Kansas 2023-2024 Regular Session

Kansas House Bill HB2584

Introduced
1/24/24  
Refer
1/24/24  

Caption

Imposing sales and compensating use tax on digital property and subscription services and providing for the decrease in sales and compensating use tax rates in certain circumstances.

Impact

If passed, HB 2584 would amend Kansas statutes regarding sales taxes, specifically altering K.S.A. 2023 Supp. 79-3602, 79-3603, and 79-3703. The bill's implementation is expected to generate significant revenue from newly taxable digital transactions, which will contribute to the state's budget. Moreover, it establishes a conditional tax rate reduction for the sales tax on digital property and subscription services when revenue thresholds are met. This aims to incentivize the growth of digital commerce while ensuring the state remains competitive.

Summary

House Bill 2584 focuses on the taxation of digital property and subscription services, proposing amendments to the current sales and compensating use tax structure in Kansas. The bill introduces provisions that would impose sales tax on digital goods such as e-books, streaming services, and software subscriptions. The primary goal is to ensure that these digital services are treated similarly to physical goods under the state's tax regulations, thereby expanding the tax base while adapting to the increasing reliance on digital transactions.

Contention

Notable points of contention around HB 2584 include concerns from various stakeholders about the fairness and adequacy of taxing digital services. Opponents argue that imposing taxes on digital goods could lead to increased costs for consumers, potentially stifling digital growth in the state. There's also a broader debate regarding the need for such taxation in a digital-first economy and the implications it may have on businesses that operate online. Proponents, however, maintain that such measures ensure equitable tax obligations across product types, whether physical or digital.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2318

Decreasing the state rate for sales and compensating use tax to 6.15%.

KS HB2106

Providing a sales tax exemption for sales of property and services used in the provision of communications services and a deduction from sales or compensating use tax when selling and buying different motor vehicles within 90 days.

KS HB2098

Providing a deduction from sales or compensating use tax when selling and buying different motor vehicles within 120 days, providing an exemption for certain purchases by disabled veterans of the armed forces of the United States, excluding manufacturers' coupons from the sales or selling price for sales tax purposes, providing sales tax exemptions for custom meat processing services and purchases for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf, providing sales tax exemptions for certain purchases by doorstep inc., exploration place, inc., Kansas children's discovery center, inc. and the Kansas fairgrounds foundation and providing for a sales tax exemption for sales of property and services used in the provision of communications services.

KS HB2435

Decreasing the sales and use tax rate, establishing a 0% state rate for sales and use taxes for food and food ingredients, providing a sales tax exemption for children's diapers and feminine hygiene products, establishing the STAR bonds food sales tax revenue replacement fund and altering the calculation for STAR bond districts.

KS HB2277

Decreasing the state rate for sales and use taxes for prepared food and increasing the percent credited to the state highway fund from sales and use tax revenue collected.

KS SB267

Providing sales tax exemptions for certain services purchased on behalf of a provider in the provision of communication services and certain purchases by the Kansas fairgrounds foundation and modifying the definition of alcoholic beverages for purposes of the retailers' sales tax.

KS HB2256

Decreasing the state rate for sales and use taxes for sales of food, food ingredients and prepared food and modifying the percent credited to the state highway fund from revenue collected.

KS HB2586

Increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the normal rate of privilege tax, increasing the household and dependent care expenses income tax credit amount, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction, providing for an annual sales tax holiday for certain sales of school supplies, computers and clothing, providing sales tax exemptions for children's diapers and feminine hygiene products and reducing the state rate of tax on sales of food and food ingredients to 0% on April 1, 2024.

KS HB1755

Sales and use tax on services and digital personal property.

KS SB248

Providing sales tax exemptions for certain food and food ingredients and for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf and repealing the state rate reduction for sales of certain food and food ingredients.

Similar Bills

KS SB53

Excluding manufacturers' coupons from the sales or selling price for sales tax purposes.

KS SB78

Requiring postsecondary educational institutions to regularly review and update accreditation policies, prohibiting accrediting agencies from compelling such institutions to violate state law and providing a cause of action for violations thereof.

OK HB3349

Public funds; creating the Statewide Recovery Fund; limiting appropriations and transfer authority, directing deposits of certain interest and income to certain fund; emergency.

OK SB1495

Public funds; Statewide Recovery Fund; making an appropriation; stating purpose. Emergency.

OK SB1283

Sales tax code; state grocery tax exemption; modifying definitions; local sales and use taxes; differential tax dates. Effective date.

RI S2167

Exempts from the sales tax scalp hair prosthesis or wigs that are necessary due to hair loss from a medical condition.

RI H5080

Exempts from the sales tax scalp hair prosthesis or wigs that are necessary due to hair loss from a medical condition.

RI H7037

Exempts from the sales tax scalp hair prosthesis or wigs that are necessary due to hair loss from a medical condition.