Kansas 2023-2024 Regular Session

Kansas Senate Bill SB29 Compare Versions

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1	1	Session of 2023
2	2	SENATE BILL No. 29
3	3	By Senators Peck, Bowers, Claeys, Doll, Faust-Goudeau and Petersen
4	4	1-11
5	5	AN ACT concerning sales taxation; relating to exemptions; providing an
6	6	exemption for sales of school supplies, personal computers and
7	7	clothing during an annual sales 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, 2023, the following shall be
10	10	exempt from the tax imposed by the Kansas retailers' sales tax act: All
11	11	back-to-school-related sales of clothing, clothing accessories or
12	12	equipment, school supplies, school instructional materials, school art
13	13	supplies, prewritten computer software, personal computers and school
14	14	computer supplies during the period beginning at 12:01 a.m. on the first
15	15	Thursday in August and ending at midnight on the Sunday following. The
16	16	seller of items specified in this subsection shall not be required to obtain
17	17	an exemption certificate from the purchaser of such items as provided
18	18	pursuant to K.S.A. 79-3692, and amendments thereto, during the period of
19	19	time specified in this subsection.
20	20	(b) As used in this section:
21	21	(1) "Clothing" means all human wearing apparel suitable for general
22	22	use. "Clothing" includes, but is not limited to: Aprons, household and
23	23	shop; athletic supporters; bathing suits and caps; beach capes and coats;
24	24	belts and suspenders; boots; coats and jackets; costumes; ear muffs;
25	25	footlets; formal wear; garters and garter belts; girdles; gloves and mittens
26	26	for general use; hats and caps; hosiery; insoles for shoes; lab coats;
27	27	neckties; overshoes; pantyhose; rainwear; rubber pants; sandals; scarves;
28	28	shoes and shoe laces; slippers; sneakers; socks and stockings; steel-toed
29	29	shoes; underwear; and uniforms, athletic and non-athletic. "Clothing" does
30	30	not include: Belt buckles sold separately; costume masks sold separately;
31	31	patches and emblems sold separately; sewing equipment and supplies
32	32	including, but not limited to, knitting needles, patterns, pins, sewing
33	33	machines, sewing needles, tape measures and thimbles; and sewing
34	34	materials that become part of clothing including, but not limited to,
35	35	buttons, fabric, lace, thread, yarn and zippers;
36	36	(2) "clothing accessories or equipment" means incidental items worn
37	37	on the person or in conjunction with clothing. "Clothing accessories or
38	38	equipment" includes, but is not limited to: Briefcases; hair notions,
39	39	including, but not limited to, barrettes, hair bows, and hair nets; handbags;
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76	76	handkerchiefs; sunglasses, non-prescription; wallets; watches and wigs
77	77	and hair pieces;
78	78	(3) "eligible property" means an item of a type, such as clothing, that
79	79	qualifies for the sales tax exemption as provided in this section;
80	80	(4) "layaway sale" means a transaction in which property is set aside
81	81	for future delivery to a customer who makes a deposit, agrees to pay the
82	82	balance of the purchase over a period of time and, at the end of the
83	83	payment period, receives the property. An order is accepted for layaway by
84	84	the seller when the seller removes the property from normal inventory or
85	85	clearly identifies the property as sold to the purchaser;
86	86	(5) "rain check" means the seller allows a customer to purchase an
87	87	item at a certain price at a later time because the particular item was out of
88	88	stock;
89	89	(6) "school art supply" means an item commonly used by a student in
90	90	a course of study for artwork. The following is an all-inclusive list: Clay
91	91	and glazes; paints, acrylic, tempera and oil; paintbrushes for artwork;
92	92	sketch and drawing pads; and watercolors;
93	93	(7) "school computer supply" means an item commonly used by a
94	94	student in a course of study in which a computer is used. The following is
95	95	an all-inclusive list: Computer storage media, diskettes, compact disks;
96	96	handheld electronic schedulers, except devices that are cellular phones;
97	97	personal digital assistants, except devices that are cellular phones;
98	98	computer printers; and printer supplies for computers, printer paper and
99	99	printer ink;
100	100	(8) "school instructional material" means written material commonly
101	101	used by a student in a course of study as a reference and to learn the
102	102	subject being taught. The following is an all-inclusive list: Reference
103	103	books; reference maps and globes; textbooks; and workbooks; and
104	104	(9) "school supply" means an item commonly used by a student in a
105	105	course of study. The following is an all-inclusive list: Binders; book bags;
106	106	calculators; cellophane tape; compasses; composition books; crayons;
107	107	erasers; folders, expandable, pocket, plastic and manila; glue, paste and
108	108	paste sticks; highlighters; index cards; index card boxes; legal pads; lunch
109	109	boxes; markers; notebooks; paper; loose leaf ruled notebook paper, copy
110	110	paper, graph paper, tracing paper, manila paper, colored paper, poster
111	111	board and construction paper; pencil boxes and other school supply boxes;
112	112	pencil sharpeners; pencils; pens; protractors; rulers; scissors; wipe boards;
113	113	wipe board markers; and writing tablets.
114	114	(c) The secretary of revenue shall provide notice of the exemption
115	115	period to retailers at least 60 days prior to the first day of the calendar
116	116	month in which the exemption period established in this section
117	117	commences.
118	118	(d) The following procedures are to be used in administering the
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162	162	exemption as provided in this section:
163	163	(1) A sale of eligible property under a layaway sale qualifies for the
164	164	exemption if:
165	165	(A) Final payment on a layaway order is made by, and the property is
166	166	given to, the purchaser during the exemption period; or
167	167	(B) the purchaser selects the property and the retailer accepts the
168	168	order for the item during the exemption period for immediate delivery
169	169	upon full payment, even if delivery is made after the exemption period;
170	170	(2) there shall be no change during the period of exemption for the
171	171	handling of a bundled sale as treated for sales tax purposes at times other
172	172	than the exemption period;
173	173	(3) a discount by the seller reduces the sales price of the property. A
174	174	coupon that reduces the sales price is treated as a discount if the seller is
175	175	not reimbursed for the coupon amount by a third party. If a discount
176	176	applies to the total amount paid by a purchaser rather than to the sales
177	177	price of a particular item and the purchaser has purchased both eligible
178	178	property and taxable property, the seller shall allocate the discount based
179	179	on the total sales prices of the taxable property compared to the total sales
180	180	prices of all property sold in that same transaction;
181	181	(4) articles that are normally sold as a single unit shall continue to be
182	182	sold in that manner. Such articles cannot be priced separately and sold as
183	183	individual items in order to obtain the exemption;
184	184	(5) a rain check allows a customer to purchase an item at a certain
185	185	price at a later time because the particular item was out of stock. Eligible
186	186	property that customers purchase during the exemption period with use of
187	187	a rain check will qualify for the exemption regardless of when the rain
188	188	check was issued. Issuance of a rain check during the exemption period
189	189	shall not qualify eligible property for the exemption if the property is
190	190	actually purchased after the exemption period;
191	191	(6) the procedure for an exchange in regards to an exemption is as
192	192	follows:
193	193	(A) If a customer purchases an item of eligible property during the
194	194	exemption period, but later exchanges the item for a similar eligible item,
195	195	even if a different size, different color or other feature, no additional tax is
196	196	due even if the exchange is made after the exemption period;
197	197	(B) if a customer purchases an item of eligible property during the
198	198	exemption period, but after the exemption period has ended, the customer
199	199	returns the item and receives credit on the purchase of a different item, the
200	200	appropriate sales tax is due on the sale of the new item; and
201	201	(C) if a customer purchases an item of eligible property before the
202	202	exemption period, but during the exemption period the customer returns
203	203	the item and receives credit on the purchase of a different item of eligible
204	204	property, no sales tax is due on the sale of the new item if the new item is
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248	248	purchased during the exemption period;
249	249	(7) for the purpose of an exemption, eligible property qualifies for the
250	250	exemption if:
251	251	(A) The item is both delivered to and paid for by the customer during
252	252	the exemption period; or
253	253	(B) the customer orders and pays for the item and the seller accepts
254	254	the order during the exemption period for immediate shipment, even if
255	255	delivery is made after the exemption period. The seller accepts an order
256	256	when the seller has taken action to fill the order for immediate shipment.
257	257	Actions to fill an order include placement of an in date stamp on a mail
258	258	order or assignment of an order number to a telephone order. An order is
259	259	for immediate shipment when the customer does not request delayed
260	260	shipment. An order is for immediate shipment, notwithstanding that the
261	261	shipment may be delayed because of a backlog of orders or because stock
262	262	is currently unavailable to, or on back order by, the seller;
263	263	(8) for a 60-day period immediately after the exemption period, when
264	264	a customer returns an item that would qualify for the exemption, no credit
265	265	for or refund of sales tax shall be given unless the customer provides a
266	266	receipt or invoice that shows tax was paid or the seller has sufficient
267	267	documentation to show that tax was paid on the specific item. This 60-day
268	268	period is set solely for the purpose of designating a time period during
269	269	which the customer must provide documentation that shows that sales tax
270	270	was paid on returned merchandise. The 60-day period is not intended to
271	271	change a seller's policy on the time period during which the seller will
272	272	accept returns; and
273	273	(9) the time zone of the seller's location determines the authorized
274	274	time period for a sales tax holiday when the purchaser is located in one
275	275	time zone and a seller is located in another.
276	276	(e) The provisions of this section shall be a part of and supplemental
277	277	to the Kansas retailers' sales tax act.
278	278	Sec. 2. This act shall take effect and be in force from and after its
279	279	publication in the Kansas register.
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