal revenue code, for the purpose of providing
2776	2776	education, training and employment opportunities for people with
2777	2777	disabilities and other barriers to employment;
2778	2778	(eeee) all sales of tangible personal property or services purchased by
2779	2779	or on behalf of all American beef battalion, inc., which is exempt from
2780	2780	federal income taxation pursuant to section 501(c)(3) of the federal
2781	2781	internal revenue code, for the purpose of educating, promoting and
2782	2782	participating as a contact group through the beef cattle industry in order to
2783	2783	carry out such projects that provide support and morale to members of the
2784	2784	United States armed forces and military services;
2785	2785	(ffff) all sales of tangible personal property and services purchased by
2786	2786	sheltered living, inc., which is exempt from federal income taxation
2787	2787	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2788	2788	and which such property and services are used for the purpose of
2789	2789	providing residential and day services for people with developmental
2790	2790	disabilities or intellectual disability, or both, and all sales of any such
2791	2791	property by or on behalf of sheltered living, inc., for any such purpose; and
2792	2792	all sales of tangible personal property or services purchased by a
2793	2793	contractor for the purpose of rehabilitating, constructing, maintaining,
2794	2794	repairing, enlarging, furnishing or remodeling homes and facilities for
2795	2795	sheltered living, inc., for any such purpose that would be exempt from
2796	2796	taxation under the provisions of this section if purchased directly by
2797	2797	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
2798	2798	the purchase of any construction machinery, equipment or tools used in the
2799	2799	constructing, maintaining, repairing, enlarging, furnishing or remodeling
2800	2800	such homes and facilities for sheltered living, inc. When sheltered living,
2801	2801	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
2802	2802	repairing, enlarging, furnishing or remodeling such homes and facilities, it
2803	2803	shall obtain from the state and furnish to the contractor an exemption
2804	2804	certificate for the project involved, and the contractor may purchase
2805	2805	1
2806	2806	2
2807	2807	3
2808	2808	4
2809	2809	5
2810	2810	6
2811	2811	7
2812	2812	8
2813	2813	9
2814	2814	10
2815	2815	11
2816	2816	12
2817	2817	13
2818	2818	14
2819	2819	15
2820	2820	16
2821	2821	17
2822	2822	18
2823	2823	19
2824	2824	20
2825	2825	21
2826	2826	22
2827	2827	23
2828	2828	24
2829	2829	25
2830	2830	26
2831	2831	27
2832	2832	28
2833	2833	29
2834	2834	30
2835	2835	31
2836	2836	32
2837	2837	33
2838	2838	34
2839	2839	35
2840	2840	36
2841	2841	37
2842	2842	38
2843	2843	39
2844	2844	40
2845	2845	41
2846	2846	42
2847	2847	43 HB 2416 34
2848	2848	materials for incorporation in such project. The contractor shall furnish the
2849	2849	number of such certificate to all suppliers from whom such purchases are
2850	2850	made, and such suppliers shall execute invoices covering the same bearing
2851	2851	the number of such certificate. Upon completion of the project the
2852	2852	contractor shall furnish to sheltered living, inc., a sworn statement, on a
2853	2853	form to be provided by the director of taxation, that all purchases so made
2854	2854	were entitled to exemption under this subsection. All invoices shall be held
2855	2855	by the contractor for a period of five years and shall be subject to audit by
2856	2856	the director of taxation. If any materials purchased under such a certificate
2857	2857	are found not to have been incorporated in the building or other project or
2858	2858	not to have been returned for credit or the sales or compensating tax
2859	2859	otherwise imposed upon such materials that will not be so incorporated in
2860	2860	the building or other project reported and paid by such contractor to the
2861	2861	director of taxation not later than the 20
2862	2862	th
2863	2863	day of the month following the
2864	2864	close of the month in which it shall be determined that such materials will
2865	2865	not be used for the purpose for which such certificate was issued, sheltered
2866	2866	living, inc., shall be liable for tax on all materials purchased for the
2867	2867	project, and upon payment thereof it may recover the same from the
2868	2868	contractor together with reasonable attorney fees. Any contractor or any
2869	2869	agent, employee or subcontractor thereof, who shall use or otherwise
2870	2870	dispose of any materials purchased under such a certificate for any purpose
2871	2871	other than that for which such a certificate is issued without the payment
2872	2872	of the sales or compensating tax otherwise imposed upon such materials,
2873	2873	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2874	2874	subject to the penalties provided for in K.S.A. 79-3615(h), and
2875	2875	amendments thereto;
2876	2876	(gggg) all sales of game birds for which the primary purpose is use in
2877	2877	hunting;
2878	2878	(hhhh) all sales of tangible personal property or services purchased
2879	2879	on or after July 1, 2014, for the purpose of and in conjunction with
2880	2880	constructing, reconstructing, enlarging or remodeling a business identified
2881	2881	under the North American industry classification system (NAICS)
2882	2882	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
2883	2883	installation of machinery and equipment purchased for installation at any
2884	2884	such business. The exemption provided in this subsection shall not apply
2885	2885	to projects that have actual total costs less than $50,000. When a person
2886	2886	contracts for the construction, reconstruction, enlargement or remodeling
2887	2887	of any such business, such person shall obtain from the state and furnish to
2888	2888	the contractor an exemption certificate for the project involved, and the
2889	2889	contractor may purchase materials, machinery and equipment for
2890	2890	incorporation in such project. The contractor shall furnish the number of
2891	2891	such certificates to all suppliers from whom such purchases are made, and
2892	2892	such suppliers shall execute invoices covering the same bearing the
2893	2893	1
2894	2894	2
2895	2895	3
2896	2896	4
2897	2897	5
2898	2898	6
2899	2899	7
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2922	2922	30
2923	2923	31
2924	2924	32
2925	2925	33
2926	2926	34
2927	2927	35
2928	2928	36
2929	2929	37
2930	2930	38
2931	2931	39
2932	2932	40
2933	2933	41
2934	2934	42
2935	2935	43 HB 2416 35
2936	2936	number of such certificate. Upon completion of the project, the contractor
2937	2937	shall furnish to the owner of the business a sworn statement, on a form to
2938	2938	be provided by the director of taxation, that all purchases so made were
2939	2939	entitled to exemption under this subsection. All invoices shall be held by
2940	2940	the contractor for a period of five years and shall be subject to audit by the
2941	2941	director of taxation. Any contractor or any agent, employee or
2942	2942	subcontractor of the contractor, who shall use or otherwise dispose of any
2943	2943	materials, machinery or equipment purchased under such a certificate for
2944	2944	any purpose other than that for which such a certificate is issued without
2945	2945	the payment of the sales or compensating tax otherwise imposed thereon,
2946	2946	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2947	2947	subject to the penalties provided for in K.S.A. 79-3615(h), and
2948	2948	amendments thereto;
2949	2949	(iiii) all sales of tangible personal property or services purchased by a
2950	2950	contractor for the purpose of constructing, maintaining, repairing,
2951	2951	enlarging, furnishing or remodeling facilities for the operation of services
2952	2952	for Wichita children's home for any such purpose that would be exempt
2953	2953	from taxation under the provisions of this section if purchased directly by
2954	2954	Wichita children's home. Nothing in this subsection shall be deemed to
2955	2955	exempt the purchase of any construction machinery, equipment or tools
2956	2956	used in the constructing, maintaining, repairing, enlarging, furnishing or
2957	2957	remodeling such facilities for Wichita children's home. When Wichita
2958	2958	children's home contracts for the purpose of constructing, maintaining,
2959	2959	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
2960	2960	from the state and furnish to the contractor an exemption certificate for the
2961	2961	project involved, and the contractor may purchase materials for
2962	2962	incorporation in such project. The contractor shall furnish the number of
2963	2963	such certificate to all suppliers from whom such purchases are made, and
2964	2964	such suppliers shall execute invoices covering the same bearing the
2965	2965	number of such certificate. Upon completion of the project, the contractor
2966	2966	shall furnish to Wichita children's home a sworn statement, on a form to be
2967	2967	provided by the director of taxation, that all purchases so made were
2968	2968	entitled to exemption under this subsection. All invoices shall be held by
2969	2969	the contractor for a period of five years and shall be subject to audit by the
2970	2970	director of taxation. If any materials purchased under such a certificate are
2971	2971	found not to have been incorporated in the building or other project or not
2972	2972	to have been returned for credit or the sales or compensating tax otherwise
2973	2973	imposed upon such materials that will not be so incorporated in the
2974	2974	building or other project reported and paid by such contractor to the
2975	2975	director of taxation not later than the 20
2976	2976	th
2977	2977	day of the month following the
2978	2978	close of the month in which it shall be determined that such materials will
2979	2979	not be used for the purpose for which such certificate was issued, Wichita
2980	2980	children's home shall be liable for the tax on all materials purchased for the
2981	2981	1
2982	2982	2
2983	2983	3
2984	2984	4
2985	2985	5
2986	2986	6
2987	2987	7
2988	2988	8
2989	2989	9
2990	2990	10
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2992	2992	12
2993	2993	13
2994	2994	14
2995	2995	15
2996	2996	16
2997	2997	17
2998	2998	18
2999	2999	19
3000	3000	20
3001	3001	21
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3005	3005	25
3006	3006	26
3007	3007	27
3008	3008	28
3009	3009	29
3010	3010	30
3011	3011	31
3012	3012	32
3013	3013	33
3014	3014	34
3015	3015	35
3016	3016	36
3017	3017	37
3018	3018	38
3019	3019	39
3020	3020	40
3021	3021	41
3022	3022	42
3023	3023	43 HB 2416 36
3024	3024	project, and upon payment, it may recover the same from the contractor
3025	3025	together with reasonable attorney fees. Any contractor or any agent,
3026	3026	employee or subcontractor, who shall use or otherwise dispose of any
3027	3027	materials purchased under such a certificate for any purpose other than that
3028	3028	for which such a certificate is issued without the payment of the sales or
3029	3029	compensating tax otherwise imposed upon such materials, shall be guilty
3030	3030	of a misdemeanor and, upon conviction, shall be subject to the penalties
3031	3031	provided for in K.S.A. 79-3615(h), and amendments thereto;
3032	3032	(jjjj) all sales of tangible personal property or services purchased by
3033	3033	or on behalf of the beacon, inc., that is exempt from federal income
3034	3034	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3035	3035	for the purpose of providing those desiring help with food, shelter, clothing
3036	3036	and other necessities of life during times of special need;
3037	3037	(kkkk) all sales of tangible personal property and services purchased
3038	3038	by or on behalf of reaching out from within, inc., which is exempt from
3039	3039	federal income taxation pursuant to section 501(c)(3) of the federal
3040	3040	internal revenue code, for the purpose of sponsoring self-help programs for
3041	3041	incarcerated persons that will enable such incarcerated persons to become
3042	3042	role models for non-violence while in correctional facilities and productive
3043	3043	family members and citizens upon return to the community;
3044	3044	(llll) all sales of tangible personal property and services purchased by
3045	3045	Gove county healthcare endowment foundation, inc., which is exempt
3046	3046	from federal income taxation pursuant to section 501(c)(3) of the federal
3047	3047	internal revenue code of 1986, and which such property and services are
3048	3048	used for the purpose of constructing and equipping an airport in Quinter,
3049	3049	Kansas, and all sales of tangible personal property or services purchased
3050	3050	by a contractor for the purpose of constructing and equipping an airport in
3051	3051	Quinter, Kansas, for such organization, that would be exempt from
3052	3052	taxation under the provisions of this section if purchased directly by such
3053	3053	organization. Nothing in this subsection shall be deemed to exempt the
3054	3054	purchase of any construction machinery, equipment or tools used in the
3055	3055	constructing or equipping of facilities for such organization. When such
3056	3056	organization shall contract for the purpose of constructing or equipping an
3057	3057	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
3058	3058	contractor an exemption certificate for the project involved, and the
3059	3059	contractor may purchase materials for incorporation in such project. The
3060	3060	contractor shall furnish the number of such certificate to all suppliers from
3061	3061	whom such purchases are made, and such suppliers shall execute invoices
3062	3062	covering the same bearing the number of such certificate. Upon
3063	3063	completion of the project, the contractor shall furnish to such organization
3064	3064	concerned a sworn statement, on a form to be provided by the director of
3065	3065	taxation, that all purchases so made were entitled to exemption under this
3066	3066	subsection. All invoices shall be held by the contractor for a period of five
3067	3067	1
3068	3068	2
3069	3069	3
3070	3070	4
3071	3071	5
3072	3072	6
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3098	3098	32
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3104	3104	38
3105	3105	39
3106	3106	40
3107	3107	41
3108	3108	42
3109	3109	43 HB 2416 37
3110	3110	years and shall be subject to audit by the director of taxation. If any
3111	3111	materials purchased under such a certificate are found not to have been
3112	3112	incorporated in such facilities or not to have been returned for credit or the
3113	3113	sales or compensating tax otherwise imposed upon such materials that will
3114	3114	not be so incorporated in such facilities reported and paid by such
3115	3115	contractor to the director of taxation no later than the 20
3116	3116	th
3117	3117	day of the month
3118	3118	following the close of the month in which it shall be determined that such
3119	3119	materials will not be used for the purpose for which such certificate was
3120	3120	issued, such organization concerned shall be liable for tax on all materials
3121	3121	purchased for the project, and upon payment thereof it may recover the
3122	3122	same from the contractor together with reasonable attorney fees. Any
3123	3123	contractor or any agent, employee or subcontractor thereof, who purchased
3124	3124	under such a certificate for any purpose other than that for which such a
3125	3125	certificate is issued without the payment of the sales or compensating tax
3126	3126	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3127	3127	and, upon conviction therefor, shall be subject to the penalties provided for
3128	3128	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
3129	3129	subsection shall expire and have no effect on and after July 1, 2019;
3130	3130	(mmmm) all sales of gold or silver coins; and palladium, platinum,
3131	3131	gold or silver bullion. For the purposes of this subsection, "bullion" means
3132	3132	bars, ingots or commemorative medallions of gold, silver, platinum,
3133	3133	palladium, or a combination thereof, for which the value of the metal
3134	3134	depends on its content and not the form;
3135	3135	(nnnn) all sales of tangible personal property or services purchased
3136	3136	by friends of hospice of Jefferson county, an organization that is exempt
3137	3137	from federal income taxation pursuant to section 501(c)(3) of the federal
3138	3138	internal revenue code of 1986, for the purpose of providing support to the
3139	3139	Jefferson county hospice agency in end-of-life care of Jefferson county
3140	3140	families, friends and neighbors, and all sales of entry or participation fees,
3141	3141	charges or tickets by friends of hospice of Jefferson county for such
3142	3142	organization's fundraising event for such purpose; and
3143	3143	(oooo) all sales of tangible personal property or services purchased
3144	3144	for the purpose of and in conjunction with constructing, reconstructing,
3145	3145	enlarging or remodeling a qualified business facility by a qualified firm or
3146	3146	qualified supplier that meets the requirements established in K.S.A. 2022
3147	3147	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
3148	3148	been approved for a project exemption certificate by the secretary of
3149	3149	commerce, and the sale and installation of machinery and equipment
3150	3150	purchased by such qualified firm or qualified supplier for installation at
3151	3151	any such qualified business facility. When a person shall contract for the
3152	3152	construction, reconstruction, enlargement or remodeling of any such
3153	3153	qualified business facility, such person shall obtain from the state and
3154	3154	furnish to the contractor an exemption certificate for the project involved,
3155	3155	1
3156	3156	2
3157	3157	3
3158	3158	4
3159	3159	5
3160	3160	6
3161	3161	7
3162	3162	8
3163	3163	9
3164	3164	10
3165	3165	11
3166	3166	12
3167	3167	13
3168	3168	14
3169	3169	15
3170	3170	16
3171	3171	17
3172	3172	18
3173	3173	19
3174	3174	20
3175	3175	21
3176	3176	22
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3178	3178	24
3179	3179	25
3180	3180	26
3181	3181	27
3182	3182	28
3183	3183	29
3184	3184	30
3185	3185	31
3186	3186	32
3187	3187	33
3188	3188	34
3189	3189	35
3190	3190	36
3191	3191	37
3192	3192	38
3193	3193	39
3194	3194	40
3195	3195	41
3196	3196	42
3197	3197	43 HB 2416 38
3198	3198	and the contractor may purchase materials, machinery and equipment for
3199	3199	incorporation in such project. The contractor shall furnish the number of
3200	3200	such certificates to all suppliers from whom such purchases are made, and
3201	3201	such suppliers shall execute invoices covering the same bearing the
3202	3202	number of such certificate. Upon completion of the project, the contractor
3203	3203	shall furnish to the owner of the qualified firm or qualified supplier a
3204	3204	sworn statement, on a form to be provided by the director of taxation, that
3205	3205	all purchases so made were entitled to exemption under this subsection.
3206	3206	All invoices shall be held by the contractor for a period of five years and
3207	3207	shall be subject to audit by the director of taxation. Any contractor or any
3208	3208	agent, employee or subcontractor thereof who shall use or otherwise
3209	3209	dispose of any materials, machinery or equipment purchased under such a
3210	3210	certificate for any purpose other than that for which such a certificate is
3211	3211	issued without the payment of the sales or compensating tax otherwise
3212	3212	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
3213	3213	therefor, shall be subject to the penalties provided for in K.S.A. 79-
3214	3214	3615(h), and amendments thereto. As used in this subsection, "qualified
3215	3215	business facility," "qualified firm" and "qualified supplier" mean the same
3216	3216	as defined in K.S.A. 2022 Supp. 74-50,311, and amendments thereto; and
3217	3217	(pppp) (1) all sales of tangible personal property or services
3218	3218	purchased by a not-for-profit corporation that is designated as an area
3219	3219	agency on aging by the secretary for aging and disabilities services and is
3220	3220	exempt from federal income taxation pursuant to section 501(c)(3) of the
3221	3221	federal internal revenue code for the purpose of coordinating and
3222	3222	providing seniors and those living with disabilities with services that
3223	3223	promote person-centered care, including home-delivered meals,
3224	3224	congregate meal settings, long-term case management, transportation,
3225	3225	information, assistance and other preventative and intervention services to
3226	3226	help service recipients remain in their homes and communities or for the
3227	3227	purpose of constructing, equipping, reconstructing, maintaining,
3228	3228	repairing, enlarging, furnishing or remodeling facilities for such area
3229	3229	agency on aging;
3230	3230	(2) all sales of property by an area agency on aging, for any such
3231	3231	purpose; and
3232	3232	(3) and all sales of tangible personal property or services purchased
3233	3233	by a contractor for the purpose of constructing, equipping, reconstructing,
3234	3234	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3235	3235	an area agency on aging that would be exempt from taxation under the
3236	3236	provisions of this section if purchased directly by such area agency on
3237	3237	aging. Nothing in this paragraph shall be deemed to exempt the purchase
3238	3238	of any construction machinery, equipment or tools used in the
3239	3239	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3240	3240	furnishing or remodeling facilities for an area agency on aging. When an
3241	3241	1
3242	3242	2
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3259	3259	19
3260	3260	20
3261	3261	21
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3265	3265	25
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3267	3267	27
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3270	3270	30
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3272	3272	32
3273	3273	33
3274	3274	34
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3277	3277	37
3278	3278	38
3279	3279	39
3280	3280	40
3281	3281	41
3282	3282	42
3283	3283	43 HB 2416 39
3284	3284	area agency on aging contracts for the purpose of constructing,
3285	3285	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3286	3286	remodeling facilities, it shall obtain from the state and furnish to the
3287	3287	contractor an exemption certificate for the project involved, and such
3288	3288	contractor may purchase materials for incorporation in such project. The
3289	3289	contractor shall furnish the number of such certificate to all suppliers
3290	3290	from whom such purchases are made, and such suppliers shall execute
3291	3291	invoices covering the same bearing the number of such certificate. Upon
3292	3292	completion of the project, the contractor shall furnish to such area agency
3293	3293	on aging a sworn statement, on a form to be provided by the director of
3294	3294	taxation, that all purchases so made were entitled to exemption under this
3295	3295	subsection. All invoices shall be held by the contractor for a period of five
3296	3296	years and shall be subject to audit by the director of taxation. If any
3297	3297	materials purchased under such a certificate are found not to have been
3298	3298	incorporated in the building or other project or not to have been returned
3299	3299	for credit or the sales or compensating tax otherwise imposed upon such
3300	3300	materials that will not be so incorporated in the building or other project
3301	3301	reported and paid by such contractor to the director of taxation not later
3302	3302	than the 20
3303	3303	th
3304	3304	day of the month following the close of the month in which it
3305	3305	shall be determined that such materials will not be used for the purpose
3306	3306	for which such certificate was issued, the area agency on aging concerned
3307	3307	shall be liable for tax on all materials purchased for the project, and upon
3308	3308	payment thereof, the area agency on aging may recover the same from the
3309	3309	contractor together with reasonable attorney fees. Any contractor or any
3310	3310	agent, employee or subcontractor thereof who shall use or otherwise
3311	3311	dispose of any materials purchased under such a certificate for any
3312	3312	purpose other than that for which such a certificate is issued without the
3313	3313	payment of the sales or compensating tax otherwise imposed upon such
3314	3314	materials shall be guilty of a misdemeanor and, upon conviction therefor,
3315	3315	shall be subject to the penalties provided for in K.S.A. 79-3615(h), and
3316	3316	amendments thereto.
3317	3317	Sec. 2. K.S.A. 2022 Supp. 79-3606 is hereby repealed.
3318	3318	Sec. 3. This act shall take effect and be in force from and after its
3319	3319	publication in the statute book.
3320	3320	1
3321	3321	2
3322	3322	3
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3347	3347	28
3348	3348	29
3349	3349	30
3350	3350	31
3351	3351	32
3352	3352	33
3353	3353	34