Kansas 2023-2024 Regular Session

Kansas Senate Bill SB325 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. 325
3	3	By Committee on Ways and Means
4	4	4-6
5	5	AN ACT concerning economic development; enacting the transformation
6	6	of passenger and freight vehicle industry act; relating to tax and other
7	7	incentives for projects in specified industries or for a national corporate
8	8	headquarters with specified job requirements of at least 250 new
9	9	employees and specified capital investment requirements; providing for
10	10	a refundable income, privilege and premium tax credit for a portion of
11	11	any specified capital investment requirement; retention of certain
12	12	payroll withholding taxes; sales tax exemption for project construction;
13	13	establishing the transformation of passenger and freight vehicle
14	14	industry act new employee training and education fund; amending
15	15	K.S.A. 2022 Supp. 79-3606 and repealing the existing section.
16	16	Be it enacted by the Legislature of the State of Kansas:
17	17	New Section 1. (a) This act shall be known and may be cited as the
18	18	transformation of passenger and freight vehicle industry act.
19	19	(b) For purposes of the transformation of passenger and freight
20	20	vehicle industry act:
21	21	(1) "Act" means the transformation of passenger and freight vehicle
22	22	industry act, sections 1 through 8, and amendments thereto.
23	23	(2) "Applicant" means a legal entity seeking to certify as a qualified
24	24	firm for the economic development benefits pursuant to this act.
25	25	(3) "Commence investment" means to begin to invest, with action
26	26	being directly connected to documentation describing the project
27	27	previously submitted to the department.
28	28	(4) "Commencement of commercial operations" means the date, as
29	29	determined by the secretary, that the qualified business facility is first
30	30	available for use by the qualified company or first capable of being used
31	31	by the qualified company in the revenue-producing enterprise in which the
32	32	qualified company intends to use the qualified business facility.
33	33	(5) "Commitment to invest" means one or both of the following:
34	34	(A) The qualified company relocates assets that it already owns to
35	35	Kansas from an out-of-state location; or
36	36	(B) the qualified company enters into a written agreement with a third
37	37	party to acquire assets that provides either party with legally enforceable
38	38	remedies if the agreement is breached.
39	39	(6) "Construction" means construction, reconstruction, enlarging or
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76	76	remodeling for the purpose of constructing a qualified business facility.
77	77	(7) "County median wage" means the median wage paid to
78	78	employees located in the county where the qualified company intends to
79	79	employ new employees as reported by the department of labor in its
80	80	annual Kansas wage survey for the previous year.
81	81	(8) "Department" means the department of commerce.
82	82	(9) "Electric motor vehicle" means a passenger or freight motor
83	83	vehicle primarily powered by an electric motor that draws current from
84	84	rechargeable storage batteries, fuel cells, photovoltaic arrays or other
85	85	sources of electric current and may include an electric-hybrid vehicle.
86	86	(10) "Headquarters" means a qualified business facility that meets the
87	87	following conditions:
88	88	(A) The main activity at the qualified business facility is providing
89	89	direction, management or administrative support for the operation of
90	90	multiple company-owned worksites or facilities that are engaged in
91	91	qualified activities and in which the applicant has an ownership interest
92	92	greater than 50%; and
93	93	(B) the qualified business facility is capable of being geographically
94	94	located anywhere.
95	95	(11) "Hydrogen-powered vehicle" means a passenger or freight motor
96	96	vehicle that uses hydrogen as a significant source of motive power, either
97	97	through a fuel cell or internal combustion.
98	98	(12) "Metropolitan county" means the county of Douglas, Johnson,
99	99	Leavenworth, Sedgwick, Shawnee or Wyandotte.
100	100	(13) "New employee" means a qualified business facility employee
101	101	who is newly employed by the qualified company in the qualified
102	102	company's business operating in Kansas during the taxable year for which
103	103	benefits are sought. Qualified business facility employees performing
104	104	functions directly related to a relocating, expanding or new business
105	105	facility, office, department or other operation shall be considered "new
106	106	employees."
107	107	(14) "On-the-job training" means training situations during which a
108	108	product or service that can be sold or used in internal operations is
109	109	generated.
110	110	(15) "Qualified activities" means engaging in industries that include,
111	111	but are not limited to, the following:
112	112	(A) Any industry in the following NAICS code groups, sectors or
113	113	subsectors:
114	114	(i) Subsector 336; or
115	115	(ii) industry group 335910; or
116	116	(B) research and development operations.
117	117	(16) "Qualified business facility" means a facility as defined in
118	118	subparagraph (C) that satisfies the requirements of subparagraphs (A) and
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162	162	(B):
163	163	(A) Such facility is for use by the qualified company in the overall
164	164	operation of a revenue-producing enterprise. Such facility shall not be
165	165	considered a "qualified business facility" in the hands of the qualified
166	166	company if the qualified company's only activity with respect to such
167	167	facility is to lease it to another person or persons. If the qualified company
168	168	employs only a portion of such facility in the operation of a revenue-
169	169	producing enterprise and leases another portion of such facility to another
170	170	person or persons or does not otherwise use such other portions in the
171	171	operation of a revenue-producing enterprise, the portion employed by the
172	172	qualified company in the operation of a revenue-producing enterprise shall
173	173	be considered a "qualified business facility" if the requirements of
174	174	subparagraph (B) are satisfied.
175	175	(B) If such facility was acquired or leased by the qualified company
176	176	from another person or persons, the facility was not used, either
177	177	immediately prior to the transfer of title to the qualified company or to the
178	178	commencement of the term of the lease to the qualified company, by any
179	179	other person or persons in the operation of a revenue-producing enterprise
180	180	that is the same or substantially the same as the revenue-producing
181	181	enterprise continued by the qualified company at the facility.
182	182	(C) As used in this paragraph, "facility" means any factory, mill,
183	183	plant, refinery, warehouse, headquarters, building or complex of buildings
184	184	located within the state, including the land on which such facility is
185	185	located and all machinery, equipment and other real and tangible personal
186	186	property located at or within such facility used in connection with the
187	187	operation of such facility. "Building" means only structures within which
188	188	individuals are customarily employed or that are customarily used to house
189	189	machinery, equipment or other property.
190	190	(17) (A) "Qualified business facility employee" means an individual
191	191	employed by the qualified company at a qualified business facility project
192	192	site, employed full time and scheduled to work for an average minimum of
193	193	30 hours per week and employed for at least three consecutive months on
194	194	the last day of the period covered by a department of labor quarterly wage
195	195	report and unemployment tax return.
196	196	(B) "Qualified business facility employee" does not include an
197	197	employee at a qualified business facility project site who has not been
198	198	employed for three consecutive months.
199	199	(18) "Qualified business facility investment" or "qualified
200	200	investment" means the value of the real and tangible personal property,
201	201	except inventory or property held for sale to customers in the ordinary
202	202	course of the qualified company's business, that constitutes the qualified
203	203	business facility or that is used by the qualified company in the operation
204	204	of the qualified business facility, including such property used for
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248	248	administrative or managerial functions, during the taxable years for which
249	249	the credit allowed by sections 2 and 3, and amendments thereto, is
250	250	claimed. "Qualified business facility investment" does not include any
251	251	building, land or other real or tangible personal property that is granted,
252	252	leased or transferred to the qualified company without cost to the qualified
253	253	company. For purposes of calculating the qualified business facility
254	254	investment, real or tangible personal property that is granted, leased or
255	255	transferred to the qualified company at a cost of less than fair market value
256	256	shall be reduced in value, by the difference in cost to the qualified
257	257	company and fair market value. The value of such property during such
258	258	taxable year shall be:
259	259	(A) Such property's original cost if owned by the qualified company;
260	260	or
261	261	(B) eight times the net annual rental rate if leased by the qualified
262	262	company. The net annual rental rate shall be the annual rental rate paid by
263	263	the qualified company less any annual rental rate received by the qualified
264	264	company from subrentals. The "qualified business facility investment"
265	265	shall be determined by dividing by 12 the sum of the total value of such
266	266	property on the last business day of each calendar month of the taxable
267	267	year. Notwithstanding the provisions of this paragraph, for the purpose of
268	268	computing the credit allowed by section 3, and amendments thereto, in the
269	269	case of a "qualified business facility investment" in a qualified business
270	270	facility that existed and was operated by the qualified company or a related
271	271	taxpayer prior to the investment, the amount of the qualified company's
272	272	investment shall be computed as follows: Such investment amount shall be
273	273	reduced by the average amount, computed as provided in this paragraph,
274	274	of the investment of the qualified company or a related taxpayer in the
275	275	facility for the taxable year preceding the taxable year in which the
276	276	"qualified business facility investment" was made in the facility.
277	277	(19) "Qualified company" means a for-profit business establishment,
278	278	subject to state income, sales or property taxes, that is:
279	279	(A) Engaged in one or more of the following industries, as defined by
280	280	the secretary of commerce:
281	281	(i) Electric or hydrogen-powered motor vehicle manufacturing;
282	282	(ii) battery manufacturing;
283	283	(iii) research and development operation; or
284	284	(iv) headquarters for any of the industries described in clauses (i)
285	285	through (iii);
286	286	(B) engaged in any industry or revenue-producing activity if seeking
287	287	benefits with respect to a qualified business facility that is the national
288	288	corporate headquarters of the for-profit business establishment;
289	289	(C) a supplier of components, sub-assemblies, chemicals or other
290	290	process-related tangible goods, is located in Kansas and is owned by:
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334	334	(i) An individual, any partnership, association, limited liability
335	335	corporation or corporation domiciled in Kansas; or
336	336	(ii) any business, including any business owned by an individual, any
337	337	partnership, association, limited liability corporation or corporation, even
338	338	if the business is a wholly owned subsidiary of a foreign corporation, that
339	339	operates in the state of Kansas for the purpose of supplying a qualified
340	340	company engaged in qualified activities; and
341	341	(D) eligible for benefits under this act as determined by the secretary.
342	342	(20) "Research and development operation" means an operation that
343	343	is conducted solely to advance scientific and technical knowledge in any
344	344	qualified activity.
345	345	(21) "Revenue-producing enterprise" means an enterprise that creates
346	346	revenue subject to potential tax liability in this state.
347	347	(22) "Residency in Kansas" means:
348	348	(A) Owning, living, renting or leasing real estate in Kansas with the
349	349	intent to make the real estate or any other real estate in Kansas an
350	350	employee's primary home; and
351	351	(B) engaging in a trade, business or profession within Kansas.
352	352	(23) "Secretary" means the secretary of commerce.
353	353	(24) (A) "Total payroll cost" means the payroll amount defined by the
354	354	department of labor as total wages on the quarterly wage report and
355	355	unemployment tax return. For a qualified business facility, "total payroll
356	356	cost" during the appropriate measurement period may be combined with
357	357	any pretax earnings in which an employee has elected to direct to a:
358	358	(i) Flexible-spending plan;
359	359	(ii) deferred compensation plan; or
360	360	(iii) retirement plan that includes earnings that the employee would
361	361	otherwise have received in the form of taxable wages had it not been for
362	362	the voluntary deferral.
363	363	(B) "Total payroll cost" does not include company-paid costs for
364	364	health insurance, dental insurance and any other employee benefits that are
365	365	not reported to the Kansas department of labor on the employer's quarterly
366	366	wage report and unemployment tax return.
367	367	(25) (A) "Training and education eligible expense" means the amount
368	368	actually paid for training and education of the group of employees, or
369	369	portion thereof, at any Kansas community college or technical college and
370	370	from which the qualified company expects to derive increased productivity
371	371	or quality.
372	372	(B) "Training and education eligible expense" includes instructor
373	373	salaries, curriculum planning and development, materials and supplies,
374	374	textbooks, manuals, minor training equipment, certain training facility
375	375	costs and any other expenditure that is eligible under the Kansas industrial
376	376	training or the Kansas industrial retraining programs.
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420	420	(C) "Training and education eligible expense" may include, subject to
421	421	maximum limits determined by the secretary:
422	422	(i) Wages of employees during eligible training; and
423	423	(ii) salaries of employee instructors.
424	424	(D) "Training and education eligible expense" does not include:
425	425	(i) Compensation paid to an employee trainee who is receiving on-
426	426	the-job training;
427	427	(ii) compensation paid to an employee during self-training, except for
428	428	time in which the employee is involved in activities related to an approved
429	429	computerized course of study;
430	430	(iii) bonus pay received as compensation related to the company's
431	431	financial performance or the employee's job performance, or both;
432	432	(iv) overtime pay, unless the employee is being paid at an overtime
433	433	rate while participating in eligible training;
434	434	(v) operations manuals and reference manuals, except that training-
435	435	specific manuals may be allowable;
436	436	(vi) training and education costs covered by moneys or grants
437	437	obtained from state, federal or other government-sponsored workforce
438	438	training programs; and
439	439	(vii) training and education costs that were paid to a non-Kansas
440	440	college or technical college or any other entity that is not a Kansas college
441	441	or technical college.
442	442	New Sec. 2. (a) There is hereby established the transformation of
443	443	passenger and freight vehicle industry program to be administered by the
444	444	secretary of commerce. The purpose of the transformation of passenger
445	445	and freight vehicle industry program is to attract businesses engaged in
446	446	electric motor vehicle and hydrogen-powered vehicle production industries
447	447	to build new business facilities and operations, research and development
448	448	operation or new national headquarters in Kansas and to encourage the
449	449	development of a Kansas-based supply chain for such enterprises.
450	450	(b) A qualified company or qualified companies that jointly meet the
451	451	requirements of this act may be eligible for the following incentives as
452	452	approved by the secretary:
453	453	(1) The investment tax credit pursuant to section 3, and amendments
454	454	thereto;
455	455	(2) retention of a percentage of total payroll tax pursuant to section 4,
456	456	and amendments thereto;
457	457	(3) reimbursement of a percentage of eligible employee training and
458	458	education expenses pursuant to sections 5 and 6, and amendments thereto;
459	459	and
460	460	(4) a sales tax exemption for construction costs of a qualified
461	461	business facility pursuant to K.S.A. 79-3606, and amendments thereto, and
462	462	section 7, and amendments thereto.
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506	506	(c) To be eligible to receive an incentive listed in subsection (b), a
507	507	qualified company, or jointly in the case of two or more qualified
508	508	companies, shall meet the requirements of this act, including any
509	509	requirements or provisions specific to each such incentive, and any rules
510	510	and regulations of the secretary pursuant to this act and shall:
511	511	(1) Submit an application to the secretary in the form and manner
512	512	prescribed by the secretary that describes a project that achieves the
513	513	purposes of this act and includes all information as required by the
514	514	secretary. Two or more qualified companies may jointly submit an
515	515	application to meet the requirements of the act;
516	516	(2) complete the project described in the application within five years
517	517	of the date as specified in the agreement with the secretary;
518	518	(3) hire a minimum of 250 new employees within five years from the
519	519	date specified in the agreement with the secretary;
520	520	(4) retain new employees as specified in the agreement for a period
521	521	determined by the secretary;
522	522	(5) in the case of a qualified company that submits an application to
523	523	construct a qualified business facility for an electric or hydrogen motor
524	524	vehicle assembly operation project, make a qualified business facility
525	525	investment of at least $250,000,000 to be completed within five years of
526	526	such date as specified in the agreement with the secretary made pursuant
527	527	to this section and commence commercial operations within five years of
528	528	either the commitment to invest or the date as specified in the agreement.
529	529	This capital investment requirement shall not apply to other eligible
530	530	applicants;
531	531	(6) if requested by the secretary, prior to making a commitment to
532	532	invest in a qualified business facility, submit a certificate of intent to invest
533	533	in the qualified business facility to the secretary in the form and manner
534	534	required by the secretary, including, if requested by the secretary, a date
535	535	when investment will commence;
536	536	(7) if the application is approved by the secretary, enter into a binding
537	537	agreement with the secretary with such terms and conditions as required
538	538	by the secretary and including the commitments required by this act. The
539	539	agreement shall be entered into before any benefits may be provided under
540	540	this act. The secretary shall not enter into an agreement with any qualified
541	541	company after December 31, 2026; and
542	542	(8) commit to repayment of any benefit or benefits received,
543	543	connected to or associated with a term or a condition of the agreement that
544	544	has been breached as determined by the secretary and the forfeiture of any
545	545	such earned benefits and the suspension or cessation of such future
546	546	benefits for as long as the breach is not corrected.
547	547	(d) (1) The secretary shall conduct an annual review of the activities
548	548	undertaken by a qualified company or qualified companies to ensure that
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592	592	the qualified company or qualified companies:
593	593	(A) Remain in good standing with the state;
594	594	(B) remain in compliance with the provisions of this act, any rules
595	595	and regulations adopted by the secretary with respect to this act and any
596	596	agreement entered into pursuant to this act; and
597	597	(C) continue to meet the requirements for the benefits provided under
598	598	this act.
599	599	(2) The secretary of commerce shall certify annually to the secretary
600	600	of revenue that the qualified company or qualified companies meet the
601	601	criteria for designation as a qualified company or qualified companies and
602	602	are eligible for such benefits. The secretary of commerce may obtain any
603	603	and all information reasonably necessary to determine such eligibility.
604	604	Such information shall be confidential to the same extent as information
605	605	provided to the secretary to determine eligibility pursuant to K.S.A.74-
606	606	50,131, and amendments thereto.
607	607	(3) Confidential financial information, any trade secret or other
608	608	information that, if known, would place the qualified company or qualified
609	609	companies at a disadvantage in the marketplace or would significantly
610	610	interfere with the purposes of this act in the judgment of the secretary that
611	611	is obtained under this section shall not be subject to disclosure pursuant to
612	612	K.S.A. 45-215 et seq., and amendments thereto, but shall be made
613	613	available to the division of legislative post audit upon request. The
614	614	provisions of this paragraph shall expire on July 1, 2030, unless the
615	615	legislature reviews and reenacts such provisions pursuant to K.S.A. 45-
616	616	229, and amendments thereto.
617	617	(e) (1) The books and records concerning investments made, sales,
618	618	employment and wages of any employees for which the qualified company
619	619	or qualified companies or third party has retained any Kansas payroll
620	620	withholding taxes or any other financial, employee or other records that
621	621	pertain to eligibility for benefits or compliance with the requirements of
622	622	this act shall be available for inspection by the secretary or the secretary's
623	623	duly authorized agents or employees.
624	624	(2) (A) Any inspection conducted pursuant to paragraph (1) shall be
625	625	started and completed within business hours.
626	626	(B) The secretary shall provide written notice to the qualified
627	627	company or qualified companies or third party of any such upcoming
628	628	inspection 10 days before such inspection is conducted.
629	629	(3) The secretary may request the department of revenue to audit the
630	630	qualified company or qualified companies, or a third party if applicable,
631	631	for compliance with the provisions of this act.
632	632	(f) The secretary of revenue, in consultation with the secretary of
633	633	commerce, shall develop a form that shall be completed annually by any
634	634	qualified company that received any tax benefit pursuant to this section
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678	678	and section 3 or 4, and amendments thereto. Such form shall require, at a
679	679	minimum, the information required by K.S.A. 79-32,243(a)(1) through (a)
680	680	(6), and amendments thereto, any other information as shall reasonably be
681	681	required by the secretary of revenue and the secretary of commerce. The
682	682	contents of the completed form shall be confidential except as provided in
683	683	K.S.A. 79-32,234, and amendments thereto.
684	684	(g) The secretary of commerce or the secretary of revenue may adopt
685	685	rules and regulations for the implementation of this act.
686	686	New Sec. 3. (a) (1) For taxable years commencing after January 1,
687	687	2024, a qualified company that makes a qualified business investment in a
688	688	qualified business facility and meets the requirements of section 2, and
689	689	amendments thereto, and of this section shall be allowed a credit for such
690	690	investment as provided by this section against the tax imposed by the
691	691	Kansas income tax act, the premium tax or privilege fees imposed
692	692	pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
693	693	measured by the net income of financial institutions imposed pursuant to
694	694	article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
695	695	thereto. The credit shall be earned by the taxpayer each taxable year based
696	696	on the amount of the qualified investment made in that taxable year as
697	697	further provided in this section. The entire amount of the credit that is
698	698	earned each taxable year shall not be claimed by the taxpayer in the
699	699	taxable year that such credit is earned but shall be divided into equal
700	700	portions or installments, as determined by the secretary. A portion or
701	701	installment shall be claimed by the qualified company commencing with
702	702	the taxable year after the credit is earned and an equivalent amount of such
703	703	portion or installment shall be claimed in each of the next successive
704	704	taxable years for not less than a total of five taxable years, as determined
705	705	by the secretary.
706	706	(2) The amount of the tax credit earned in a taxable year pursuant to
707	707	this subsection shall be up to 10%, at the discretion of the secretary, of the
708	708	entire amount of the qualified investment that is invested during such
709	709	taxable year, except for qualified investments for eligible projects located
710	710	outside of a metropolitan county. For eligible projects located outside of a
711	711	metropolitan county, the amount of the tax credit earned in a taxable year
712	712	shall be 10%. Such percentage shall be set forth in the agreement pursuant
713	713	to section 2, and amendments thereto. The total qualified investment shall
714	714	be completed within five years commencing from the date specified in the
715	715	agreement. The total amount of the qualified investment shall be at least
716	716	$250,000,000 for a qualified company that submits an application to
717	717	construct a qualified business facility for an electric or hydrogen motor
718	718	vehicle assembly operation project and shall repay to the state all tax
719	719	credits received if the total qualified investment is not completed at the
720	720	project completion date as specified in the agreement.
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764	764	(b) The secretary of commerce shall set forth in the agreement
765	765	entered into pursuant to section 2, and amendments thereto, a percentage
766	766	of the earned tax credit that may be refundable when claimed. Such
767	767	percentage of a tax credit installment may be refundable to such taxpayer
768	768	if the amount of the tax credit claimed for that taxable year exceeds the
769	769	taxpayer's tax liability for such year. The secretary shall set forth in the
770	770	agreement any additional provisions, if necessary, regarding the
771	771	disposition of the earned tax credits. No earned tax credit shall be
772	772	refundable after the taxable year period that such credit may be claimed, as
773	773	determined by the secretary.
774	774	(c) The qualified company or qualified companies shall meet the
775	775	requirements of this act, any rules and regulations of the secretary of
776	776	commerce under this act and the terms of the agreement to receive a credit
777	777	each year that a credit is earned or an installment portion of the earned
778	778	credit is claimed. No credit shall be issued by the secretary of revenue
779	779	unless the qualified company or qualified companies has been certified by
780	780	the secretary of commerce as eligible as provided by section 2, and
781	781	amendments thereto, for each taxable year that the credit is claimed. The
782	782	secretary of commerce shall provide such certifications to the secretary of
783	783	revenue.
784	784	(d) If the qualified company or qualified companies breach the terms
785	785	and conditions of the agreement entered into pursuant to section 2, and
786	786	amendments thereto, and fail to reach at least 90% of the qualified
787	787	investment required under section 2, and amendments thereto, the
788	788	qualified company or qualified companies shall be liable for repayment of
789	789	the amount of the tax credits to the state and all other benefits received
790	790	under this act as provided by section 2, and amendments thereto.
791	791	(e) As a condition for claiming credits pursuant to this section, any
792	792	qualified company or qualified companies shall provide information
793	793	pursuant to K.S.A. 79-32,243, and amendments thereto, as part of the tax
794	794	return in which such credits are claimed. Such credits shall not be denied
795	795	solely on the basis of the contents of the information provided by a
796	796	qualified company pursuant to K.S.A. 79-32,243, and amendments thereto.
797	797	New Sec. 4. (a) For taxable years commencing after January 1, 2024,
798	798	a qualified company that meets the requirements of section 2, and
799	799	amendments thereto, and this section may be eligible to retain up to 100%,
800	800	as determined by the secretary, of the qualified company's Kansas payroll
801	801	withholding taxes under the Kansas withholding and declaration of
802	802	estimated tax act for the qualified company's employees in a taxable year
803	803	that the qualified company maintains a median wage or average wage paid
804	804	to the new employees that is equal to or greater than 120% of the county
805	805	median wage throughout the term of the agreement with the secretary as
806	806	provided in section 2, and amendments thereto. This benefit shall be
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850	850	available for a period of up to 10 successive taxable years, as determined
851	851	by the secretary. A qualified company or qualified companies shall be
852	852	eligible to earn benefits of this section commencing on the date that the
853	853	qualified company or qualified companies enter into an agreement with the
854	854	secretary as provided in section 2, and amendments thereto, or a date as
855	855	determined by the secretary, but not later than three calendar years after
856	856	the year the qualified company enters into the agreement with the secretary
857	857	as provided in section 2, and amendments thereto.
858	858	(b) If approved by the secretary, a qualified company shall enter into
859	859	an agreement with the secretary, as required pursuant to section 2, and
860	860	amendments thereto, with such terms and conditions as may be required
861	861	by the secretary. In addition, the agreement shall set forth the percentage of
862	862	payroll withholding taxes to be retained each year and any requirements or
863	863	performance targets to receive such benefits, as determined by the
864	864	secretary.
865	865	(c) The agreement between the secretary of commerce and a qualified
866	866	company shall specify that, if a qualified company breaches the terms and
867	867	conditions set forth in the agreement and is unable to hire and or retain a
868	868	minimum of 90% of the number of new employees as specified in the
869	869	agreement and as required pursuant to section 2, and amendments thereto,
870	870	a qualified company shall be required to remit to the state an amount that
871	871	shall be determined by comparing the shortfall in job creation and
872	872	retention, expressed as a percentage, to the amount of the aggregate
873	873	Kansas payroll withholding taxes retained by the qualified company or
874	874	remitted to the qualified company by a third party, as provided by section
875	875	2, and amendments thereto.
876	876	(d) For each year that the agreement is in effect, the secretary of
877	877	commerce shall certify to the secretary of revenue:
878	878	(1) That a qualified company is eligible to receive benefits under this
879	879	act and the terms of the agreement;
880	880	(2) the number of employees;
881	881	(3) the amount of gross wages being paid to each such employee; and
882	882	(4) the percentage of payroll withholding taxes to be retained by the
883	883	qualified company.
884	884	(e) Any qualified company that has entered into an agreement with
885	885	the secretary of commerce pursuant to this section and section 2, and
886	886	amendments thereto, and is eligible to receive benefits pursuant to this
887	887	section, shall complete and submit to the department of revenue the
888	888	amount of Kansas payroll withholding tax being retained by a qualified
889	889	company in the form and manner prescribed by the director of taxation.
890	890	(f) The secretary of revenue and the secretary of commerce shall
891	891	cooperate to develop and coordinate procedures to implement the
892	892	provisions of this act.
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936	936	New Sec. 5. (a) On and after July 1, 2023, a qualified company that
937	937	meets the requirements of section 2, and amendments thereto, and this
938	938	section and that has entered into an agreement with the secretary, as
939	939	provided by section 2, and amendments thereto, may be eligible for
940	940	reimbursement for up to one year of training and education eligible
941	941	expenses for training or education completed by each new employee, as
942	942	determined by the secretary and as provided by this section. The maximum
943	943	amount of reimbursement paid to a qualified company shall be $5,000,000
944	944	per qualifying project.
945	945	(b) A qualified company shall be eligible commencing on the date the
946	946	qualified company enters into an agreement with the secretary as provided
947	947	in section 2, and amendments thereto, or as determined by the secretary.
948	948	Only training and education expenses for new employees that can establish
949	949	residency in Kansas at the completion of the training or education program
950	950	and are employed at a qualified business facility of a qualified company
951	951	that is located and operating in Kansas shall be eligible for reimbursement.
952	952	(c) If approved by the secretary, the qualified company shall enter
953	953	into an agreement with the secretary with such terms and conditions as
954	954	may be required by the secretary and commitments required by this act, as
955	955	provided pursuant to section 2, and amendments thereto. The agreement
956	956	shall require an annual showing of eligibility, including evidence showing
957	957	the number of new hires, amount of eligible training and education
958	958	expense and state residency of the employee trainee at the completion of
959	959	the training, for each year that the incentive is claimed.
960	960	(d) Subject to appropriations therefor, reimbursement in the amount
961	961	approved by the secretary and pursuant to the terms of the agreement and
962	962	the limitations of subsection (a) shall be made by the secretary from the
963	963	transformation of passenger and freight vehicle industry act new employee
964	964	training and education fund established in section 6, and amendments
965	965	thereto, in accordance with appropriation acts upon warrants of the
966	966	director of accounts and reports issued pursuant to vouchers approved by
967	967	the secretary of commerce or the secretary's designee.
968	968	(e) No reimbursement shall be issued unless the qualified company
969	969	can demonstrate that the employee trainee has established Kansas
970	970	residency by the completion date of their training and has been certified by
971	971	the secretary, as provided in section 2, and amendments thereto, as meeting
972	972	all requirements of this act, any rules and regulations of the secretary and
973	973	the agreement executed pursuant to section 2, and amendments thereto.
974	974	(f) If a qualified company breaches the terms and conditions of the
975	975	agreement pursuant to section 2, and amendments thereto, reimbursements
976	976	shall be repaid to the state as provided by section 2, and amendments
977	977	thereto.
978	978	New Sec. 6. There is hereby established in the state treasury the
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1022	1022	transformation of passenger and freight vehicle industry act new employee
1023	1023	training and education fund to be administered by the secretary of
1024	1024	commerce. All moneys credited to the transformation of passenger and
1025	1025	freight vehicle industry act new employee training and education fund
1026	1026	shall be used by the Kansas department of commerce for reimbursement to
1027	1027	qualified companies for training and education eligible expenses pursuant
1028	1028	to the provisions of sections 2 and 5, and amendments thereto. All
1029	1029	expenditures from the transformation of passenger and freight vehicle
1030	1030	industry act new employee training and education fund shall be made in
1031	1031	accordance with appropriation acts upon warrants of the director of
1032	1032	accounts and reports issued pursuant to vouchers approved by the
1033	1033	secretary of commerce or the secretary's designee.
1034	1034	New Sec. 7. (a) On and after July 1, 2023, a qualified company that
1035	1035	meets the requirements of section 2, and amendments thereto, and this
1036	1036	section may be eligible for a sales tax exemption under the provisions of
1037	1037	K.S.A. 79-3606(oooo), and amendments thereto.
1038	1038	(b) Qualified companies that satisfy the requirements set forth in
1039	1039	subsection (c) shall qualify for the sales tax exemption commencing on the
1040	1040	date that the qualified company commences construction of the qualified
1041	1041	business facility, as determined by the secretary of commerce, or an earlier
1042	1042	date if agreed by the secretary and incorporated into the agreement
1043	1043	pursuant to section 2, and amendments thereto.
1044	1044	(c) To be eligible to receive the sales tax exemption, the qualified
1045	1045	company shall have been approved by and entered into an agreement with
1046	1046	the secretary pursuant to the requirements of this act. The secretary of
1047	1047	commerce shall provide notice to the secretary of revenue regarding an
1048	1048	approval of a sales tax exemption under this section. The sales tax
1049	1049	exemption shall be valid until construction of the qualified business
1050	1050	facility has been completed as certified by the secretary of commerce to
1051	1051	the secretary of revenue or the date specified for completion of the
1052	1052	qualified business facility in the agreement executed pursuant to section 2,
1053	1053	and amendments thereto, whichever occurs first. No sales tax exemption
1054	1054	shall be issued by the secretary of revenue unless the qualified company or
1055	1055	qualified companies has been certified by the secretary of commerce, as
1056	1056	provided in section 2, and amendments thereto, as meeting all
1057	1057	requirements of this act, the rules and regulations of the secretary, if any,
1058	1058	and the agreement executed pursuant to section 2, and amendments
1059	1059	thereto.
1060	1060	(d) A sales tax exemption shall be revoked by the secretary of
1061	1061	revenue upon notification by the secretary of commerce that the qualified
1062	1062	company has been disapproved by the secretary of commerce.
1063	1063	(e) If a qualified company breaches the terms and conditions of the
1064	1064	agreement pursuant to section 2, and amendments thereto, and is unable to
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1108	1108	hire and or retain a minimum of 90% of the number of new employees as
1109	1109	specified in the agreement and as required pursuant to section 2, and
1110	1110	amendments thereto, a qualified company shall be required to remit to the
1111	1111	state an amount that shall be determined by comparing the shortfall in job
1112	1112	creation and retention, expressed as a percentage, to the amount of the
1113	1113	sales tax exemption as provided by section 2, and amendments thereto.
1114	1114	New Sec. 8. (a) On or before January 31 of each year, the secretary of
1115	1115	commerce shall transmit to the governor, the senate standing committees
1116	1116	on assessment and taxation and commerce and the house of representatives
1117	1117	standing committees on taxation and commerce, labor and economic
1118	1118	development, or any successor committing, a report based on information
1119	1119	received from each qualified company receiving benefits under this act,
1120	1120	describing, at a minimum, the following:
1121	1121	(1) The names of the qualified companies;
1122	1122	(2) the types of qualified companies utilizing the act;
1123	1123	(3) the location of such companies and the location, description and
1124	1124	economic and industry impact of such companies' business operations in
1125	1125	Kansas;
1126	1126	(4) the cumulative number of new employees hired and the new
1127	1127	employees hired in that calendar year, with respect to each qualified
1128	1128	company;
1129	1129	(5) the number of employees who reside in Kansas and the number of
1130	1130	employees who reside in other states, designated with respect to each other
1131	1131	state and, if available, the number of employees who have relocated to
1132	1132	Kansas from another state;
1133	1133	(6) the wages paid for such new employees;
1134	1134	(7) the annual and cumulative amount of investments made;
1135	1135	(8) the annual amount of each benefit provided under this act;
1136	1136	(9) the estimated net state fiscal impact, including the direct and
1137	1137	indirect new state taxes derived from the new employees hired;
1138	1138	(10) an estimate of the multiplier effect on the Kansas economy of the
1139	1139	benefits received under this act; and
1140	1140	(11) any material defaults by a qualified company of the terms of any
1141	1141	agreement pursuant to section 2, and amendments thereto.
1142	1142	Sec. 9. K.S.A. 2022 Supp. 79-3606 is hereby amended to read as
1143	1143	follows: 79-3606. The following shall be exempt from the tax imposed by
1144	1144	this act:
1145	1145	(a) All sales of motor-vehicle fuel or other articles upon which a sales
1146	1146	or excise tax has been paid, not subject to refund, under the laws of this
1147	1147	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
1148	1148	3301, and amendments thereto, including consumable material for such
1149	1149	electronic cigarettes, cereal malt beverages and malt products as defined
1150	1150	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
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1194	1194	malt syrup and malt extract, that is not subject to taxation under the
1195	1195	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
1196	1196	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
1197	1197	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
1198	1198	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
1199	1199	thereto, and gross receipts from regulated sports contests taxed pursuant to
1200	1200	the Kansas professional regulated sports act, and amendments thereto;
1201	1201	(b) all sales of tangible personal property or service, including the
1202	1202	renting and leasing of tangible personal property, purchased directly by the
1203	1203	state of Kansas, a political subdivision thereof, other than a school or
1204	1204	educational institution, or purchased by a public or private nonprofit
1205	1205	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
1206	1206	nonprofit integrated community care organization and used exclusively for
1207	1207	state, political subdivision, hospital, public hospital authority, nonprofit
1208	1208	blood, tissue or organ bank or nonprofit integrated community care
1209	1209	organization purposes, except when: (1) Such state, hospital or public
1210	1210	hospital authority is engaged or proposes to engage in any business
1211	1211	specifically taxable under the provisions of this act and such items of
1212	1212	tangible personal property or service are used or proposed to be used in
1213	1213	such business; or (2) such political subdivision is engaged or proposes to
1214	1214	engage in the business of furnishing gas, electricity or heat to others and
1215	1215	such items of personal property or service are used or proposed to be used
1216	1216	in such business;
1217	1217	(c) all sales of tangible personal property or services, including the
1218	1218	renting and leasing of tangible personal property, purchased directly by a
1219	1219	public or private elementary or secondary school or public or private
1220	1220	nonprofit educational institution and used primarily by such school or
1221	1221	institution for nonsectarian programs and activities provided or sponsored
1222	1222	by such school or institution or in the erection, repair or enlargement of
1223	1223	buildings to be used for such purposes. The exemption herein provided
1224	1224	shall not apply to erection, construction, repair, enlargement or equipment
1225	1225	of buildings used primarily for human habitation, except that such
1226	1226	exemption shall apply to the erection, construction, repair, enlargement or
1227	1227	equipment of buildings used for human habitation by the cerebral palsy
1228	1228	research foundation of Kansas located in Wichita, Kansas, and multi
1229	1229	community diversified services, incorporated, located in McPherson,
1230	1230	Kansas;
1231	1231	(d) all sales of tangible personal property or services purchased by a
1232	1232	contractor for the purpose of constructing, equipping, reconstructing,
1233	1233	maintaining, repairing, enlarging, furnishing or remodeling facilities for
1234	1234	any public or private nonprofit hospital or public hospital authority, public
1235	1235	or private elementary or secondary school, a public or private nonprofit
1236	1236	educational institution, state correctional institution including a privately
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1280	1280	constructed correctional institution contracted for state use and ownership,
1281	1281	that would be exempt from taxation under the provisions of this act if
1282	1282	purchased directly by such hospital or public hospital authority, school,
1283	1283	educational institution or a state correctional institution; and all sales of
1284	1284	tangible personal property or services purchased by a contractor for the
1285	1285	purpose of constructing, equipping, reconstructing, maintaining, repairing,
1286	1286	enlarging, furnishing or remodeling facilities for any political subdivision
1287	1287	of the state or district described in subsection (s), the total cost of which is
1288	1288	paid from funds of such political subdivision or district and that would be
1289	1289	exempt from taxation under the provisions of this act if purchased directly
1290	1290	by such political subdivision or district. Nothing in this subsection or in
1291	1291	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
1292	1292	deemed to exempt the purchase of any construction machinery, equipment
1293	1293	or tools used in the constructing, equipping, reconstructing, maintaining,
1294	1294	repairing, enlarging, furnishing or remodeling facilities for any political
1295	1295	subdivision of the state or any such district. As used in this subsection,
1296	1296	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
1297	1297	political subdivision" shall mean general tax revenues, the proceeds of any
1298	1298	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
1299	1299	purpose of constructing, equipping, reconstructing, repairing, enlarging,
1300	1300	furnishing or remodeling facilities that are to be leased to the donor. When
1301	1301	any political subdivision of the state, district described in subsection (s),
1302	1302	public or private nonprofit hospital or public hospital authority, public or
1303	1303	private elementary or secondary school, public or private nonprofit
1304	1304	educational institution, state correctional institution including a privately
1305	1305	constructed correctional institution contracted for state use and ownership
1306	1306	shall contract for the purpose of constructing, equipping, reconstructing,
1307	1307	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
1308	1308	shall obtain from the state and furnish to the contractor an exemption
1309	1309	certificate for the project involved, and the contractor may purchase
1310	1310	materials for incorporation in such project. The contractor shall furnish the
1311	1311	number of such certificate to all suppliers from whom such purchases are
1312	1312	made, and such suppliers shall execute invoices covering the same bearing
1313	1313	the number of such certificate. Upon completion of the project the
1314	1314	contractor shall furnish to the political subdivision, district described in
1315	1315	subsection (s), hospital or public hospital authority, school, educational
1316	1316	institution or department of corrections concerned a sworn statement, on a
1317	1317	form to be provided by the director of taxation, that all purchases so made
1318	1318	were entitled to exemption under this subsection. As an alternative to the
1319	1319	foregoing procedure, any such contracting entity may apply to the
1320	1320	secretary of revenue for agent status for the sole purpose of issuing and
1321	1321	furnishing project exemption certificates to contractors pursuant to rules
1322	1322	and regulations adopted by the secretary establishing conditions and
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1365	1365	43 SB 325 17
1366	1366	standards for the granting and maintaining of such status. All invoices
1367	1367	shall be held by the contractor for a period of five years and shall be
1368	1368	subject to audit by the director of taxation. If any materials purchased
1369	1369	under such a certificate are found not to have been incorporated in the
1370	1370	building or other project or not to have been returned for credit or the sales
1371	1371	or compensating tax otherwise imposed upon such materials that will not
1372	1372	be so incorporated in the building or other project reported and paid by
1373	1373	such contractor to the director of taxation not later than the 20
1374	1374	th
1375	1375	day of the
1376	1376	month following the close of the month in which it shall be determined
1377	1377	that such materials will not be used for the purpose for which such
1378	1378	certificate was issued, the political subdivision, district described in
1379	1379	subsection (s), hospital or public hospital authority, school, educational
1380	1380	institution or the contractor contracting with the department of corrections
1381	1381	for a correctional institution concerned shall be liable for tax on all
1382	1382	materials purchased for the project, and upon payment thereof it may
1383	1383	recover the same from the contractor together with reasonable attorney
1384	1384	fees. Any contractor or any agent, employee or subcontractor thereof, who
1385	1385	shall use or otherwise dispose of any materials purchased under such a
1386	1386	certificate for any purpose other than that for which such a certificate is
1387	1387	issued without the payment of the sales or compensating tax otherwise
1388	1388	imposed upon such materials, shall be guilty of a misdemeanor and, upon
1389	1389	conviction therefor, shall be subject to the penalties provided for in K.S.A.
1390	1390	79-3615(h), and amendments thereto;
1391	1391	(e) all sales of tangible personal property or services purchased by a
1392	1392	contractor for the erection, repair or enlargement of buildings or other
1393	1393	projects for the government of the United States, its agencies or
1394	1394	instrumentalities, that would be exempt from taxation if purchased directly
1395	1395	by the government of the United States, its agencies or instrumentalities.
1396	1396	When the government of the United States, its agencies or
1397	1397	instrumentalities shall contract for the erection, repair, or enlargement of
1398	1398	any building or other project, it shall obtain from the state and furnish to
1399	1399	the contractor an exemption certificate for the project involved, and the
1400	1400	contractor may purchase materials for incorporation in such project. The
1401	1401	contractor shall furnish the number of such certificates to all suppliers
1402	1402	from whom such purchases are made, and such suppliers shall execute
1403	1403	invoices covering the same bearing the number of such certificate. Upon
1404	1404	completion of the project the contractor shall furnish to the government of
1405	1405	the United States, its agencies or instrumentalities concerned a sworn
1406	1406	statement, on a form to be provided by the director of taxation, that all
1407	1407	purchases so made were entitled to exemption under this subsection. As an
1408	1408	alternative to the foregoing procedure, any such contracting entity may
1409	1409	apply to the secretary of revenue for agent status for the sole purpose of
1410	1410	issuing and furnishing project exemption certificates to contractors
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1453	1453	43 SB 325 18
1454	1454	pursuant to rules and regulations adopted by the secretary establishing
1455	1455	conditions and standards for the granting and maintaining of such status.
1456	1456	All invoices shall be held by the contractor for a period of five years and
1457	1457	shall be subject to audit by the director of taxation. Any contractor or any
1458	1458	agent, employee or subcontractor thereof, who shall use or otherwise
1459	1459	dispose of any materials purchased under such a certificate for any purpose
1460	1460	other than that for which such a certificate is issued without the payment
1461	1461	of the sales or compensating tax otherwise imposed upon such materials,
1462	1462	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1463	1463	subject to the penalties provided for in K.S.A. 79-3615(h), and
1464	1464	amendments thereto;
1465	1465	(f) tangible personal property purchased by a railroad or public utility
1466	1466	for consumption or movement directly and immediately in interstate
1467	1467	commerce;
1468	1468	(g) sales of aircraft including remanufactured and modified aircraft
1469	1469	sold to persons using directly or through an authorized agent such aircraft
1470	1470	as certified or licensed carriers of persons or property in interstate or
1471	1471	foreign commerce under authority of the laws of the United States or any
1472	1472	foreign government or sold to any foreign government or agency or
1473	1473	instrumentality of such foreign government and all sales of aircraft for use
1474	1474	outside of the United States and sales of aircraft repair, modification and
1475	1475	replacement parts and sales of services employed in the remanufacture,
1476	1476	modification and repair of aircraft;
1477	1477	(h) all rentals of nonsectarian textbooks by public or private
1478	1478	elementary or secondary schools;
1479	1479	(i) the lease or rental of all films, records, tapes, or any type of sound
1480	1480	or picture transcriptions used by motion picture exhibitors;
1481	1481	(j) meals served without charge or food used in the preparation of
1482	1482	such meals to employees of any restaurant, eating house, dining car, hotel,
1483	1483	drugstore or other place where meals or drinks are regularly sold to the
1484	1484	public if such employees' duties are related to the furnishing or sale of
1485	1485	such meals or drinks;
1486	1486	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
1487	1487	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
1488	1488	delivered in this state to a bona fide resident of another state, which motor
1489	1489	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
1490	1490	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
1491	1491	remain in this state more than 10 days;
1492	1492	(l) all isolated or occasional sales of tangible personal property,
1493	1493	services, substances or things, except isolated or occasional sale of motor
1494	1494	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
1495	1495	amendments thereto;
1496	1496	(m) all sales of tangible personal property that become an ingredient
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1539	1539	43 SB 325 19
1540	1540	or component part of tangible personal property or services produced,
1541	1541	manufactured or compounded for ultimate sale at retail within or without
1542	1542	the state of Kansas; and any such producer, manufacturer or compounder
1543	1543	may obtain from the director of taxation and furnish to the supplier an
1544	1544	exemption certificate number for tangible personal property for use as an
1545	1545	ingredient or component part of the property or services produced,
1546	1546	manufactured or compounded;
1547	1547	(n) all sales of tangible personal property that is consumed in the
1548	1548	production, manufacture, processing, mining, drilling, refining or
1549	1549	compounding of tangible personal property, the treating of by-products or
1550	1550	wastes derived from any such production process, the providing of
1551	1551	services or the irrigation of crops for ultimate sale at retail within or
1552	1552	without the state of Kansas; and any purchaser of such property may
1553	1553	obtain from the director of taxation and furnish to the supplier an
1554	1554	exemption certificate number for tangible personal property for
1555	1555	consumption in such production, manufacture, processing, mining,
1556	1556	drilling, refining, compounding, treating, irrigation and in providing such
1557	1557	services;
1558	1558	(o) all sales of animals, fowl and aquatic plants and animals, the
1559	1559	primary purpose of which is use in agriculture or aquaculture, as defined in
1560	1560	K.S.A. 47-1901, and amendments thereto, the production of food for
1561	1561	human consumption, the production of animal, dairy, poultry or aquatic
1562	1562	plant and animal products, fiber or fur, or the production of offspring for
1563	1563	use for any such purpose or purposes;
1564	1564	(p) all sales of drugs dispensed pursuant to a prescription order by a
1565	1565	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
1566	1566	1626, and amendments thereto. As used in this subsection, "drug" means a
1567	1567	compound, substance or preparation and any component of a compound,
1568	1568	substance or preparation, other than food and food ingredients, dietary
1569	1569	supplements or alcoholic beverages, recognized in the official United
1570	1570	States pharmacopeia, official homeopathic pharmacopoeia of the United
1571	1571	States or official national formulary, and supplement to any of them,
1572	1572	intended for use in the diagnosis, cure, mitigation, treatment or prevention
1573	1573	of disease or intended to affect the structure or any function of the body,
1574	1574	except that for taxable years commencing after December 31, 2013, this
1575	1575	subsection shall not apply to any sales of drugs used in the performance or
1576	1576	induction of an abortion, as defined in K.S.A. 65-6701, and amendments
1577	1577	thereto;
1578	1578	(q) all sales of insulin dispensed by a person licensed by the state
1579	1579	board of pharmacy to a person for treatment of diabetes at the direction of
1580	1580	a person licensed to practice medicine by the state board of healing arts;
1581	1581	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
1582	1582	enteral feeding systems, prosthetic devices and mobility enhancing
1583	1583	1
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1625	1625	43 SB 325 20
1626	1626	equipment prescribed in writing by a person licensed to practice the
1627	1627	healing arts, dentistry or optometry, and in addition to such sales, all sales
1628	1628	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
1629	1629	and repair and replacement parts therefor, including batteries, by a person
1630	1630	licensed in the practice of dispensing and fitting hearing aids pursuant to
1631	1631	the provisions of K.S.A. 74-5808, and amendments thereto. For the
1632	1632	purposes of this subsection: (1) "Mobility enhancing equipment" means
1633	1633	equipment including repair and replacement parts to same, but does not
1634	1634	include durable medical equipment, which is primarily and customarily
1635	1635	used to provide or increase the ability to move from one place to another
1636	1636	and which is appropriate for use either in a home or a motor vehicle; is not
1637	1637	generally used by persons with normal mobility; and does not include any
1638	1638	motor vehicle or equipment on a motor vehicle normally provided by a
1639	1639	motor vehicle manufacturer; and (2) "prosthetic device" means a
1640	1640	replacement, corrective or supportive device including repair and
1641	1641	replacement parts for same worn on or in the body to artificially replace a
1642	1642	missing portion of the body, prevent or correct physical deformity or
1643	1643	malfunction or support a weak or deformed portion of the body;
1644	1644	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
1645	1645	all sales of tangible personal property or services purchased directly or
1646	1646	indirectly by a groundwater management district organized or operating
1647	1647	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
1648	1648	by a rural water district organized or operating under the authority of
1649	1649	K.S.A. 82a-612, and amendments thereto, or by a water supply district
1650	1650	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
1651	1651	3522 et seq. or 19-3545, and amendments thereto, which property or
1652	1652	services are used in the construction activities, operation or maintenance of
1653	1653	the district;
1654	1654	(t) all sales of farm machinery and equipment or aquaculture
1655	1655	machinery and equipment, repair and replacement parts therefor and
1656	1656	services performed in the repair and maintenance of such machinery and
1657	1657	equipment. For the purposes of this subsection the term "farm machinery
1658	1658	and equipment or aquaculture machinery and equipment" shall include a
1659	1659	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
1660	1660	thereto, and is equipped with a bed or cargo box for hauling materials, and
1661	1661	shall also include machinery and equipment used in the operation of
1662	1662	Christmas tree farming but shall not include any passenger vehicle, truck,
1663	1663	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
1664	1664	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
1665	1665	machinery and equipment" includes precision farming equipment that is
1666	1666	portable or is installed or purchased to be installed on farm machinery and
1667	1667	equipment. "Precision farming equipment" includes the following items
1668	1668	used only in computer-assisted farming, ranching or aquaculture
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1711	1711	43 SB 325 21
1712	1712	production operations: Soil testing sensors, yield monitors, computers,
1713	1713	monitors, software, global positioning and mapping systems, guiding
1714	1714	systems, modems, data communications equipment and any necessary
1715	1715	mounting hardware, wiring and antennas. Each purchaser of farm
1716	1716	machinery and equipment or aquaculture machinery and equipment
1717	1717	exempted herein must certify in writing on the copy of the invoice or sales
1718	1718	ticket to be retained by the seller that the farm machinery and equipment
1719	1719	or aquaculture machinery and equipment purchased will be used only in
1720	1720	farming, ranching or aquaculture production. Farming or ranching shall
1721	1721	include the operation of a feedlot and farm and ranch work for hire and the
1722	1722	operation of a nursery;
1723	1723	(u) all leases or rentals of tangible personal property used as a
1724	1724	dwelling if such tangible personal property is leased or rented for a period
1725	1725	of more than 28 consecutive days;
1726	1726	(v) all sales of tangible personal property to any contractor for use in
1727	1727	preparing meals for delivery to homebound elderly persons over 60 years
1728	1728	of age and to homebound disabled persons or to be served at a group-
1729	1729	sitting at a location outside of the home to otherwise homebound elderly
1730	1730	persons over 60 years of age and to otherwise homebound disabled
1731	1731	persons, as all or part of any food service project funded in whole or in
1732	1732	part by government or as part of a private nonprofit food service project
1733	1733	available to all such elderly or disabled persons residing within an area of
1734	1734	service designated by the private nonprofit organization, and all sales of
1735	1735	tangible personal property for use in preparing meals for consumption by
1736	1736	indigent or homeless individuals whether or not such meals are consumed
1737	1737	at a place designated for such purpose, and all sales of food products by or
1738	1738	on behalf of any such contractor or organization for any such purpose;
1739	1739	(w) all sales of natural gas, electricity, heat and water delivered
1740	1740	through mains, lines or pipes: (1) To residential premises for
1741	1741	noncommercial use by the occupant of such premises; (2) for agricultural
1742	1742	use and also, for such use, all sales of propane gas; (3) for use in the
1743	1743	severing of oil; and (4) to any property which is exempt from property
1744	1744	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
1745	1745	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
1746	1746	and amendments thereto. For all sales of natural gas, electricity and heat
1747	1747	delivered through mains, lines or pipes pursuant to the provisions of
1748	1748	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
1749	1749	on December 31, 2005;
1750	1750	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
1751	1751	for the production of heat or lighting for noncommercial use of an
1752	1752	occupant of residential premises occurring prior to January 1, 2006;
1753	1753	(y) all sales of materials and services used in the repairing, servicing,
1754	1754	altering, maintaining, manufacturing, remanufacturing, or modification of
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1797	1797	43 SB 325 22
1798	1798	railroad rolling stock for use in interstate or foreign commerce under
1799	1799	authority of the laws of the United States;
1800	1800	(z) all sales of tangible personal property and services purchased
1801	1801	directly by a port authority or by a contractor therefor as provided by the
1802	1802	provisions of K.S.A. 12-3418, and amendments thereto;
1803	1803	(aa) all sales of materials and services applied to equipment that is
1804	1804	transported into the state from without the state for repair, service,
1805	1805	alteration, maintenance, remanufacture or modification and that is
1806	1806	subsequently transported outside the state for use in the transmission of
1807	1807	liquids or natural gas by means of pipeline in interstate or foreign
1808	1808	commerce under authority of the laws of the United States;
1809	1809	(bb) all sales of used mobile homes or manufactured homes. As used
1810	1810	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
1811	1811	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
1812	1812	"sales of used mobile homes or manufactured homes" means sales other
1813	1813	than the original retail sale thereof;
1814	1814	(cc) all sales of tangible personal property or services purchased prior
1815	1815	to January 1, 2012, except as otherwise provided, for the purpose of and in
1816	1816	conjunction with constructing, reconstructing, enlarging or remodeling a
1817	1817	business or retail business that meets the requirements established in
1818	1818	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
1819	1819	machinery and equipment purchased for installation at any such business
1820	1820	or retail business, and all sales of tangible personal property or services
1821	1821	purchased on or after January 1, 2012, for the purpose of and in
1822	1822	conjunction with constructing, reconstructing, enlarging or remodeling a
1823	1823	business that meets the requirements established in K.S.A. 74-50,115(e),
1824	1824	and amendments thereto, and the sale and installation of machinery and
1825	1825	equipment purchased for installation at any such business. When a person
1826	1826	shall contract for the construction, reconstruction, enlargement or
1827	1827	remodeling of any such business or retail business, such person shall
1828	1828	obtain from the state and furnish to the contractor an exemption certificate
1829	1829	for the project involved, and the contractor may purchase materials,
1830	1830	machinery and equipment for incorporation in such project. The contractor
1831	1831	shall furnish the number of such certificates to all suppliers from whom
1832	1832	such purchases are made, and such suppliers shall execute invoices
1833	1833	covering the same bearing the number of such certificate. Upon
1834	1834	completion of the project the contractor shall furnish to the owner of the
1835	1835	business or retail business a sworn statement, on a form to be provided by
1836	1836	the director of taxation, that all purchases so made were entitled to
1837	1837	exemption under this subsection. All invoices shall be held by the
1838	1838	contractor for a period of five years and shall be subject to audit by the
1839	1839	director of taxation. Any contractor or any agent, employee or
1840	1840	subcontractor thereof, who shall use or otherwise dispose of any materials,
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1883	1883	43 SB 325 23
1884	1884	machinery or equipment purchased under such a certificate for any
1885	1885	purpose other than that for which such a certificate is issued without the
1886	1886	payment of the sales or compensating tax otherwise imposed thereon, shall
1887	1887	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
1888	1888	to the penalties provided for in K.S.A. 79-3615(h), and amendments
1889	1889	thereto. As used in this subsection, "business" and "retail business" mean
1890	1890	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
1891	1891	exemption certificates that have been previously issued under this
1892	1892	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
1893	1893	and amendments thereto, but not including K.S.A. 74-50,115(e), and
1894	1894	amendments thereto, prior to January 1, 2012, and have not expired will be
1895	1895	effective for the term of the project or two years from the effective date of
1896	1896	the certificate, whichever occurs earlier. Project exemption certificates that
1897	1897	are submitted to the department of revenue prior to January 1, 2012, and
1898	1898	are found to qualify will be issued a project exemption certificate that will
1899	1899	be effective for a two-year period or for the term of the project, whichever
1900	1900	occurs earlier;
1901	1901	(dd) all sales of tangible personal property purchased with food
1902	1902	stamps issued by the United States department of agriculture;
1903	1903	(ee) all sales of lottery tickets and shares made as part of a lottery
1904	1904	operated by the state of Kansas;
1905	1905	(ff) on and after July 1, 1988, all sales of new mobile homes or
1906	1906	manufactured homes to the extent of 40% of the gross receipts, determined
1907	1907	without regard to any trade-in allowance, received from such sale. As used
1908	1908	in this subsection, "mobile homes" and "manufactured homes" mean the
1909	1909	same as defined in K.S.A. 58-4202, and amendments thereto;
1910	1910	(gg) all sales of tangible personal property purchased in accordance
1911	1911	with vouchers issued pursuant to the federal special supplemental food
1912	1912	program for women, infants and children;
1913	1913	(hh) all sales of medical supplies and equipment, including durable
1914	1914	medical equipment, purchased directly by a nonprofit skilled nursing home
1915	1915	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
1916	1916	and amendments thereto, for the purpose of providing medical services to
1917	1917	residents thereof. This exemption shall not apply to tangible personal
1918	1918	property customarily used for human habitation purposes. As used in this
1919	1919	subsection, "durable medical equipment" means equipment including
1920	1920	repair and replacement parts for such equipment, that can withstand
1921	1921	repeated use, is primarily and customarily used to serve a medical purpose,
1922	1922	generally is not useful to a person in the absence of illness or injury and is
1923	1923	not worn in or on the body, but does not include mobility enhancing
1924	1924	equipment as defined in subsection (r), oxygen delivery equipment, kidney
1925	1925	dialysis equipment or enteral feeding systems;
1926	1926	(ii) all sales of tangible personal property purchased directly by a
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1969	1969	43 SB 325 24
1970	1970	nonprofit organization for nonsectarian comprehensive multidiscipline
1971	1971	youth development programs and activities provided or sponsored by such
1972	1972	organization, and all sales of tangible personal property by or on behalf of
1973	1973	any such organization. This exemption shall not apply to tangible personal
1974	1974	property customarily used for human habitation purposes;
1975	1975	(jj) all sales of tangible personal property or services, including the
1976	1976	renting and leasing of tangible personal property, purchased directly on
1977	1977	behalf of a community-based facility for people with intellectual disability
1978	1978	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
1979	1979	amendments thereto, and licensed in accordance with the provisions of
1980	1980	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
1981	1981	personal property or services purchased by contractors during the time
1982	1982	period from July, 2003, through June, 2006, for the purpose of
1983	1983	constructing, equipping, maintaining or furnishing a new facility for a
1984	1984	community-based facility for people with intellectual disability or mental
1985	1985	health center located in Riverton, Cherokee County, Kansas, that would
1986	1986	have been eligible for sales tax exemption pursuant to this subsection if
1987	1987	purchased directly by such facility or center. This exemption shall not
1988	1988	apply to tangible personal property customarily used for human habitation
1989	1989	purposes;
1990	1990	(kk) (1) (A) all sales of machinery and equipment that are used in this
1991	1991	state as an integral or essential part of an integrated production operation
1992	1992	by a manufacturing or processing plant or facility;
1993	1993	(B) all sales of installation, repair and maintenance services
1994	1994	performed on such machinery and equipment; and
1995	1995	(C) all sales of repair and replacement parts and accessories
1996	1996	purchased for such machinery and equipment.
1997	1997	(2) For purposes of this subsection:
1998	1998	(A) "Integrated production operation" means an integrated series of
1999	1999	operations engaged in at a manufacturing or processing plant or facility to
2000	2000	process, transform or convert tangible personal property by physical,
2001	2001	chemical or other means into a different form, composition or character
2002	2002	from that in which it originally existed. Integrated production operations
2003	2003	shall include: (i) Production line operations, including packaging
2004	2004	operations; (ii) preproduction operations to handle, store and treat raw
2005	2005	materials; (iii) post production handling, storage, warehousing and
2006	2006	distribution operations; and (iv) waste, pollution and environmental
2007	2007	control operations, if any;
2008	2008	(B) "production line" means the assemblage of machinery and
2009	2009	equipment at a manufacturing or processing plant or facility where the
2010	2010	actual transformation or processing of tangible personal property occurs;
2011	2011	(C) "manufacturing or processing plant or facility" means a single,
2012	2012	fixed location owned or controlled by a manufacturing or processing
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2055	2055	43 SB 325 25
2056	2056	business that consists of one or more structures or buildings in a
2057	2057	contiguous area where integrated production operations are conducted to
2058	2058	manufacture or process tangible personal property to be ultimately sold at
2059	2059	retail. Such term shall not include any facility primarily operated for the
2060	2060	purpose of conveying or assisting in the conveyance of natural gas,
2061	2061	electricity, oil or water. A business may operate one or more manufacturing
2062	2062	or processing plants or facilities at different locations to manufacture or
2063	2063	process a single product of tangible personal property to be ultimately sold
2064	2064	at retail;
2065	2065	(D) "manufacturing or processing business" means a business that
2066	2066	utilizes an integrated production operation to manufacture, process,
2067	2067	fabricate, finish or assemble items for wholesale and retail distribution as
2068	2068	part of what is commonly regarded by the general public as an industrial
2069	2069	manufacturing or processing operation or an agricultural commodity
2070	2070	processing operation. (i) Industrial manufacturing or processing operations
2071	2071	include, by way of illustration but not of limitation, the fabrication of
2072	2072	automobiles, airplanes, machinery or transportation equipment, the
2073	2073	fabrication of metal, plastic, wood or paper products, electricity power
2074	2074	generation, water treatment, petroleum refining, chemical production,
2075	2075	wholesale bottling, newspaper printing, ready mixed concrete production,
2076	2076	and the remanufacturing of used parts for wholesale or retail sale. Such
2077	2077	processing operations shall include operations at an oil well, gas well,
2078	2078	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
2079	2079	sand or gravel that has been extracted from the earth is cleaned, separated,
2080	2080	crushed, ground, milled, screened, washed or otherwise treated or prepared
2081	2081	before its transmission to a refinery or before any other wholesale or retail
2082	2082	distribution. (ii) Agricultural commodity processing operations include, by
2083	2083	way of illustration but not of limitation, meat packing, poultry slaughtering
2084	2084	and dressing, processing and packaging farm and dairy products in sealed
2085	2085	containers for wholesale and retail distribution, feed grinding, grain
2086	2086	milling, frozen food processing, and grain handling, cleaning, blending,
2087	2087	fumigation, drying and aeration operations engaged in by grain elevators
2088	2088	or other grain storage facilities. (iii) Manufacturing or processing
2089	2089	businesses do not include, by way of illustration but not of limitation,
2090	2090	nonindustrial businesses whose operations are primarily retail and that
2091	2091	produce or process tangible personal property as an incidental part of
2092	2092	conducting the retail business, such as retailers who bake, cook or prepare
2093	2093	food products in the regular course of their retail trade, grocery stores,
2094	2094	meat lockers and meat markets that butcher or dress livestock or poultry in
2095	2095	the regular course of their retail trade, contractors who alter, service, repair
2096	2096	or improve real property, and retail businesses that clean, service or
2097	2097	refurbish and repair tangible personal property for its owner;
2098	2098	(E) "repair and replacement parts and accessories" means all parts
2099	2099	1
2100	2100	2
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2141	2141	43 SB 325 26
2142	2142	and accessories for exempt machinery and equipment, including, but not
2143	2143	limited to, dies, jigs, molds, patterns and safety devices that are attached to
2144	2144	exempt machinery or that are otherwise used in production, and parts and
2145	2145	accessories that require periodic replacement such as belts, drill bits,
2146	2146	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
2147	2147	other refractory items for exempt kiln equipment used in production
2148	2148	operations;
2149	2149	(F) "primary" or "primarily" mean more than 50% of the time.
2150	2150	(3) For purposes of this subsection, machinery and equipment shall
2151	2151	be deemed to be used as an integral or essential part of an integrated
2152	2152	production operation when used to:
2153	2153	(A) Receive, transport, convey, handle, treat or store raw materials in
2154	2154	preparation of its placement on the production line;
2155	2155	(B) transport, convey, handle or store the property undergoing
2156	2156	manufacturing or processing at any point from the beginning of the
2157	2157	production line through any warehousing or distribution operation of the
2158	2158	final product that occurs at the plant or facility;
2159	2159	(C) act upon, effect, promote or otherwise facilitate a physical change
2160	2160	to the property undergoing manufacturing or processing;
2161	2161	(D) guide, control or direct the movement of property undergoing
2162	2162	manufacturing or processing;
2163	2163	(E) test or measure raw materials, the property undergoing
2164	2164	manufacturing or processing or the finished product, as a necessary part of
2165	2165	the manufacturer's integrated production operations;
2166	2166	(F) plan, manage, control or record the receipt and flow of inventories
2167	2167	of raw materials, consumables and component parts, the flow of the
2168	2168	property undergoing manufacturing or processing and the management of
2169	2169	inventories of the finished product;
2170	2170	(G) produce energy for, lubricate, control the operating of or
2171	2171	otherwise enable the functioning of other production machinery and
2172	2172	equipment and the continuation of production operations;
2173	2173	(H) package the property being manufactured or processed in a
2174	2174	container or wrapping in which such property is normally sold or
2175	2175	transported;
2176	2176	(I) transmit or transport electricity, coke, gas, water, steam or similar
2177	2177	substances used in production operations from the point of generation, if
2178	2178	produced by the manufacturer or processor at the plant site, to that
2179	2179	manufacturer's production operation; or, if purchased or delivered from
2180	2180	off-site, from the point where the substance enters the site of the plant or
2181	2181	facility to that manufacturer's production operations;
2182	2182	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
2183	2183	solvents or other substances that are used in production operations;
2184	2184	(K) provide and control an environment required to maintain certain
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2227	2227	43 SB 325 27
2228	2228	levels of air quality, humidity or temperature in special and limited areas
2229	2229	of the plant or facility, where such regulation of temperature or humidity is
2230	2230	part of and essential to the production process;
2231	2231	(L) treat, transport or store waste or other byproducts of production
2232	2232	operations at the plant or facility; or
2233	2233	(M) control pollution at the plant or facility where the pollution is
2234	2234	produced by the manufacturing or processing operation.
2235	2235	(4) The following machinery, equipment and materials shall be
2236	2236	deemed to be exempt even though it may not otherwise qualify as
2237	2237	machinery and equipment used as an integral or essential part of an
2238	2238	integrated production operation: (A) Computers and related peripheral
2239	2239	equipment that are utilized by a manufacturing or processing business for
2240	2240	engineering of the finished product or for research and development or
2241	2241	product design; (B) machinery and equipment that is utilized by a
2242	2242	manufacturing or processing business to manufacture or rebuild tangible
2243	2243	personal property that is used in manufacturing or processing operations,
2244	2244	including tools, dies, molds, forms and other parts of qualifying machinery
2245	2245	and equipment; (C) portable plants for aggregate concrete, bulk cement
2246	2246	and asphalt including cement mixing drums to be attached to a motor
2247	2247	vehicle; (D) industrial fixtures, devices, support facilities and special
2248	2248	foundations necessary for manufacturing and production operations, and
2249	2249	materials and other tangible personal property sold for the purpose of
2250	2250	fabricating such fixtures, devices, facilities and foundations. An exemption
2251	2251	certificate for such purchases shall be signed by the manufacturer or
2252	2252	processor. If the fabricator purchases such material, the fabricator shall
2253	2253	also sign the exemption certificate; (E) a manufacturing or processing
2254	2254	business' laboratory equipment that is not located at the plant or facility,
2255	2255	but that would otherwise qualify for exemption under subsection (3)(E);
2256	2256	(F) all machinery and equipment used in surface mining activities as
2257	2257	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
2258	2258	from the time a reclamation plan is filed to the acceptance of the
2259	2259	completed final site reclamation.
2260	2260	(5) "Machinery and equipment used as an integral or essential part of
2261	2261	an integrated production operation" shall not include:
2262	2262	(A) Machinery and equipment used for nonproduction purposes,
2263	2263	including, but not limited to, machinery and equipment used for plant
2264	2264	security, fire prevention, first aid, accounting, administration, record
2265	2265	keeping, advertising, marketing, sales or other related activities, plant
2266	2266	cleaning, plant communications and employee work scheduling;
2267	2267	(B) machinery, equipment and tools used primarily in maintaining
2268	2268	and repairing any type of machinery and equipment or the building and
2269	2269	plant;
2270	2270	(C) transportation, transmission and distribution equipment not
2271	2271	1
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2313	2313	43 SB 325 28
2314	2314	primarily used in a production, warehousing or material handling
2315	2315	operation at the plant or facility, including the means of conveyance of
2316	2316	natural gas, electricity, oil or water, and equipment related thereto, located
2317	2317	outside the plant or facility;
2318	2318	(D) office machines and equipment including computers and related
2319	2319	peripheral equipment not used directly and primarily to control or measure
2320	2320	the manufacturing process;
2321	2321	(E) furniture and other furnishings;
2322	2322	(F) buildings, other than exempt machinery and equipment that is
2323	2323	permanently affixed to or becomes a physical part of the building, and any
2324	2324	other part of real estate that is not otherwise exempt;
2325	2325	(G) building fixtures that are not integral to the manufacturing
2326	2326	operation, such as utility systems for heating, ventilation, air conditioning,
2327	2327	communications, plumbing or electrical;
2328	2328	(H) machinery and equipment used for general plant heating, cooling
2329	2329	and lighting;
2330	2330	(I) motor vehicles that are registered for operation on public
2331	2331	highways; or
2332	2332	(J) employee apparel, except safety and protective apparel that is
2333	2333	purchased by an employer and furnished gratuitously to employees who
2334	2334	are involved in production or research activities.
2335	2335	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
2336	2336	of the machinery and equipment that qualify or do not qualify as an
2337	2337	integral or essential part of an integrated production operation. When
2338	2338	machinery or equipment is used as an integral or essential part of
2339	2339	production operations part of the time and for nonproduction purposes at
2340	2340	other times, the primary use of the machinery or equipment shall
2341	2341	determine whether or not such machinery or equipment qualifies for
2342	2342	exemption.
2343	2343	(7) The secretary of revenue shall adopt rules and regulations
2344	2344	necessary to administer the provisions of this subsection;
2345	2345	(ll) all sales of educational materials purchased for distribution to the
2346	2346	public at no charge by a nonprofit corporation organized for the purpose of
2347	2347	encouraging, fostering and conducting programs for the improvement of
2348	2348	public health, except that for taxable years commencing after December
2349	2349	31, 2013, this subsection shall not apply to any sales of such materials
2350	2350	purchased by a nonprofit corporation which performs any abortion, as
2351	2351	defined in K.S.A. 65-6701, and amendments thereto;
2352	2352	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
2353	2353	herbicides, germicides, pesticides and fungicides; and services, purchased
2354	2354	and used for the purpose of producing plants in order to prevent soil
2355	2355	erosion on land devoted to agricultural use;
2356	2356	(nn) except as otherwise provided in this act, all sales of services
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2399	2399	43 SB 325 29
2400	2400	rendered by an advertising agency or licensed broadcast station or any
2401	2401	member, agent or employee thereof;
2402	2402	(oo) all sales of tangible personal property purchased by a community
2403	2403	action group or agency for the exclusive purpose of repairing or
2404	2404	weatherizing housing occupied by low-income individuals;
2405	2405	(pp) all sales of drill bits and explosives actually utilized in the
2406	2406	exploration and production of oil or gas;
2407	2407	(qq) all sales of tangible personal property and services purchased by
2408	2408	a nonprofit museum or historical society or any combination thereof,
2409	2409	including a nonprofit organization that is organized for the purpose of
2410	2410	stimulating public interest in the exploration of space by providing
2411	2411	educational information, exhibits and experiences, that is exempt from
2412	2412	federal income taxation pursuant to section 501(c)(3) of the federal
2413	2413	internal revenue code of 1986;
2414	2414	(rr) all sales of tangible personal property that will admit the
2415	2415	purchaser thereof to any annual event sponsored by a nonprofit
2416	2416	organization that is exempt from federal income taxation pursuant to
2417	2417	section 501(c)(3) of the federal internal revenue code of 1986, except that
2418	2418	for taxable years commencing after December 31, 2013, this subsection
2419	2419	shall not apply to any sales of such tangible personal property purchased
2420	2420	by a nonprofit organization which performs any abortion, as defined in
2421	2421	K.S.A. 65-6701, and amendments thereto;
2422	2422	(ss) all sales of tangible personal property and services purchased by
2423	2423	a public broadcasting station licensed by the federal communications
2424	2424	commission as a noncommercial educational television or radio station;
2425	2425	(tt) all sales of tangible personal property and services purchased by
2426	2426	or on behalf of a not-for-profit corporation that is exempt from federal
2427	2427	income taxation pursuant to section 501(c)(3) of the federal internal
2428	2428	revenue code of 1986, for the sole purpose of constructing a Kansas
2429	2429	Korean War memorial;
2430	2430	(uu) all sales of tangible personal property and services purchased by
2431	2431	or on behalf of any rural volunteer fire-fighting organization for use
2432	2432	exclusively in the performance of its duties and functions;
2433	2433	(vv) all sales of tangible personal property purchased by any of the
2434	2434	following organizations that are exempt from federal income taxation
2435	2435	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2436	2436	for the following purposes, and all sales of any such property by or on
2437	2437	behalf of any such organization for any such purpose:
2438	2438	(1) The American heart association, Kansas affiliate, inc. for the
2439	2439	purposes of providing education, training, certification in emergency
2440	2440	cardiac care, research and other related services to reduce disability and
2441	2441	death from cardiovascular diseases and stroke;
2442	2442	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
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2485	2485	43 SB 325 30
2486	2486	advocacy for persons with mental illness and to education, research and
2487	2487	support for their families;
2488	2488	(3) the Kansas mental illness awareness council for the purposes of
2489	2489	advocacy for persons who are mentally ill and for education, research and
2490	2490	support for them and their families;
2491	2491	(4) the American diabetes association Kansas affiliate, inc. for the
2492	2492	purpose of eliminating diabetes through medical research, public education
2493	2493	focusing on disease prevention and education, patient education including
2494	2494	information on coping with diabetes, and professional education and
2495	2495	training;
2496	2496	(5) the American lung association of Kansas, inc. for the purpose of
2497	2497	eliminating all lung diseases through medical research, public education
2498	2498	including information on coping with lung diseases, professional education
2499	2499	and training related to lung disease and other related services to reduce the
2500	2500	incidence of disability and death due to lung disease;
2501	2501	(6) the Kansas chapters of the Alzheimer's disease and related
2502	2502	disorders association, inc. for the purpose of providing assistance and
2503	2503	support to persons in Kansas with Alzheimer's disease, and their families
2504	2504	and caregivers;
2505	2505	(7) the Kansas chapters of the Parkinson's disease association for the
2506	2506	purpose of eliminating Parkinson's disease through medical research and
2507	2507	public and professional education related to such disease;
2508	2508	(8) the national kidney foundation of Kansas and western Missouri
2509	2509	for the purpose of eliminating kidney disease through medical research
2510	2510	and public and private education related to such disease;
2511	2511	(9) the heartstrings community foundation for the purpose of
2512	2512	providing training, employment and activities for adults with
2513	2513	developmental disabilities;
2514	2514	(10) the cystic fibrosis foundation, heart of America chapter, for the
2515	2515	purposes of assuring the development of the means to cure and control
2516	2516	cystic fibrosis and improving the quality of life for those with the disease;
2517	2517	(11) the spina bifida association of Kansas for the purpose of
2518	2518	providing financial, educational and practical aid to families and
2519	2519	individuals with spina bifida. Such aid includes, but is not limited to,
2520	2520	funding for medical devices, counseling and medical educational
2521	2521	opportunities;
2522	2522	(12) the CHWC, Inc., for the purpose of rebuilding urban core
2523	2523	neighborhoods through the construction of new homes, acquiring and
2524	2524	renovating existing homes and other related activities, and promoting
2525	2525	economic development in such neighborhoods;
2526	2526	(13) the cross-lines cooperative council for the purpose of providing
2527	2527	social services to low income individuals and families;
2528	2528	(14) the dreams work, inc., for the purpose of providing young adult
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2571	2571	43 SB 325 31
2572	2572	day services to individuals with developmental disabilities and assisting
2573	2573	families in avoiding institutional or nursing home care for a
2574	2574	developmentally disabled member of their family;
2575	2575	(15) the KSDS, Inc., for the purpose of promoting the independence
2576	2576	and inclusion of people with disabilities as fully participating and
2577	2577	contributing members of their communities and society through the
2578	2578	training and providing of guide and service dogs to people with
2579	2579	disabilities, and providing disability education and awareness to the
2580	2580	general public;
2581	2581	(16) the lyme association of greater Kansas City, Inc., for the purpose
2582	2582	of providing support to persons with lyme disease and public education
2583	2583	relating to the prevention, treatment and cure of lyme disease;
2584	2584	(17) the dream factory, inc., for the purpose of granting the dreams of
2585	2585	children with critical and chronic illnesses;
2586	2586	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
2587	2587	students and families with education and resources necessary to enable
2588	2588	each child to develop fine character and musical ability to the fullest
2589	2589	potential;
2590	2590	(19) the international association of lions clubs for the purpose of
2591	2591	creating and fostering a spirit of understanding among all people for
2592	2592	humanitarian needs by providing voluntary services through community
2593	2593	involvement and international cooperation;
2594	2594	(20) the Johnson county young matrons, inc., for the purpose of
2595	2595	promoting a positive future for members of the community through
2596	2596	volunteerism, financial support and education through the efforts of an all
2597	2597	volunteer organization;
2598	2598	(21) the American cancer society, inc., for the purpose of eliminating
2599	2599	cancer as a major health problem by preventing cancer, saving lives and
2600	2600	diminishing suffering from cancer, through research, education, advocacy
2601	2601	and service;
2602	2602	(22) the community services of Shawnee, inc., for the purpose of
2603	2603	providing food and clothing to those in need;
2604	2604	(23) the angel babies association, for the purpose of providing
2605	2605	assistance, support and items of necessity to teenage mothers and their
2606	2606	babies; and
2607	2607	(24) the Kansas fairgrounds foundation for the purpose of the
2608	2608	preservation, renovation and beautification of the Kansas state fairgrounds;
2609	2609	(ww) all sales of tangible personal property purchased by the habitat
2610	2610	for humanity for the exclusive use of being incorporated within a housing
2611	2611	project constructed by such organization;
2612	2612	(xx) all sales of tangible personal property and services purchased by
2613	2613	a nonprofit zoo that is exempt from federal income taxation pursuant to
2614	2614	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
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2657	2657	43 SB 325 32
2658	2658	of such zoo by an entity itself exempt from federal income taxation
2659	2659	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
2660	2660	contracted with to operate such zoo and all sales of tangible personal
2661	2661	property or services purchased by a contractor for the purpose of
2662	2662	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
2663	2663	furnishing or remodeling facilities for any nonprofit zoo that would be
2664	2664	exempt from taxation under the provisions of this section if purchased
2665	2665	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
2666	2666	this subsection shall be deemed to exempt the purchase of any construction
2667	2667	machinery, equipment or tools used in the constructing, equipping,
2668	2668	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2669	2669	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
2670	2670	the purpose of constructing, equipping, reconstructing, maintaining,
2671	2671	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
2672	2672	from the state and furnish to the contractor an exemption certificate for the
2673	2673	project involved, and the contractor may purchase materials for
2674	2674	incorporation in such project. The contractor shall furnish the number of
2675	2675	such certificate to all suppliers from whom such purchases are made, and
2676	2676	such suppliers shall execute invoices covering the same bearing the
2677	2677	number of such certificate. Upon completion of the project the contractor
2678	2678	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
2679	2679	to be provided by the director of taxation, that all purchases so made were
2680	2680	entitled to exemption under this subsection. All invoices shall be held by
2681	2681	the contractor for a period of five years and shall be subject to audit by the
2682	2682	director of taxation. If any materials purchased under such a certificate are
2683	2683	found not to have been incorporated in the building or other project or not
2684	2684	to have been returned for credit or the sales or compensating tax otherwise
2685	2685	imposed upon such materials that will not be so incorporated in the
2686	2686	building or other project reported and paid by such contractor to the
2687	2687	director of taxation not later than the 20
2688	2688	th
2689	2689	day of the month following the
2690	2690	close of the month in which it shall be determined that such materials will
2691	2691	not be used for the purpose for which such certificate was issued, the
2692	2692	nonprofit zoo concerned shall be liable for tax on all materials purchased
2693	2693	for the project, and upon payment thereof it may recover the same from
2694	2694	the contractor together with reasonable attorney fees. Any contractor or
2695	2695	any agent, employee or subcontractor thereof, who shall use or otherwise
2696	2696	dispose of any materials purchased under such a certificate for any purpose
2697	2697	other than that for which such a certificate is issued without the payment
2698	2698	of the sales or compensating tax otherwise imposed upon such materials,
2699	2699	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2700	2700	subject to the penalties provided for in K.S.A. 79-3615(h), and
2701	2701	amendments thereto;
2702	2702	(yy) all sales of tangible personal property and services purchased by
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2745	2745	43 SB 325 33
2746	2746	a parent-teacher association or organization, and all sales of tangible
2747	2747	personal property by or on behalf of such association or organization;
2748	2748	(zz) all sales of machinery and equipment purchased by over-the-air,
2749	2749	free access radio or television station that is used directly and primarily for
2750	2750	the purpose of producing a broadcast signal or is such that the failure of
2751	2751	the machinery or equipment to operate would cause broadcasting to cease.
2752	2752	For purposes of this subsection, machinery and equipment shall include,
2753	2753	but not be limited to, that required by rules and regulations of the federal
2754	2754	communications commission, and all sales of electricity which are
2755	2755	essential or necessary for the purpose of producing a broadcast signal or is
2756	2756	such that the failure of the electricity would cause broadcasting to cease;
2757	2757	(aaa) all sales of tangible personal property and services purchased by
2758	2758	a religious organization that is exempt from federal income taxation
2759	2759	pursuant to section 501(c)(3) of the federal internal revenue code, and used
2760	2760	exclusively for religious purposes, and all sales of tangible personal
2761	2761	property or services purchased by a contractor for the purpose of
2762	2762	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
2763	2763	furnishing or remodeling facilities for any such organization that would be
2764	2764	exempt from taxation under the provisions of this section if purchased
2765	2765	directly by such organization. Nothing in this subsection shall be deemed
2766	2766	to exempt the purchase of any construction machinery, equipment or tools
2767	2767	used in the constructing, equipping, reconstructing, maintaining, repairing,
2768	2768	enlarging, furnishing or remodeling facilities for any such organization.
2769	2769	When any such organization shall contract for the purpose of constructing,
2770	2770	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
2771	2771	remodeling facilities, it shall obtain from the state and furnish to the
2772	2772	contractor an exemption certificate for the project involved, and the
2773	2773	contractor may purchase materials for incorporation in such project. The
2774	2774	contractor shall furnish the number of such certificate to all suppliers from
2775	2775	whom such purchases are made, and such suppliers shall execute invoices
2776	2776	covering the same bearing the number of such certificate. Upon
2777	2777	completion of the project the contractor shall furnish to such organization
2778	2778	concerned a sworn statement, on a form to be provided by the director of
2779	2779	taxation, that all purchases so made were entitled to exemption under this
2780	2780	subsection. All invoices shall be held by the contractor for a period of five
2781	2781	years and shall be subject to audit by the director of taxation. If any
2782	2782	materials purchased under such a certificate are found not to have been
2783	2783	incorporated in the building or other project or not to have been returned
2784	2784	for credit or the sales or compensating tax otherwise imposed upon such
2785	2785	materials that will not be so incorporated in the building or other project
2786	2786	reported and paid by such contractor to the director of taxation not later
2787	2787	than the 20
2788	2788	th
2789	2789	day of the month following the close of the month in which it
2790	2790	shall be determined that such materials will not be used for the purpose for
2791	2791	1
2792	2792	2
2793	2793	3
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2833	2833	43 SB 325 34
2834	2834	which such certificate was issued, such organization concerned shall be
2835	2835	liable for tax on all materials purchased for the project, and upon payment
2836	2836	thereof it may recover the same from the contractor together with
2837	2837	reasonable attorney fees. Any contractor or any agent, employee or
2838	2838	subcontractor thereof, who shall use or otherwise dispose of any materials
2839	2839	purchased under such a certificate for any purpose other than that for
2840	2840	which such a certificate is issued without the payment of the sales or
2841	2841	compensating tax otherwise imposed upon such materials, shall be guilty
2842	2842	of a misdemeanor and, upon conviction therefor, shall be subject to the
2843	2843	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
2844	2844	Sales tax paid on and after July 1, 1998, but prior to the effective date of
2845	2845	this act upon the gross receipts received from any sale exempted by the
2846	2846	amendatory provisions of this subsection shall be refunded. Each claim for
2847	2847	a sales tax refund shall be verified and submitted to the director of taxation
2848	2848	upon forms furnished by the director and shall be accompanied by any
2849	2849	additional documentation required by the director. The director shall
2850	2850	review each claim and shall refund that amount of sales tax paid as
2851	2851	determined under the provisions of this subsection. All refunds shall be
2852	2852	paid from the sales tax refund fund upon warrants of the director of
2853	2853	accounts and reports pursuant to vouchers approved by the director or the
2854	2854	director's designee;
2855	2855	(bbb) all sales of food for human consumption by an organization that
2856	2856	is exempt from federal income taxation pursuant to section 501(c)(3) of
2857	2857	the federal internal revenue code of 1986, pursuant to a food distribution
2858	2858	program that offers such food at a price below cost in exchange for the
2859	2859	performance of community service by the purchaser thereof;
2860	2860	(ccc) on and after July 1, 1999, all sales of tangible personal property
2861	2861	and services purchased by a primary care clinic or health center the
2862	2862	primary purpose of which is to provide services to medically underserved
2863	2863	individuals and families, and that is exempt from federal income taxation
2864	2864	pursuant to section 501(c)(3) of the federal internal revenue code, and all
2865	2865	sales of tangible personal property or services purchased by a contractor
2866	2866	for the purpose of constructing, equipping, reconstructing, maintaining,
2867	2867	repairing, enlarging, furnishing or remodeling facilities for any such clinic
2868	2868	or center that would be exempt from taxation under the provisions of this
2869	2869	section if purchased directly by such clinic or center, except that for
2870	2870	taxable years commencing after December 31, 2013, this subsection shall
2871	2871	not apply to any sales of such tangible personal property and services
2872	2872	purchased by a primary care clinic or health center which performs any
2873	2873	abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
2874	2874	in this subsection shall be deemed to exempt the purchase of any
2875	2875	construction machinery, equipment or tools used in the constructing,
2876	2876	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
2877	2877	1
2878	2878	2
2879	2879	3
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2892	2892	16
2893	2893	17
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2897	2897	21
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2899	2899	23
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2901	2901	25
2902	2902	26
2903	2903	27
2904	2904	28
2905	2905	29
2906	2906	30
2907	2907	31
2908	2908	32
2909	2909	33
2910	2910	34
2911	2911	35
2912	2912	36
2913	2913	37
2914	2914	38
2915	2915	39
2916	2916	40
2917	2917	41
2918	2918	42
2919	2919	43 SB 325 35
2920	2920	remodeling facilities for any such clinic or center. When any such clinic or
2921	2921	center shall contract for the purpose of constructing, equipping,
2922	2922	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2923	2923	facilities, it shall obtain from the state and furnish to the contractor an
2924	2924	exemption certificate for the project involved, and the contractor may
2925	2925	purchase materials for incorporation in such project. The contractor shall
2926	2926	furnish the number of such certificate to all suppliers from whom such
2927	2927	purchases are made, and such suppliers shall execute invoices covering the
2928	2928	same bearing the number of such certificate. Upon completion of the
2929	2929	project the contractor shall furnish to such clinic or center concerned a
2930	2930	sworn statement, on a form to be provided by the director of taxation, that
2931	2931	all purchases so made were entitled to exemption under this subsection.
2932	2932	All invoices shall be held by the contractor for a period of five years and
2933	2933	shall be subject to audit by the director of taxation. If any materials
2934	2934	purchased under such a certificate are found not to have been incorporated
2935	2935	in the building or other project or not to have been returned for credit or
2936	2936	the sales or compensating tax otherwise imposed upon such materials that
2937	2937	will not be so incorporated in the building or other project reported and
2938	2938	paid by such contractor to the director of taxation not later than the 20
2939	2939	th
2940	2940	day of the month following the close of the month in which it shall be
2941	2941	determined that such materials will not be used for the purpose for which
2942	2942	such certificate was issued, such clinic or center concerned shall be liable
2943	2943	for tax on all materials purchased for the project, and upon payment
2944	2944	thereof it may recover the same from the contractor together with
2945	2945	reasonable attorney fees. Any contractor or any agent, employee or
2946	2946	subcontractor thereof, who shall use or otherwise dispose of any materials
2947	2947	purchased under such a certificate for any purpose other than that for
2948	2948	which such a certificate is issued without the payment of the sales or
2949	2949	compensating tax otherwise imposed upon such materials, shall be guilty
2950	2950	of a misdemeanor and, upon conviction therefor, shall be subject to the
2951	2951	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2952	2952	(ddd) on and after January 1, 1999, and before January 1, 2000, all
2953	2953	sales of materials and services purchased by any class II or III railroad as
2954	2954	classified by the federal surface transportation board for the construction,
2955	2955	renovation, repair or replacement of class II or III railroad track and
2956	2956	facilities used directly in interstate commerce. In the event any such track
2957	2957	or facility for which materials and services were purchased sales tax
2958	2958	exempt is not operational for five years succeeding the allowance of such
2959	2959	exemption, the total amount of sales tax that would have been payable
2960	2960	except for the operation of this subsection shall be recouped in accordance
2961	2961	with rules and regulations adopted for such purpose by the secretary of
2962	2962	revenue;
2963	2963	(eee) on and after January 1, 1999, and before January 1, 2001, all
2964	2964	1
2965	2965	2
2966	2966	3
2967	2967	4
2968	2968	5
2969	2969	6
2970	2970	7
2971	2971	8
2972	2972	9
2973	2973	10
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2975	2975	12
2976	2976	13
2977	2977	14
2978	2978	15
2979	2979	16
2980	2980	17
2981	2981	18
2982	2982	19
2983	2983	20
2984	2984	21
2985	2985	22
2986	2986	23
2987	2987	24
2988	2988	25
2989	2989	26
2990	2990	27
2991	2991	28
2992	2992	29
2993	2993	30
2994	2994	31
2995	2995	32
2996	2996	33
2997	2997	34
2998	2998	35
2999	2999	36
3000	3000	37
3001	3001	38
3002	3002	39
3003	3003	40
3004	3004	41
3005	3005	42
3006	3006	43 SB 325 36
3007	3007	sales of materials and services purchased for the original construction,
3008	3008	reconstruction, repair or replacement of grain storage facilities, including
3009	3009	railroad sidings providing access thereto;
3010	3010	(fff) all sales of material handling equipment, racking systems and
3011	3011	other related machinery and equipment that is used for the handling,
3012	3012	movement or storage of tangible personal property in a warehouse or
3013	3013	distribution facility in this state; all sales of installation, repair and
3014	3014	maintenance services performed on such machinery and equipment; and
3015	3015	all sales of repair and replacement parts for such machinery and
3016	3016	equipment. For purposes of this subsection, a warehouse or distribution
3017	3017	facility means a single, fixed location that consists of buildings or
3018	3018	structures in a contiguous area where storage or distribution operations are
3019	3019	conducted that are separate and apart from the business' retail operations,
3020	3020	if any, and that do not otherwise qualify for exemption as occurring at a
3021	3021	manufacturing or processing plant or facility. Material handling and
3022	3022	storage equipment shall include aeration, dust control, cleaning, handling
3023	3023	and other such equipment that is used in a public grain warehouse or other
3024	3024	commercial grain storage facility, whether used for grain handling, grain
3025	3025	storage, grain refining or processing, or other grain treatment operation;
3026	3026	(ggg) all sales of tangible personal property and services purchased
3027	3027	by or on behalf of the Kansas academy of science, which is exempt from
3028	3028	federal income taxation pursuant to section 501(c)(3) of the federal
3029	3029	internal revenue code of 1986, and used solely by such academy for the
3030	3030	preparation, publication and dissemination of education materials;
3031	3031	(hhh) all sales of tangible personal property and services purchased
3032	3032	by or on behalf of all domestic violence shelters that are member agencies
3033	3033	of the Kansas coalition against sexual and domestic violence;
3034	3034	(iii) all sales of personal property and services purchased by an
3035	3035	organization that is exempt from federal income taxation pursuant to
3036	3036	section 501(c)(3) of the federal internal revenue code of 1986, and such
3037	3037	personal property and services are used by any such organization in the
3038	3038	collection, storage and distribution of food products to nonprofit
3039	3039	organizations that distribute such food products to persons pursuant to a
3040	3040	food distribution program on a charitable basis without fee or charge, and
3041	3041	all sales of tangible personal property or services purchased by a
3042	3042	contractor for the purpose of constructing, equipping, reconstructing,
3043	3043	maintaining, repairing, enlarging, furnishing or remodeling facilities used
3044	3044	for the collection and storage of such food products for any such
3045	3045	organization which is exempt from federal income taxation pursuant to
3046	3046	section 501(c)(3) of the federal internal revenue code of 1986, that would
3047	3047	be exempt from taxation under the provisions of this section if purchased
3048	3048	directly by such organization. Nothing in this subsection shall be deemed
3049	3049	to exempt the purchase of any construction machinery, equipment or tools
3050	3050	1
3051	3051	2
3052	3052	3
3053	3053	4
3054	3054	5
3055	3055	6
3056	3056	7
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3058	3058	9
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3060	3060	11
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3073	3073	24
3074	3074	25
3075	3075	26
3076	3076	27
3077	3077	28
3078	3078	29
3079	3079	30
3080	3080	31
3081	3081	32
3082	3082	33
3083	3083	34
3084	3084	35
3085	3085	36
3086	3086	37
3087	3087	38
3088	3088	39
3089	3089	40
3090	3090	41
3091	3091	42
3092	3092	43 SB 325 37
3093	3093	used in the constructing, equipping, reconstructing, maintaining, repairing,
3094	3094	enlarging, furnishing or remodeling facilities for any such organization.
3095	3095	When any such organization shall contract for the purpose of constructing,
3096	3096	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3097	3097	remodeling facilities, it shall obtain from the state and furnish to the
3098	3098	contractor an exemption certificate for the project involved, and the
3099	3099	contractor may purchase materials for incorporation in such project. The
3100	3100	contractor shall furnish the number of such certificate to all suppliers from
3101	3101	whom such purchases are made, and such suppliers shall execute invoices
3102	3102	covering the same bearing the number of such certificate. Upon
3103	3103	completion of the project the contractor shall furnish to such organization
3104	3104	concerned a sworn statement, on a form to be provided by the director of
3105	3105	taxation, that all purchases so made were entitled to exemption under this
3106	3106	subsection. All invoices shall be held by the contractor for a period of five
3107	3107	years and shall be subject to audit by the director of taxation. If any
3108	3108	materials purchased under such a certificate are found not to have been
3109	3109	incorporated in such facilities or not to have been returned for credit or the
3110	3110	sales or compensating tax otherwise imposed upon such materials that will
3111	3111	not be so incorporated in such facilities reported and paid by such
3112	3112	contractor to the director of taxation not later than the 20
3113	3113	th
3114	3114	day of the
3115	3115	month following the close of the month in which it shall be determined
3116	3116	that such materials will not be used for the purpose for which such
3117	3117	certificate was issued, such organization concerned shall be liable for tax
3118	3118	on all materials purchased for the project, and upon payment thereof it
3119	3119	may recover the same from the contractor together with reasonable
3120	3120	attorney fees. Any contractor or any agent, employee or subcontractor
3121	3121	thereof, who shall use or otherwise dispose of any materials purchased
3122	3122	under such a certificate for any purpose other than that for which such a
3123	3123	certificate is issued without the payment of the sales or compensating tax
3124	3124	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3125	3125	and, upon conviction therefor, shall be subject to the penalties provided for
3126	3126	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
3127	3127	July 1, 2005, but prior to the effective date of this act upon the gross
3128	3128	receipts received from any sale exempted by the amendatory provisions of
3129	3129	this subsection shall be refunded. Each claim for a sales tax refund shall be
3130	3130	verified and submitted to the director of taxation upon forms furnished by
3131	3131	the director and shall be accompanied by any additional documentation
3132	3132	required by the director. The director shall review each claim and shall
3133	3133	refund that amount of sales tax paid as determined under the provisions of
3134	3134	this subsection. All refunds shall be paid from the sales tax refund fund
3135	3135	upon warrants of the director of accounts and reports pursuant to vouchers
3136	3136	approved by the director or the director's designee;
3137	3137	(jjj) all sales of dietary supplements dispensed pursuant to a
3138	3138	1
3139	3139	2
3140	3140	3
3141	3141	4
3142	3142	5
3143	3143	6
3144	3144	7
3145	3145	8
3146	3146	9
3147	3147	10
3148	3148	11
3149	3149	12
3150	3150	13
3151	3151	14
3152	3152	15
3153	3153	16
3154	3154	17
3155	3155	18
3156	3156	19
3157	3157	20
3158	3158	21
3159	3159	22
3160	3160	23
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3162	3162	25
3163	3163	26
3164	3164	27
3165	3165	28
3166	3166	29
3167	3167	30
3168	3168	31
3169	3169	32
3170	3170	33
3171	3171	34
3172	3172	35
3173	3173	36
3174	3174	37
3175	3175	38
3176	3176	39
3177	3177	40
3178	3178	41
3179	3179	42
3180	3180	43 SB 325 38
3181	3181	prescription order by a licensed practitioner or a mid-level practitioner as
3182	3182	defined by K.S.A. 65-1626, and amendments thereto. As used in this
3183	3183	subsection, "dietary supplement" means any product, other than tobacco,
3184	3184	intended to supplement the diet that: (1) Contains one or more of the
3185	3185	following dietary ingredients: A vitamin, a mineral, an herb or other
3186	3186	botanical, an amino acid, a dietary substance for use by humans to
3187	3187	supplement the diet by increasing the total dietary intake or a concentrate,
3188	3188	metabolite, constituent, extract or combination of any such ingredient; (2)
3189	3189	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
3190	3190	liquid form, or if not intended for ingestion, in such a form, is not
3191	3191	represented as conventional food and is not represented for use as a sole
3192	3192	item of a meal or of the diet; and (3) is required to be labeled as a dietary
3193	3193	supplement, identifiable by the supplemental facts box found on the label
3194	3194	and as required pursuant to 21 C.F.R. § 101.36;
3195	3195	(lll) all sales of tangible personal property and services purchased by
3196	3196	special olympics Kansas, inc. for the purpose of providing year-round
3197	3197	sports training and athletic competition in a variety of olympic-type sports
3198	3198	for individuals with intellectual disabilities by giving them continuing
3199	3199	opportunities to develop physical fitness, demonstrate courage, experience
3200	3200	joy and participate in a sharing of gifts, skills and friendship with their
3201	3201	families, other special olympics athletes and the community, and activities
3202	3202	provided or sponsored by such organization, and all sales of tangible
3203	3203	personal property by or on behalf of any such organization;
3204	3204	(mmm) all sales of tangible personal property purchased by or on
3205	3205	behalf of the Marillac center, inc., which is exempt from federal income
3206	3206	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3207	3207	for the purpose of providing psycho-social-biological and special
3208	3208	education services to children, and all sales of any such property by or on
3209	3209	behalf of such organization for such purpose;
3210	3210	(nnn) all sales of tangible personal property and services purchased
3211	3211	by the west Sedgwick county-sunrise rotary club and sunrise charitable
3212	3212	fund for the purpose of constructing a boundless playground which is an
3213	3213	integrated, barrier free and developmentally advantageous play
3214	3214	environment for children of all abilities and disabilities;
3215	3215	(ooo) all sales of tangible personal property by or on behalf of a
3216	3216	public library serving the general public and supported in whole or in part
3217	3217	with tax money or a not-for-profit organization whose purpose is to raise
3218	3218	funds for or provide services or other benefits to any such public library;
3219	3219	(ppp) all sales of tangible personal property and services purchased
3220	3220	by or on behalf of a homeless shelter that is exempt from federal income
3221	3221	taxation pursuant to section 501(c)(3) of the federal income tax code of
3222	3222	1986, and used by any such homeless shelter to provide emergency and
3223	3223	transitional housing for individuals and families experiencing
3224	3224	1
3225	3225	2
3226	3226	3
3227	3227	4
3228	3228	5
3229	3229	6
3230	3230	7
3231	3231	8
3232	3232	9
3233	3233	10
3234	3234	11
3235	3235	12
3236	3236	13
3237	3237	14
3238	3238	15
3239	3239	16
3240	3240	17
3241	3241	18
3242	3242	19
3243	3243	20
3244	3244	21
3245	3245	22
3246	3246	23
3247	3247	24
3248	3248	25
3249	3249	26
3250	3250	27
3251	3251	28
3252	3252	29
3253	3253	30
3254	3254	31
3255	3255	32
3256	3256	33
3257	3257	34
3258	3258	35
3259	3259	36
3260	3260	37
3261	3261	38
3262	3262	39
3263	3263	40
3264	3264	41
3265	3265	42
3266	3266	43 SB 325 39
3267	3267	homelessness, and all sales of any such property by or on behalf of any
3268	3268	such homeless shelter for any such purpose;
3269	3269	(qqq) all sales of tangible personal property and services purchased
3270	3270	by TLC for children and families, inc., hereinafter referred to as TLC,
3271	3271	which is exempt from federal income taxation pursuant to section 501(c)
3272	3272	(3) of the federal internal revenue code of 1986, and such property and
3273	3273	services are used for the purpose of providing emergency shelter and
3274	3274	treatment for abused and neglected children as well as meeting additional
3275	3275	critical needs for children, juveniles and family, and all sales of any such
3276	3276	property by or on behalf of TLC for any such purpose; and all sales of
3277	3277	tangible personal property or services purchased by a contractor for the
3278	3278	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3279	3279	remodeling facilities for the operation of services for TLC for any such
3280	3280	purpose that would be exempt from taxation under the provisions of this
3281	3281	section if purchased directly by TLC. Nothing in this subsection shall be
3282	3282	deemed to exempt the purchase of any construction machinery, equipment
3283	3283	or tools used in the constructing, maintaining, repairing, enlarging,
3284	3284	furnishing or remodeling such facilities for TLC. When TLC contracts for
3285	3285	the purpose of constructing, maintaining, repairing, enlarging, furnishing
3286	3286	or remodeling such facilities, it shall obtain from the state and furnish to
3287	3287	the contractor an exemption certificate for the project involved, and the
3288	3288	contractor may purchase materials for incorporation in such project. The
3289	3289	contractor shall furnish the number of such certificate to all suppliers from
3290	3290	whom such purchases are made, and such suppliers shall execute invoices
3291	3291	covering the same bearing the number of such certificate. Upon
3292	3292	completion of the project the contractor shall furnish to TLC a sworn
3293	3293	statement, on a form to be provided by the director of taxation, that all
3294	3294	purchases so made were entitled to exemption under this subsection. All
3295	3295	invoices shall be held by the contractor for a period of five years and shall
3296	3296	be subject to audit by the director of taxation. If any materials purchased
3297	3297	under such a certificate are found not to have been incorporated in the
3298	3298	building or other project or not to have been returned for credit or the sales
3299	3299	or compensating tax otherwise imposed upon such materials that will not
3300	3300	be so incorporated in the building or other project reported and paid by
3301	3301	such contractor to the director of taxation not later than the 20
3302	3302	th
3303	3303	day of the
3304	3304	month following the close of the month in which it shall be determined
3305	3305	that such materials will not be used for the purpose for which such
3306	3306	certificate was issued, TLC shall be liable for tax on all materials
3307	3307	purchased for the project, and upon payment thereof it may recover the
3308	3308	same from the contractor together with reasonable attorney fees. Any
3309	3309	contractor or any agent, employee or subcontractor thereof, who shall use
3310	3310	or otherwise dispose of any materials purchased under such a certificate
3311	3311	for any purpose other than that for which such a certificate is issued
3312	3312	1
3313	3313	2
3314	3314	3
3315	3315	4
3316	3316	5
3317	3317	6
3318	3318	7
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3320	3320	9
3321	3321	10
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3324	3324	13
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3327	3327	16
3328	3328	17
3329	3329	18
3330	3330	19
3331	3331	20
3332	3332	21
3333	3333	22
3334	3334	23
3335	3335	24
3336	3336	25
3337	3337	26
3338	3338	27
3339	3339	28
3340	3340	29
3341	3341	30
3342	3342	31
3343	3343	32
3344	3344	33
3345	3345	34
3346	3346	35
3347	3347	36
3348	3348	37
3349	3349	38
3350	3350	39
3351	3351	40
3352	3352	41
3353	3353	42
3354	3354	43 SB 325 40
3355	3355	without the payment of the sales or compensating tax otherwise imposed
3356	3356	upon such materials, shall be guilty of a misdemeanor and, upon
3357	3357	conviction therefor, shall be subject to the penalties provided for in K.S.A.
3358	3358	79-3615(h), and amendments thereto;
3359	3359	(rrr) all sales of tangible personal property and services purchased by
3360	3360	any county law library maintained pursuant to law and sales of tangible
3361	3361	personal property and services purchased by an organization that would
3362	3362	have been exempt from taxation under the provisions of this subsection if
3363	3363	purchased directly by the county law library for the purpose of providing
3364	3364	legal resources to attorneys, judges, students and the general public, and
3365	3365	all sales of any such property by or on behalf of any such county law
3366	3366	library;
3367	3367	(sss) all sales of tangible personal property and services purchased by
3368	3368	catholic charities or youthville, hereinafter referred to as charitable family
3369	3369	providers, which is exempt from federal income taxation pursuant to
3370	3370	section 501(c)(3) of the federal internal revenue code of 1986, and which
3371	3371	such property and services are used for the purpose of providing
3372	3372	emergency shelter and treatment for abused and neglected children as well
3373	3373	as meeting additional critical needs for children, juveniles and family, and
3374	3374	all sales of any such property by or on behalf of charitable family
3375	3375	providers for any such purpose; and all sales of tangible personal property
3376	3376	or services purchased by a contractor for the purpose of constructing,
3377	3377	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3378	3378	the operation of services for charitable family providers for any such
3379	3379	purpose which would be exempt from taxation under the provisions of this
3380	3380	section if purchased directly by charitable family providers. Nothing in
3381	3381	this subsection shall be deemed to exempt the purchase of any construction
3382	3382	machinery, equipment or tools used in the constructing, maintaining,
3383	3383	repairing, enlarging, furnishing or remodeling such facilities for charitable
3384	3384	family providers. When charitable family providers contracts for the
3385	3385	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3386	3386	remodeling such facilities, it shall obtain from the state and furnish to the
3387	3387	contractor an exemption certificate for the project involved, and the
3388	3388	contractor may purchase materials for incorporation in such project. The
3389	3389	contractor shall furnish the number of such certificate to all suppliers from
3390	3390	whom such purchases are made, and such suppliers shall execute invoices
3391	3391	covering the same bearing the number of such certificate. Upon
3392	3392	completion of the project the contractor shall furnish to charitable family
3393	3393	providers a sworn statement, on a form to be provided by the director of
3394	3394	taxation, that all purchases so made were entitled to exemption under this
3395	3395	subsection. All invoices shall be held by the contractor for a period of five
3396	3396	years and shall be subject to audit by the director of taxation. If any
3397	3397	materials purchased under such a certificate are found not to have been
3398	3398	1
3399	3399	2
3400	3400	3
3401	3401	4
3402	3402	5
3403	3403	6
3404	3404	7
3405	3405	8
3406	3406	9
3407	3407	10
3408	3408	11
3409	3409	12
3410	3410	13
3411	3411	14
3412	3412	15
3413	3413	16
3414	3414	17
3415	3415	18
3416	3416	19
3417	3417	20
3418	3418	21
3419	3419	22
3420	3420	23
3421	3421	24
3422	3422	25
3423	3423	26
3424	3424	27
3425	3425	28
3426	3426	29
3427	3427	30
3428	3428	31
3429	3429	32
3430	3430	33
3431	3431	34
3432	3432	35
3433	3433	36
3434	3434	37
3435	3435	38
3436	3436	39
3437	3437	40
3438	3438	41
3439	3439	42
3440	3440	43 SB 325 41
3441	3441	incorporated in the building or other project or not to have been returned
3442	3442	for credit or the sales or compensating tax otherwise imposed upon such
3443	3443	materials that will not be so incorporated in the building or other project
3444	3444	reported and paid by such contractor to the director of taxation not later
3445	3445	than the 20
3446	3446	th
3447	3447	day of the month following the close of the month in which it
3448	3448	shall be determined that such materials will not be used for the purpose for
3449	3449	which such certificate was issued, charitable family providers shall be
3450	3450	liable for tax on all materials purchased for the project, and upon payment
3451	3451	thereof it may recover the same from the contractor together with
3452	3452	reasonable attorney fees. Any contractor or any agent, employee or
3453	3453	subcontractor thereof, who shall use or otherwise dispose of any materials
3454	3454	purchased under such a certificate for any purpose other than that for
3455	3455	which such a certificate is issued without the payment of the sales or
3456	3456	compensating tax otherwise imposed upon such materials, shall be guilty
3457	3457	of a misdemeanor and, upon conviction therefor, shall be subject to the
3458	3458	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3459	3459	(ttt) all sales of tangible personal property or services purchased by a
3460	3460	contractor for a project for the purpose of restoring, constructing,
3461	3461	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3462	3462	remodeling a home or facility owned by a nonprofit museum that has been
3463	3463	granted an exemption pursuant to subsection (qq), which such home or
3464	3464	facility is located in a city that has been designated as a qualified
3465	3465	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
3466	3466	amendments thereto, and which such project is related to the purposes of
3467	3467	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
3468	3468	exempt from taxation under the provisions of this section if purchased
3469	3469	directly by such nonprofit museum. Nothing in this subsection shall be
3470	3470	deemed to exempt the purchase of any construction machinery, equipment
3471	3471	or tools used in the restoring, constructing, equipping, reconstructing,
3472	3472	maintaining, repairing, enlarging, furnishing or remodeling a home or
3473	3473	facility for any such nonprofit museum. When any such nonprofit museum
3474	3474	shall contract for the purpose of restoring, constructing, equipping,
3475	3475	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3476	3476	a home or facility, it shall obtain from the state and furnish to the
3477	3477	contractor an exemption certificate for the project involved, and the
3478	3478	contractor may purchase materials for incorporation in such project. The
3479	3479	contractor shall furnish the number of such certificates to all suppliers
3480	3480	from whom such purchases are made, and such suppliers shall execute
3481	3481	invoices covering the same bearing the number of such certificate. Upon
3482	3482	completion of the project, the contractor shall furnish to such nonprofit
3483	3483	museum a sworn statement on a form to be provided by the director of
3484	3484	taxation that all purchases so made were entitled to exemption under this
3485	3485	subsection. All invoices shall be held by the contractor for a period of five
3486	3486	1
3487	3487	2
3488	3488	3
3489	3489	4
3490	3490	5
3491	3491	6
3492	3492	7
3493	3493	8
3494	3494	9
3495	3495	10
3496	3496	11
3497	3497	12
3498	3498	13
3499	3499	14
3500	3500	15
3501	3501	16
3502	3502	17
3503	3503	18
3504	3504	19
3505	3505	20
3506	3506	21
3507	3507	22
3508	3508	23
3509	3509	24
3510	3510	25
3511	3511	26
3512	3512	27
3513	3513	28
3514	3514	29
3515	3515	30
3516	3516	31
3517	3517	32
3518	3518	33
3519	3519	34
3520	3520	35
3521	3521	36
3522	3522	37
3523	3523	38
3524	3524	39
3525	3525	40
3526	3526	41
3527	3527	42
3528	3528	43 SB 325 42
3529	3529	years and shall be subject to audit by the director of taxation. If any
3530	3530	materials purchased under such a certificate are found not to have been
3531	3531	incorporated in the building or other project or not to have been returned
3532	3532	for credit or the sales or compensating tax otherwise imposed upon such
3533	3533	materials that will not be so incorporated in a home or facility or other
3534	3534	project reported and paid by such contractor to the director of taxation not
3535	3535	later than the 20
3536	3536	th
3537	3537	day of the month following the close of the month in
3538	3538	which it shall be determined that such materials will not be used for the
3539	3539	purpose for which such certificate was issued, such nonprofit museum
3540	3540	shall be liable for tax on all materials purchased for the project, and upon
3541	3541	payment thereof it may recover the same from the contractor together with
3542	3542	reasonable attorney fees. Any contractor or any agent, employee or
3543	3543	subcontractor thereof, who shall use or otherwise dispose of any materials
3544	3544	purchased under such a certificate for any purpose other than that for
3545	3545	which such a certificate is issued without the payment of the sales or
3546	3546	compensating tax otherwise imposed upon such materials, shall be guilty
3547	3547	of a misdemeanor and, upon conviction therefor, shall be subject to the
3548	3548	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3549	3549	(uuu) all sales of tangible personal property and services purchased
3550	3550	by Kansas children's service league, hereinafter referred to as KCSL,
3551	3551	which is exempt from federal income taxation pursuant to section 501(c)
3552	3552	(3) of the federal internal revenue code of 1986, and which such property
3553	3553	and services are used for the purpose of providing for the prevention and
3554	3554	treatment of child abuse and maltreatment as well as meeting additional
3555	3555	critical needs for children, juveniles and family, and all sales of any such
3556	3556	property by or on behalf of KCSL for any such purpose; and all sales of
3557	3557	tangible personal property or services purchased by a contractor for the
3558	3558	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3559	3559	remodeling facilities for the operation of services for KCSL for any such
3560	3560	purpose that would be exempt from taxation under the provisions of this
3561	3561	section if purchased directly by KCSL. Nothing in this subsection shall be
3562	3562	deemed to exempt the purchase of any construction machinery, equipment
3563	3563	or tools used in the constructing, maintaining, repairing, enlarging,
3564	3564	furnishing or remodeling such facilities for KCSL. When KCSL contracts
3565	3565	for the purpose of constructing, maintaining, repairing, enlarging,
3566	3566	furnishing or remodeling such facilities, it shall obtain from the state and
3567	3567	furnish to the contractor an exemption certificate for the project involved,
3568	3568	and the contractor may purchase materials for incorporation in such
3569	3569	project. The contractor shall furnish the number of such certificate to all
3570	3570	suppliers from whom such purchases are made, and such suppliers shall
3571	3571	execute invoices covering the same bearing the number of such certificate.
3572	3572	Upon completion of the project the contractor shall furnish to KCSL a
3573	3573	sworn statement, on a form to be provided by the director of taxation, that
3574	3574	1
3575	3575	2
3576	3576	3
3577	3577	4
3578	3578	5
3579	3579	6
3580	3580	7
3581	3581	8
3582	3582	9
3583	3583	10
3584	3584	11
3585	3585	12
3586	3586	13
3587	3587	14
3588	3588	15
3589	3589	16
3590	3590	17
3591	3591	18
3592	3592	19
3593	3593	20
3594	3594	21
3595	3595	22
3596	3596	23
3597	3597	24
3598	3598	25
3599	3599	26
3600	3600	27
3601	3601	28
3602	3602	29
3603	3603	30
3604	3604	31
3605	3605	32
3606	3606	33
3607	3607	34
3608	3608	35
3609	3609	36
3610	3610	37
3611	3611	38
3612	3612	39
3613	3613	40
3614	3614	41
3615	3615	42
3616	3616	43 SB 325 43
3617	3617	all purchases so made were entitled to exemption under this subsection.
3618	3618	All invoices shall be held by the contractor for a period of five years and
3619	3619	shall be subject to audit by the director of taxation. If any materials
3620	3620	purchased under such a certificate are found not to have been incorporated
3621	3621	in the building or other project or not to have been returned for credit or
3622	3622	the sales or compensating tax otherwise imposed upon such materials that
3623	3623	will not be so incorporated in the building or other project reported and
3624	3624	paid by such contractor to the director of taxation not later than the 20
3625	3625	th
3626	3626	day of the month following the close of the month in which it shall be
3627	3627	determined that such materials will not be used for the purpose for which
3628	3628	such certificate was issued, KCSL shall be liable for tax on all materials
3629	3629	purchased for the project, and upon payment thereof it may recover the
3630	3630	same from the contractor together with reasonable attorney fees. Any
3631	3631	contractor or any agent, employee or subcontractor thereof, who shall use
3632	3632	or otherwise dispose of any materials purchased under such a certificate
3633	3633	for any purpose other than that for which such a certificate is issued
3634	3634	without the payment of the sales or compensating tax otherwise imposed
3635	3635	upon such materials, shall be guilty of a misdemeanor and, upon
3636	3636	conviction therefor, shall be subject to the penalties provided for in K.S.A.
3637	3637	79-3615(h), and amendments thereto;
3638	3638	(vvv) all sales of tangible personal property or services, including the
3639	3639	renting and leasing of tangible personal property or services, purchased by
3640	3640	jazz in the woods, inc., a Kansas corporation that is exempt from federal
3641	3641	income taxation pursuant to section 501(c)(3) of the federal internal
3642	3642	revenue code, for the purpose of providing jazz in the woods, an event
3643	3643	benefiting children-in-need and other nonprofit charities assisting such
3644	3644	children, and all sales of any such property by or on behalf of such
3645	3645	organization for such purpose;
3646	3646	(www) all sales of tangible personal property purchased by or on
3647	3647	behalf of the Frontenac education foundation, which is exempt from
3648	3648	federal income taxation pursuant to section 501(c)(3) of the federal
3649	3649	internal revenue code, for the purpose of providing education support for
3650	3650	students, and all sales of any such property by or on behalf of such
3651	3651	organization for such purpose;
3652	3652	(xxx) all sales of personal property and services purchased by the
3653	3653	booth theatre foundation, inc., an organization, which is exempt from
3654	3654	federal income taxation pursuant to section 501(c)(3) of the federal
3655	3655	internal revenue code of 1986, and which such personal property and
3656	3656	services are used by any such organization in the constructing, equipping,
3657	3657	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3658	3658	of the booth theatre, and all sales of tangible personal property or services
3659	3659	purchased by a contractor for the purpose of constructing, equipping,
3660	3660	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3661	3661	1
3662	3662	2
3663	3663	3
3664	3664	4
3665	3665	5
3666	3666	6
3667	3667	7
3668	3668	8
3669	3669	9
3670	3670	10
3671	3671	11
3672	3672	12
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3684	3684	24
3685	3685	25
3686	3686	26
3687	3687	27
3688	3688	28
3689	3689	29
3690	3690	30
3691	3691	31
3692	3692	32
3693	3693	33
3694	3694	34
3695	3695	35
3696	3696	36
3697	3697	37
3698	3698	38
3699	3699	39
3700	3700	40
3701	3701	41
3702	3702	42
3703	3703	43 SB 325 44
3704	3704	the booth theatre for such organization, that would be exempt from
3705	3705	taxation under the provisions of this section if purchased directly by such
3706	3706	organization. Nothing in this subsection shall be deemed to exempt the
3707	3707	purchase of any construction machinery, equipment or tools used in the
3708	3708	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3709	3709	furnishing or remodeling facilities for any such organization. When any
3710	3710	such organization shall contract for the purpose of constructing, equipping,
3711	3711	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3712	3712	facilities, it shall obtain from the state and furnish to the contractor an
3713	3713	exemption certificate for the project involved, and the contractor may
3714	3714	purchase materials for incorporation in such project. The contractor shall
3715	3715	furnish the number of such certificate to all suppliers from whom such
3716	3716	purchases are made, and such suppliers shall execute invoices covering the
3717	3717	same bearing the number of such certificate. Upon completion of the
3718	3718	project the contractor shall furnish to such organization concerned a sworn
3719	3719	statement, on a form to be provided by the director of taxation, that all
3720	3720	purchases so made were entitled to exemption under this subsection. All
3721	3721	invoices shall be held by the contractor for a period of five years and shall
3722	3722	be subject to audit by the director of taxation. If any materials purchased
3723	3723	under such a certificate are found not to have been incorporated in such
3724	3724	facilities or not to have been returned for credit or the sales or
3725	3725	compensating tax otherwise imposed upon such materials that will not be
3726	3726	so incorporated in such facilities reported and paid by such contractor to
3727	3727	the director of taxation not later than the 20
3728	3728	th
3729	3729	day of the month following
3730	3730	the close of the month in which it shall be determined that such materials
3731	3731	will not be used for the purpose for which such certificate was issued, such
3732	3732	organization concerned shall be liable for tax on all materials purchased
3733	3733	for the project, and upon payment thereof it may recover the same from
3734	3734	the contractor together with reasonable attorney fees. Any contractor or
3735	3735	any agent, employee or subcontractor thereof, who shall use or otherwise
3736	3736	dispose of any materials purchased under such a certificate for any purpose
3737	3737	other than that for which such a certificate is issued without the payment
3738	3738	of the sales or compensating tax otherwise imposed upon such materials,
3739	3739	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3740	3740	subject to the penalties provided for in K.S.A. 79-3615(h), and
3741	3741	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
3742	3742	to the effective date of this act upon the gross receipts received from any
3743	3743	sale which would have been exempted by the provisions of this subsection
3744	3744	had such sale occurred after the effective date of this act shall be refunded.
3745	3745	Each claim for a sales tax refund shall be verified and submitted to the
3746	3746	director of taxation upon forms furnished by the director and shall be
3747	3747	accompanied by any additional documentation required by the director.
3748	3748	The director shall review each claim and shall refund that amount of sales
3749	3749	1
3750	3750	2
3751	3751	3
3752	3752	4
3753	3753	5
3754	3754	6
3755	3755	7
3756	3756	8
3757	3757	9
3758	3758	10
3759	3759	11
3760	3760	12
3761	3761	13
3762	3762	14
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3764	3764	16
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3770	3770	22
3771	3771	23
3772	3772	24
3773	3773	25
3774	3774	26
3775	3775	27
3776	3776	28
3777	3777	29
3778	3778	30
3779	3779	31
3780	3780	32
3781	3781	33
3782	3782	34
3783	3783	35
3784	3784	36
3785	3785	37
3786	3786	38
3787	3787	39
3788	3788	40
3789	3789	41
3790	3790	42
3791	3791	43 SB 325 45
3792	3792	tax paid as determined under the provisions of this subsection. All refunds
3793	3793	shall be paid from the sales tax refund fund upon warrants of the director
3794	3794	of accounts and reports pursuant to vouchers approved by the director or
3795	3795	the director's designee;
3796	3796	(yyy) all sales of tangible personal property and services purchased
3797	3797	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
3798	3798	which is exempt from federal income taxation pursuant to section 501(c)
3799	3799	(3) of the federal internal revenue code of 1986, and which such property
3800	3800	and services are used for the purpose of encouraging private philanthropy
3801	3801	to further the vision, values, and goals of TLC for children and families,
3802	3802	inc.; and all sales of such property and services by or on behalf of TLC
3803	3803	charities for any such purpose and all sales of tangible personal property or
3804	3804	services purchased by a contractor for the purpose of constructing,
3805	3805	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3806	3806	the operation of services for TLC charities for any such purpose that would
3807	3807	be exempt from taxation under the provisions of this section if purchased
3808	3808	directly by TLC charities. Nothing in this subsection shall be deemed to
3809	3809	exempt the purchase of any construction machinery, equipment or tools
3810	3810	used in the constructing, maintaining, repairing, enlarging, furnishing or
3811	3811	remodeling such facilities for TLC charities. When TLC charities contracts
3812	3812	for the purpose of constructing, maintaining, repairing, enlarging,
3813	3813	furnishing or remodeling such facilities, it shall obtain from the state and
3814	3814	furnish to the contractor an exemption certificate for the project involved,
3815	3815	and the contractor may purchase materials for incorporation in such
3816	3816	project. The contractor shall furnish the number of such certificate to all
3817	3817	suppliers from whom such purchases are made, and such suppliers shall
3818	3818	execute invoices covering the same bearing the number of such certificate.
3819	3819	Upon completion of the project the contractor shall furnish to TLC
3820	3820	charities a sworn statement, on a form to be provided by the director of
3821	3821	taxation, that all purchases so made were entitled to exemption under this
3822	3822	subsection. All invoices shall be held by the contractor for a period of five
3823	3823	years and shall be subject to audit by the director of taxation. If any
3824	3824	materials purchased under such a certificate are found not to have been
3825	3825	incorporated in the building or other project or not to have been returned
3826	3826	for credit or the sales or compensating tax otherwise imposed upon such
3827	3827	materials that will not be incorporated into the building or other project
3828	3828	reported and paid by such contractor to the director of taxation not later
3829	3829	than the 20
3830	3830	th
3831	3831	day of the month following the close of the month in which it
3832	3832	shall be determined that such materials will not be used for the purpose for
3833	3833	which such certificate was issued, TLC charities shall be liable for tax on
3834	3834	all materials purchased for the project, and upon payment thereof it may
3835	3835	recover the same from the contractor together with reasonable attorney
3836	3836	fees. Any contractor or any agent, employee or subcontractor thereof, who
3837	3837	1
3838	3838	2
3839	3839	3
3840	3840	4
3841	3841	5
3842	3842	6
3843	3843	7
3844	3844	8
3845	3845	9
3846	3846	10
3847	3847	11
3848	3848	12
3849	3849	13
3850	3850	14
3851	3851	15
3852	3852	16
3853	3853	17
3854	3854	18
3855	3855	19
3856	3856	20
3857	3857	21
3858	3858	22
3859	3859	23
3860	3860	24
3861	3861	25
3862	3862	26
3863	3863	27
3864	3864	28
3865	3865	29
3866	3866	30
3867	3867	31
3868	3868	32
3869	3869	33
3870	3870	34
3871	3871	35
3872	3872	36
3873	3873	37
3874	3874	38
3875	3875	39
3876	3876	40
3877	3877	41
3878	3878	42
3879	3879	43 SB 325 46
3880	3880	shall use or otherwise dispose of any materials purchased under such a
3881	3881	certificate for any purpose other than that for which such a certificate is
3882	3882	issued without the payment of the sales or compensating tax otherwise
3883	3883	imposed upon such materials, shall be guilty of a misdemeanor and, upon
3884	3884	conviction therefor, shall be subject to the penalties provided for in K.S.A.
3885	3885	79-3615(h), and amendments thereto;
3886	3886	(zzz) all sales of tangible personal property purchased by the rotary
3887	3887	club of shawnee foundation, which is exempt from federal income taxation
3888	3888	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
3889	3889	as amended, used for the purpose of providing contributions to community
3890	3890	service organizations and scholarships;
3891	3891	(aaaa) all sales of personal property and services purchased by or on
3892	3892	behalf of victory in the valley, inc., which is exempt from federal income
3893	3893	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3894	3894	for the purpose of providing a cancer support group and services for
3895	3895	persons with cancer, and all sales of any such property by or on behalf of
3896	3896	any such organization for any such purpose;
3897	3897	(bbbb) all sales of entry or participation fees, charges or tickets by
3898	3898	Guadalupe health foundation, which is exempt from federal income
3899	3899	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3900	3900	for such organization's annual fundraising event which purpose is to
3901	3901	provide health care services for uninsured workers;
3902	3902	(cccc) all sales of tangible personal property or services purchased by
3903	3903	or on behalf of wayside waifs, inc., which is exempt from federal income
3904	3904	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3905	3905	for the purpose of providing such organization's annual fundraiser, an
3906	3906	event whose purpose is to support the care of homeless and abandoned
3907	3907	animals, animal adoption efforts, education programs for children and
3908	3908	efforts to reduce animal over-population and animal welfare services, and
3909	3909	all sales of any such property, including entry or participation fees or
3910	3910	charges, by or on behalf of such organization for such purpose;
3911	3911	(dddd) all sales of tangible personal property or services purchased
3912	3912	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
3913	3913	of which are exempt from federal income taxation pursuant to section
3914	3914	501(c)(3) of the federal internal revenue code, for the purpose of providing
3915	3915	education, training and employment opportunities for people with
3916	3916	disabilities and other barriers to employment;
3917	3917	(eeee) all sales of tangible personal property or services purchased by
3918	3918	or on behalf of all American beef battalion, inc., which is exempt from
3919	3919	federal income taxation pursuant to section 501(c)(3) of the federal
3920	3920	internal revenue code, for the purpose of educating, promoting and
3921	3921	participating as a contact group through the beef cattle industry in order to
3922	3922	carry out such projects that provide support and morale to members of the
3923	3923	1
3924	3924	2
3925	3925	3
3926	3926	4
3927	3927	5
3928	3928	6
3929	3929	7
3930	3930	8
3931	3931	9
3932	3932	10
3933	3933	11
3934	3934	12
3935	3935	13
3936	3936	14
3937	3937	15
3938	3938	16
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3949	3949	27
3950	3950	28
3951	3951	29
3952	3952	30
3953	3953	31
3954	3954	32
3955	3955	33
3956	3956	34
3957	3957	35
3958	3958	36
3959	3959	37
3960	3960	38
3961	3961	39
3962	3962	40
3963	3963	41
3964	3964	42
3965	3965	43 SB 325 47
3966	3966	United States armed forces and military services;
3967	3967	(ffff) all sales of tangible personal property and services purchased by
3968	3968	sheltered living, inc., which is exempt from federal income taxation
3969	3969	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
3970	3970	and which such property and services are used for the purpose of
3971	3971	providing residential and day services for people with developmental
3972	3972	disabilities or intellectual disability, or both, and all sales of any such
3973	3973	property by or on behalf of sheltered living, inc., for any such purpose; and
3974	3974	all sales of tangible personal property or services purchased by a
3975	3975	contractor for the purpose of rehabilitating, constructing, maintaining,
3976	3976	repairing, enlarging, furnishing or remodeling homes and facilities for
3977	3977	sheltered living, inc., for any such purpose that would be exempt from
3978	3978	taxation under the provisions of this section if purchased directly by
3979	3979	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
3980	3980	the purchase of any construction machinery, equipment or tools used in the
3981	3981	constructing, maintaining, repairing, enlarging, furnishing or remodeling
3982	3982	such homes and facilities for sheltered living, inc. When sheltered living,
3983	3983	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
3984	3984	repairing, enlarging, furnishing or remodeling such homes and facilities, it
3985	3985	shall obtain from the state and furnish to the contractor an exemption
3986	3986	certificate for the project involved, and the contractor may purchase
3987	3987	materials for incorporation in such project. The contractor shall furnish the
3988	3988	number of such certificate to all suppliers from whom such purchases are
3989	3989	made, and such suppliers shall execute invoices covering the same bearing
3990	3990	the number of such certificate. Upon completion of the project the
3991	3991	contractor shall furnish to sheltered living, inc., a sworn statement, on a
3992	3992	form to be provided by the director of taxation, that all purchases so made
3993	3993	were entitled to exemption under this subsection. All invoices shall be held
3994	3994	by the contractor for a period of five years and shall be subject to audit by
3995	3995	the director of taxation. If any materials purchased under such a certificate
3996	3996	are found not to have been incorporated in the building or other project or
3997	3997	not to have been returned for credit or the sales or compensating tax
3998	3998	otherwise imposed upon such materials that will not be so incorporated in
3999	3999	the building or other project reported and paid by such contractor to the
4000	4000	director of taxation not later than the 20
4001	4001	th
4002	4002	day of the month following the
4003	4003	close of the month in which it shall be determined that such materials will
4004	4004	not be used for the purpose for which such certificate was issued, sheltered
4005	4005	living, inc., shall be liable for tax on all materials purchased for the
4006	4006	project, and upon payment thereof it may recover the same from the
4007	4007	contractor together with reasonable attorney fees. Any contractor or any
4008	4008	agent, employee or subcontractor thereof, who shall use or otherwise
4009	4009	dispose of any materials purchased under such a certificate for any purpose
4010	4010	other than that for which such a certificate is issued without the payment
4011	4011	1
4012	4012	2
4013	4013	3
4014	4014	4
4015	4015	5
4016	4016	6
4017	4017	7
4018	4018	8
4019	4019	9
4020	4020	10
4021	4021	11
4022	4022	12
4023	4023	13
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4035	4035	25
4036	4036	26
4037	4037	27
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4039	4039	29
4040	4040	30
4041	4041	31
4042	4042	32
4043	4043	33
4044	4044	34
4045	4045	35
4046	4046	36
4047	4047	37
4048	4048	38
4049	4049	39
4050	4050	40
4051	4051	41
4052	4052	42
4053	4053	43 SB 325 48
4054	4054	of the sales or compensating tax otherwise imposed upon such materials,
4055	4055	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4056	4056	subject to the penalties provided for in K.S.A. 79-3615(h), and
4057	4057	amendments thereto;
4058	4058	(gggg) all sales of game birds for which the primary purpose is use in
4059	4059	hunting;
4060	4060	(hhhh) all sales of tangible personal property or services purchased
4061	4061	on or after July 1, 2014, for the purpose of and in conjunction with
4062	4062	constructing, reconstructing, enlarging or remodeling a business identified
4063	4063	under the North American industry classification system (NAICS)
4064	4064	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
4065	4065	installation of machinery and equipment purchased for installation at any
4066	4066	such business. The exemption provided in this subsection shall not apply
4067	4067	to projects that have actual total costs less than $50,000. When a person
4068	4068	contracts for the construction, reconstruction, enlargement or remodeling
4069	4069	of any such business, such person shall obtain from the state and furnish to
4070	4070	the contractor an exemption certificate for the project involved, and the
4071	4071	contractor may purchase materials, machinery and equipment for
4072	4072	incorporation in such project. The contractor shall furnish the number of
4073	4073	such certificates to all suppliers from whom such purchases are made, and
4074	4074	such suppliers shall execute invoices covering the same bearing the
4075	4075	number of such certificate. Upon completion of the project, the contractor
4076	4076	shall furnish to the owner of the business a sworn statement, on a form to
4077	4077	be provided by the director of taxation, that all purchases so made were
4078	4078	entitled to exemption under this subsection. All invoices shall be held by
4079	4079	the contractor for a period of five years and shall be subject to audit by the
4080	4080	director of taxation. Any contractor or any agent, employee or
4081	4081	subcontractor of the contractor, who shall use or otherwise dispose of any
4082	4082	materials, machinery or equipment purchased under such a certificate for
4083	4083	any purpose other than that for which such a certificate is issued without
4084	4084	the payment of the sales or compensating tax otherwise imposed thereon,
4085	4085	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4086	4086	subject to the penalties provided for in K.S.A. 79-3615(h), and
4087	4087	amendments thereto;
4088	4088	(iiii) all sales of tangible personal property or services purchased by a
4089	4089	contractor for the purpose of constructing, maintaining, repairing,
4090	4090	enlarging, furnishing or remodeling facilities for the operation of services
4091	4091	for Wichita children's home for any such purpose that would be exempt
4092	4092	from taxation under the provisions of this section if purchased directly by
4093	4093	Wichita children's home. Nothing in this subsection shall be deemed to
4094	4094	exempt the purchase of any construction machinery, equipment or tools
4095	4095	used in the constructing, maintaining, repairing, enlarging, furnishing or
4096	4096	remodeling such facilities for Wichita children's home. When Wichita
4097	4097	1
4098	4098	2
4099	4099	3
4100	4100	4
4101	4101	5
4102	4102	6
4103	4103	7
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4109	4109	13
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4117	4117	21
4118	4118	22
4119	4119	23
4120	4120	24
4121	4121	25
4122	4122	26
4123	4123	27
4124	4124	28
4125	4125	29
4126	4126	30
4127	4127	31
4128	4128	32
4129	4129	33
4130	4130	34
4131	4131	35
4132	4132	36
4133	4133	37
4134	4134	38
4135	4135	39
4136	4136	40
4137	4137	41
4138	4138	42
4139	4139	43 SB 325 49
4140	4140	children's home contracts for the purpose of constructing, maintaining,
4141	4141	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
4142	4142	from the state and furnish to the contractor an exemption certificate for the
4143	4143	project involved, and the contractor may purchase materials for
4144	4144	incorporation in such project. The contractor shall furnish the number of
4145	4145	such certificate to all suppliers from whom such purchases are made, and
4146	4146	such suppliers shall execute invoices covering the same bearing the
4147	4147	number of such certificate. Upon completion of the project, the contractor
4148	4148	shall furnish to Wichita children's home a sworn statement, on a form to be
4149	4149	provided by the director of taxation, that all purchases so made were
4150	4150	entitled to exemption under this subsection. All invoices shall be held by
4151	4151	the contractor for a period of five years and shall be subject to audit by the
4152	4152	director of taxation. If any materials purchased under such a certificate are
4153	4153	found not to have been incorporated in the building or other project or not
4154	4154	to have been returned for credit or the sales or compensating tax otherwise
4155	4155	imposed upon such materials that will not be so incorporated in the
4156	4156	building or other project reported and paid by such contractor to the
4157	4157	director of taxation not later than the 20
4158	4158	th
4159	4159	day of the month following the
4160	4160	close of the month in which it shall be determined that such materials will
4161	4161	not be used for the purpose for which such certificate was issued, Wichita
4162	4162	children's home shall be liable for the tax on all materials purchased for the
4163	4163	project, and upon payment, it may recover the same from the contractor
4164	4164	together with reasonable attorney fees. Any contractor or any agent,
4165	4165	employee or subcontractor, who shall use or otherwise dispose of any
4166	4166	materials purchased under such a certificate for any purpose other than that
4167	4167	for which such a certificate is issued without the payment of the sales or
4168	4168	compensating tax otherwise imposed upon such materials, shall be guilty
4169	4169	of a misdemeanor and, upon conviction, shall be subject to the penalties
4170	4170	provided for in K.S.A. 79-3615(h), and amendments thereto;
4171	4171	(jjjj) all sales of tangible personal property or services purchased by
4172	4172	or on behalf of the beacon, inc., that is exempt from federal income
4173	4173	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4174	4174	for the purpose of providing those desiring help with food, shelter, clothing
4175	4175	and other necessities of life during times of special need;
4176	4176	(kkkk) all sales of tangible personal property and services purchased
4177	4177	by or on behalf of reaching out from within, inc., which is exempt from
4178	4178	federal income taxation pursuant to section 501(c)(3) of the federal
4179	4179	internal revenue code, for the purpose of sponsoring self-help programs for
4180	4180	incarcerated persons that will enable such incarcerated persons to become
4181	4181	role models for non-violence while in correctional facilities and productive
4182	4182	family members and citizens upon return to the community;
4183	4183	(llll) all sales of tangible personal property and services purchased by
4184	4184	Gove county healthcare endowment foundation, inc., which is exempt
4185	4185	1
4186	4186	2
4187	4187	3
4188	4188	4
4189	4189	5
4190	4190	6
4191	4191	7
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4209	4209	25
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4215	4215	31
4216	4216	32
4217	4217	33
4218	4218	34
4219	4219	35
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4221	4221	37
4222	4222	38
4223	4223	39
4224	4224	40
4225	4225	41
4226	4226	42
4227	4227	43 SB 325 50
4228	4228	from federal income taxation pursuant to section 501(c)(3) of the federal
4229	4229	internal revenue code of 1986, and which such property and services are
4230	4230	used for the purpose of constructing and equipping an airport in Quinter,
4231	4231	Kansas, and all sales of tangible personal property or services purchased
4232	4232	by a contractor for the purpose of constructing and equipping an airport in
4233	4233	Quinter, Kansas, for such organization, that would be exempt from
4234	4234	taxation under the provisions of this section if purchased directly by such
4235	4235	organization. Nothing in this subsection shall be deemed to exempt the
4236	4236	purchase of any construction machinery, equipment or tools used in the
4237	4237	constructing or equipping of facilities for such organization. When such
4238	4238	organization shall contract for the purpose of constructing or equipping an
4239	4239	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
4240	4240	contractor an exemption certificate for the project involved, and the
4241	4241	contractor may purchase materials for incorporation in such project. The
4242	4242	contractor shall furnish the number of such certificate to all suppliers from
4243	4243	whom such purchases are made, and such suppliers shall execute invoices
4244	4244	covering the same bearing the number of such certificate. Upon
4245	4245	completion of the project, the contractor shall furnish to such organization
4246	4246	concerned a sworn statement, on a form to be provided by the director of
4247	4247	taxation, that all purchases so made were entitled to exemption under this
4248	4248	subsection. All invoices shall be held by the contractor for a period of five
4249	4249	years and shall be subject to audit by the director of taxation. If any
4250	4250	materials purchased under such a certificate are found not to have been
4251	4251	incorporated in such facilities or not to have been returned for credit or the
4252	4252	sales or compensating tax otherwise imposed upon such materials that will
4253	4253	not be so incorporated in such facilities reported and paid by such
4254	4254	contractor to the director of taxation no later than the 20
4255	4255	th
4256	4256	day of the month
4257	4257	following the close of the month in which it shall be determined that such
4258	4258	materials will not be used for the purpose for which such certificate was
4259	4259	issued, such organization concerned shall be liable for tax on all materials
4260	4260	purchased for the project, and upon payment thereof it may recover the
4261	4261	same from the contractor together with reasonable attorney fees. Any
4262	4262	contractor or any agent, employee or subcontractor thereof, who purchased
4263	4263	under such a certificate for any purpose other than that for which such a
4264	4264	certificate is issued without the payment of the sales or compensating tax
4265	4265	otherwise imposed upon such materials, shall be guilty of a misdemeanor
4266	4266	and, upon conviction therefor, shall be subject to the penalties provided for
4267	4267	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
4268	4268	subsection shall expire and have no effect on and after July 1, 2019;
4269	4269	(mmmm) all sales of gold or silver coins; and palladium, platinum,
4270	4270	gold or silver bullion. For the purposes of this subsection, "bullion" means
4271	4271	bars, ingots or commemorative medallions of gold, silver, platinum,
4272	4272	palladium, or a combination thereof, for which the value of the metal
4273	4273	1
4274	4274	2
4275	4275	3
4276	4276	4
4277	4277	5
4278	4278	6
4279	4279	7
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4281	4281	9
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4284	4284	12
4285	4285	13
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4287	4287	15
4288	4288	16
4289	4289	17
4290	4290	18
4291	4291	19
4292	4292	20
4293	4293	21
4294	4294	22
4295	4295	23
4296	4296	24
4297	4297	25
4298	4298	26
4299	4299	27
4300	4300	28
4301	4301	29
4302	4302	30
4303	4303	31
4304	4304	32
4305	4305	33
4306	4306	34
4307	4307	35
4308	4308	36
4309	4309	37
4310	4310	38
4311	4311	39
4312	4312	40
4313	4313	41
4314	4314	42
4315	4315	43 SB 325 51
4316	4316	depends on its content and not the form;
4317	4317	(nnnn) all sales of tangible personal property or services purchased
4318	4318	by friends of hospice of Jefferson county, an organization that is exempt
4319	4319	from federal income taxation pursuant to section 501(c)(3) of the federal
4320	4320	internal revenue code of 1986, for the purpose of providing support to the
4321	4321	Jefferson county hospice agency in end-of-life care of Jefferson county
4322	4322	families, friends and neighbors, and all sales of entry or participation fees,
4323	4323	charges or tickets by friends of hospice of Jefferson county for such
4324	4324	organization's fundraising event for such purpose; and
4325	4325	(oooo) all sales of tangible personal property or services purchased
4326	4326	for the purpose of and in conjunction with constructing, reconstructing,
4327	4327	enlarging or remodeling a qualified business facility by a qualified firm or
4328	4328	qualified supplier that meets the requirements established in K.S.A. 2022
4329	4329	Supp. 74-50,312 and, 74-50,319, section 2 and section 7, and amendments
4330	4330	thereto, and that has been approved for a project exemption certificate by
4331	4331	the secretary of commerce, and the sale and installation of machinery and
4332	4332	equipment purchased by such qualified firm or qualified supplier or
4333	4333	qualified company for installation at any such qualified business facility.
4334	4334	When a person shall contract for the construction, reconstruction,
4335	4335	enlargement or remodeling of any such qualified business facility, such
4336	4336	person shall obtain from the state and furnish to the contractor an
4337	4337	exemption certificate for the project involved, and the contractor may
4338	4338	purchase materials, machinery and equipment for incorporation in such
4339	4339	project. The contractor shall furnish the number of such certificates to all
4340	4340	suppliers from whom such purchases are made, and such suppliers shall
4341	4341	execute invoices covering the same bearing the number of such certificate.
4342	4342	Upon completion of the project, the contractor shall furnish to the owner
4343	4343	of the qualified firm or, qualified supplier or qualified company a sworn
4344	4344	statement, on a form to be provided by the director of taxation, that all
4345	4345	purchases so made were entitled to exemption under this subsection. All
4346	4346	invoices shall be held by the contractor for a period of five years and shall
4347	4347	be subject to audit by the director of taxation. Any contractor or any agent,
4348	4348	employee or subcontractor thereof who shall use or otherwise dispose of
4349	4349	any materials, machinery or equipment purchased under such a certificate
4350	4350	for any purpose other than that for which such a certificate is issued
4351	4351	without the payment of the sales or compensating tax otherwise imposed
4352	4352	thereon, shall be guilty of a misdemeanor and, upon conviction therefor,
4353	4353	shall be subject to the penalties provided for in K.S.A. 79-3615(h), and
4354	4354	amendments thereto. As used in this subsection, "qualified business
4355	4355	facility," "qualified firm" and "qualified supplier" mean the same as
4356	4356	defined in K.S.A. 2022 Supp. 74-50,311, and amendments thereto, and
4357	4357	"qualified company" means the same as defined in section 1, and
4358	4358	amendments thereto.
4359	4359	1
4360	4360	2
4361	4361	3
4362	4362	4
4363	4363	5
4364	4364	6
4365	4365	7
4366	4366	8
4367	4367	9
4368	4368	10
4369	4369	11
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4371	4371	13
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4387	4387	29
4388	4388	30
4389	4389	31
4390	4390	32
4391	4391	33
4392	4392	34
4393	4393	35
4394	4394	36
4395	4395	37
4396	4396	38
4397	4397	39
4398	4398	40
4399	4399	41
4400	4400	42
4401	4401	43 SB 325 52
4402	4402	Sec. 10. K.S.A. 2022 Supp. 79-3606 is hereby repealed.
4403	4403	Sec. 11. This act shall take effect and be in force from and after its
4404	4404	publication in the statute book.
4405	4405	1
4406	4406	2
4407	4407	3