Kansas 2023-2024 Regular Session

Kansas House Bill HB2685 Compare Versions

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1	1	Session of 2024
2	2	HOUSE BILL No. 2685
3	3	By Committee on Taxation
4	4	Requested by Representative A. Smith on behalf of the 2023 Special Committee on
5	5	Taxation
6	6	2-5
7	7	AN ACT concerning sales taxation; relating to exemptions; providing an
8	8	exemption for registered charitable organizations; amending K.S.A.
9	9	2023 Supp. 79-3606 and repealing the existing section.
10	10	Be it enacted by the Legislature of the State of Kansas:
11	11	Section 1. K.S.A. 2023 Supp. 79-3606 is hereby amended to read as
12	12	follows: 79-3606. The following shall be exempt from the tax imposed by
13	13	this act:
14	14	(a) All sales of motor-vehicle fuel or other articles upon which a sales
15	15	or excise tax has been paid, not subject to refund, under the laws of this
16	16	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
17	17	3301, and amendments thereto, including consumable material for such
18	18	electronic cigarettes, cereal malt beverages and malt products as defined
19	19	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
20	20	malt syrup and malt extract, that is not subject to taxation under the
21	21	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
22	22	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
23	23	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
24	24	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
25	25	thereto, and gross receipts from regulated sports contests taxed pursuant to
26	26	the Kansas professional regulated sports act, and amendments thereto;
27	27	(b) all sales of tangible personal property or service, including the
28	28	renting and leasing of tangible personal property, purchased directly by the
29	29	state of Kansas, a political subdivision thereof, other than a school or
30	30	educational institution, or purchased by a public or private nonprofit
31	31	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
32	32	nonprofit integrated community care organization and used exclusively for
33	33	state, political subdivision, hospital, public hospital authority, nonprofit
34	34	blood, tissue or organ bank or nonprofit integrated community care
35	35	organization purposes, except when: (1) Such state, hospital or public
36	36	hospital authority is engaged or proposes to engage in any business
37	37	specifically taxable under the provisions of this act and such items of
38	38	tangible personal property or service are used or proposed to be used in
39	39	such business; or (2) such political subdivision is engaged or proposes to
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74	74	engage in the business of furnishing gas, electricity or heat to others and
75	75	such items of personal property or service are used or proposed to be used
76	76	in such business;
77	77	(c) all sales of tangible personal property or services, including the
78	78	renting and leasing of tangible personal property, purchased directly by a
79	79	public or private elementary or secondary school or public or private
80	80	nonprofit educational institution and used primarily by such school or
81	81	institution for nonsectarian programs and activities provided or sponsored
82	82	by such school or institution or in the erection, repair or enlargement of
83	83	buildings to be used for such purposes. The exemption herein provided
84	84	shall not apply to erection, construction, repair, enlargement or equipment
85	85	of buildings used primarily for human habitation, except that such
86	86	exemption shall apply to the erection, construction, repair, enlargement or
87	87	equipment of buildings used for human habitation by the cerebral palsy
88	88	research foundation of Kansas located in Wichita, Kansas, and multi
89	89	community diversified services, incorporated, located in McPherson,
90	90	Kansas;
91	91	(d) all sales of tangible personal property or services purchased by a
92	92	contractor for the purpose of constructing, equipping, reconstructing,
93	93	maintaining, repairing, enlarging, furnishing or remodeling facilities for
94	94	any public or private nonprofit hospital or public hospital authority, public
95	95	or private elementary or secondary school, a public or private nonprofit
96	96	educational institution, state correctional institution including a privately
97	97	constructed correctional institution contracted for state use and ownership,
98	98	that would be exempt from taxation under the provisions of this act if
99	99	purchased directly by such hospital or public hospital authority, school,
100	100	educational institution or a state correctional institution; and all sales of
101	101	tangible personal property or services purchased by a contractor for the
102	102	purpose of constructing, equipping, reconstructing, maintaining, repairing,
103	103	enlarging, furnishing or remodeling facilities for any political subdivision
104	104	of the state or district described in subsection (s), the total cost of which is
105	105	paid from funds of such political subdivision or district and that would be
106	106	exempt from taxation under the provisions of this act if purchased directly
107	107	by such political subdivision or district. Nothing in this subsection or in
108	108	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
109	109	deemed to exempt the purchase of any construction machinery, equipment
110	110	or tools used in the constructing, equipping, reconstructing, maintaining,
111	111	repairing, enlarging, furnishing or remodeling facilities for any political
112	112	subdivision of the state or any such district. As used in this subsection,
113	113	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
114	114	political subdivision" shall mean general tax revenues, the proceeds of any
115	115	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
116	116	purpose of constructing, equipping, reconstructing, repairing, enlarging,
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160	160	furnishing or remodeling facilities that are to be leased to the donor. When
161	161	any political subdivision of the state, district described in subsection (s),
162	162	public or private nonprofit hospital or public hospital authority, public or
163	163	private elementary or secondary school, public or private nonprofit
164	164	educational institution, state correctional institution including a privately
165	165	constructed correctional institution contracted for state use and ownership
166	166	shall contract for the purpose of constructing, equipping, reconstructing,
167	167	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
168	168	shall obtain from the state and furnish to the contractor an exemption
169	169	certificate for the project involved, and the contractor may purchase
170	170	materials for incorporation in such project. The contractor shall furnish the
171	171	number of such certificate to all suppliers from whom such purchases are
172	172	made, and such suppliers shall execute invoices covering the same bearing
173	173	the number of such certificate. Upon completion of the project the
174	174	contractor shall furnish to the political subdivision, district described in
175	175	subsection (s), hospital or public hospital authority, school, educational
176	176	institution or department of corrections concerned a sworn statement, on a
177	177	form to be provided by the director of taxation, that all purchases so made
178	178	were entitled to exemption under this subsection. As an alternative to the
179	179	foregoing procedure, any such contracting entity may apply to the
180	180	secretary of revenue for agent status for the sole purpose of issuing and
181	181	furnishing project exemption certificates to contractors pursuant to rules
182	182	and regulations adopted by the secretary establishing conditions and
183	183	standards for the granting and maintaining of such status. All invoices
184	184	shall be held by the contractor for a period of five years and shall be
185	185	subject to audit by the director of taxation. If any materials purchased
186	186	under such a certificate are found not to have been incorporated in the
187	187	building or other project or not to have been returned for credit or the sales
188	188	or compensating tax otherwise imposed upon such materials that will not
189	189	be so incorporated in the building or other project reported and paid by
190	190	such contractor to the director of taxation not later than the 20
191	191	th
192	192	day of the
193	193	month following the close of the month in which it shall be determined
194	194	that such materials will not be used for the purpose for which such
195	195	certificate was issued, the political subdivision, district described in
196	196	subsection (s), hospital or public hospital authority, school, educational
197	197	institution or the contractor contracting with the department of corrections
198	198	for a correctional institution concerned shall be liable for tax on all
199	199	materials purchased for the project, and upon payment thereof it may
200	200	recover the same from the contractor together with reasonable attorney
201	201	fees. Any contractor or any agent, employee or subcontractor thereof, who
202	202	shall use or otherwise dispose of any materials purchased under such a
203	203	certificate for any purpose other than that for which such a certificate is
204	204	issued without the payment of the sales or compensating tax otherwise
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248	248	imposed upon such materials, shall be guilty of a misdemeanor and, upon
249	249	conviction therefor, shall be subject to the penalties provided for in K.S.A.
250	250	79-3615(h), and amendments thereto;
251	251	(e) all sales of tangible personal property or services purchased by a
252	252	contractor for the erection, repair or enlargement of buildings or other
253	253	projects for the government of the United States, its agencies or
254	254	instrumentalities, that would be exempt from taxation if purchased directly
255	255	by the government of the United States, its agencies or instrumentalities.
256	256	When the government of the United States, its agencies or
257	257	instrumentalities shall contract for the erection, repair, or enlargement of
258	258	any building or other project, it shall obtain from the state and furnish to
259	259	the contractor an exemption certificate for the project involved, and the
260	260	contractor may purchase materials for incorporation in such project. The
261	261	contractor shall furnish the number of such certificates to all suppliers
262	262	from whom such purchases are made, and such suppliers shall execute
263	263	invoices covering the same bearing the number of such certificate. Upon
264	264	completion of the project the contractor shall furnish to the government of
265	265	the United States, its agencies or instrumentalities concerned a sworn
266	266	statement, on a form to be provided by the director of taxation, that all
267	267	purchases so made were entitled to exemption under this subsection. As an
268	268	alternative to the foregoing procedure, any such contracting entity may
269	269	apply to the secretary of revenue for agent status for the sole purpose of
270	270	issuing and furnishing project exemption certificates to contractors
271	271	pursuant to rules and regulations adopted by the secretary establishing
272	272	conditions and standards for the granting and maintaining of such status.
273	273	All invoices shall be held by the contractor for a period of five years and
274	274	shall be subject to audit by the director of taxation. Any contractor or any
275	275	agent, employee or subcontractor thereof, who shall use or otherwise
276	276	dispose of any materials purchased under such a certificate for any purpose
277	277	other than that for which such a certificate is issued without the payment
278	278	of the sales or compensating tax otherwise imposed upon such materials,
279	279	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
280	280	subject to the penalties provided for in K.S.A. 79-3615(h), and
281	281	amendments thereto;
282	282	(f) tangible personal property purchased by a railroad or public utility
283	283	for consumption or movement directly and immediately in interstate
284	284	commerce;
285	285	(g) sales of aircraft including remanufactured and modified aircraft
286	286	sold to persons using directly or through an authorized agent such aircraft
287	287	as certified or licensed carriers of persons or property in interstate or
288	288	foreign commerce under authority of the laws of the United States or any
289	289	foreign government or sold to any foreign government or agency or
290	290	instrumentality of such foreign government and all sales of aircraft for use
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334	334	outside of the United States and sales of aircraft repair, modification and
335	335	replacement parts and sales of services employed in the remanufacture,
336	336	modification and repair of aircraft;
337	337	(h) all rentals of nonsectarian textbooks by public or private
338	338	elementary or secondary schools;
339	339	(i) the lease or rental of all films, records, tapes, or any type of sound
340	340	or picture transcriptions used by motion picture exhibitors;
341	341	(j) meals served without charge or food used in the preparation of
342	342	such meals to employees of any restaurant, eating house, dining car, hotel,
343	343	drugstore or other place where meals or drinks are regularly sold to the
344	344	public if such employees' duties are related to the furnishing or sale of
345	345	such meals or drinks;
346	346	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
347	347	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
348	348	delivered in this state to a bona fide resident of another state, which motor
349	349	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
350	350	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
351	351	remain in this state more than 10 days;
352	352	(l) all isolated or occasional sales of tangible personal property,
353	353	services, substances or things, except isolated or occasional sale of motor
354	354	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
355	355	amendments thereto;
356	356	(m) all sales of tangible personal property that become an ingredient
357	357	or component part of tangible personal property or services produced,
358	358	manufactured or compounded for ultimate sale at retail within or without
359	359	the state of Kansas; and any such producer, manufacturer or compounder
360	360	may obtain from the director of taxation and furnish to the supplier an
361	361	exemption certificate number for tangible personal property for use as an
362	362	ingredient or component part of the property or services produced,
363	363	manufactured or compounded;
364	364	(n) all sales of tangible personal property that is consumed in the
365	365	production, manufacture, processing, mining, drilling, refining or
366	366	compounding of tangible personal property, the treating of by-products or
367	367	wastes derived from any such production process, the providing of
368	368	services or the irrigation of crops for ultimate sale at retail within or
369	369	without the state of Kansas; and any purchaser of such property may
370	370	obtain from the director of taxation and furnish to the supplier an
371	371	exemption certificate number for tangible personal property for
372	372	consumption in such production, manufacture, processing, mining,
373	373	drilling, refining, compounding, treating, irrigation and in providing such
374	374	services;
375	375	(o) all sales of animals, fowl and aquatic plants and animals, the
376	376	primary purpose of which is use in agriculture or aquaculture, as defined in
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420	420	K.S.A. 47-1901, and amendments thereto, the production of food for
421	421	human consumption, the production of animal, dairy, poultry or aquatic
422	422	plant and animal products, fiber or fur, or the production of offspring for
423	423	use for any such purpose or purposes;
424	424	(p) all sales of drugs dispensed pursuant to a prescription order by a
425	425	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
426	426	1626, and amendments thereto. As used in this subsection, "drug" means a
427	427	compound, substance or preparation and any component of a compound,
428	428	substance or preparation, other than food and food ingredients, dietary
429	429	supplements or alcoholic beverages, recognized in the official United
430	430	States pharmacopeia, official homeopathic pharmacopoeia of the United
431	431	States or official national formulary, and supplement to any of them,
432	432	intended for use in the diagnosis, cure, mitigation, treatment or prevention
433	433	of disease or intended to affect the structure or any function of the body,
434	434	except that for taxable years commencing after December 31, 2013, this
435	435	subsection shall not apply to any sales of drugs used in the performance or
436	436	induction of an abortion, as defined in K.S.A. 65-6701, and amendments
437	437	thereto;
438	438	(q) all sales of insulin dispensed by a person licensed by the state
439	439	board of pharmacy to a person for treatment of diabetes at the direction of
440	440	a person licensed to practice medicine by the state board of healing arts;
441	441	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
442	442	enteral feeding systems, prosthetic devices and mobility enhancing
443	443	equipment prescribed in writing by a person licensed to practice the
444	444	healing arts, dentistry or optometry, and in addition to such sales, all sales
445	445	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
446	446	and repair and replacement parts therefor, including batteries, by a person
447	447	licensed in the practice of dispensing and fitting hearing aids pursuant to
448	448	the provisions of K.S.A. 74-5808, and amendments thereto. For the
449	449	purposes of this subsection: (1) "Mobility enhancing equipment" means
450	450	equipment including repair and replacement parts to same, but does not
451	451	include durable medical equipment, which is primarily and customarily
452	452	used to provide or increase the ability to move from one place to another
453	453	and which is appropriate for use either in a home or a motor vehicle; is not
454	454	generally used by persons with normal mobility; and does not include any
455	455	motor vehicle or equipment on a motor vehicle normally provided by a
456	456	motor vehicle manufacturer; and (2) "prosthetic device" means a
457	457	replacement, corrective or supportive device including repair and
458	458	replacement parts for same worn on or in the body to artificially replace a
459	459	missing portion of the body, prevent or correct physical deformity or
460	460	malfunction or support a weak or deformed portion of the body;
461	461	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
462	462	all sales of tangible personal property or services purchased directly or
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506	506	indirectly by a groundwater management district organized or operating
507	507	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
508	508	by a rural water district organized or operating under the authority of
509	509	K.S.A. 82a-612, and amendments thereto, or by a water supply district
510	510	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
511	511	3522 et seq. or 19-3545, and amendments thereto, which property or
512	512	services are used in the construction activities, operation or maintenance of
513	513	the district;
514	514	(t) all sales of farm machinery and equipment or aquaculture
515	515	machinery and equipment, repair and replacement parts therefor and
516	516	services performed in the repair and maintenance of such machinery and
517	517	equipment. For the purposes of this subsection the term "farm machinery
518	518	and equipment or aquaculture machinery and equipment" shall include a
519	519	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
520	520	thereto, and is equipped with a bed or cargo box for hauling materials, and
521	521	shall also include machinery and equipment used in the operation of
522	522	Christmas tree farming but shall not include any passenger vehicle, truck,
523	523	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
524	524	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
525	525	machinery and equipment" includes precision farming equipment that is
526	526	portable or is installed or purchased to be installed on farm machinery and
527	527	equipment. "Precision farming equipment" includes the following items
528	528	used only in computer-assisted farming, ranching or aquaculture
529	529	production operations: Soil testing sensors, yield monitors, computers,
530	530	monitors, software, global positioning and mapping systems, guiding
531	531	systems, modems, data communications equipment and any necessary
532	532	mounting hardware, wiring and antennas. Each purchaser of farm
533	533	machinery and equipment or aquaculture machinery and equipment
534	534	exempted herein must certify in writing on the copy of the invoice or sales
535	535	ticket to be retained by the seller that the farm machinery and equipment
536	536	or aquaculture machinery and equipment purchased will be used only in
537	537	farming, ranching or aquaculture production. Farming or ranching shall
538	538	include the operation of a feedlot and farm and ranch work for hire and the
539	539	operation of a nursery;
540	540	(u) all leases or rentals of tangible personal property used as a
541	541	dwelling if such tangible personal property is leased or rented for a period
542	542	of more than 28 consecutive days;
543	543	(v) all sales of tangible personal property to any contractor for use in
544	544	preparing meals for delivery to homebound elderly persons over 60 years
545	545	of age and to homebound disabled persons or to be served at a group-
546	546	sitting at a location outside of the home to otherwise homebound elderly
547	547	persons over 60 years of age and to otherwise homebound disabled
548	548	persons, as all or part of any food service project funded in whole or in
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592	592	part by government or as part of a private nonprofit food service project
593	593	available to all such elderly or disabled persons residing within an area of
594	594	service designated by the private nonprofit organization, and all sales of
595	595	tangible personal property for use in preparing meals for consumption by
596	596	indigent or homeless individuals whether or not such meals are consumed
597	597	at a place designated for such purpose, and all sales of food products by or
598	598	on behalf of any such contractor or organization for any such purpose;
599	599	(w) all sales of natural gas, electricity, heat and water delivered
600	600	through mains, lines or pipes: (1) To residential premises for
601	601	noncommercial use by the occupant of such premises; (2) for agricultural
602	602	use and also, for such use, all sales of propane gas; (3) for use in the
603	603	severing of oil; and (4) to any property which is exempt from property
604	604	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
605	605	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
606	606	and amendments thereto. For all sales of natural gas, electricity and heat
607	607	delivered through mains, lines or pipes pursuant to the provisions of
608	608	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
609	609	on December 31, 2005;
610	610	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
611	611	for the production of heat or lighting for noncommercial use of an
612	612	occupant of residential premises occurring prior to January 1, 2006;
613	613	(y) all sales of materials and services used in the repairing, servicing,
614	614	altering, maintaining, manufacturing, remanufacturing, or modification of
615	615	railroad rolling stock for use in interstate or foreign commerce under
616	616	authority of the laws of the United States;
617	617	(z) all sales of tangible personal property and services purchased
618	618	directly by a port authority or by a contractor therefor as provided by the
619	619	provisions of K.S.A. 12-3418, and amendments thereto;
620	620	(aa) all sales of materials and services applied to equipment that is
621	621	transported into the state from without the state for repair, service,
622	622	alteration, maintenance, remanufacture or modification and that is
623	623	subsequently transported outside the state for use in the transmission of
624	624	liquids or natural gas by means of pipeline in interstate or foreign
625	625	commerce under authority of the laws of the United States;
626	626	(bb) all sales of used mobile homes or manufactured homes. As used
627	627	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
628	628	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
629	629	"sales of used mobile homes or manufactured homes" means sales other
630	630	than the original retail sale thereof;
631	631	(cc) all sales of tangible personal property or services purchased prior
632	632	to January 1, 2012, except as otherwise provided, for the purpose of and in
633	633	conjunction with constructing, reconstructing, enlarging or remodeling a
634	634	business or retail business that meets the requirements established in
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678	678	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
679	679	machinery and equipment purchased for installation at any such business
680	680	or retail business, and all sales of tangible personal property or services
681	681	purchased on or after January 1, 2012, for the purpose of and in
682	682	conjunction with constructing, reconstructing, enlarging or remodeling a
683	683	business that meets the requirements established in K.S.A. 74-50,115(e),
684	684	and amendments thereto, and the sale and installation of machinery and
685	685	equipment purchased for installation at any such business. When a person
686	686	shall contract for the construction, reconstruction, enlargement or
687	687	remodeling of any such business or retail business, such person shall
688	688	obtain from the state and furnish to the contractor an exemption certificate
689	689	for the project involved, and the contractor may purchase materials,
690	690	machinery and equipment for incorporation in such project. The contractor
691	691	shall furnish the number of such certificates to all suppliers from whom
692	692	such purchases are made, and such suppliers shall execute invoices
693	693	covering the same bearing the number of such certificate. Upon
694	694	completion of the project the contractor shall furnish to the owner of the
695	695	business or retail business a sworn statement, on a form to be provided by
696	696	the director of taxation, that all purchases so made were entitled to
697	697	exemption under this subsection. All invoices shall be held by the
698	698	contractor for a period of five years and shall be subject to audit by the
699	699	director of taxation. Any contractor or any agent, employee or
700	700	subcontractor thereof, who shall use or otherwise dispose of any materials,
701	701	machinery or equipment purchased under such a certificate for any
702	702	purpose other than that for which such a certificate is issued without the
703	703	payment of the sales or compensating tax otherwise imposed thereon, shall
704	704	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
705	705	to the penalties provided for in K.S.A. 79-3615(h), and amendments
706	706	thereto. As used in this subsection, "business" and "retail business" mean
707	707	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
708	708	exemption certificates that have been previously issued under this
709	709	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
710	710	and amendments thereto, but not including K.S.A. 74-50,115(e), and
711	711	amendments thereto, prior to January 1, 2012, and have not expired will be
712	712	effective for the term of the project or two years from the effective date of
713	713	the certificate, whichever occurs earlier. Project exemption certificates that
714	714	are submitted to the department of revenue prior to January 1, 2012, and
715	715	are found to qualify will be issued a project exemption certificate that will
716	716	be effective for a two-year period or for the term of the project, whichever
717	717	occurs earlier;
718	718	(dd) all sales of tangible personal property purchased with food
719	719	stamps issued by the United States department of agriculture;
720	720	(ee) all sales of lottery tickets and shares made as part of a lottery
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763	763	43 HB 2685 10
764	764	operated by the state of Kansas;
765	765	(ff) on and after July 1, 1988, all sales of new mobile homes or
766	766	manufactured homes to the extent of 40% of the gross receipts, determined
767	767	without regard to any trade-in allowance, received from such sale. As used
768	768	in this subsection, "mobile homes" and "manufactured homes" mean the
769	769	same as defined in K.S.A. 58-4202, and amendments thereto;
770	770	(gg) all sales of tangible personal property purchased in accordance
771	771	with vouchers issued pursuant to the federal special supplemental food
772	772	program for women, infants and children;
773	773	(hh) all sales of medical supplies and equipment, including durable
774	774	medical equipment, purchased directly by a nonprofit skilled nursing home
775	775	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
776	776	and amendments thereto, for the purpose of providing medical services to
777	777	residents thereof. This exemption shall not apply to tangible personal
778	778	property customarily used for human habitation purposes. As used in this
779	779	subsection, "durable medical equipment" means equipment including
780	780	repair and replacement parts for such equipment, that can withstand
781	781	repeated use, is primarily and customarily used to serve a medical purpose,
782	782	generally is not useful to a person in the absence of illness or injury and is
783	783	not worn in or on the body, but does not include mobility enhancing
784	784	equipment as defined in subsection (r), oxygen delivery equipment, kidney
785	785	dialysis equipment or enteral feeding systems;
786	786	(ii) all sales of tangible personal property purchased directly by a
787	787	nonprofit organization for nonsectarian comprehensive multidiscipline
788	788	youth development programs and activities provided or sponsored by such
789	789	organization, and all sales of tangible personal property by or on behalf of
790	790	any such organization. This exemption shall not apply to tangible personal
791	791	property customarily used for human habitation purposes;
792	792	(jj) all sales of tangible personal property or services, including the
793	793	renting and leasing of tangible personal property, purchased directly on
794	794	behalf of a community-based facility for people with intellectual disability
795	795	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
796	796	amendments thereto, and licensed in accordance with the provisions of
797	797	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
798	798	personal property or services purchased by contractors during the time
799	799	period from July, 2003, through June, 2006, for the purpose of
800	800	constructing, equipping, maintaining or furnishing a new facility for a
801	801	community-based facility for people with intellectual disability or mental
802	802	health center located in Riverton, Cherokee County, Kansas, that would
803	803	have been eligible for sales tax exemption pursuant to this subsection if
804	804	purchased directly by such facility or center. This exemption shall not
805	805	apply to tangible personal property customarily used for human habitation
806	806	purposes;
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849	849	43 HB 2685 11
850	850	(kk) (1) (A) all sales of machinery and equipment that are used in this
851	851	state as an integral or essential part of an integrated production operation
852	852	by a manufacturing or processing plant or facility;
853	853	(B) all sales of installation, repair and maintenance services
854	854	performed on such machinery and equipment; and
855	855	(C) all sales of repair and replacement parts and accessories
856	856	purchased for such machinery and equipment.
857	857	(2) For purposes of this subsection:
858	858	(A) "Integrated production operation" means an integrated series of
859	859	operations engaged in at a manufacturing or processing plant or facility to
860	860	process, transform or convert tangible personal property by physical,
861	861	chemical or other means into a different form, composition or character
862	862	from that in which it originally existed. Integrated production operations
863	863	shall include: (i) Production line operations, including packaging
864	864	operations; (ii) preproduction operations to handle, store and treat raw
865	865	materials; (iii) post production handling, storage, warehousing and
866	866	distribution operations; and (iv) waste, pollution and environmental
867	867	control operations, if any;
868	868	(B) "production line" means the assemblage of machinery and
869	869	equipment at a manufacturing or processing plant or facility where the
870	870	actual transformation or processing of tangible personal property occurs;
871	871	(C) "manufacturing or processing plant or facility" means a single,
872	872	fixed location owned or controlled by a manufacturing or processing
873	873	business that consists of one or more structures or buildings in a
874	874	contiguous area where integrated production operations are conducted to
875	875	manufacture or process tangible personal property to be ultimately sold at
876	876	retail. Such term shall not include any facility primarily operated for the
877	877	purpose of conveying or assisting in the conveyance of natural gas,
878	878	electricity, oil or water. A business may operate one or more manufacturing
879	879	or processing plants or facilities at different locations to manufacture or
880	880	process a single product of tangible personal property to be ultimately sold
881	881	at retail;
882	882	(D) "manufacturing or processing business" means a business that
883	883	utilizes an integrated production operation to manufacture, process,
884	884	fabricate, finish or assemble items for wholesale and retail distribution as
885	885	part of what is commonly regarded by the general public as an industrial
886	886	manufacturing or processing operation or an agricultural commodity
887	887	processing operation. (i) Industrial manufacturing or processing operations
888	888	include, by way of illustration but not of limitation, the fabrication of
889	889	automobiles, airplanes, machinery or transportation equipment, the
890	890	fabrication of metal, plastic, wood or paper products, electricity power
891	891	generation, water treatment, petroleum refining, chemical production,
892	892	wholesale bottling, newspaper printing, ready mixed concrete production,
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935	935	43 HB 2685 12
936	936	and the remanufacturing of used parts for wholesale or retail sale. Such
937	937	processing operations shall include operations at an oil well, gas well,
938	938	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
939	939	sand or gravel that has been extracted from the earth is cleaned, separated,
940	940	crushed, ground, milled, screened, washed or otherwise treated or prepared
941	941	before its transmission to a refinery or before any other wholesale or retail
942	942	distribution. (ii) Agricultural commodity processing operations include, by
943	943	way of illustration but not of limitation, meat packing, poultry slaughtering
944	944	and dressing, processing and packaging farm and dairy products in sealed
945	945	containers for wholesale and retail distribution, feed grinding, grain
946	946	milling, frozen food processing, and grain handling, cleaning, blending,
947	947	fumigation, drying and aeration operations engaged in by grain elevators
948	948	or other grain storage facilities. (iii) Manufacturing or processing
949	949	businesses do not include, by way of illustration but not of limitation,
950	950	nonindustrial businesses whose operations are primarily retail and that
951	951	produce or process tangible personal property as an incidental part of
952	952	conducting the retail business, such as retailers who bake, cook or prepare
953	953	food products in the regular course of their retail trade, grocery stores,
954	954	meat lockers and meat markets that butcher or dress livestock or poultry in
955	955	the regular course of their retail trade, contractors who alter, service, repair
956	956	or improve real property, and retail businesses that clean, service or
957	957	refurbish and repair tangible personal property for its owner;
958	958	(E) "repair and replacement parts and accessories" means all parts
959	959	and accessories for exempt machinery and equipment, including, but not
960	960	limited to, dies, jigs, molds, patterns and safety devices that are attached to
961	961	exempt machinery or that are otherwise used in production, and parts and
962	962	accessories that require periodic replacement such as belts, drill bits,
963	963	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
964	964	other refractory items for exempt kiln equipment used in production
965	965	operations;
966	966	(F) "primary" or "primarily" mean more than 50% of the time.
967	967	(3) For purposes of this subsection, machinery and equipment shall
968	968	be deemed to be used as an integral or essential part of an integrated
969	969	production operation when used to:
970	970	(A) Receive, transport, convey, handle, treat or store raw materials in
971	971	preparation of its placement on the production line;
972	972	(B) transport, convey, handle or store the property undergoing
973	973	manufacturing or processing at any point from the beginning of the
974	974	production line through any warehousing or distribution operation of the
975	975	final product that occurs at the plant or facility;
976	976	(C) act upon, effect, promote or otherwise facilitate a physical change
977	977	to the property undergoing manufacturing or processing;
978	978	(D) guide, control or direct the movement of property undergoing
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1022	1022	manufacturing or processing;
1023	1023	(E) test or measure raw materials, the property undergoing
1024	1024	manufacturing or processing or the finished product, as a necessary part of
1025	1025	the manufacturer's integrated production operations;
1026	1026	(F) plan, manage, control or record the receipt and flow of inventories
1027	1027	of raw materials, consumables and component parts, the flow of the
1028	1028	property undergoing manufacturing or processing and the management of
1029	1029	inventories of the finished product;
1030	1030	(G) produce energy for, lubricate, control the operating of or
1031	1031	otherwise enable the functioning of other production machinery and
1032	1032	equipment and the continuation of production operations;
1033	1033	(H) package the property being manufactured or processed in a
1034	1034	container or wrapping in which such property is normally sold or
1035	1035	transported;
1036	1036	(I) transmit or transport electricity, coke, gas, water, steam or similar
1037	1037	substances used in production operations from the point of generation, if
1038	1038	produced by the manufacturer or processor at the plant site, to that
1039	1039	manufacturer's production operation; or, if purchased or delivered from
1040	1040	off-site, from the point where the substance enters the site of the plant or
1041	1041	facility to that manufacturer's production operations;
1042	1042	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
1043	1043	solvents or other substances that are used in production operations;
1044	1044	(K) provide and control an environment required to maintain certain
1045	1045	levels of air quality, humidity or temperature in special and limited areas
1046	1046	of the plant or facility, where such regulation of temperature or humidity is
1047	1047	part of and essential to the production process;
1048	1048	(L) treat, transport or store waste or other byproducts of production
1049	1049	operations at the plant or facility; or
1050	1050	(M) control pollution at the plant or facility where the pollution is
1051	1051	produced by the manufacturing or processing operation.
1052	1052	(4) The following machinery, equipment and materials shall be
1053	1053	deemed to be exempt even though it may not otherwise qualify as
1054	1054	machinery and equipment used as an integral or essential part of an
1055	1055	integrated production operation: (A) Computers and related peripheral
1056	1056	equipment that are utilized by a manufacturing or processing business for
1057	1057	engineering of the finished product or for research and development or
1058	1058	product design; (B) machinery and equipment that is utilized by a
1059	1059	manufacturing or processing business to manufacture or rebuild tangible
1060	1060	personal property that is used in manufacturing or processing operations,
1061	1061	including tools, dies, molds, forms and other parts of qualifying machinery
1062	1062	and equipment; (C) portable plants for aggregate concrete, bulk cement
1063	1063	and asphalt including cement mixing drums to be attached to a motor
1064	1064	vehicle; (D) industrial fixtures, devices, support facilities and special
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1108	1108	foundations necessary for manufacturing and production operations, and
1109	1109	materials and other tangible personal property sold for the purpose of
1110	1110	fabricating such fixtures, devices, facilities and foundations. An exemption
1111	1111	certificate for such purchases shall be signed by the manufacturer or
1112	1112	processor. If the fabricator purchases such material, the fabricator shall
1113	1113	also sign the exemption certificate; (E) a manufacturing or processing
1114	1114	business' laboratory equipment that is not located at the plant or facility,
1115	1115	but that would otherwise qualify for exemption under subsection (3)(E);
1116	1116	(F) all machinery and equipment used in surface mining activities as
1117	1117	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
1118	1118	from the time a reclamation plan is filed to the acceptance of the
1119	1119	completed final site reclamation.
1120	1120	(5) "Machinery and equipment used as an integral or essential part of
1121	1121	an integrated production operation" shall not include:
1122	1122	(A) Machinery and equipment used for nonproduction purposes,
1123	1123	including, but not limited to, machinery and equipment used for plant
1124	1124	security, fire prevention, first aid, accounting, administration, record
1125	1125	keeping, advertising, marketing, sales or other related activities, plant
1126	1126	cleaning, plant communications and employee work scheduling;
1127	1127	(B) machinery, equipment and tools used primarily in maintaining
1128	1128	and repairing any type of machinery and equipment or the building and
1129	1129	plant;
1130	1130	(C) transportation, transmission and distribution equipment not
1131	1131	primarily used in a production, warehousing or material handling
1132	1132	operation at the plant or facility, including the means of conveyance of
1133	1133	natural gas, electricity, oil or water, and equipment related thereto, located
1134	1134	outside the plant or facility;
1135	1135	(D) office machines and equipment including computers and related
1136	1136	peripheral equipment not used directly and primarily to control or measure
1137	1137	the manufacturing process;
1138	1138	(E) furniture and other furnishings;
1139	1139	(F) buildings, other than exempt machinery and equipment that is
1140	1140	permanently affixed to or becomes a physical part of the building, and any
1141	1141	other part of real estate that is not otherwise exempt;
1142	1142	(G) building fixtures that are not integral to the manufacturing
1143	1143	operation, such as utility systems for heating, ventilation, air conditioning,
1144	1144	communications, plumbing or electrical;
1145	1145	(H) machinery and equipment used for general plant heating, cooling
1146	1146	and lighting;
1147	1147	(I) motor vehicles that are registered for operation on public
1148	1148	highways; or
1149	1149	(J) employee apparel, except safety and protective apparel that is
1150	1150	purchased by an employer and furnished gratuitously to employees who
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1193	1193	43 HB 2685 15
1194	1194	are involved in production or research activities.
1195	1195	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
1196	1196	of the machinery and equipment that qualify or do not qualify as an
1197	1197	integral or essential part of an integrated production operation. When
1198	1198	machinery or equipment is used as an integral or essential part of
1199	1199	production operations part of the time and for nonproduction purposes at
1200	1200	other times, the primary use of the machinery or equipment shall
1201	1201	determine whether or not such machinery or equipment qualifies for
1202	1202	exemption.
1203	1203	(7) The secretary of revenue shall adopt rules and regulations
1204	1204	necessary to administer the provisions of this subsection;
1205	1205	(ll) all sales of educational materials purchased for distribution to the
1206	1206	public at no charge by a nonprofit corporation organized for the purpose of
1207	1207	encouraging, fostering and conducting programs for the improvement of
1208	1208	public health, except that for taxable years commencing after December
1209	1209	31, 2013, this subsection shall not apply to any sales of such materials
1210	1210	purchased by a nonprofit corporation which performs any abortion, as
1211	1211	defined in K.S.A. 65-6701, and amendments thereto;
1212	1212	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
1213	1213	herbicides, germicides, pesticides and fungicides; and services, purchased
1214	1214	and used for the purpose of producing plants in order to prevent soil
1215	1215	erosion on land devoted to agricultural use;
1216	1216	(nn) except as otherwise provided in this act, all sales of services
1217	1217	rendered by an advertising agency or licensed broadcast station or any
1218	1218	member, agent or employee thereof;
1219	1219	(oo) all sales of tangible personal property purchased by a community
1220	1220	action group or agency for the exclusive purpose of repairing or
1221	1221	weatherizing housing occupied by low-income individuals;
1222	1222	(pp) all sales of drill bits and explosives actually utilized in the
1223	1223	exploration and production of oil or gas;
1224	1224	(qq) all sales of tangible personal property and services purchased by
1225	1225	a nonprofit museum or historical society or any combination thereof,
1226	1226	including a nonprofit organization that is organized for the purpose of
1227	1227	stimulating public interest in the exploration of space by providing
1228	1228	educational information, exhibits and experiences, that is exempt from
1229	1229	federal income taxation pursuant to section 501(c)(3) of the federal
1230	1230	internal revenue code of 1986;
1231	1231	(rr) all sales of tangible personal property that will admit the
1232	1232	purchaser thereof to any annual event sponsored by a nonprofit
1233	1233	organization that is exempt from federal income taxation pursuant to
1234	1234	section 501(c)(3) of the federal internal revenue code of 1986, except that
1235	1235	for taxable years commencing after December 31, 2013, this subsection
1236	1236	shall not apply to any sales of such tangible personal property purchased
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1279	1279	43 HB 2685 16
1280	1280	by a nonprofit organization which performs any abortion, as defined in
1281	1281	K.S.A. 65-6701, and amendments thereto;
1282	1282	(ss) all sales of tangible personal property and services purchased by
1283	1283	a public broadcasting station licensed by the federal communications
1284	1284	commission as a noncommercial educational television or radio station;
1285	1285	(tt) all sales of tangible personal property and services purchased by
1286	1286	or on behalf of a not-for-profit corporation that is exempt from federal
1287	1287	income taxation pursuant to section 501(c)(3) of the federal internal
1288	1288	revenue code of 1986, for the sole purpose of constructing a Kansas
1289	1289	Korean War memorial;
1290	1290	(uu) all sales of tangible personal property and services purchased by
1291	1291	or on behalf of any rural volunteer fire-fighting organization for use
1292	1292	exclusively in the performance of its duties and functions;
1293	1293	(vv) all sales of tangible personal property purchased by any of the
1294	1294	following organizations that are exempt from federal income taxation
1295	1295	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
1296	1296	for the following purposes, and all sales of any such property by or on
1297	1297	behalf of any such organization for any such purpose:
1298	1298	(1) The American heart association, Kansas affiliate, inc. for the
1299	1299	purposes of providing education, training, certification in emergency
1300	1300	cardiac care, research and other related services to reduce disability and
1301	1301	death from cardiovascular diseases and stroke;
1302	1302	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
1303	1303	advocacy for persons with mental illness and to education, research and
1304	1304	support for their families;
1305	1305	(3) the Kansas mental illness awareness council for the purposes of
1306	1306	advocacy for persons who are mentally ill and for education, research and
1307	1307	support for them and their families;
1308	1308	(4) the American diabetes association Kansas affiliate, inc. for the
1309	1309	purpose of eliminating diabetes through medical research, public education
1310	1310	focusing on disease prevention and education, patient education including
1311	1311	information on coping with diabetes, and professional education and
1312	1312	training;
1313	1313	(5) the American lung association of Kansas, inc. for the purpose of
1314	1314	eliminating all lung diseases through medical research, public education
1315	1315	including information on coping with lung diseases, professional education
1316	1316	and training related to lung disease and other related services to reduce the
1317	1317	incidence of disability and death due to lung disease;
1318	1318	(6) the Kansas chapters of the Alzheimer's disease and related
1319	1319	disorders association, inc. for the purpose of providing assistance and
1320	1320	support to persons in Kansas with Alzheimer's disease, and their families
1321	1321	and caregivers;
1322	1322	(7) the Kansas chapters of the Parkinson's disease association for the
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1365	1365	43 HB 2685 17
1366	1366	purpose of eliminating Parkinson's disease through medical research and
1367	1367	public and professional education related to such disease;
1368	1368	(8) the national kidney foundation of Kansas and western Missouri
1369	1369	for the purpose of eliminating kidney disease through medical research
1370	1370	and public and private education related to such disease;
1371	1371	(9) the heartstrings community foundation for the purpose of
1372	1372	providing training, employment and activities for adults with
1373	1373	developmental disabilities;
1374	1374	(10) the cystic fibrosis foundation, heart of America chapter, for the
1375	1375	purposes of assuring the development of the means to cure and control
1376	1376	cystic fibrosis and improving the quality of life for those with the disease;
1377	1377	(11) the spina bifida association of Kansas for the purpose of
1378	1378	providing financial, educational and practical aid to families and
1379	1379	individuals with spina bifida. Such aid includes, but is not limited to,
1380	1380	funding for medical devices, counseling and medical educational
1381	1381	opportunities;
1382	1382	(12) the CHWC, Inc., for the purpose of rebuilding urban core
1383	1383	neighborhoods through the construction of new homes, acquiring and
1384	1384	renovating existing homes and other related activities, and promoting
1385	1385	economic development in such neighborhoods;
1386	1386	(13) the cross-lines cooperative council for the purpose of providing
1387	1387	social services to low income individuals and families;
1388	1388	(14) the dreams work, inc., for the purpose of providing young adult
1389	1389	day services to individuals with developmental disabilities and assisting
1390	1390	families in avoiding institutional or nursing home care for a
1391	1391	developmentally disabled member of their family;
1392	1392	(15) the KSDS, Inc., for the purpose of promoting the independence
1393	1393	and inclusion of people with disabilities as fully participating and
1394	1394	contributing members of their communities and society through the
1395	1395	training and providing of guide and service dogs to people with
1396	1396	disabilities, and providing disability education and awareness to the
1397	1397	general public;
1398	1398	(16) the lyme association of greater Kansas City, Inc., for the purpose
1399	1399	of providing support to persons with lyme disease and public education
1400	1400	relating to the prevention, treatment and cure of lyme disease;
1401	1401	(17) the dream factory, inc., for the purpose of granting the dreams of
1402	1402	children with critical and chronic illnesses;
1403	1403	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
1404	1404	students and families with education and resources necessary to enable
1405	1405	each child to develop fine character and musical ability to the fullest
1406	1406	potential;
1407	1407	(19) the international association of lions clubs for the purpose of
1408	1408	creating and fostering a spirit of understanding among all people for
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1451	1451	43 HB 2685 18
1452	1452	humanitarian needs by providing voluntary services through community
1453	1453	involvement and international cooperation;
1454	1454	(20) the Johnson county young matrons, inc., for the purpose of
1455	1455	promoting a positive future for members of the community through
1456	1456	volunteerism, financial support and education through the efforts of an all
1457	1457	volunteer organization;
1458	1458	(21) the American cancer society, inc., for the purpose of eliminating
1459	1459	cancer as a major health problem by preventing cancer, saving lives and
1460	1460	diminishing suffering from cancer, through research, education, advocacy
1461	1461	and service;
1462	1462	(22) the community services of Shawnee, inc., for the purpose of
1463	1463	providing food and clothing to those in need;
1464	1464	(23) the angel babies association, for the purpose of providing
1465	1465	assistance, support and items of necessity to teenage mothers and their
1466	1466	babies; and
1467	1467	(24) the Kansas fairgrounds foundation for the purpose of the
1468	1468	preservation, renovation and beautification of the Kansas state fairgrounds;
1469	1469	(ww) all sales of tangible personal property purchased by the habitat
1470	1470	for humanity for the exclusive use of being incorporated within a housing
1471	1471	project constructed by such organization;
1472	1472	(xx) all sales of tangible personal property and services purchased by
1473	1473	a nonprofit zoo that is exempt from federal income taxation pursuant to
1474	1474	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
1475	1475	of such zoo by an entity itself exempt from federal income taxation
1476	1476	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
1477	1477	contracted with to operate such zoo and all sales of tangible personal
1478	1478	property or services purchased by a contractor for the purpose of
1479	1479	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1480	1480	furnishing or remodeling facilities for any nonprofit zoo that would be
1481	1481	exempt from taxation under the provisions of this section if purchased
1482	1482	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
1483	1483	this subsection shall be deemed to exempt the purchase of any construction
1484	1484	machinery, equipment or tools used in the constructing, equipping,
1485	1485	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1486	1486	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
1487	1487	the purpose of constructing, equipping, reconstructing, maintaining,
1488	1488	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
1489	1489	from the state and furnish to the contractor an exemption certificate for the
1490	1490	project involved, and the contractor may purchase materials for
1491	1491	incorporation in such project. The contractor shall furnish the number of
1492	1492	such certificate to all suppliers from whom such purchases are made, and
1493	1493	such suppliers shall execute invoices covering the same bearing the
1494	1494	number of such certificate. Upon completion of the project the contractor
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1537	1537	43 HB 2685 19
1538	1538	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
1539	1539	to be provided by the director of taxation, that all purchases so made were
1540	1540	entitled to exemption under this subsection. All invoices shall be held by
1541	1541	the contractor for a period of five years and shall be subject to audit by the
1542	1542	director of taxation. If any materials purchased under such a certificate are
1543	1543	found not to have been incorporated in the building or other project or not
1544	1544	to have been returned for credit or the sales or compensating tax otherwise
1545	1545	imposed upon such materials that will not be so incorporated in the
1546	1546	building or other project reported and paid by such contractor to the
1547	1547	director of taxation not later than the 20
1548	1548	th
1549	1549	day of the month following the
1550	1550	close of the month in which it shall be determined that such materials will
1551	1551	not be used for the purpose for which such certificate was issued, the
1552	1552	nonprofit zoo concerned shall be liable for tax on all materials purchased
1553	1553	for the project, and upon payment thereof it may recover the same from
1554	1554	the contractor together with reasonable attorney fees. Any contractor or
1555	1555	any agent, employee or subcontractor thereof, who shall use or otherwise
1556	1556	dispose of any materials purchased under such a certificate for any purpose
1557	1557	other than that for which such a certificate is issued without the payment
1558	1558	of the sales or compensating tax otherwise imposed upon such materials,
1559	1559	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1560	1560	subject to the penalties provided for in K.S.A. 79-3615(h), and
1561	1561	amendments thereto;
1562	1562	(yy) all sales of tangible personal property and services purchased by
1563	1563	a parent-teacher association or organization, and all sales of tangible
1564	1564	personal property by or on behalf of such association or organization;
1565	1565	(zz) all sales of machinery and equipment purchased by over-the-air,
1566	1566	free access radio or television station that is used directly and primarily for
1567	1567	the purpose of producing a broadcast signal or is such that the failure of
1568	1568	the machinery or equipment to operate would cause broadcasting to cease.
1569	1569	For purposes of this subsection, machinery and equipment shall include,
1570	1570	but not be limited to, that required by rules and regulations of the federal
1571	1571	communications commission, and all sales of electricity which are
1572	1572	essential or necessary for the purpose of producing a broadcast signal or is
1573	1573	such that the failure of the electricity would cause broadcasting to cease;
1574	1574	(aaa) all sales of tangible personal property and services purchased by
1575	1575	a religious organization that is exempt from federal income taxation
1576	1576	pursuant to section 501(c)(3) of the federal internal revenue code, and used
1577	1577	exclusively for religious purposes, and all sales of tangible personal
1578	1578	property or services purchased by a contractor for the purpose of
1579	1579	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1580	1580	furnishing or remodeling facilities for any such organization that would be
1581	1581	exempt from taxation under the provisions of this section if purchased
1582	1582	directly by such organization. Nothing in this subsection shall be deemed
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1625	1625	43 HB 2685 20
1626	1626	to exempt the purchase of any construction machinery, equipment or tools
1627	1627	used in the constructing, equipping, reconstructing, maintaining, repairing,
1628	1628	enlarging, furnishing or remodeling facilities for any such organization.
1629	1629	When any such organization shall contract for the purpose of constructing,
1630	1630	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1631	1631	remodeling facilities, it shall obtain from the state and furnish to the
1632	1632	contractor an exemption certificate for the project involved, and the
1633	1633	contractor may purchase materials for incorporation in such project. The
1634	1634	contractor shall furnish the number of such certificate to all suppliers from
1635	1635	whom such purchases are made, and such suppliers shall execute invoices
1636	1636	covering the same bearing the number of such certificate. Upon
1637	1637	completion of the project the contractor shall furnish to such organization
1638	1638	concerned a sworn statement, on a form to be provided by the director of
1639	1639	taxation, that all purchases so made were entitled to exemption under this
1640	1640	subsection. All invoices shall be held by the contractor for a period of five
1641	1641	years and shall be subject to audit by the director of taxation. If any
1642	1642	materials purchased under such a certificate are found not to have been
1643	1643	incorporated in the building or other project or not to have been returned
1644	1644	for credit or the sales or compensating tax otherwise imposed upon such
1645	1645	materials that will not be so incorporated in the building or other project
1646	1646	reported and paid by such contractor to the director of taxation not later
1647	1647	than the 20
1648	1648	th
1649	1649	day of the month following the close of the month in which it
1650	1650	shall be determined that such materials will not be used for the purpose for
1651	1651	which such certificate was issued, such organization concerned shall be
1652	1652	liable for tax on all materials purchased for the project, and upon payment
1653	1653	thereof it may recover the same from the contractor together with
1654	1654	reasonable attorney fees. Any contractor or any agent, employee or
1655	1655	subcontractor thereof, who shall use or otherwise dispose of any materials
1656	1656	purchased under such a certificate for any purpose other than that for
1657	1657	which such a certificate is issued without the payment of the sales or
1658	1658	compensating tax otherwise imposed upon such materials, shall be guilty
1659	1659	of a misdemeanor and, upon conviction therefor, shall be subject to the
1660	1660	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
1661	1661	Sales tax paid on and after July 1, 1998, but prior to the effective date of
1662	1662	this act upon the gross receipts received from any sale exempted by the
1663	1663	amendatory provisions of this subsection shall be refunded. Each claim for
1664	1664	a sales tax refund shall be verified and submitted to the director of taxation
1665	1665	upon forms furnished by the director and shall be accompanied by any
1666	1666	additional documentation required by the director. The director shall
1667	1667	review each claim and shall refund that amount of sales tax paid as
1668	1668	determined under the provisions of this subsection. All refunds shall be
1669	1669	paid from the sales tax refund fund upon warrants of the director of
1670	1670	accounts and reports pursuant to vouchers approved by the director or the
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1713	1713	43 HB 2685 21
1714	1714	director's designee;
1715	1715	(bbb) all sales of food for human consumption by an organization that
1716	1716	is exempt from federal income taxation pursuant to section 501(c)(3) of
1717	1717	the federal internal revenue code of 1986, pursuant to a food distribution
1718	1718	program that offers such food at a price below cost in exchange for the
1719	1719	performance of community service by the purchaser thereof;
1720	1720	(ccc) on and after July 1, 1999, all sales of tangible personal property
1721	1721	and services purchased by a primary care clinic or health center the
1722	1722	primary purpose of which is to provide services to medically underserved
1723	1723	individuals and families, and that is exempt from federal income taxation
1724	1724	pursuant to section 501(c)(3) of the federal internal revenue code, and all
1725	1725	sales of tangible personal property or services purchased by a contractor
1726	1726	for the purpose of constructing, equipping, reconstructing, maintaining,
1727	1727	repairing, enlarging, furnishing or remodeling facilities for any such clinic
1728	1728	or center that would be exempt from taxation under the provisions of this
1729	1729	section if purchased directly by such clinic or center, except that for
1730	1730	taxable years commencing after December 31, 2013, this subsection shall
1731	1731	not apply to any sales of such tangible personal property and services
1732	1732	purchased by a primary care clinic or health center which performs any
1733	1733	abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
1734	1734	in this subsection shall be deemed to exempt the purchase of any
1735	1735	construction machinery, equipment or tools used in the constructing,
1736	1736	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1737	1737	remodeling facilities for any such clinic or center. When any such clinic or
1738	1738	center shall contract for the purpose of constructing, equipping,
1739	1739	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1740	1740	facilities, it shall obtain from the state and furnish to the contractor an
1741	1741	exemption certificate for the project involved, and the contractor may
1742	1742	purchase materials for incorporation in such project. The contractor shall
1743	1743	furnish the number of such certificate to all suppliers from whom such
1744	1744	purchases are made, and such suppliers shall execute invoices covering the
1745	1745	same bearing the number of such certificate. Upon completion of the
1746	1746	project the contractor shall furnish to such clinic or center concerned a
1747	1747	sworn statement, on a form to be provided by the director of taxation, that
1748	1748	all purchases so made were entitled to exemption under this subsection.
1749	1749	All invoices shall be held by the contractor for a period of five years and
1750	1750	shall be subject to audit by the director of taxation. If any materials
1751	1751	purchased under such a certificate are found not to have been incorporated
1752	1752	in the building or other project or not to have been returned for credit or
1753	1753	the sales or compensating tax otherwise imposed upon such materials that
1754	1754	will not be so incorporated in the building or other project reported and
1755	1755	paid by such contractor to the director of taxation not later than the 20
1756	1756	th
1757	1757	day of the month following the close of the month in which it shall be
1758	1758	1
1759	1759	2
1760	1760	3
1761	1761	4
1762	1762	5
1763	1763	6
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1793	1793	36
1794	1794	37
1795	1795	38
1796	1796	39
1797	1797	40
1798	1798	41
1799	1799	42
1800	1800	43 HB 2685 22
1801	1801	determined that such materials will not be used for the purpose for which
1802	1802	such certificate was issued, such clinic or center concerned shall be liable
1803	1803	for tax on all materials purchased for the project, and upon payment
1804	1804	thereof it may recover the same from the contractor together with
1805	1805	reasonable attorney fees. Any contractor or any agent, employee or
1806	1806	subcontractor thereof, who shall use or otherwise dispose of any materials
1807	1807	purchased under such a certificate for any purpose other than that for
1808	1808	which such a certificate is issued without the payment of the sales or
1809	1809	compensating tax otherwise imposed upon such materials, shall be guilty
1810	1810	of a misdemeanor and, upon conviction therefor, shall be subject to the
1811	1811	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
1812	1812	(ddd) on and after January 1, 1999, and before January 1, 2000, all
1813	1813	sales of materials and services purchased by any class II or III railroad as
1814	1814	classified by the federal surface transportation board for the construction,
1815	1815	renovation, repair or replacement of class II or III railroad track and
1816	1816	facilities used directly in interstate commerce. In the event any such track
1817	1817	or facility for which materials and services were purchased sales tax
1818	1818	exempt is not operational for five years succeeding the allowance of such
1819	1819	exemption, the total amount of sales tax that would have been payable
1820	1820	except for the operation of this subsection shall be recouped in accordance
1821	1821	with rules and regulations adopted for such purpose by the secretary of
1822	1822	revenue;
1823	1823	(eee) on and after January 1, 1999, and before January 1, 2001, all
1824	1824	sales of materials and services purchased for the original construction,
1825	1825	reconstruction, repair or replacement of grain storage facilities, including
1826	1826	railroad sidings providing access thereto;
1827	1827	(fff) all sales of material handling equipment, racking systems and
1828	1828	other related machinery and equipment that is used for the handling,
1829	1829	movement or storage of tangible personal property in a warehouse or
1830	1830	distribution facility in this state; all sales of installation, repair and
1831	1831	maintenance services performed on such machinery and equipment; and
1832	1832	all sales of repair and replacement parts for such machinery and
1833	1833	equipment. For purposes of this subsection, a warehouse or distribution
1834	1834	facility means a single, fixed location that consists of buildings or
1835	1835	structures in a contiguous area where storage or distribution operations are
1836	1836	conducted that are separate and apart from the business' retail operations,
1837	1837	if any, and that do not otherwise qualify for exemption as occurring at a
1838	1838	manufacturing or processing plant or facility. Material handling and
1839	1839	storage equipment shall include aeration, dust control, cleaning, handling
1840	1840	and other such equipment that is used in a public grain warehouse or other
1841	1841	commercial grain storage facility, whether used for grain handling, grain
1842	1842	storage, grain refining or processing, or other grain treatment operation;
1843	1843	(ggg) all sales of tangible personal property and services purchased
1844	1844	1
1845	1845	2
1846	1846	3
1847	1847	4
1848	1848	5
1849	1849	6
1850	1850	7
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1870	1870	27
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1872	1872	29
1873	1873	30
1874	1874	31
1875	1875	32
1876	1876	33
1877	1877	34
1878	1878	35
1879	1879	36
1880	1880	37
1881	1881	38
1882	1882	39
1883	1883	40
1884	1884	41
1885	1885	42
1886	1886	43 HB 2685 23
1887	1887	by or on behalf of the Kansas academy of science, which is exempt from
1888	1888	federal income taxation pursuant to section 501(c)(3) of the federal
1889	1889	internal revenue code of 1986, and used solely by such academy for the
1890	1890	preparation, publication and dissemination of education materials;
1891	1891	(hhh) all sales of tangible personal property and services purchased
1892	1892	by or on behalf of all domestic violence shelters that are member agencies
1893	1893	of the Kansas coalition against sexual and domestic violence;
1894	1894	(iii) all sales of personal property and services purchased by an
1895	1895	organization that is exempt from federal income taxation pursuant to
1896	1896	section 501(c)(3) of the federal internal revenue code of 1986, and such
1897	1897	personal property and services are used by any such organization in the
1898	1898	collection, storage and distribution of food products to nonprofit
1899	1899	organizations that distribute such food products to persons pursuant to a
1900	1900	food distribution program on a charitable basis without fee or charge, and
1901	1901	all sales of tangible personal property or services purchased by a
1902	1902	contractor for the purpose of constructing, equipping, reconstructing,
1903	1903	maintaining, repairing, enlarging, furnishing or remodeling facilities used
1904	1904	for the collection and storage of such food products for any such
1905	1905	organization which is exempt from federal income taxation pursuant to
1906	1906	section 501(c)(3) of the federal internal revenue code of 1986, that would
1907	1907	be exempt from taxation under the provisions of this section if purchased
1908	1908	directly by such organization. Nothing in this subsection shall be deemed
1909	1909	to exempt the purchase of any construction machinery, equipment or tools
1910	1910	used in the constructing, equipping, reconstructing, maintaining, repairing,
1911	1911	enlarging, furnishing or remodeling facilities for any such organization.
1912	1912	When any such organization shall contract for the purpose of constructing,
1913	1913	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1914	1914	remodeling facilities, it shall obtain from the state and furnish to the
1915	1915	contractor an exemption certificate for the project involved, and the
1916	1916	contractor may purchase materials for incorporation in such project. The
1917	1917	contractor shall furnish the number of such certificate to all suppliers from
1918	1918	whom such purchases are made, and such suppliers shall execute invoices
1919	1919	covering the same bearing the number of such certificate. Upon
1920	1920	completion of the project the contractor shall furnish to such organization
1921	1921	concerned a sworn statement, on a form to be provided by the director of
1922	1922	taxation, that all purchases so made were entitled to exemption under this
1923	1923	subsection. All invoices shall be held by the contractor for a period of five
1924	1924	years and shall be subject to audit by the director of taxation. If any
1925	1925	materials purchased under such a certificate are found not to have been
1926	1926	incorporated in such facilities or not to have been returned for credit or the
1927	1927	sales or compensating tax otherwise imposed upon such materials that will
1928	1928	not be so incorporated in such facilities reported and paid by such
1929	1929	contractor to the director of taxation not later than the 20
1930	1930	th
1931	1931	day of the
1932	1932	1
1933	1933	2
1934	1934	3
1935	1935	4
1936	1936	5
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1948	1948	17
1949	1949	18
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1963	1963	32
1964	1964	33
1965	1965	34
1966	1966	35
1967	1967	36
1968	1968	37
1969	1969	38
1970	1970	39
1971	1971	40
1972	1972	41
1973	1973	42
1974	1974	43 HB 2685 24
1975	1975	month following the close of the month in which it shall be determined
1976	1976	that such materials will not be used for the purpose for which such
1977	1977	certificate was issued, such organization concerned shall be liable for tax
1978	1978	on all materials purchased for the project, and upon payment thereof it
1979	1979	may recover the same from the contractor together with reasonable
1980	1980	attorney fees. Any contractor or any agent, employee or subcontractor
1981	1981	thereof, who shall use or otherwise dispose of any materials purchased
1982	1982	under such a certificate for any purpose other than that for which such a
1983	1983	certificate is issued without the payment of the sales or compensating tax
1984	1984	otherwise imposed upon such materials, shall be guilty of a misdemeanor
1985	1985	and, upon conviction therefor, shall be subject to the penalties provided for
1986	1986	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
1987	1987	July 1, 2005, but prior to the effective date of this act upon the gross
1988	1988	receipts received from any sale exempted by the amendatory provisions of
1989	1989	this subsection shall be refunded. Each claim for a sales tax refund shall be
1990	1990	verified and submitted to the director of taxation upon forms furnished by
1991	1991	the director and shall be accompanied by any additional documentation
1992	1992	required by the director. The director shall review each claim and shall
1993	1993	refund that amount of sales tax paid as determined under the provisions of
1994	1994	this subsection. All refunds shall be paid from the sales tax refund fund
1995	1995	upon warrants of the director of accounts and reports pursuant to vouchers
1996	1996	approved by the director or the director's designee;
1997	1997	(jjj) all sales of dietary supplements dispensed pursuant to a
1998	1998	prescription order by a licensed practitioner or a mid-level practitioner as
1999	1999	defined by K.S.A. 65-1626, and amendments thereto. As used in this
2000	2000	subsection, "dietary supplement" means any product, other than tobacco,
2001	2001	intended to supplement the diet that: (1) Contains one or more of the
2002	2002	following dietary ingredients: A vitamin, a mineral, an herb or other
2003	2003	botanical, an amino acid, a dietary substance for use by humans to
2004	2004	supplement the diet by increasing the total dietary intake or a concentrate,
2005	2005	metabolite, constituent, extract or combination of any such ingredient; (2)
2006	2006	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
2007	2007	liquid form, or if not intended for ingestion, in such a form, is not
2008	2008	represented as conventional food and is not represented for use as a sole
2009	2009	item of a meal or of the diet; and (3) is required to be labeled as a dietary
2010	2010	supplement, identifiable by the supplemental facts box found on the label
2011	2011	and as required pursuant to 21 C.F.R. § 101.36;
2012	2012	(lll) all sales of tangible personal property and services purchased by
2013	2013	special olympics Kansas, inc. for the purpose of providing year-round
2014	2014	sports training and athletic competition in a variety of olympic-type sports
2015	2015	for individuals with intellectual disabilities by giving them continuing
2016	2016	opportunities to develop physical fitness, demonstrate courage, experience
2017	2017	joy and participate in a sharing of gifts, skills and friendship with their
2018	2018	1
2019	2019	2
2020	2020	3
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2022	2022	5
2023	2023	6
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2052	2052	35
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2054	2054	37
2055	2055	38
2056	2056	39
2057	2057	40
2058	2058	41
2059	2059	42
2060	2060	43 HB 2685 25
2061	2061	families, other special olympics athletes and the community, and activities
2062	2062	provided or sponsored by such organization, and all sales of tangible
2063	2063	personal property by or on behalf of any such organization;
2064	2064	(mmm) all sales of tangible personal property purchased by or on
2065	2065	behalf of the Marillac center, inc., which is exempt from federal income
2066	2066	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2067	2067	for the purpose of providing psycho-social-biological and special
2068	2068	education services to children, and all sales of any such property by or on
2069	2069	behalf of such organization for such purpose;
2070	2070	(nnn) all sales of tangible personal property and services purchased
2071	2071	by the west Sedgwick county-sunrise rotary club and sunrise charitable
2072	2072	fund for the purpose of constructing a boundless playground which is an
2073	2073	integrated, barrier free and developmentally advantageous play
2074	2074	environment for children of all abilities and disabilities;
2075	2075	(ooo) all sales of tangible personal property by or on behalf of a
2076	2076	public library serving the general public and supported in whole or in part
2077	2077	with tax money or a not-for-profit organization whose purpose is to raise
2078	2078	funds for or provide services or other benefits to any such public library;
2079	2079	(ppp) all sales of tangible personal property and services purchased
2080	2080	by or on behalf of a homeless shelter that is exempt from federal income
2081	2081	taxation pursuant to section 501(c)(3) of the federal income tax code of
2082	2082	1986, and used by any such homeless shelter to provide emergency and
2083	2083	transitional housing for individuals and families experiencing
2084	2084	homelessness, and all sales of any such property by or on behalf of any
2085	2085	such homeless shelter for any such purpose;
2086	2086	(qqq) all sales of tangible personal property and services purchased
2087	2087	by TLC for children and families, inc., hereinafter referred to as TLC,
2088	2088	which is exempt from federal income taxation pursuant to section 501(c)
2089	2089	(3) of the federal internal revenue code of 1986, and such property and
2090	2090	services are used for the purpose of providing emergency shelter and
2091	2091	treatment for abused and neglected children as well as meeting additional
2092	2092	critical needs for children, juveniles and family, and all sales of any such
2093	2093	property by or on behalf of TLC for any such purpose; and all sales of
2094	2094	tangible personal property or services purchased by a contractor for the
2095	2095	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2096	2096	remodeling facilities for the operation of services for TLC for any such
2097	2097	purpose that would be exempt from taxation under the provisions of this
2098	2098	section if purchased directly by TLC. Nothing in this subsection shall be
2099	2099	deemed to exempt the purchase of any construction machinery, equipment
2100	2100	or tools used in the constructing, maintaining, repairing, enlarging,
2101	2101	furnishing or remodeling such facilities for TLC. When TLC contracts for
2102	2102	the purpose of constructing, maintaining, repairing, enlarging, furnishing
2103	2103	or remodeling such facilities, it shall obtain from the state and furnish to
2104	2104	1
2105	2105	2
2106	2106	3
2107	2107	4
2108	2108	5
2109	2109	6
2110	2110	7
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2133	2133	30
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2138	2138	35
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2140	2140	37
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2142	2142	39
2143	2143	40
2144	2144	41
2145	2145	42
2146	2146	43 HB 2685 26
2147	2147	the contractor an exemption certificate for the project involved, and the
2148	2148	contractor may purchase materials for incorporation in such project. The
2149	2149	contractor shall furnish the number of such certificate to all suppliers from
2150	2150	whom such purchases are made, and such suppliers shall execute invoices
2151	2151	covering the same bearing the number of such certificate. Upon
2152	2152	completion of the project the contractor shall furnish to TLC a sworn
2153	2153	statement, on a form to be provided by the director of taxation, that all
2154	2154	purchases so made were entitled to exemption under this subsection. All
2155	2155	invoices shall be held by the contractor for a period of five years and shall
2156	2156	be subject to audit by the director of taxation. If any materials purchased
2157	2157	under such a certificate are found not to have been incorporated in the
2158	2158	building or other project or not to have been returned for credit or the sales
2159	2159	or compensating tax otherwise imposed upon such materials that will not
2160	2160	be so incorporated in the building or other project reported and paid by
2161	2161	such contractor to the director of taxation not later than the 20
2162	2162	th
2163	2163	day of the
2164	2164	month following the close of the month in which it shall be determined
2165	2165	that such materials will not be used for the purpose for which such
2166	2166	certificate was issued, TLC shall be liable for tax on all materials
2167	2167	purchased for the project, and upon payment thereof it may recover the
2168	2168	same from the contractor together with reasonable attorney fees. Any
2169	2169	contractor or any agent, employee or subcontractor thereof, who shall use
2170	2170	or otherwise dispose of any materials purchased under such a certificate
2171	2171	for any purpose other than that for which such a certificate is issued
2172	2172	without the payment of the sales or compensating tax otherwise imposed
2173	2173	upon such materials, shall be guilty of a misdemeanor and, upon
2174	2174	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2175	2175	79-3615(h), and amendments thereto;
2176	2176	(rrr) all sales of tangible personal property and services purchased by
2177	2177	any county law library maintained pursuant to law and sales of tangible
2178	2178	personal property and services purchased by an organization that would
2179	2179	have been exempt from taxation under the provisions of this subsection if
2180	2180	purchased directly by the county law library for the purpose of providing
2181	2181	legal resources to attorneys, judges, students and the general public, and
2182	2182	all sales of any such property by or on behalf of any such county law
2183	2183	library;
2184	2184	(sss) all sales of tangible personal property and services purchased by
2185	2185	catholic charities or youthville, hereinafter referred to as charitable family
2186	2186	providers, which is exempt from federal income taxation pursuant to
2187	2187	section 501(c)(3) of the federal internal revenue code of 1986, and which
2188	2188	such property and services are used for the purpose of providing
2189	2189	emergency shelter and treatment for abused and neglected children as well
2190	2190	as meeting additional critical needs for children, juveniles and family, and
2191	2191	all sales of any such property by or on behalf of charitable family
2192	2192	1
2193	2193	2
2194	2194	3
2195	2195	4
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2197	2197	6
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2226	2226	35
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2228	2228	37
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2230	2230	39
2231	2231	40
2232	2232	41
2233	2233	42
2234	2234	43 HB 2685 27
2235	2235	providers for any such purpose; and all sales of tangible personal property
2236	2236	or services purchased by a contractor for the purpose of constructing,
2237	2237	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2238	2238	the operation of services for charitable family providers for any such
2239	2239	purpose which would be exempt from taxation under the provisions of this
2240	2240	section if purchased directly by charitable family providers. Nothing in
2241	2241	this subsection shall be deemed to exempt the purchase of any construction
2242	2242	machinery, equipment or tools used in the constructing, maintaining,
2243	2243	repairing, enlarging, furnishing or remodeling such facilities for charitable
2244	2244	family providers. When charitable family providers contracts for the
2245	2245	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2246	2246	remodeling such facilities, it shall obtain from the state and furnish to the
2247	2247	contractor an exemption certificate for the project involved, and the
2248	2248	contractor may purchase materials for incorporation in such project. The
2249	2249	contractor shall furnish the number of such certificate to all suppliers from
2250	2250	whom such purchases are made, and such suppliers shall execute invoices
2251	2251	covering the same bearing the number of such certificate. Upon
2252	2252	completion of the project the contractor shall furnish to charitable family
2253	2253	providers a sworn statement, on a form to be provided by the director of
2254	2254	taxation, that all purchases so made were entitled to exemption under this
2255	2255	subsection. All invoices shall be held by the contractor for a period of five
2256	2256	years and shall be subject to audit by the director of taxation. If any
2257	2257	materials purchased under such a certificate are found not to have been
2258	2258	incorporated in the building or other project or not to have been returned
2259	2259	for credit or the sales or compensating tax otherwise imposed upon such
2260	2260	materials that will not be so incorporated in the building or other project
2261	2261	reported and paid by such contractor to the director of taxation not later
2262	2262	than the 20
2263	2263	th
2264	2264	day of the month following the close of the month in which it
2265	2265	shall be determined that such materials will not be used for the purpose for
2266	2266	which such certificate was issued, charitable family providers shall be
2267	2267	liable for tax on all materials purchased for the project, and upon payment
2268	2268	thereof it may recover the same from the contractor together with
2269	2269	reasonable attorney fees. Any contractor or any agent, employee or
2270	2270	subcontractor thereof, who shall use or otherwise dispose of any materials
2271	2271	purchased under such a certificate for any purpose other than that for
2272	2272	which such a certificate is issued without the payment of the sales or
2273	2273	compensating tax otherwise imposed upon such materials, shall be guilty
2274	2274	of a misdemeanor and, upon conviction therefor, shall be subject to the
2275	2275	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2276	2276	(ttt) all sales of tangible personal property or services purchased by a
2277	2277	contractor for a project for the purpose of restoring, constructing,
2278	2278	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
2279	2279	remodeling a home or facility owned by a nonprofit museum that has been
2280	2280	1
2281	2281	2
2282	2282	3
2283	2283	4
2284	2284	5
2285	2285	6
2286	2286	7
2287	2287	8
2288	2288	9
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2291	2291	12
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2295	2295	16
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2298	2298	19
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2304	2304	25
2305	2305	26
2306	2306	27
2307	2307	28
2308	2308	29
2309	2309	30
2310	2310	31
2311	2311	32
2312	2312	33
2313	2313	34
2314	2314	35
2315	2315	36
2316	2316	37
2317	2317	38
2318	2318	39
2319	2319	40
2320	2320	41
2321	2321	42
2322	2322	43 HB 2685 28
2323	2323	granted an exemption pursuant to subsection (qq), which such home or
2324	2324	facility is located in a city that has been designated as a qualified
2325	2325	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
2326	2326	amendments thereto, and which such project is related to the purposes of
2327	2327	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
2328	2328	exempt from taxation under the provisions of this section if purchased
2329	2329	directly by such nonprofit museum. Nothing in this subsection shall be
2330	2330	deemed to exempt the purchase of any construction machinery, equipment
2331	2331	or tools used in the restoring, constructing, equipping, reconstructing,
2332	2332	maintaining, repairing, enlarging, furnishing or remodeling a home or
2333	2333	facility for any such nonprofit museum. When any such nonprofit museum
2334	2334	shall contract for the purpose of restoring, constructing, equipping,
2335	2335	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2336	2336	a home or facility, it shall obtain from the state and furnish to the
2337	2337	contractor an exemption certificate for the project involved, and the
2338	2338	contractor may purchase materials for incorporation in such project. The
2339	2339	contractor shall furnish the number of such certificates to all suppliers
2340	2340	from whom such purchases are made, and such suppliers shall execute
2341	2341	invoices covering the same bearing the number of such certificate. Upon
2342	2342	completion of the project, the contractor shall furnish to such nonprofit
2343	2343	museum a sworn statement on a form to be provided by the director of
2344	2344	taxation that all purchases so made were entitled to exemption under this
2345	2345	subsection. All invoices shall be held by the contractor for a period of five
2346	2346	years and shall be subject to audit by the director of taxation. If any
2347	2347	materials purchased under such a certificate are found not to have been
2348	2348	incorporated in the building or other project or not to have been returned
2349	2349	for credit or the sales or compensating tax otherwise imposed upon such
2350	2350	materials that will not be so incorporated in a home or facility or other
2351	2351	project reported and paid by such contractor to the director of taxation not
2352	2352	later than the 20
2353	2353	th
2354	2354	day of the month following the close of the month in
2355	2355	which it shall be determined that such materials will not be used for the
2356	2356	purpose for which such certificate was issued, such nonprofit museum
2357	2357	shall be liable for tax on all materials purchased for the project, and upon
2358	2358	payment thereof it may recover the same from the contractor together with
2359	2359	reasonable attorney fees. Any contractor or any agent, employee or
2360	2360	subcontractor thereof, who shall use or otherwise dispose of any materials
2361	2361	purchased under such a certificate for any purpose other than that for
2362	2362	which such a certificate is issued without the payment of the sales or
2363	2363	compensating tax otherwise imposed upon such materials, shall be guilty
2364	2364	of a misdemeanor and, upon conviction therefor, shall be subject to the
2365	2365	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2366	2366	(uuu) all sales of tangible personal property and services purchased
2367	2367	by Kansas children's service league, hereinafter referred to as KCSL,
2368	2368	1
2369	2369	2
2370	2370	3
2371	2371	4
2372	2372	5
2373	2373	6
2374	2374	7
2375	2375	8
2376	2376	9
2377	2377	10
2378	2378	11
2379	2379	12
2380	2380	13
2381	2381	14
2382	2382	15
2383	2383	16
2384	2384	17
2385	2385	18
2386	2386	19
2387	2387	20
2388	2388	21
2389	2389	22
2390	2390	23
2391	2391	24
2392	2392	25
2393	2393	26
2394	2394	27
2395	2395	28
2396	2396	29
2397	2397	30
2398	2398	31
2399	2399	32
2400	2400	33
2401	2401	34
2402	2402	35
2403	2403	36
2404	2404	37
2405	2405	38
2406	2406	39
2407	2407	40
2408	2408	41
2409	2409	42
2410	2410	43 HB 2685 29
2411	2411	which is exempt from federal income taxation pursuant to section 501(c)
2412	2412	(3) of the federal internal revenue code of 1986, and which such property
2413	2413	and services are used for the purpose of providing for the prevention and
2414	2414	treatment of child abuse and maltreatment as well as meeting additional
2415	2415	critical needs for children, juveniles and family, and all sales of any such
2416	2416	property by or on behalf of KCSL for any such purpose; and all sales of
2417	2417	tangible personal property or services purchased by a contractor for the
2418	2418	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2419	2419	remodeling facilities for the operation of services for KCSL for any such
2420	2420	purpose that would be exempt from taxation under the provisions of this
2421	2421	section if purchased directly by KCSL. Nothing in this subsection shall be
2422	2422	deemed to exempt the purchase of any construction machinery, equipment
2423	2423	or tools used in the constructing, maintaining, repairing, enlarging,
2424	2424	furnishing or remodeling such facilities for KCSL. When KCSL contracts
2425	2425	for the purpose of constructing, maintaining, repairing, enlarging,
2426	2426	furnishing or remodeling such facilities, it shall obtain from the state and
2427	2427	furnish to the contractor an exemption certificate for the project involved,
2428	2428	and the contractor may purchase materials for incorporation in such
2429	2429	project. The contractor shall furnish the number of such certificate to all
2430	2430	suppliers from whom such purchases are made, and such suppliers shall
2431	2431	execute invoices covering the same bearing the number of such certificate.
2432	2432	Upon completion of the project the contractor shall furnish to KCSL a
2433	2433	sworn statement, on a form to be provided by the director of taxation, that
2434	2434	all purchases so made were entitled to exemption under this subsection.
2435	2435	All invoices shall be held by the contractor for a period of five years and
2436	2436	shall be subject to audit by the director of taxation. If any materials
2437	2437	purchased under such a certificate are found not to have been incorporated
2438	2438	in the building or other project or not to have been returned for credit or
2439	2439	the sales or compensating tax otherwise imposed upon such materials that
2440	2440	will not be so incorporated in the building or other project reported and
2441	2441	paid by such contractor to the director of taxation not later than the 20
2442	2442	th
2443	2443	day of the month following the close of the month in which it shall be
2444	2444	determined that such materials will not be used for the purpose for which
2445	2445	such certificate was issued, KCSL shall be liable for tax on all materials
2446	2446	purchased for the project, and upon payment thereof it may recover the
2447	2447	same from the contractor together with reasonable attorney fees. Any
2448	2448	contractor or any agent, employee or subcontractor thereof, who shall use
2449	2449	or otherwise dispose of any materials purchased under such a certificate
2450	2450	for any purpose other than that for which such a certificate is issued
2451	2451	without the payment of the sales or compensating tax otherwise imposed
2452	2452	upon such materials, shall be guilty of a misdemeanor and, upon
2453	2453	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2454	2454	79-3615(h), and amendments thereto;
2455	2455	1
2456	2456	2
2457	2457	3
2458	2458	4
2459	2459	5
2460	2460	6
2461	2461	7
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2491	2491	37
2492	2492	38
2493	2493	39
2494	2494	40
2495	2495	41
2496	2496	42
2497	2497	43 HB 2685 30
2498	2498	(vvv) all sales of tangible personal property or services, including the
2499	2499	renting and leasing of tangible personal property or services, purchased by
2500	2500	jazz in the woods, inc., a Kansas corporation that is exempt from federal
2501	2501	income taxation pursuant to section 501(c)(3) of the federal internal
2502	2502	revenue code, for the purpose of providing jazz in the woods, an event
2503	2503	benefiting children-in-need and other nonprofit charities assisting such
2504	2504	children, and all sales of any such property by or on behalf of such
2505	2505	organization for such purpose;
2506	2506	(www) all sales of tangible personal property purchased by or on
2507	2507	behalf of the Frontenac education foundation, which is exempt from
2508	2508	federal income taxation pursuant to section 501(c)(3) of the federal
2509	2509	internal revenue code, for the purpose of providing education support for
2510	2510	students, and all sales of any such property by or on behalf of such
2511	2511	organization for such purpose;
2512	2512	(xxx) all sales of personal property and services purchased by the
2513	2513	booth theatre foundation, inc., an organization, which is exempt from
2514	2514	federal income taxation pursuant to section 501(c)(3) of the federal
2515	2515	internal revenue code of 1986, and which such personal property and
2516	2516	services are used by any such organization in the constructing, equipping,
2517	2517	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2518	2518	of the booth theatre, and all sales of tangible personal property or services
2519	2519	purchased by a contractor for the purpose of constructing, equipping,
2520	2520	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2521	2521	the booth theatre for such organization, that would be exempt from
2522	2522	taxation under the provisions of this section if purchased directly by such
2523	2523	organization. Nothing in this subsection shall be deemed to exempt the
2524	2524	purchase of any construction machinery, equipment or tools used in the
2525	2525	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
2526	2526	furnishing or remodeling facilities for any such organization. When any
2527	2527	such organization shall contract for the purpose of constructing, equipping,
2528	2528	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2529	2529	facilities, it shall obtain from the state and furnish to the contractor an
2530	2530	exemption certificate for the project involved, and the contractor may
2531	2531	purchase materials for incorporation in such project. The contractor shall
2532	2532	furnish the number of such certificate to all suppliers from whom such
2533	2533	purchases are made, and such suppliers shall execute invoices covering the
2534	2534	same bearing the number of such certificate. Upon completion of the
2535	2535	project the contractor shall furnish to such organization concerned a sworn
2536	2536	statement, on a form to be provided by the director of taxation, that all
2537	2537	purchases so made were entitled to exemption under this subsection. All
2538	2538	invoices shall be held by the contractor for a period of five years and shall
2539	2539	be subject to audit by the director of taxation. If any materials purchased
2540	2540	under such a certificate are found not to have been incorporated in such
2541	2541	1
2542	2542	2
2543	2543	3
2544	2544	4
2545	2545	5
2546	2546	6
2547	2547	7
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2549	2549	9
2550	2550	10
2551	2551	11
2552	2552	12
2553	2553	13
2554	2554	14
2555	2555	15
2556	2556	16
2557	2557	17
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2572	2572	32
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2575	2575	35
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2577	2577	37
2578	2578	38
2579	2579	39
2580	2580	40
2581	2581	41
2582	2582	42
2583	2583	43 HB 2685 31
2584	2584	facilities or not to have been returned for credit or the sales or
2585	2585	compensating tax otherwise imposed upon such materials that will not be
2586	2586	so incorporated in such facilities reported and paid by such contractor to
2587	2587	the director of taxation not later than the 20
2588	2588	th
2589	2589	day of the month following
2590	2590	the close of the month in which it shall be determined that such materials
2591	2591	will not be used for the purpose for which such certificate was issued, such
2592	2592	organization concerned shall be liable for tax on all materials purchased
2593	2593	for the project, and upon payment thereof it may recover the same from
2594	2594	the contractor together with reasonable attorney fees. Any contractor or
2595	2595	any agent, employee or subcontractor thereof, who shall use or otherwise
2596	2596	dispose of any materials purchased under such a certificate for any purpose
2597	2597	other than that for which such a certificate is issued without the payment
2598	2598	of the sales or compensating tax otherwise imposed upon such materials,
2599	2599	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2600	2600	subject to the penalties provided for in K.S.A. 79-3615(h), and
2601	2601	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
2602	2602	to the effective date of this act upon the gross receipts received from any
2603	2603	sale which would have been exempted by the provisions of this subsection
2604	2604	had such sale occurred after the effective date of this act shall be refunded.
2605	2605	Each claim for a sales tax refund shall be verified and submitted to the
2606	2606	director of taxation upon forms furnished by the director and shall be
2607	2607	accompanied by any additional documentation required by the director.
2608	2608	The director shall review each claim and shall refund that amount of sales
2609	2609	tax paid as determined under the provisions of this subsection. All refunds
2610	2610	shall be paid from the sales tax refund fund upon warrants of the director
2611	2611	of accounts and reports pursuant to vouchers approved by the director or
2612	2612	the director's designee;
2613	2613	(yyy) all sales of tangible personal property and services purchased
2614	2614	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
2615	2615	which is exempt from federal income taxation pursuant to section 501(c)
2616	2616	(3) of the federal internal revenue code of 1986, and which such property
2617	2617	and services are used for the purpose of encouraging private philanthropy
2618	2618	to further the vision, values, and goals of TLC for children and families,
2619	2619	inc.; and all sales of such property and services by or on behalf of TLC
2620	2620	charities for any such purpose and all sales of tangible personal property or
2621	2621	services purchased by a contractor for the purpose of constructing,
2622	2622	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2623	2623	the operation of services for TLC charities for any such purpose that would
2624	2624	be exempt from taxation under the provisions of this section if purchased
2625	2625	directly by TLC charities. Nothing in this subsection shall be deemed to
2626	2626	exempt the purchase of any construction machinery, equipment or tools
2627	2627	used in the constructing, maintaining, repairing, enlarging, furnishing or
2628	2628	remodeling such facilities for TLC charities. When TLC charities contracts
2629	2629	1
2630	2630	2
2631	2631	3
2632	2632	4
2633	2633	5
2634	2634	6
2635	2635	7
2636	2636	8
2637	2637	9
2638	2638	10
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2644	2644	16
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2649	2649	21
2650	2650	22
2651	2651	23
2652	2652	24
2653	2653	25
2654	2654	26
2655	2655	27
2656	2656	28
2657	2657	29
2658	2658	30
2659	2659	31
2660	2660	32
2661	2661	33
2662	2662	34
2663	2663	35
2664	2664	36
2665	2665	37
2666	2666	38
2667	2667	39
2668	2668	40
2669	2669	41
2670	2670	42
2671	2671	43 HB 2685 32
2672	2672	for the purpose of constructing, maintaining, repairing, enlarging,
2673	2673	furnishing or remodeling such facilities, it shall obtain from the state and
2674	2674	furnish to the contractor an exemption certificate for the project involved,
2675	2675	and the contractor may purchase materials for incorporation in such
2676	2676	project. The contractor shall furnish the number of such certificate to all
2677	2677	suppliers from whom such purchases are made, and such suppliers shall
2678	2678	execute invoices covering the same bearing the number of such certificate.
2679	2679	Upon completion of the project the contractor shall furnish to TLC
2680	2680	charities a sworn statement, on a form to be provided by the director of
2681	2681	taxation, that all purchases so made were entitled to exemption under this
2682	2682	subsection. All invoices shall be held by the contractor for a period of five
2683	2683	years and shall be subject to audit by the director of taxation. If any
2684	2684	materials purchased under such a certificate are found not to have been
2685	2685	incorporated in the building or other project or not to have been returned
2686	2686	for credit or the sales or compensating tax otherwise imposed upon such
2687	2687	materials that will not be incorporated into the building or other project
2688	2688	reported and paid by such contractor to the director of taxation not later
2689	2689	than the 20
2690	2690	th
2691	2691	day of the month following the close of the month in which it
2692	2692	shall be determined that such materials will not be used for the purpose for
2693	2693	which such certificate was issued, TLC charities shall be liable for tax on
2694	2694	all materials purchased for the project, and upon payment thereof it may
2695	2695	recover the same from the contractor together with reasonable attorney
2696	2696	fees. Any contractor or any agent, employee or subcontractor thereof, who
2697	2697	shall use or otherwise dispose of any materials purchased under such a
2698	2698	certificate for any purpose other than that for which such a certificate is
2699	2699	issued without the payment of the sales or compensating tax otherwise
2700	2700	imposed upon such materials, shall be guilty of a misdemeanor and, upon
2701	2701	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2702	2702	79-3615(h), and amendments thereto;
2703	2703	(zzz) all sales of tangible personal property purchased by the rotary
2704	2704	club of shawnee foundation, which is exempt from federal income taxation
2705	2705	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2706	2706	as amended, used for the purpose of providing contributions to community
2707	2707	service organizations and scholarships;
2708	2708	(aaaa) all sales of personal property and services purchased by or on
2709	2709	behalf of victory in the valley, inc., which is exempt from federal income
2710	2710	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2711	2711	for the purpose of providing a cancer support group and services for
2712	2712	persons with cancer, and all sales of any such property by or on behalf of
2713	2713	any such organization for any such purpose;
2714	2714	(bbbb) all sales of entry or participation fees, charges or tickets by
2715	2715	Guadalupe health foundation, which is exempt from federal income
2716	2716	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2717	2717	1
2718	2718	2
2719	2719	3
2720	2720	4
2721	2721	5
2722	2722	6
2723	2723	7
2724	2724	8
2725	2725	9
2726	2726	10
2727	2727	11
2728	2728	12
2729	2729	13
2730	2730	14
2731	2731	15
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2733	2733	17
2734	2734	18
2735	2735	19
2736	2736	20
2737	2737	21
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2740	2740	24
2741	2741	25
2742	2742	26
2743	2743	27
2744	2744	28
2745	2745	29
2746	2746	30
2747	2747	31
2748	2748	32
2749	2749	33
2750	2750	34
2751	2751	35
2752	2752	36
2753	2753	37
2754	2754	38
2755	2755	39
2756	2756	40
2757	2757	41
2758	2758	42
2759	2759	43 HB 2685 33
2760	2760	for such organization's annual fundraising event which purpose is to
2761	2761	provide health care services for uninsured workers;
2762	2762	(cccc) all sales of tangible personal property or services purchased by
2763	2763	or on behalf of wayside waifs, inc., which is exempt from federal income
2764	2764	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2765	2765	for the purpose of providing such organization's annual fundraiser, an
2766	2766	event whose purpose is to support the care of homeless and abandoned
2767	2767	animals, animal adoption efforts, education programs for children and
2768	2768	efforts to reduce animal over-population and animal welfare services, and
2769	2769	all sales of any such property, including entry or participation fees or
2770	2770	charges, by or on behalf of such organization for such purpose;
2771	2771	(dddd) all sales of tangible personal property or services purchased
2772	2772	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
2773	2773	of which are exempt from federal income taxation pursuant to section
2774	2774	501(c)(3) of the federal internal revenue code, for the purpose of providing
2775	2775	education, training and employment opportunities for people with
2776	2776	disabilities and other barriers to employment;
2777	2777	(eeee) all sales of tangible personal property or services purchased by
2778	2778	or on behalf of all American beef battalion, inc., which is exempt from
2779	2779	federal income taxation pursuant to section 501(c)(3) of the federal
2780	2780	internal revenue code, for the purpose of educating, promoting and
2781	2781	participating as a contact group through the beef cattle industry in order to
2782	2782	carry out such projects that provide support and morale to members of the
2783	2783	United States armed forces and military services;
2784	2784	(ffff) all sales of tangible personal property and services purchased by
2785	2785	sheltered living, inc., which is exempt from federal income taxation
2786	2786	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2787	2787	and which such property and services are used for the purpose of
2788	2788	providing residential and day services for people with developmental
2789	2789	disabilities or intellectual disability, or both, and all sales of any such
2790	2790	property by or on behalf of sheltered living, inc., for any such purpose; and
2791	2791	all sales of tangible personal property or services purchased by a
2792	2792	contractor for the purpose of rehabilitating, constructing, maintaining,
2793	2793	repairing, enlarging, furnishing or remodeling homes and facilities for
2794	2794	sheltered living, inc., for any such purpose that would be exempt from
2795	2795	taxation under the provisions of this section if purchased directly by
2796	2796	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
2797	2797	the purchase of any construction machinery, equipment or tools used in the
2798	2798	constructing, maintaining, repairing, enlarging, furnishing or remodeling
2799	2799	such homes and facilities for sheltered living, inc. When sheltered living,
2800	2800	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
2801	2801	repairing, enlarging, furnishing or remodeling such homes and facilities, it
2802	2802	shall obtain from the state and furnish to the contractor an exemption
2803	2803	1
2804	2804	2
2805	2805	3
2806	2806	4
2807	2807	5
2808	2808	6
2809	2809	7
2810	2810	8
2811	2811	9
2812	2812	10
2813	2813	11
2814	2814	12
2815	2815	13
2816	2816	14
2817	2817	15
2818	2818	16
2819	2819	17
2820	2820	18
2821	2821	19
2822	2822	20
2823	2823	21
2824	2824	22
2825	2825	23
2826	2826	24
2827	2827	25
2828	2828	26
2829	2829	27
2830	2830	28
2831	2831	29
2832	2832	30
2833	2833	31
2834	2834	32
2835	2835	33
2836	2836	34
2837	2837	35
2838	2838	36
2839	2839	37
2840	2840	38
2841	2841	39
2842	2842	40
2843	2843	41
2844	2844	42
2845	2845	43 HB 2685 34
2846	2846	certificate for the project involved, and the contractor may purchase
2847	2847	materials for incorporation in such project. The contractor shall furnish the
2848	2848	number of such certificate to all suppliers from whom such purchases are
2849	2849	made, and such suppliers shall execute invoices covering the same bearing
2850	2850	the number of such certificate. Upon completion of the project the
2851	2851	contractor shall furnish to sheltered living, inc., a sworn statement, on a
2852	2852	form to be provided by the director of taxation, that all purchases so made
2853	2853	were entitled to exemption under this subsection. All invoices shall be held
2854	2854	by the contractor for a period of five years and shall be subject to audit by
2855	2855	the director of taxation. If any materials purchased under such a certificate
2856	2856	are found not to have been incorporated in the building or other project or
2857	2857	not to have been returned for credit or the sales or compensating tax
2858	2858	otherwise imposed upon such materials that will not be so incorporated in
2859	2859	the building or other project reported and paid by such contractor to the
2860	2860	director of taxation not later than the 20
2861	2861	th
2862	2862	day of the month following the
2863	2863	close of the month in which it shall be determined that such materials will
2864	2864	not be used for the purpose for which such certificate was issued, sheltered
2865	2865	living, inc., shall be liable for tax on all materials purchased for the
2866	2866	project, and upon payment thereof it may recover the same from the
2867	2867	contractor together with reasonable attorney fees. Any contractor or any
2868	2868	agent, employee or subcontractor thereof, who shall use or otherwise
2869	2869	dispose of any materials purchased under such a certificate for any purpose
2870	2870	other than that for which such a certificate is issued without the payment
2871	2871	of the sales or compensating tax otherwise imposed upon such materials,
2872	2872	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2873	2873	subject to the penalties provided for in K.S.A. 79-3615(h), and
2874	2874	amendments thereto;
2875	2875	(gggg) all sales of game birds for which the primary purpose is use in
2876	2876	hunting;
2877	2877	(hhhh) all sales of tangible personal property or services purchased
2878	2878	on or after July 1, 2014, for the purpose of and in conjunction with
2879	2879	constructing, reconstructing, enlarging or remodeling a business identified
2880	2880	under the North American industry classification system (NAICS)
2881	2881	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
2882	2882	installation of machinery and equipment purchased for installation at any
2883	2883	such business. The exemption provided in this subsection shall not apply
2884	2884	to projects that have actual total costs less than $50,000. When a person
2885	2885	contracts for the construction, reconstruction, enlargement or remodeling
2886	2886	of any such business, such person shall obtain from the state and furnish to
2887	2887	the contractor an exemption certificate for the project involved, and the
2888	2888	contractor may purchase materials, machinery and equipment for
2889	2889	incorporation in such project. The contractor shall furnish the number of
2890	2890	such certificates to all suppliers from whom such purchases are made, and
2891	2891	1
2892	2892	2
2893	2893	3
2894	2894	4
2895	2895	5
2896	2896	6
2897	2897	7
2898	2898	8
2899	2899	9
2900	2900	10
2901	2901	11
2902	2902	12
2903	2903	13
2904	2904	14
2905	2905	15
2906	2906	16
2907	2907	17
2908	2908	18
2909	2909	19
2910	2910	20
2911	2911	21
2912	2912	22
2913	2913	23
2914	2914	24
2915	2915	25
2916	2916	26
2917	2917	27
2918	2918	28
2919	2919	29
2920	2920	30
2921	2921	31
2922	2922	32
2923	2923	33
2924	2924	34
2925	2925	35
2926	2926	36
2927	2927	37
2928	2928	38
2929	2929	39
2930	2930	40
2931	2931	41
2932	2932	42
2933	2933	43 HB 2685 35
2934	2934	such suppliers shall execute invoices covering the same bearing the
2935	2935	number of such certificate. Upon completion of the project, the contractor
2936	2936	shall furnish to the owner of the business a sworn statement, on a form to
2937	2937	be provided by the director of taxation, that all purchases so made were
2938	2938	entitled to exemption under this subsection. All invoices shall be held by
2939	2939	the contractor for a period of five years and shall be subject to audit by the
2940	2940	director of taxation. Any contractor or any agent, employee or
2941	2941	subcontractor of the contractor, who shall use or otherwise dispose of any
2942	2942	materials, machinery or equipment purchased under such a certificate for
2943	2943	any purpose other than that for which such a certificate is issued without
2944	2944	the payment of the sales or compensating tax otherwise imposed thereon,
2945	2945	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2946	2946	subject to the penalties provided for in K.S.A. 79-3615(h), and
2947	2947	amendments thereto;
2948	2948	(iiii) all sales of tangible personal property or services purchased by a
2949	2949	contractor for the purpose of constructing, maintaining, repairing,
2950	2950	enlarging, furnishing or remodeling facilities for the operation of services
2951	2951	for Wichita children's home for any such purpose that would be exempt
2952	2952	from taxation under the provisions of this section if purchased directly by
2953	2953	Wichita children's home. Nothing in this subsection shall be deemed to
2954	2954	exempt the purchase of any construction machinery, equipment or tools
2955	2955	used in the constructing, maintaining, repairing, enlarging, furnishing or
2956	2956	remodeling such facilities for Wichita children's home. When Wichita
2957	2957	children's home contracts for the purpose of constructing, maintaining,
2958	2958	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
2959	2959	from the state and furnish to the contractor an exemption certificate for the
2960	2960	project involved, and the contractor may purchase materials for
2961	2961	incorporation in such project. The contractor shall furnish the number of
2962	2962	such certificate to all suppliers from whom such purchases are made, and
2963	2963	such suppliers shall execute invoices covering the same bearing the
2964	2964	number of such certificate. Upon completion of the project, the contractor
2965	2965	shall furnish to Wichita children's home a sworn statement, on a form to be
2966	2966	provided by the director of taxation, that all purchases so made were
2967	2967	entitled to exemption under this subsection. All invoices shall be held by
2968	2968	the contractor for a period of five years and shall be subject to audit by the
2969	2969	director of taxation. If any materials purchased under such a certificate are
2970	2970	found not to have been incorporated in the building or other project or not
2971	2971	to have been returned for credit or the sales or compensating tax otherwise
2972	2972	imposed upon such materials that will not be so incorporated in the
2973	2973	building or other project reported and paid by such contractor to the
2974	2974	director of taxation not later than the 20
2975	2975	th
2976	2976	day of the month following the
2977	2977	close of the month in which it shall be determined that such materials will
2978	2978	not be used for the purpose for which such certificate was issued, Wichita
2979	2979	1
2980	2980	2
2981	2981	3
2982	2982	4
2983	2983	5
2984	2984	6
2985	2985	7
2986	2986	8
2987	2987	9
2988	2988	10
2989	2989	11
2990	2990	12
2991	2991	13
2992	2992	14
2993	2993	15
2994	2994	16
2995	2995	17
2996	2996	18
2997	2997	19
2998	2998	20
2999	2999	21
3000	3000	22
3001	3001	23
3002	3002	24
3003	3003	25
3004	3004	26
3005	3005	27
3006	3006	28
3007	3007	29
3008	3008	30
3009	3009	31
3010	3010	32
3011	3011	33
3012	3012	34
3013	3013	35
3014	3014	36
3015	3015	37
3016	3016	38
3017	3017	39
3018	3018	40
3019	3019	41
3020	3020	42
3021	3021	43 HB 2685 36
3022	3022	children's home shall be liable for the tax on all materials purchased for the
3023	3023	project, and upon payment, it may recover the same from the contractor
3024	3024	together with reasonable attorney fees. Any contractor or any agent,
3025	3025	employee or subcontractor, who shall use or otherwise dispose of any
3026	3026	materials purchased under such a certificate for any purpose other than that
3027	3027	for which such a certificate is issued without the payment of the sales or
3028	3028	compensating tax otherwise imposed upon such materials, shall be guilty
3029	3029	of a misdemeanor and, upon conviction, shall be subject to the penalties
3030	3030	provided for in K.S.A. 79-3615(h), and amendments thereto;
3031	3031	(jjjj) all sales of tangible personal property or services purchased by
3032	3032	or on behalf of the beacon, inc., that is exempt from federal income
3033	3033	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3034	3034	for the purpose of providing those desiring help with food, shelter, clothing
3035	3035	and other necessities of life during times of special need;
3036	3036	(kkkk) all sales of tangible personal property and services purchased
3037	3037	by or on behalf of reaching out from within, inc., which is exempt from
3038	3038	federal income taxation pursuant to section 501(c)(3) of the federal
3039	3039	internal revenue code, for the purpose of sponsoring self-help programs for
3040	3040	incarcerated persons that will enable such incarcerated persons to become
3041	3041	role models for non-violence while in correctional facilities and productive
3042	3042	family members and citizens upon return to the community;
3043	3043	(llll) all sales of tangible personal property and services purchased by
3044	3044	Gove county healthcare endowment foundation, inc., which is exempt
3045	3045	from federal income taxation pursuant to section 501(c)(3) of the federal
3046	3046	internal revenue code of 1986, and which such property and services are
3047	3047	used for the purpose of constructing and equipping an airport in Quinter,
3048	3048	Kansas, and all sales of tangible personal property or services purchased
3049	3049	by a contractor for the purpose of constructing and equipping an airport in
3050	3050	Quinter, Kansas, for such organization, that would be exempt from
3051	3051	taxation under the provisions of this section if purchased directly by such
3052	3052	organization. Nothing in this subsection shall be deemed to exempt the
3053	3053	purchase of any construction machinery, equipment or tools used in the
3054	3054	constructing or equipping of facilities for such organization. When such
3055	3055	organization shall contract for the purpose of constructing or equipping an
3056	3056	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
3057	3057	contractor an exemption certificate for the project involved, and the
3058	3058	contractor may purchase materials for incorporation in such project. The
3059	3059	contractor shall furnish the number of such certificate to all suppliers from
3060	3060	whom such purchases are made, and such suppliers shall execute invoices
3061	3061	covering the same bearing the number of such certificate. Upon
3062	3062	completion of the project, the contractor shall furnish to such organization
3063	3063	concerned a sworn statement, on a form to be provided by the director of
3064	3064	taxation, that all purchases so made were entitled to exemption under this
3065	3065	1
3066	3066	2
3067	3067	3
3068	3068	4
3069	3069	5
3070	3070	6
3071	3071	7
3072	3072	8
3073	3073	9
3074	3074	10
3075	3075	11
3076	3076	12
3077	3077	13
3078	3078	14
3079	3079	15
3080	3080	16
3081	3081	17
3082	3082	18
3083	3083	19
3084	3084	20
3085	3085	21
3086	3086	22
3087	3087	23
3088	3088	24
3089	3089	25
3090	3090	26
3091	3091	27
3092	3092	28
3093	3093	29
3094	3094	30
3095	3095	31
3096	3096	32
3097	3097	33
3098	3098	34
3099	3099	35
3100	3100	36
3101	3101	37
3102	3102	38
3103	3103	39
3104	3104	40
3105	3105	41
3106	3106	42
3107	3107	43 HB 2685 37
3108	3108	subsection. All invoices shall be held by the contractor for a period of five
3109	3109	years and shall be subject to audit by the director of taxation. If any
3110	3110	materials purchased under such a certificate are found not to have been
3111	3111	incorporated in such facilities or not to have been returned for credit or the
3112	3112	sales or compensating tax otherwise imposed upon such materials that will
3113	3113	not be so incorporated in such facilities reported and paid by such
3114	3114	contractor to the director of taxation no later than the 20
3115	3115	th
3116	3116	day of the month
3117	3117	following the close of the month in which it shall be determined that such
3118	3118	materials will not be used for the purpose for which such certificate was
3119	3119	issued, such organization concerned shall be liable for tax on all materials
3120	3120	purchased for the project, and upon payment thereof it may recover the
3121	3121	same from the contractor together with reasonable attorney fees. Any
3122	3122	contractor or any agent, employee or subcontractor thereof, who purchased
3123	3123	under such a certificate for any purpose other than that for which such a
3124	3124	certificate is issued without the payment of the sales or compensating tax
3125	3125	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3126	3126	and, upon conviction therefor, shall be subject to the penalties provided for
3127	3127	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
3128	3128	subsection shall expire and have no effect on and after July 1, 2019;
3129	3129	(mmmm) all sales of gold or silver coins; and palladium, platinum,
3130	3130	gold or silver bullion. For the purposes of this subsection, "bullion" means
3131	3131	bars, ingots or commemorative medallions of gold, silver, platinum,
3132	3132	palladium, or a combination thereof, for which the value of the metal
3133	3133	depends on its content and not the form;
3134	3134	(nnnn) all sales of tangible personal property or services purchased
3135	3135	by friends of hospice of Jefferson county, an organization that is exempt
3136	3136	from federal income taxation pursuant to section 501(c)(3) of the federal
3137	3137	internal revenue code of 1986, for the purpose of providing support to the
3138	3138	Jefferson county hospice agency in end-of-life care of Jefferson county
3139	3139	families, friends and neighbors, and all sales of entry or participation fees,
3140	3140	charges or tickets by friends of hospice of Jefferson county for such
3141	3141	organization's fundraising event for such purpose;
3142	3142	(oooo) all sales of tangible personal property or services purchased
3143	3143	for the purpose of and in conjunction with constructing, reconstructing,
3144	3144	enlarging or remodeling a qualified business facility by a qualified firm or
3145	3145	qualified supplier that meets the requirements established in K.S.A. 2023
3146	3146	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
3147	3147	been approved for a project exemption certificate by the secretary of
3148	3148	commerce, and the sale and installation of machinery and equipment
3149	3149	purchased by such qualified firm or qualified supplier for installation at
3150	3150	any such qualified business facility. When a person shall contract for the
3151	3151	construction, reconstruction, enlargement or remodeling of any such
3152	3152	qualified business facility, such person shall obtain from the state and
3153	3153	1
3154	3154	2
3155	3155	3
3156	3156	4
3157	3157	5
3158	3158	6
3159	3159	7
3160	3160	8
3161	3161	9
3162	3162	10
3163	3163	11
3164	3164	12
3165	3165	13
3166	3166	14
3167	3167	15
3168	3168	16
3169	3169	17
3170	3170	18
3171	3171	19
3172	3172	20
3173	3173	21
3174	3174	22
3175	3175	23
3176	3176	24
3177	3177	25
3178	3178	26
3179	3179	27
3180	3180	28
3181	3181	29
3182	3182	30
3183	3183	31
3184	3184	32
3185	3185	33
3186	3186	34
3187	3187	35
3188	3188	36
3189	3189	37
3190	3190	38
3191	3191	39
3192	3192	40
3193	3193	41
3194	3194	42
3195	3195	43 HB 2685 38
3196	3196	furnish to the contractor an exemption certificate for the project involved,
3197	3197	and the contractor may purchase materials, machinery and equipment for
3198	3198	incorporation in such project. The contractor shall furnish the number of
3199	3199	such certificates to all suppliers from whom such purchases are made, and
3200	3200	such suppliers shall execute invoices covering the same bearing the
3201	3201	number of such certificate. Upon completion of the project, the contractor
3202	3202	shall furnish to the owner of the qualified firm or qualified supplier a
3203	3203	sworn statement, on a form to be provided by the director of taxation, that
3204	3204	all purchases so made were entitled to exemption under this subsection.
3205	3205	All invoices shall be held by the contractor for a period of five years and
3206	3206	shall be subject to audit by the director of taxation. Any contractor or any
3207	3207	agent, employee or subcontractor thereof who shall use or otherwise
3208	3208	dispose of any materials, machinery or equipment purchased under such a
3209	3209	certificate for any purpose other than that for which such a certificate is
3210	3210	issued without the payment of the sales or compensating tax otherwise
3211	3211	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
3212	3212	therefor, shall be subject to the penalties provided for in K.S.A. 79-
3213	3213	3615(h), and amendments thereto. As used in this subsection, "qualified
3214	3214	business facility," "qualified firm" and "qualified supplier" mean the same
3215	3215	as defined in K.S.A. 2023 Supp. 74-50,311, and amendments thereto;
3216	3216	(pppp) (1) all sales of tangible personal property or services
3217	3217	purchased by a not-for-profit corporation that is designated as an area
3218	3218	agency on aging by the secretary for aging and disabilities services and is
3219	3219	exempt from federal income taxation pursuant to section 501(c)(3) of the
3220	3220	federal internal revenue code for the purpose of coordinating and
3221	3221	providing seniors and those living with disabilities with services that
3222	3222	promote person-centered care, including home-delivered meals,
3223	3223	congregate meal settings, long-term case management, transportation,
3224	3224	information, assistance and other preventative and intervention services to
3225	3225	help service recipients remain in their homes and communities or for the
3226	3226	purpose of constructing, equipping, reconstructing, maintaining, repairing,
3227	3227	enlarging, furnishing or remodeling facilities for such area agency on
3228	3228	aging; and
3229	3229	(2) all sales of tangible personal property or services purchased by a
3230	3230	contractor for the purpose of constructing, equipping, reconstructing,
3231	3231	maintaining, repairing, enlarging, furnishing or remodeling facilities for an
3232	3232	area agency on aging that would be exempt from taxation under the
3233	3233	provisions of this section if purchased directly by such area agency on
3234	3234	aging. Nothing in this paragraph shall be deemed to exempt the purchase
3235	3235	of any construction machinery, equipment or tools used in the
3236	3236	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3237	3237	furnishing or remodeling facilities for an area agency on aging. When an
3238	3238	area agency on aging contracts for the purpose of constructing, equipping,
3239	3239	1
3240	3240	2
3241	3241	3
3242	3242	4
3243	3243	5
3244	3244	6
3245	3245	7
3246	3246	8
3247	3247	9
3248	3248	10
3249	3249	11
3250	3250	12
3251	3251	13
3252	3252	14
3253	3253	15
3254	3254	16
3255	3255	17
3256	3256	18
3257	3257	19
3258	3258	20
3259	3259	21
3260	3260	22
3261	3261	23
3262	3262	24
3263	3263	25
3264	3264	26
3265	3265	27
3266	3266	28
3267	3267	29
3268	3268	30
3269	3269	31
3270	3270	32
3271	3271	33
3272	3272	34
3273	3273	35
3274	3274	36
3275	3275	37
3276	3276	38
3277	3277	39
3278	3278	40
3279	3279	41
3280	3280	42
3281	3281	43 HB 2685 39
3282	3282	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3283	3283	facilities, it shall obtain from the state and furnish to the contractor an
3284	3284	exemption certificate for the project involved, and such contractor may
3285	3285	purchase materials for incorporation in such project. The contractor shall
3286	3286	furnish the number of such certificate to all suppliers from whom such
3287	3287	purchases are made, and such suppliers shall execute invoices covering the
3288	3288	same bearing the number of such certificate. Upon completion of the
3289	3289	project, the contractor shall furnish to such area agency on aging a sworn
3290	3290	statement, on a form to be provided by the director of taxation, that all
3291	3291	purchases so made were entitled to exemption under this subsection. All
3292	3292	invoices shall be held by the contractor for a period of five years and shall
3293	3293	be subject to audit by the director of taxation. If any materials purchased
3294	3294	under such a certificate are found not to have been incorporated in the
3295	3295	building or other project or not to have been returned for credit or the sales
3296	3296	or compensating tax otherwise imposed upon such materials that will not
3297	3297	be so incorporated in the building or other project reported and paid by
3298	3298	such contractor to the director of taxation not later than the 20
3299	3299	th
3300	3300	day of the
3301	3301	month following the close of the month in which it shall be determined
3302	3302	that such materials will not be used for the purpose for which such
3303	3303	certificate was issued, the area agency on aging concerned shall be liable
3304	3304	for tax on all materials purchased for the project, and upon payment
3305	3305	thereof, the area agency on aging may recover the same from the
3306	3306	contractor together with reasonable attorney fees. Any contractor or any
3307	3307	agent, employee or subcontractor thereof who shall use or otherwise
3308	3308	dispose of any materials purchased under such a certificate for any purpose
3309	3309	other than that for which such a certificate is issued without the payment
3310	3310	of the sales or compensating tax otherwise imposed upon such materials
3311	3311	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3312	3312	subject to the penalties provided for in K.S.A. 79-3615(h), and
3313	3313	amendments thereto; and
3314	3314	(qqqq) all sales of tangible personal property or services purchased
3315	3315	by Kansas suicide prevention HQ, inc., an organization that is exempt
3316	3316	from federal income taxation pursuant to section 501(c)(3) of the federal
3317	3317	internal revenue code of 1986, for the purpose of bringing suicide
3318	3318	prevention training and awareness to communities across the state; and
3319	3319	(rrrr) all sales of tangible personal property purchased by any
3320	3320	organization determined to be in good standing with the secretary of state
3321	3321	and that is exempt from federal income taxation pursuant to section 501(c)
3322	3322	(3) of the federal internal revenue code of 1986.
3323	3323	Sec. 2. K.S.A. 2023 Supp. 79-3606 is hereby repealed.
3324	3324	Sec. 3. This act shall take effect and be in force from and after its
3325	3325	publication in the statute book.
3326	3326	1
3327	3327	2
3328	3328	3
3329	3329	4
3330	3330	5
3331	3331	6
3332	3332	7
3333	3333	8
3334	3334	9
3335	3335	10
3336	3336	11
3337	3337	12
3338	3338	13
3339	3339	14
3340	3340	15
3341	3341	16
3342	3342	17
3343	3343	18
3344	3344	19
3345	3345	20
3346	3346	21
3347	3347	22
3348	3348	23
3349	3349	24
3350	3350	25
3351	3351	26
3352	3352	27
3353	3353	28
3354	3354	29
3355	3355	30
3356	3356	31
3357	3357	32
3358	3358	33
3359	3359	34
3360	3360	35
3361	3361	36
3362	3362	37
3363	3363	38
3364	3364	39
3365	3365	40
3366	3366	41
3367	3367	42