Kansas 2023-2024 Regular Session

Kansas Senate Bill SB21 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Session of 2023
2	2	SENATE BILL No. 21
3	3	By Committee on Assessment and Taxation
4	4	1-10
5	5	AN ACT concerning sales taxation; relating to exemptions; providing an
6	6	exemption for sales of certain school supplies during an annual sales
7	7	tax holiday.
8	8	Be it enacted by the Legislature of the State of Kansas:
9	9	Section 1. (a) On and after July 1, 2024, the following shall be
10	10	exempt from the tax imposed under the Kansas retailers' sales tax act: All
11	11	sales of any school supplies, school instructional materials or school art
12	12	supplies having a sales price of $100 or less per item during a two-day
13	13	period beginning at 12:01 a.m. on the first Friday in August and ending at
14	14	midnight on the Saturday following. Only items priced below the price
15	15	threshold established in this subsection shall be exempt from taxation
16	16	pursuant to this subsection. There shall be no exemption pursuant to this
17	17	subsection for only a portion of the price of an individual item. The seller
18	18	of items specified in this subsection is not required to obtain an exemption
19	19	certificate from the purchaser of such items as provided pursuant to K.S.A.
20	20	79-3692, and amendments thereto, during the period of time specified in
21	21	this subsection.
22	22	(b) As used in this section:
23	23	(1) "Eligible property" means an item of a type, such as school
24	24	supplies, that qualifies for the sales tax exemption as provided in this
25	25	section;
26	26	(2) "layaway sale" means a transaction in which property is set aside
27	27	for future delivery to a customer who makes a deposit, agrees to pay the
28	28	balance of the purchase over a period of time and, at the end of the
29	29	payment period, receives the property. An order is accepted for layaway by
30	30	the seller, when the seller removes the property from normal inventory or
31	31	clearly identifies the property as sold to the purchaser;
32	32	(3) "rain check" means the seller allows a customer to purchase an
33	33	item at a certain price at a later time because the particular item was out of
34	34	stock;
35	35	(4) "school art supply" means an item commonly used by a student in
36	36	a course of study for artwork. The following is an all-inclusive list: Clay
37	37	and glazes; paints, acrylic, tempera and oil; paintbrushes for artwork;
38	38	sketch and drawing pads; and watercolors;
39	39	(5) "school instructional material" means written material commonly
40	40	1
41	41	2
42	42	3
43	43	4
44	44	5
45	45	6
46	46	7
47	47	8
48	48	9
49	49	10
50	50	11
51	51	12
52	52	13
53	53	14
54	54	15
55	55	16
56	56	17
57	57	18
58	58	19
59	59	20
60	60	21
61	61	22
62	62	23
63	63	24
64	64	25
65	65	26
66	66	27
67	67	28
68	68	29
69	69	30
70	70	31
71	71	32
72	72	33
73	73	34
74	74	35
75	75	36 SB 21 2
76	76	used by a student in a course of study as a reference and to learn the
77	77	subject being taught. The following is an all-inclusive list: Reference
78	78	books; reference maps and globes; textbooks; and workbooks; and
79	79	(6) "school supply" means an item commonly used by a student in a
80	80	course of study. The following is an all-inclusive list: Binders; book bags;
81	81	calculators; cellophane tape; blackboard chalk; compasses; composition
82	82	books; crayons; erasers; folders, expandable, pocket, plastic and manila;
83	83	glue, paste and paste sticks; highlighters; index cards; index card boxes;
84	84	legal pads; lunch boxes; markers; notebooks; paper; loose leaf ruled
85	85	notebook paper, copy paper, graph paper, tracing paper, manila paper,
86	86	colored paper, poster board and construction paper; pencil boxes and other
87	87	school supply boxes; pencil sharpeners; pencils; pens; protractors; rulers;
88	88	scissors; and writing tablets.
89	89	(c) The secretary of revenue shall provide notice of the exemption
90	90	period to retailers at least 60 days prior to the first day of the calendar
91	91	quarter in which the exemption period established in this section
92	92	commences.
93	93	(d) The following procedures shall be used in administering the
94	94	exemption provided in this section:
95	95	(1) A sale of eligible property under a layaway sale qualifies for the
96	96	exemption if:
97	97	(A) Final payment on a layaway order is made by, and the property is
98	98	given to, the purchaser during the exemption period; or
99	99	(B) the purchaser selects the property and the retailer accepts the
100	100	order for the item during the exemption period for immediate delivery
101	101	upon full payment, even if delivery is made after the exemption period;
102	102	(2) there shall be no change during the period of exemption for the
103	103	handling of a bundled sale as treated for sales tax purposes at times other
104	104	than the exemption period;
105	105	(3) a discount by the seller reduces the sales price of the property and
106	106	the discounted sales price determines whether the sales price is within the
107	107	price threshold provided in subsection (a). A coupon that reduces the sales
108	108	price is treated as a discount if the seller is not reimbursed for the coupon
109	109	amount by a third party. If a discount applies to the total amount paid by a
110	110	purchaser rather than to the sales price of a particular item and the
111	111	purchaser has purchased both eligible property and taxable property, the
112	112	seller should allocate the discount based on the total sales prices of the
113	113	taxable property compared to the total sales prices of all property sold in
114	114	that same transaction;
115	115	(4) articles that are normally sold as a single unit must continue to be
116	116	sold in that manner. Such articles cannot be priced separately and sold as
117	117	individual items in order to obtain the exemption;
118	118	(5) a rain check allows a customer to purchase an item at a certain
119	119	1
120	120	2
121	121	3
122	122	4
123	123	5
124	124	6
125	125	7
126	126	8
127	127	9
128	128	10
129	129	11
130	130	12
131	131	13
132	132	14
133	133	15
134	134	16
135	135	17
136	136	18
137	137	19
138	138	20
139	139	21
140	140	22
141	141	23
142	142	24
143	143	25
144	144	26
145	145	27
146	146	28
147	147	29
148	148	30
149	149	31
150	150	32
151	151	33
152	152	34
153	153	35
154	154	36
155	155	37
156	156	38
157	157	39
158	158	40
159	159	41
160	160	42
161	161	43 SB 21 3
162	162	price at a later time because the particular item was out of stock. Eligible
163	163	property that customers purchase during the exemption period with use of
164	164	a rain check will qualify for the exemption regardless of when the rain
165	165	check was issued. Issuance of a rain check during the exemption period
166	166	shall not qualify eligible property for the exemption if the property is
167	167	actually purchased after the exemption period;
168	168	(6) the procedure for an exchange in regards to an exemption is as
169	169	follows:
170	170	(A) If a customer purchases an item of eligible property during the
171	171	exemption period, but later exchanges the item for a similar eligible item,
172	172	even if a different size, different color or other feature, no additional tax is
173	173	due even if the exchange is made after the exemption period;
174	174	(B) if a customer purchases an item of eligible property during the
175	175	exemption period, but after the exemption period has ended, the customer
176	176	returns the item and receives credit on the purchase of a different item, the
177	177	appropriate sales tax is due on the sale of the new item; and
178	178	(C) if a customer purchases an item of eligible property before the
179	179	exemption period, but during the exemption period the customer returns
180	180	the item and receives credit on the purchase of a different item of eligible
181	181	property, no sales tax is due on the sale of the new item if the new item is
182	182	purchased during the exemption period;
183	183	(7) delivery charges, including shipping, handling and service
184	184	charges, are part of the sales price of eligible property unless such delivery
185	185	charges are excluded from the definition of "sales or selling price" in
186	186	K.S.A. 79-3602, and amendments thereto. For the purpose of determining
187	187	the price threshold, if all the property in a shipment qualifies as eligible
188	188	property and the sales price for each item in the shipment is within the
189	189	price threshold, then the seller does not have to allocate the delivery,
190	190	handling or service charge to determine if the price threshold is exceeded.
191	191	The shipment will be considered a sale of eligible products. If the
192	192	shipment includes eligible property and taxable property, including an
193	193	eligible item with a sales price in excess of the price threshold, the seller
194	194	should allocate the delivery charge, unless excluded from the "sales or
195	195	selling price," by using:
196	196	(A) A percentage based on the total sales prices of the taxable
197	197	property compared to the total sales prices of all property in the shipment;
198	198	or
199	199	(B) a percentage based on the total weight of the taxable property
200	200	compared to the total weight of all property in the shipment; and
201	201	(C) the seller must tax the percentage of the delivery charge allocated
202	202	to the taxable property but does not have to tax the percentage allocated to
203	203	the eligible property;
204	204	(8) for the purpose of an exemption, eligible property qualifies for the
205	205	1
206	206	2
207	207	3
208	208	4
209	209	5
210	210	6
211	211	7
212	212	8
213	213	9
214	214	10
215	215	11
216	216	12
217	217	13
218	218	14
219	219	15
220	220	16
221	221	17
222	222	18
223	223	19
224	224	20
225	225	21
226	226	22
227	227	23
228	228	24
229	229	25
230	230	26
231	231	27
232	232	28
233	233	29
234	234	30
235	235	31
236	236	32
237	237	33
238	238	34
239	239	35
240	240	36
241	241	37
242	242	38
243	243	39
244	244	40
245	245	41
246	246	42
247	247	43 SB 21 4
248	248	exemption if:
249	249	(A) The item is both delivered to and paid for by the customer during
250	250	the exemption period; or
251	251	(B) the customer orders and pays for the item and the seller accepts
252	252	the order during the exemption period for immediate shipment, even if
253	253	delivery is made after the exemption period. The seller accepts an order
254	254	when the seller has taken action to fill the order for immediate shipment.
255	255	Actions to fill an order include placement of an in date stamp on a mail
256	256	order or assignment of an order number to a telephone order. An order is
257	257	for immediate shipment when the customer does not request delayed
258	258	shipment. An order is for immediate shipment, notwithstanding that the
259	259	shipment may be delayed because of a backlog of orders or because stock
260	260	is currently unavailable to, or on back order by, the seller;
261	261	(9) for a 60-day period immediately after the exemption period, when
262	262	a customer returns an item that would qualify for the exemption, no credit
263	263	for or refund of sales tax shall be given unless the customer provides a
264	264	receipt or invoice that shows tax was paid, or the seller has sufficient
265	265	documentation to show that tax was paid on the specific item. This 60-day
266	266	period is set solely for the purpose of designating a time period during
267	267	which the customer must provide documentation that shows that sales tax
268	268	was paid on returned merchandise. The 60-day period is not intended to
269	269	change a seller's policy on the time period during which the seller will
270	270	accept returns; and
271	271	(10) the time zone of the seller's location determines the authorized
272	272	time period for the exemption period when the purchaser is located in one
273	273	time zone and a seller is located in another.
274	274	(e) The provisions of this section shall be a part of and supplemental
275	275	to the Kansas retailers' sales tax act.
276	276	Sec. 2. This act shall take effect and be in force from and after its
277	277	publication in the statute book.
278	278	1
279	279	2
280	280	3
281	281	4
282	282	5
283	283	6
284	284	7
285	285	8
286	286	9
287	287	10
288	288	11
289	289	12
290	290	13
291	291	14
292	292	15
293	293	16
294	294	17
295	295	18
296	296	19
297	297	20
298	298	21
299	299	22
300	300	23
301	301	24
302	302	25
303	303	26
304	304	27
305	305	28
306	306	29
307	307	30