Kansas 2023-2024 Regular Session

Kansas Senate Bill SB377 Compare Versions

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1	1	Session of 2024
2	2	SENATE BILL No. 377
3	3	By Committee on Assessment and Taxation
4	4	1-22
5	5	AN ACT concerning taxation; relating to property tax; increasing extent of
6	6	exemption for residential property from statewide school levy; relating
7	7	to privilege tax; decreasing the normal tax rates on banks, trust
8	8	companies and savings and loan associations; relating to income tax;
9	9	increasing the tax credit amount for household and dependent care
10	10	expenses; eliminating the income limit to qualify for the subtraction
11	11	modification for social security income; increasing the Kansas standard
12	12	deduction; relating to sales and compensating use tax; providing a sales
13	13	tax exemption for certain sales of school supplies, computers and
14	14	clothing during an annual sales tax holiday; providing sales tax
15	15	exemptions for children’s diapers and feminine hygiene products;
16	16	reducing the state rate of tax on sales of food and food ingredients;
17	17	amending K.S.A. 79-1107, 79-1108 and 79-32,111c and K.S.A. 2023
18	18	Supp. 79-201x, 79-32,117, 79-32,119, 79-3603, 79-3603d, 79-3606,
19	19	79-3620, 79-3703 and 79-3710 and repealing the existing sections.
20	20	Be it enacted by the Legislature of the State of Kansas:
21	21	New Section 1. (a) (1) On and after July 1, 2024, during the four-day
22	22	period beginning at 12:01 a.m. on the first Thursday in August and ending
23	23	at midnight on the Sunday following, all back-to-school-related sales of
24	24	the following items shall be exempt from the tax imposed by the Kansas
25	25	retailers' sales tax act:
26	26	(A) Clothing or clothing accessories or equipment with a sales price
27	27	of $300 or less per item;
28	28	(B) school supplies, school instructional materials or school art
29	29	supplies with a sales price of $100 or less per item;
30	30	(C) prewritten computer software with a sales price of $300 or less
31	31	per item; and
32	32	(D) computers or school computer supplies with a sales price of
33	33	$2,000 or less per item.
34	34	(2) Only items priced at or below the price threshold established in
35	35	this subsection shall be exempt from taxation pursuant to this subsection.
36	36	Notwithstanding K.S.A. 79-3609, and amendments thereto, the seller of
37	37	items specified in this subsection is not required to obtain an exemption
38	38	certificate from the purchaser of such items during the period of time
39	39	specified in this subsection. There shall be no exemption pursuant to this
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76	76	subsection for only a portion of the price of an individual item.
77	77	(b) As used in this section:
78	78	(1) "Clothing" means all human wearing apparel suitable for general
79	79	use.
80	80	(A) "Clothing" includes, but is not limited to:
81	81	(i) Aprons, household and shop;
82	82	(ii) athletic supporters;
83	83	(iii) baby receiving blankets;
84	84	(iv) bathing suits and caps;
85	85	(v) beach capes and coats;
86	86	(vi) belts and suspenders;
87	87	(vii) boots;
88	88	(viii) coats and jackets;
89	89	(ix) costumes;
90	90	(x) diapers, children and adult, including disposable diapers;
91	91	(xi) ear muffs;
92	92	(xii) footlets;
93	93	(xiii) formal wear;
94	94	(xiv) garters and garter belts;
95	95	(xv) girdles;
96	96	(xvi) gloves and mittens for general use;
97	97	(xvii) hats and caps;
98	98	(xviii) hosiery;
99	99	(xix) insoles for shoes;
100	100	(xx) lab coats;
101	101	(xxi) neckties;
102	102	(xxii) overshoes;
103	103	(xxiii) pantyhose;
104	104	(xxiv) rainwear;
105	105	(xxv) rubber pants;
106	106	(xxvi) sandals;
107	107	(xxvii) scarves;
108	108	(xxviii) shoes and shoe laces;
109	109	(xxix) slippers;
110	110	(xxx) sneakers;
111	111	(xxxi) socks and stockings;
112	112	(xxxii) steel-toed shoes;
113	113	(xxxiii) underwear;
114	114	(xxxiv) uniforms, athletic and non-athletic; and
115	115	(xxxv) wedding apparel.
116	116	(B) "Clothing" does not include:
117	117	(i) Belt buckles sold separately;
118	118	(ii) costume masks sold separately;
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162	162	(iii) patches and emblems sold separately;
163	163	(iv) sewing equipment and supplies, including, but not limited to,
164	164	knitting needles, patterns, pins, scissors, sewing machines, sewing needles,
165	165	tape measures and thimbles; and
166	166	(v) sewing materials that become part of clothing, including, but not
167	167	limited to, buttons, fabric, lace, thread, yarn and zippers.
168	168	(2) "Clothing accessories or equipment" means incidental items worn
169	169	on the person or in conjunction with clothing. "Clothing accessories or
170	170	equipment" includes, but is not limited to:
171	171	(A) Briefcases;
172	172	(B) cosmetics;
173	173	(C) hair notions, including, but not limited to, barrettes, hair bows
174	174	and hair nets;
175	175	(D) handbags;
176	176	(E) handkerchiefs;
177	177	(F) jewelry;
178	178	(G) sunglasses, nonprescription;
179	179	(H) umbrellas;
180	180	(I) wallets;
181	181	(J) watches; and
182	182	(K) wigs and hairpieces.
183	183	(3) "Computer" means a personal computer such as a laptop or
184	184	desktop computer or a tablet, but not including a phone.
185	185	(4) "Eligible property" means an item of a type, such as clothing, that
186	186	qualifies for the sales tax exemption as provided in this section.
187	187	(5) "Layaway sale" means a transaction in which property is set aside
188	188	for future delivery to a customer who makes a deposit, agrees to pay the
189	189	balance of the purchase price over a period of time and, at the end of the
190	190	payment period, receives the property. An order is accepted for layaway by
191	191	the seller when the seller removes the property from normal inventory or
192	192	clearly identifies the property as sold to the purchaser.
193	193	(6) "Prewritten computer software" means the same as defined in
194	194	K.S.A. 79-3602, and amendments thereto, except that such term only
195	195	includes software designed for a computer as defined in this section.
196	196	(7) "Rain check" means the seller allows a customer to purchase an
197	197	item at a certain price at a later time, because the particular item was out of
198	198	stock.
199	199	(8) "School art supply" means an item commonly used by a student in
200	200	a course of study for artwork. The following is an all-inclusive list:
201	201	(A) Clay and glazes;
202	202	(B) paints; acrylic, tempera and oil;
203	203	(C) paintbrushes for artwork;
204	204	(D) sketch and drawing pads; and
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248	248	(E) watercolors.
249	249	(9) "School computer supply" means an item commonly used by a
250	250	student in a course of study in which a computer is used. The following is
251	251	an all-inclusive list:
252	252	(A) Computer storage media; diskettes, compact disks;
253	253	(B) handheld electronic schedulers, except devices that are cellular
254	254	phones;
255	255	(C) personal digital assistants, except devices that are cellular phones;
256	256	(D) computer printers; and
257	257	(E) printer supplies for computers; printer paper, printer ink.
258	258	(10) "School instructional material" means written material
259	259	commonly used by a student in a course of study as a reference and to
260	260	learn the subject being taught. The following is an all-inclusive list:
261	261	(A) Reference books;
262	262	(B) reference maps and globes;
263	263	(C) textbooks; and
264	264	(D) workbooks.
265	265	(11) "School supply" means an item commonly used by a student in a
266	266	course of study. The following is an all-inclusive list:
267	267	(A) Binders;
268	268	(B) book bags;
269	269	(C) calculators;
270	270	(D) cellophane tape;
271	271	(E) blackboard chalk;
272	272	(F) compasses;
273	273	(G) composition books;
274	274	(H) crayons;
275	275	(I) erasers;
276	276	(J) folders; expandable, pocket, plastic and manila;
277	277	(K) glue, paste and paste sticks;
278	278	(L) highlighters;
279	279	(M) index cards;
280	280	(N) index card boxes;
281	281	(O) legal pads;
282	282	(P) lunch boxes;
283	283	(Q) markers;
284	284	(R) notebooks;
285	285	(S) paper; loose leaf ruled notebook paper, copy paper, graph paper,
286	286	tracing paper, manila paper, colored paper, poster board and construction
287	287	paper;
288	288	(T) pencil boxes and other school supply boxes;
289	289	(U) pencil sharpeners;
290	290	(V) pencils;
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334	334	(W) pens;
335	335	(X) protractors;
336	336	(Y) rulers;
337	337	(Z) scissors; and
338	338	(AA) writing tablets.
339	339	(c) The secretary of revenue shall provide notice of the exemption
340	340	period to retailers at least 60 days prior to the first day of the calendar
341	341	month in which the exemption period established in this section
342	342	commences.
343	343	(d) The following procedures are to be used in administering the
344	344	exemption as provided in this section:
345	345	(1) A sale of eligible property under a layaway sale qualifies for
346	346	exemption if:
347	347	(A) Final payment on a layaway order is made by, and the property is
348	348	given to, the purchaser during the exemption period; or
349	349	(B) the purchaser selects the property and the retailer accepts the
350	350	order for the item during the exemption period for immediate delivery
351	351	upon full payment, even if delivery is made after the exemption period.
352	352	(2) There shall be no change during the period of exemption for the
353	353	handling of a bundled sale as treated for sales tax purposes at times other
354	354	than the exemption period.
355	355	(3) A discount by the seller reduces the sales price of the property,
356	356	and the discounted sales price determines whether the sales price is within
357	357	the price threshold provided in subsection (a). A coupon that reduces the
358	358	sales price is treated as a discount if the seller is not reimbursed for the
359	359	coupon amount by a third party. If a discount applies to the total amount
360	360	paid by a purchaser rather than to the sales price of a particular item and
361	361	the purchaser has purchased both eligible property and taxable property,
362	362	the seller shall allocate the discount based on the total sales prices of the
363	363	taxable property compared to the total sales prices of all property sold in
364	364	that same transaction.
365	365	(4) Articles that are normally sold as a single unit must continue to be
366	366	sold in that manner. Such articles cannot be priced separately and sold as
367	367	individual items in order to obtain the exemption.
368	368	(5) Eligible property that customers purchase during the exemption
369	369	period with use of a rain check will qualify for the exemption regardless of
370	370	when the rain check was issued. Issuance of a rain check during the
371	371	exemption period shall not qualify eligible property for the exemption if
372	372	the property is actually purchased after the exemption period.
373	373	(6) The procedure for an exchange in regards to an exemption is as
374	374	follows:
375	375	(A) If a customer purchases an item of eligible property during the
376	376	exemption period but later exchanges the item for a similar eligible item,
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420	420	even if a different size, different color or other feature, no additional tax is
421	421	due even if the exchange is made after the exemption period;
422	422	(B) if a customer purchases an item of eligible property during the
423	423	exemption period, but after the exemption period has ended the customer
424	424	returns the item and receives credit on the purchase of a different item, the
425	425	appropriate sales tax is due on the sale of the new item; and
426	426	(C) if a customer purchases an item of eligible property before the
427	427	exemption period, but during the exemption period the customer returns
428	428	the item and receives credit on the purchase of a different item of eligible
429	429	property, no sales tax is due on the sale of the new item if the new item is
430	430	purchased during the exemption period.
431	431	(7) For the purpose of an exemption, eligible property qualifies for
432	432	the exemption if:
433	433	(A) The item is both delivered to and paid for by the customer during
434	434	the exemption period; or
435	435	(B) the customer orders and pays for the item and the seller accepts
436	436	the order during the exemption period for immediate shipment, even if
437	437	delivery is made after the exemption period. For purposes of this
438	438	subparagraph, the seller accepts an order when the seller has taken action
439	439	to fill the order for immediate shipment. Actions to fill an order include
440	440	placement of an "in date" stamp on a mail order or assignment of an order
441	441	number to a telephone order. For purposes of this subparagraph, an order is
442	442	for immediate shipment when the customer does not request delayed
443	443	shipment. An order is for immediate shipment notwithstanding that the
444	444	shipment may be delayed because of a backlog of orders or because stock
445	445	is currently unavailable to, or on back order by, the seller.
446	446	(8) For a 60-day period immediately after the exemption period,
447	447	when a customer returns an item that would qualify for the exemption, no
448	448	credit for or refund of sales tax shall be given unless the customer provides
449	449	a receipt or invoice that shows tax was paid or the seller has sufficient
450	450	documentation to show that tax was paid on the specific item. The 60-day
451	451	period is set solely for the purpose of designating a time period during
452	452	which the customer must provide documentation that shows that sales tax
453	453	was paid on returned merchandise. The 60-day period is not intended to
454	454	change a seller's policy on the time period during which the seller will
455	455	accept returns.
456	456	(9) The time zone of the seller's location determines the authorized
457	457	time period for a sales tax holiday when the purchaser is located in one
458	458	time zone and a seller is located in another.
459	459	(e) The provisions of this section shall be a part of and supplemental
460	460	to the Kansas retailers' sales tax act.
461	461	Sec. 2. K.S.A. 2023 Supp. 79-201x is hereby amended to read as
462	462	follows: 79-201x. (a) For taxable year 2022, and all taxable years
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506	506	thereafter, the following described property, to the extent herein specified,
507	507	shall be and is hereby exempt from the property tax levied pursuant to the
508	508	provisions of K.S.A. 72-5142, and amendments thereto: Property used for
509	509	residential purposes to the extent of $40,000 of its appraised valuation.
510	510	(b) For taxable year 2023, and all taxable years thereafter, the dollar
511	511	amount of the extent of appraised valuation that is exempt pursuant to
512	512	subsection (a) shall be adjusted to reflect the average percentage change in
513	513	statewide residential valuation of all residential real property for the
514	514	preceding 10 years. Such average percentage change shall not be less than
515	515	zero. The director of property valuation shall calculate the average
516	516	percentage change for purposes of this annual adjustment and calculate the
517	517	dollar amount of the extent of appraised valuation that is exempt pursuant
518	518	to this section each year the following described property, to the extent
519	519	herein specified, shall be and is hereby exempt from the property tax levied
520	520	pursuant to the provisions of K.S.A. 72-5142, and amendments thereto:
521	521	Property used for residential purposes to the extent of $42,049 of its
522	522	appraised valuation.
523	523	(c) For taxable year 2024, and all taxable years thereafter, the
524	524	following described property, to the extent herein specified, shall be and is
525	525	hereby exempt from the property tax levied pursuant to the provisions of
526	526	K.S.A. 72-5142, and amendments thereto: Property used for residential
527	527	purposes to the extent of $100,000 of its appraised valuation.
528	528	Sec. 3. K.S.A. 79-1107 is hereby amended to read as follows: 79-
529	529	1107. Every national banking association and state bank located or doing
530	530	business within the state shall pay to the state for the privilege of doing
531	531	business within the state a tax according to or measured by its net income
532	532	for the next preceding taxable year to be computed as provided in this act.
533	533	Such tax shall consist of a normal tax and a surtax and shall be computed
534	534	as follows:
535	535	(a) (1) For tax year 2023, the normal tax shall be an amount equal to
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538	538	/4% 2.25% of such net income;
539	539	(2) for tax year 2024, the normal tax shall be an amount equal to
540	540	1.94% of such net income; and
541	541	(3) for tax year 2025, and all tax years thereafter, the normal tax
542	542	shall be an amount equal to 1.63% of such net income; and
543	543	(b) the surtax shall be an amount equal to 2
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545	545	/8% 2.125% of such net
546	546	income in excess of $25,000.
547	547	The tax levied shall be in lieu of ad valorem taxes which might
548	548	otherwise be imposed by the state or political subdivisions thereof upon
549	549	shares of capital stock or the intangible assets of national banking
550	550	associations and state banks.
551	551	Sec. 4. K.S.A. 79-1108 is hereby amended to read as follows: 79-
552	552	1108. Every trust company and savings and loan association located or
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596	596	doing business within the state shall pay to the state for the privilege of
597	597	doing business within the state a tax according to or measured by its net
598	598	income for the next preceding taxable year to be computed as provided in
599	599	this act. Such tax shall consist of a normal tax and a surtax and shall be
600	600	computed as follows:
601	601	(a) (1) For tax year 2023, the normal tax on every trust company and
602	602	savings and loan association shall be an amount equal to 2
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604	604	/4% 2.25% of
605	605	such net income;
606	606	(2) for tax year 2024, the normal tax shall be an amount equal to
607	607	1.93% of such net income; and
608	608	(3) for tax year 2025, and all tax years thereafter, the normal tax
609	609	shall be an amount equal to 1.61% of such net income; and
610	610	(b) the surtax on every trust company and savings and loan
611	611	association shall be an amount equal to 2
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613	613	/4% 2.25% of such net income in
614	614	excess of $25,000.
615	615	The tax levied shall be in lieu of ad valorem taxes which might
616	616	otherwise be imposed by the state or political subdivision thereof upon
617	617	shares of capital stock or other intangible assets of trust companies and
618	618	savings and loan associations.
619	619	Sec. 5. K.S.A. 79-32,111c is hereby amended to read as follows: 79-
620	620	32,111c. (a) There shall be allowed as a credit against the tax liability of a
621	621	resident individual imposed under the Kansas income tax act an amount
622	622	equal to 12.5% for tax year 2018; an amount equal to 18.75% for tax year
623	623	2019; and an amount equal to 25% for tax year years 2020 through 2023;
624	624	and an amount equal to 50% for tax year 2024, and all tax years thereafter,
625	625	of the amount of the credit allowed against such taxpayer's federal income
626	626	tax liability pursuant to 26 U.S.C. § 21 for the taxable year in which such
627	627	credit was claimed against the taxpayer's federal income tax liability.
628	628	(b) The credit allowed by subsection (a) shall not exceed the amount
629	629	of the tax imposed by K.S.A. 79-32,110, and amendments thereto, reduced
630	630	by the sum of any other credits allowable pursuant to law.
631	631	(c) No credit provided under this section shall be allowed to any
632	632	individual who fails to provide a valid social security number issued by the
633	633	social security administration, to such individual, the individual's spouse
634	634	and every dependent of the individual.
635	635	Sec. 6. K.S.A. 2023 Supp. 79-32,117 is hereby amended to read as
636	636	follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
637	637	means such individual's federal adjusted gross income for the taxable year,
638	638	with the modifications specified in this section.
639	639	(b) There shall be added to federal adjusted gross income:
640	640	(i) Interest income less any related expenses directly incurred in the
641	641	purchase of state or political subdivision obligations, to the extent that the
642	642	same is not included in federal adjusted gross income, on obligations of
643	643	1
644	644	2
645	645	3
646	646	4
647	647	5
648	648	6
649	649	7
650	650	8
651	651	9
652	652	10
653	653	11
654	654	12
655	655	13
656	656	14
657	657	15
658	658	16
659	659	17
660	660	18
661	661	19
662	662	20
663	663	21
664	664	22
665	665	23
666	666	24
667	667	25
668	668	26
669	669	27
670	670	28
671	671	29
672	672	30
673	673	31
674	674	32
675	675	33
676	676	34
677	677	35
678	678	36
679	679	37
680	680	38
681	681	39
682	682	40
683	683	41
684	684	42
685	685	43 SB 377 9
686	686	any state or political subdivision thereof, but to the extent that interest
687	687	income on obligations of this state or a political subdivision thereof issued
688	688	prior to January 1, 1988, is specifically exempt from income tax under the
689	689	laws of this state authorizing the issuance of such obligations, it shall be
690	690	excluded from computation of Kansas adjusted gross income whether or
691	691	not included in federal adjusted gross income. Interest income on
692	692	obligations of this state or a political subdivision thereof issued after
693	693	December 31, 1987, shall be excluded from computation of Kansas
694	694	adjusted gross income whether or not included in federal adjusted gross
695	695	income.
696	696	(ii) Taxes on or measured by income or fees or payments in lieu of
697	697	income taxes imposed by this state or any other taxing jurisdiction to the
698	698	extent deductible in determining federal adjusted gross income and not
699	699	credited against federal income tax. This paragraph shall not apply to taxes
700	700	imposed under the provisions of K.S.A. 79-1107 or 79-1108, and
701	701	amendments thereto, for privilege tax year 1995, and all such years
702	702	thereafter.
703	703	(iii) The federal net operating loss deduction, except that the federal
704	704	net operating loss deduction shall not be added to an individual's federal
705	705	adjusted gross income for tax years beginning after December 31, 2016.
706	706	(iv) Federal income tax refunds received by the taxpayer if the
707	707	deduction of the taxes being refunded resulted in a tax benefit for Kansas
708	708	income tax purposes during a prior taxable year. Such refunds shall be
709	709	included in income in the year actually received regardless of the method
710	710	of accounting used by the taxpayer. For purposes hereof, a tax benefit shall
711	711	be deemed to have resulted if the amount of the tax had been deducted in
712	712	determining income subject to a Kansas income tax for a prior year
713	713	regardless of the rate of taxation applied in such prior year to the Kansas
714	714	taxable income, but only that portion of the refund shall be included as
715	715	bears the same proportion to the total refund received as the federal taxes
716	716	deducted in the year to which such refund is attributable bears to the total
717	717	federal income taxes paid for such year. For purposes of the foregoing
718	718	sentence, federal taxes shall be considered to have been deducted only to
719	719	the extent such deduction does not reduce Kansas taxable income below
720	720	zero.
721	721	(v) The amount of any depreciation deduction or business expense
722	722	deduction claimed on the taxpayer's federal income tax return for any
723	723	capital expenditure in making any building or facility accessible to the
724	724	handicapped, for which expenditure the taxpayer claimed the credit
725	725	allowed by K.S.A. 79-32,177, and amendments thereto.
726	726	(vi) Any amount of designated employee contributions picked up by
727	727	an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965,
728	728	and amendments thereto.
729	729	1
730	730	2
731	731	3
732	732	4
733	733	5
734	734	6
735	735	7
736	736	8
737	737	9
738	738	10
739	739	11
740	740	12
741	741	13
742	742	14
743	743	15
744	744	16
745	745	17
746	746	18
747	747	19
748	748	20
749	749	21
750	750	22
751	751	23
752	752	24
753	753	25
754	754	26
755	755	27
756	756	28
757	757	29
758	758	30
759	759	31
760	760	32
761	761	33
762	762	34
763	763	35
764	764	36
765	765	37
766	766	38
767	767	39
768	768	40
769	769	41
770	770	42
771	771	43 SB 377 10
772	772	(vii) The amount of any charitable contribution made to the extent the
773	773	same is claimed as the basis for the credit allowed pursuant to K.S.A. 79-
774	774	32,196, and amendments thereto.
775	775	(viii) The amount of any costs incurred for improvements to a swine
776	776	facility, claimed for deduction in determining federal adjusted gross
777	777	income, to the extent the same is claimed as the basis for any credit
778	778	allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
779	779	(ix) The amount of any ad valorem taxes and assessments paid and
780	780	the amount of any costs incurred for habitat management or construction
781	781	and maintenance of improvements on real property, claimed for deduction
782	782	in determining federal adjusted gross income, to the extent the same is
783	783	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203,
784	784	and amendments thereto.
785	785	(x) Amounts received as nonqualified withdrawals, as defined by
786	786	K.S.A. 75-643, and amendments thereto, if, at the time of contribution to a
787	787	family postsecondary education savings account, such amounts were
788	788	subtracted from the federal adjusted gross income pursuant to subsection
789	789	(c)(xv) or if such amounts are not already included in the federal adjusted
790	790	gross income.
791	791	(xi) The amount of any contribution made to the same extent the
792	792	same is claimed as the basis for the credit allowed pursuant to K.S.A. 74-
793	793	50,154, and amendments thereto.
794	794	(xii) For taxable years commencing after December 31, 2004,
795	795	amounts received as withdrawals not in accordance with the provisions of
796	796	K.S.A. 74-50,204, and amendments thereto, if, at the time of contribution
797	797	to an individual development account, such amounts were subtracted from
798	798	the federal adjusted gross income pursuant to subsection (c)(xiii), or if
799	799	such amounts are not already included in the federal adjusted gross
800	800	income.
801	801	(xiii) The amount of any expenditures claimed for deduction in
802	802	determining federal adjusted gross income, to the extent the same is
803	803	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,217
804	804	through 79-32,220 or 79-32,222, and amendments thereto.
805	805	(xiv) The amount of any amortization deduction claimed in
806	806	determining federal adjusted gross income to the extent the same is
807	807	claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
808	808	thereto.
809	809	(xv) The amount of any expenditures claimed for deduction in
810	810	determining federal adjusted gross income, to the extent the same is
811	811	claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,223
812	812	through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-
813	813	32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-
814	814	32,251 through 79-32,254, and amendments thereto.
815	815	1
816	816	2
817	817	3
818	818	4
819	819	5
820	820	6
821	821	7
822	822	8
823	823	9
824	824	10
825	825	11
826	826	12
827	827	13
828	828	14
829	829	15
830	830	16
831	831	17
832	832	18
833	833	19
834	834	20
835	835	21
836	836	22
837	837	23
838	838	24
839	839	25
840	840	26
841	841	27
842	842	28
843	843	29
844	844	30
845	845	31
846	846	32
847	847	33
848	848	34
849	849	35
850	850	36
851	851	37
852	852	38
853	853	39
854	854	40
855	855	41
856	856	42
857	857	43 SB 377 11
858	858	(xvi) The amount of any amortization deduction claimed in
859	859	determining federal adjusted gross income to the extent the same is
860	860	claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
861	861	32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
862	862	(xvii) The amount of any amortization deduction claimed in
863	863	determining federal adjusted gross income to the extent the same is
864	864	claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
865	865	thereto.
866	866	(xviii) For taxable years commencing after December 31, 2006, the
867	867	amount of any ad valorem or property taxes and assessments paid to a state
868	868	other than Kansas or local government located in a state other than Kansas
869	869	by a taxpayer who resides in a state other than Kansas, when the law of
870	870	such state does not allow a resident of Kansas who earns income in such
871	871	other state to claim a deduction for ad valorem or property taxes or
872	872	assessments paid to a political subdivision of the state of Kansas in
873	873	determining taxable income for income tax purposes in such other state, to
874	874	the extent that such taxes and assessments are claimed as an itemized
875	875	deduction for federal income tax purposes.
876	876	(xix) For taxable years beginning after December 31, 2012, and
877	877	ending before January 1, 2017, the amount of any: (1) Loss from business
878	878	as determined under the federal internal revenue code and reported from
879	879	schedule C and on line 12 of the taxpayer's form 1040 federal individual
880	880	income tax return; (2) loss from rental real estate, royalties, partnerships, S
881	881	corporations, except those with wholly owned subsidiaries subject to the
882	882	Kansas privilege tax, estates, trusts, residual interest in real estate
883	883	mortgage investment conduits and net farm rental as determined under the
884	884	federal internal revenue code and reported from schedule E and on line 17
885	885	of the taxpayer's form 1040 federal individual income tax return; and (3)
886	886	farm loss as determined under the federal internal revenue code and
887	887	reported from schedule F and on line 18 of the taxpayer's form 1040
888	888	federal income tax return; all to the extent deducted or subtracted in
889	889	determining the taxpayer's federal adjusted gross income. For purposes of
890	890	this subsection, references to the federal form 1040 and federal schedule
891	891	C, schedule E, and schedule F, shall be to such form and schedules as they
892	892	existed for tax year 2011, and as revised thereafter by the internal revenue
893	893	service.
894	894	(xx) For taxable years beginning after December 31, 2012, and
895	895	ending before January 1, 2017, the amount of any deduction for self-
896	896	employment taxes under section 164(f) of the federal internal revenue
897	897	code as in effect on January 1, 2012, and amendments thereto, in
898	898	determining the federal adjusted gross income of an individual taxpayer, to
899	899	the extent the deduction is attributable to income reported on schedule C,
900	900	E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income
901	901	1
902	902	2
903	903	3
904	904	4
905	905	5
906	906	6
907	907	7
908	908	8
909	909	9
910	910	10
911	911	11
912	912	12
913	913	13
914	914	14
915	915	15
916	916	16
917	917	17
918	918	18
919	919	19
920	920	20
921	921	21
922	922	22
923	923	23
924	924	24
925	925	25
926	926	26
927	927	27
928	928	28
929	929	29
930	930	30
931	931	31
932	932	32
933	933	33
934	934	34
935	935	35
936	936	36
937	937	37
938	938	38
939	939	39
940	940	40
941	941	41
942	942	42
943	943	43 SB 377 12
944	944	tax return.
945	945	(xxi) For taxable years beginning after December 31, 2012, and
946	946	ending before January 1, 2017, the amount of any deduction for pension,
947	947	profit sharing, and annuity plans of self-employed individuals under
948	948	section 62(a)(6) of the federal internal revenue code as in effect on January
949	949	1, 2012, and amendments thereto, in determining the federal adjusted gross
950	950	income of an individual taxpayer.
951	951	(xxii) For taxable years beginning after December 31, 2012, and
952	952	ending before January 1, 2017, the amount of any deduction for health
953	953	insurance under section 162(l) of the federal internal revenue code as in
954	954	effect on January 1, 2012, and amendments thereto, in determining the
955	955	federal adjusted gross income of an individual taxpayer.
956	956	(xxiii) For taxable years beginning after December 31, 2012, and
957	957	ending before January 1, 2017, the amount of any deduction for domestic
958	958	production activities under section 199 of the federal internal revenue code
959	959	as in effect on January 1, 2012, and amendments thereto, in determining
960	960	the federal adjusted gross income of an individual taxpayer.
961	961	(xxiv) For taxable years commencing after December 31, 2013, that
962	962	portion of the amount of any expenditure deduction claimed in
963	963	determining federal adjusted gross income for expenses paid for medical
964	964	care of the taxpayer or the taxpayer's spouse or dependents when such
965	965	expenses were paid or incurred for an abortion, or for a health benefit plan,
966	966	as defined in K.S.A. 65-6731, and amendments thereto, for the purchase of
967	967	an optional rider for coverage of abortion in accordance with K.S.A. 40-
968	968	2,190, and amendments thereto, to the extent that such taxes and
969	969	assessments are claimed as an itemized deduction for federal income tax
970	970	purposes.
971	971	(xxv) For taxable years commencing after December 31, 2013, that
972	972	portion of the amount of any expenditure deduction claimed in
973	973	determining federal adjusted gross income for expenses paid by a taxpayer
974	974	for health care when such expenses were paid or incurred for abortion
975	975	coverage, a health benefit plan, as defined in K.S.A. 65-6731, and
976	976	amendments thereto, when such expenses were paid or incurred for
977	977	abortion coverage or amounts contributed to health savings accounts for
978	978	such taxpayer's employees for the purchase of an optional rider for
979	979	coverage of abortion in accordance with K.S.A. 40-2,190, and
980	980	amendments thereto, to the extent that such taxes and assessments are
981	981	claimed as a deduction for federal income tax purposes.
982	982	(xxvi) For all taxable years beginning after December 31, 2016, the
983	983	amount of any charitable contribution made to the extent the same is
984	984	claimed as the basis for the credit allowed pursuant to K.S.A. 72-4357, and
985	985	amendments thereto, and is also claimed as an itemized deduction for
986	986	federal income tax purposes.
987	987	1
988	988	2
989	989	3
990	990	4
991	991	5
992	992	6
993	993	7
994	994	8
995	995	9
996	996	10
997	997	11
998	998	12
999	999	13
1000	1000	14
1001	1001	15
1002	1002	16
1003	1003	17
1004	1004	18
1005	1005	19
1006	1006	20
1007	1007	21
1008	1008	22
1009	1009	23
1010	1010	24
1011	1011	25
1012	1012	26
1013	1013	27
1014	1014	28
1015	1015	29
1016	1016	30
1017	1017	31
1018	1018	32
1019	1019	33
1020	1020	34
1021	1021	35
1022	1022	36
1023	1023	37
1024	1024	38
1025	1025	39
1026	1026	40
1027	1027	41
1028	1028	42
1029	1029	43 SB 377 13
1030	1030	(xxvii) For all taxable years commencing after December 31, 2020,
1031	1031	the amount deducted by reason of a carryforward of disallowed business
1032	1032	interest pursuant to section 163(j) of the federal internal revenue code of
1033	1033	1986, as in effect on January 1, 2018.
1034	1034	(xxviii) For all taxable years beginning after December 31, 2021, the
1035	1035	amount of any contributions to, or earnings from, a first-time home buyer
1036	1036	savings account if distributions from the account were not used to pay for
1037	1037	expenses or transactions authorized pursuant to K.S.A. 2023 Supp. 58-
1038	1038	4904, and amendments thereto, or were not held for the minimum length
1039	1039	of time required pursuant to K.S.A. 2023 Supp. 58-4904, and amendments
1040	1040	thereto. Contributions to, or earnings from, such account shall also include
1041	1041	any amount resulting from the account holder not designating a surviving
1042	1042	payable on death beneficiary pursuant to K.S.A. 2023 Supp. 58-4904(e),
1043	1043	and amendments thereto.
1044	1044	(c) There shall be subtracted from federal adjusted gross income:
1045	1045	(i) Interest or dividend income on obligations or securities of any
1046	1046	authority, commission or instrumentality of the United States and its
1047	1047	possessions less any related expenses directly incurred in the purchase of
1048	1048	such obligations or securities, to the extent included in federal adjusted
1049	1049	gross income but exempt from state income taxes under the laws of the
1050	1050	United States.
1051	1051	(ii) Any amounts received which are included in federal adjusted
1052	1052	gross income but which are specifically exempt from Kansas income
1053	1053	taxation under the laws of the state of Kansas.
1054	1054	(iii) The portion of any gain or loss from the sale or other disposition
1055	1055	of property having a higher adjusted basis for Kansas income tax purposes
1056	1056	than for federal income tax purposes on the date such property was sold or
1057	1057	disposed of in a transaction in which gain or loss was recognized for
1058	1058	purposes of federal income tax that does not exceed such difference in
1059	1059	basis, but if a gain is considered a long-term capital gain for federal
1060	1060	income tax purposes, the modification shall be limited to that portion of
1061	1061	such gain which is included in federal adjusted gross income.
1062	1062	(iv) The amount necessary to prevent the taxation under this act of
1063	1063	any annuity or other amount of income or gain which was properly
1064	1064	included in income or gain and was taxed under the laws of this state for a
1065	1065	taxable year prior to the effective date of this act, as amended, to the
1066	1066	taxpayer, or to a decedent by reason of whose death the taxpayer acquired
1067	1067	the right to receive the income or gain, or to a trust or estate from which
1068	1068	the taxpayer received the income or gain.
1069	1069	(v) The amount of any refund or credit for overpayment of taxes on
1070	1070	or measured by income or fees or payments in lieu of income taxes
1071	1071	imposed by this state, or any taxing jurisdiction, to the extent included in
1072	1072	gross income for federal income tax purposes.
1073	1073	1
1074	1074	2
1075	1075	3
1076	1076	4
1077	1077	5
1078	1078	6
1079	1079	7
1080	1080	8
1081	1081	9
1082	1082	10
1083	1083	11
1084	1084	12
1085	1085	13
1086	1086	14
1087	1087	15
1088	1088	16
1089	1089	17
1090	1090	18
1091	1091	19
1092	1092	20
1093	1093	21
1094	1094	22
1095	1095	23
1096	1096	24
1097	1097	25
1098	1098	26
1099	1099	27
1100	1100	28
1101	1101	29
1102	1102	30
1103	1103	31
1104	1104	32
1105	1105	33
1106	1106	34
1107	1107	35
1108	1108	36
1109	1109	37
1110	1110	38
1111	1111	39
1112	1112	40
1113	1113	41
1114	1114	42
1115	1115	43 SB 377 14
1116	1116	(vi) Accumulation distributions received by a taxpayer as a
1117	1117	beneficiary of a trust to the extent that the same are included in federal
1118	1118	adjusted gross income.
1119	1119	(vii) Amounts received as annuities under the federal civil service
1120	1120	retirement system from the civil service retirement and disability fund and
1121	1121	other amounts received as retirement benefits in whatever form which
1122	1122	were earned for being employed by the federal government or for service
1123	1123	in the armed forces of the United States.
1124	1124	(viii) Amounts received by retired railroad employees as a
1125	1125	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
1126	1126	228c(a)(1) et seq.
1127	1127	(ix) Amounts received by retired employees of a city and by retired
1128	1128	employees of any board of such city as retirement allowances pursuant to
1129	1129	K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
1130	1130	ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
1131	1131	amendments thereto.
1132	1132	(x) For taxable years beginning after December 31, 1976, the amount
1133	1133	of the federal tentative jobs tax credit disallowance under the provisions of
1134	1134	26 U.S.C. § 280C. For taxable years ending after December 31, 1978, the
1135	1135	amount of the targeted jobs tax credit and work incentive credit
1136	1136	disallowances under 26 U.S.C. § 280C.
1137	1137	(xi) For taxable years beginning after December 31, 1986, dividend
1138	1138	income on stock issued by Kansas venture capital, inc.
1139	1139	(xii) For taxable years beginning after December 31, 1989, amounts
1140	1140	received by retired employees of a board of public utilities as pension and
1141	1141	retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249,
1142	1142	and amendments thereto.
1143	1143	(xiii) For taxable years beginning after December 31, 2004, amounts
1144	1144	contributed to and the amount of income earned on contributions deposited
1145	1145	to an individual development account under K.S.A. 74-50,201 et seq., and
1146	1146	amendments thereto.
1147	1147	(xiv) For all taxable years commencing after December 31, 1996, that
1148	1148	portion of any income of a bank organized under the laws of this state or
1149	1149	any other state, a national banking association organized under the laws of
1150	1150	the United States, an association organized under the savings and loan
1151	1151	code of this state or any other state, or a federal savings association
1152	1152	organized under the laws of the United States, for which an election as an
1153	1153	S corporation under subchapter S of the federal internal revenue code is in
1154	1154	effect, which accrues to the taxpayer who is a stockholder of such
1155	1155	corporation and which is not distributed to the stockholders as dividends of
1156	1156	the corporation. For taxable years beginning after December 31, 2012, and
1157	1157	ending before January 1, 2017, the amount of modification under this
1158	1158	subsection shall exclude the portion of income or loss reported on schedule
1159	1159	1
1160	1160	2
1161	1161	3
1162	1162	4
1163	1163	5
1164	1164	6
1165	1165	7
1166	1166	8
1167	1167	9
1168	1168	10
1169	1169	11
1170	1170	12
1171	1171	13
1172	1172	14
1173	1173	15
1174	1174	16
1175	1175	17
1176	1176	18
1177	1177	19
1178	1178	20
1179	1179	21
1180	1180	22
1181	1181	23
1182	1182	24
1183	1183	25
1184	1184	26
1185	1185	27
1186	1186	28
1187	1187	29
1188	1188	30
1189	1189	31
1190	1190	32
1191	1191	33
1192	1192	34
1193	1193	35
1194	1194	36
1195	1195	37
1196	1196	38
1197	1197	39
1198	1198	40
1199	1199	41
1200	1200	42
1201	1201	43 SB 377 15
1202	1202	E and included on line 17 of the taxpayer's form 1040 federal individual
1203	1203	income tax return.
1204	1204	(xv) For all taxable years beginning after December 31, 2017, the
1205	1205	cumulative amounts not exceeding $3,000, or $6,000 for a married couple
1206	1206	filing a joint return, for each designated beneficiary that are contributed to:
1207	1207	(1) A family postsecondary education savings account established under
1208	1208	the Kansas postsecondary education savings program or a qualified tuition
1209	1209	program established and maintained by another state or agency or
1210	1210	instrumentality thereof pursuant to section 529 of the internal revenue
1211	1211	code of 1986, as amended, for the purpose of paying the qualified higher
1212	1212	education expenses of a designated beneficiary; or (2) an achieving a
1213	1213	better life experience (ABLE) account established under the Kansas ABLE
1214	1214	savings program or a qualified ABLE program established and maintained
1215	1215	by another state or agency or instrumentality thereof pursuant to section
1216	1216	529A of the internal revenue code of 1986, as amended, for the purpose of
1217	1217	saving private funds to support an individual with a disability. The terms
1218	1218	and phrases used in this paragraph shall have the meaning respectively
1219	1219	ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and
1220	1220	amendments thereto, and the provisions of such sections are hereby
1221	1221	incorporated by reference for all purposes thereof.
1222	1222	(xvi) For all taxable years beginning after December 31, 2004,
1223	1223	amounts received by taxpayers who are or were members of the armed
1224	1224	forces of the United States, including service in the Kansas army and air
1225	1225	national guard, as a recruitment, sign up or retention bonus received by
1226	1226	such taxpayer as an incentive to join, enlist or remain in the armed services
1227	1227	of the United States, including service in the Kansas army and air national
1228	1228	guard, and amounts received for repayment of educational or student loans
1229	1229	incurred by or obligated to such taxpayer and received by such taxpayer as
1230	1230	a result of such taxpayer's service in the armed forces of the United States,
1231	1231	including service in the Kansas army and air national guard.
1232	1232	(xvii) For all taxable years beginning after December 31, 2004,
1233	1233	amounts received by taxpayers who are eligible members of the Kansas
1234	1234	army and air national guard as a reimbursement pursuant to K.S.A. 48-
1235	1235	281, and amendments thereto, and amounts received for death benefits
1236	1236	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
1237	1237	such death benefits are included in federal adjusted gross income of the
1238	1238	taxpayer.
1239	1239	(xviii) For the taxable year beginning after December 31, 2006,
1240	1240	amounts received as benefits under the federal social security act which
1241	1241	are included in federal adjusted gross income of a taxpayer with federal
1242	1242	adjusted gross income of $50,000 or less, whether such taxpayer's filing
1243	1243	status is single, head of household, married filing separate or married filing
1244	1244	jointly; and (1) For all taxable years beginning after December 31, 2007,
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1288	1288	and ending before January 1, 2024, amounts received as benefits under the
1289	1289	federal social security act which that are included in federal adjusted gross
1290	1290	income of a taxpayer with federal adjusted gross income of $75,000 or
1291	1291	less, whether such taxpayer's filing status is single, head of household,
1292	1292	married filing separate or married filing jointly.
1293	1293	(2) For all taxable years beginning after December 31, 2023,
1294	1294	amounts received as benefits under the federal social security act that are
1295	1295	included in federal adjusted gross income of a taxpayer.
1296	1296	(xix) Amounts received by retired employees of Washburn university
1297	1297	as retirement and pension benefits under the university's retirement plan.
1298	1298	(xx) For taxable years beginning after December 31, 2012, and
1299	1299	ending before January 1, 2017, the amount of any: (1) Net profit from
1300	1300	business as determined under the federal internal revenue code and
1301	1301	reported from schedule C and on line 12 of the taxpayer's form 1040
1302	1302	federal individual income tax return; (2) net income, not including
1303	1303	guaranteed payments as defined in section 707(c) of the federal internal
1304	1304	revenue code and as reported to the taxpayer from federal schedule K-1,
1305	1305	(form 1065-B), in box 9, code F or as reported to the taxpayer from federal
1306	1306	schedule K-1, (form 1065) in box 4, from rental real estate, royalties,
1307	1307	partnerships, S corporations, estates, trusts, residual interest in real estate
1308	1308	mortgage investment conduits and net farm rental as determined under the
1309	1309	federal internal revenue code and reported from schedule E and on line 17
1310	1310	of the taxpayer's form 1040 federal individual income tax return; and (3)
1311	1311	net farm profit as determined under the federal internal revenue code and
1312	1312	reported from schedule F and on line 18 of the taxpayer's form 1040
1313	1313	federal income tax return; all to the extent included in the taxpayer's
1314	1314	federal adjusted gross income. For purposes of this subsection, references
1315	1315	to the federal form 1040 and federal schedule C, schedule E, and schedule
1316	1316	F, shall be to such form and schedules as they existed for tax year 2011
1317	1317	and as revised thereafter by the internal revenue service.
1318	1318	(xxi) For all taxable years beginning after December 31, 2013,
1319	1319	amounts equal to the unreimbursed travel, lodging and medical
1320	1320	expenditures directly incurred by a taxpayer while living, or a dependent
1321	1321	of the taxpayer while living, for the donation of one or more human organs
1322	1322	of the taxpayer, or a dependent of the taxpayer, to another person for
1323	1323	human organ transplantation. The expenses may be claimed as a
1324	1324	subtraction modification provided for in this section to the extent the
1325	1325	expenses are not already subtracted from the taxpayer's federal adjusted
1326	1326	gross income. In no circumstances shall the subtraction modification
1327	1327	provided for in this section for any individual, or a dependent, exceed
1328	1328	$5,000. As used in this section, "human organ" means all or part of a liver,
1329	1329	pancreas, kidney, intestine, lung or bone marrow. The provisions of this
1330	1330	paragraph shall take effect on the day the secretary of revenue certifies to
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1374	1374	the director of the budget that the cost for the department of revenue of
1375	1375	modifications to the automated tax system for the purpose of
1376	1376	implementing this paragraph will not exceed $20,000.
1377	1377	(xxii) For taxable years beginning after December 31, 2012, and
1378	1378	ending before January 1, 2017, the amount of net gain from the sale of: (1)
1379	1379	Cattle and horses, regardless of age, held by the taxpayer for draft,
1380	1380	breeding, dairy or sporting purposes, and held by such taxpayer for 24
1381	1381	months or more from the date of acquisition; and (2) other livestock,
1382	1382	regardless of age, held by the taxpayer for draft, breeding, dairy or
1383	1383	sporting purposes, and held by such taxpayer for 12 months or more from
1384	1384	the date of acquisition. The subtraction from federal adjusted gross income
1385	1385	shall be limited to the amount of the additions recognized under the
1386	1386	provisions of subsection (b)(xix) attributable to the business in which the
1387	1387	livestock sold had been used. As used in this paragraph, the term
1388	1388	"livestock" shall not include poultry.
1389	1389	(xxiii) For all taxable years beginning after December 31, 2012,
1390	1390	amounts received under either the Overland Park, Kansas police
1391	1391	department retirement plan or the Overland Park, Kansas fire department
1392	1392	retirement plan, both as established by the city of Overland Park, pursuant
1393	1393	to the city's home rule authority.
1394	1394	(xxiv) For taxable years beginning after December 31, 2013, and
1395	1395	ending before January 1, 2017, the net gain from the sale from Christmas
1396	1396	trees grown in Kansas and held by the taxpayer for six years or more.
1397	1397	(xxv) For all taxable years commencing after December 31, 2020,
1398	1398	100% of global intangible low-taxed income under section 951A of the
1399	1399	federal internal revenue code of 1986, before any deductions allowed
1400	1400	under section 250(a)(1)(B) of such code.
1401	1401	(xxvi) For all taxable years commencing after December 31, 2020,
1402	1402	the amount disallowed as a deduction pursuant to section 163(j) of the
1403	1403	federal internal revenue code of 1986, as in effect on January 1, 2018.
1404	1404	(xxvii) For taxable years commencing after December 31, 2020, the
1405	1405	amount disallowed as a deduction pursuant to section 274 of the federal
1406	1406	internal revenue code of 1986 for meal expenditures shall be allowed to
1407	1407	the extent such expense was deductible for determining federal income tax
1408	1408	and was allowed and in effect on December 31, 2017.
1409	1409	(xxviii) For all taxable years beginning after December 31, 2021: (1)
1410	1410	The amount contributed to a first-time home buyer savings account
1411	1411	pursuant to K.S.A. 2023 Supp. 58-4903, and amendments thereto, in an
1412	1412	amount not to exceed $3,000 for an individual or $6,000 for a married
1413	1413	couple filing a joint return; or (2) amounts received as income earned from
1414	1414	assets in a first-time home buyer savings account.
1415	1415	(d) There shall be added to or subtracted from federal adjusted gross
1416	1416	income the taxpayer's share, as beneficiary of an estate or trust, of the
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1460	1460	Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
1461	1461	amendments thereto.
1462	1462	(e) The amount of modifications required to be made under this
1463	1463	section by a partner which relates to items of income, gain, loss, deduction
1464	1464	or credit of a partnership shall be determined under K.S.A. 79-32,131, and
1465	1465	amendments thereto, to the extent that such items affect federal adjusted
1466	1466	gross income of the partner.
1467	1467	Sec. 7. K.S.A. 2023 Supp. 79-32,119 is hereby amended to read as
1468	1468	follows: 79-32,119. (a) The Kansas standard deduction of an individual,
1469	1469	including a husband and wife who are either both residents or who file a
1470	1470	joint return as if both were residents, shall be equal to the sum of the
1471	1471	standard deduction amount allowed pursuant to this section, and the
1472	1472	additional standard deduction amount allowed pursuant to this section for
1473	1473	each such deduction allowable to such individual or to such husband and
1474	1474	wife under the federal internal revenue code.
1475	1475	(b) For tax year 1998, and all tax years thereafter, the additional
1476	1476	standard deduction amount shall be as follows: Single individual and head
1477	1477	of household filing status, $850; and married filing status, $700.
1478	1478	(c) (1) For tax year 2013 through tax year 2020, the standard
1479	1479	deduction amount of an individual, including husband and wife who are
1480	1480	either both residents or who file a joint return as if both were residents,
1481	1481	shall be as follows: Single individual filing status, $3,000; married filing
1482	1482	status, $7,500; and head of household filing status, $5,500.
1483	1483	(2) For tax year years 2021, and all tax years thereafter through 2023,
1484	1484	the standard deduction amount of an individual, including husband and
1485	1485	wife who are either both residents or who file a joint return as if both were
1486	1486	residents, shall be as follows: Single individual filing status, $3,500;
1487	1487	married filing status, $8,000; and head of household filing status, $6,000.
1488	1488	(3) For tax year 2024, and all tax years thereafter, the standard
1489	1489	deduction amount of an individual, including husband and wife who are
1490	1490	either both residents or who file a joint return as if both were residents,
1491	1491	shall be as follows: Single individual filing status, $5,000; married filing
1492	1492	status, $10,000; and head of household filing status, $7,500.
1493	1493	(d) For purposes of this section, the federal standard deduction
1494	1494	allowable to a husband and wife filing separate Kansas income tax returns
1495	1495	shall be determined on the basis that separate federal returns were filed,
1496	1496	and the federal standard deduction of a husband and wife filing a joint
1497	1497	Kansas income tax return shall be determined on the basis that a joint
1498	1498	federal income tax return was filed.
1499	1499	Sec. 8. K.S.A. 2023 Supp. 79-3603 is hereby amended to read as
1500	1500	follows: 79-3603. For the privilege of engaging in the business of selling
1501	1501	tangible personal property at retail in this state or rendering or furnishing
1502	1502	any of the services taxable under this act, there is hereby levied and there
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1546	1546	shall be collected and paid a tax at the rate of 6.5%. On and after January
1547	1547	1, 2023, 17% and on and after January 1, 2025 April 1, 2024, 18% of the
1548	1548	tax rate imposed pursuant to this section and the rate provided in K.S.A.
1549	1549	2023 Supp. 79-3603d, and amendments thereto, shall be levied for the
1550	1550	state highway fund, the state highway fund purposes and those purposes
1551	1551	specified in K.S.A. 68-416, and amendments thereto, and all revenue
1552	1552	collected and received from such tax levy shall be deposited in the state
1553	1553	highway fund.
1554	1554	Within a redevelopment district established pursuant to K.S.A. 74-
1555	1555	8921, and amendments thereto, there is hereby levied and there shall be
1556	1556	collected and paid an additional tax at the rate of 2% until the earlier of the
1557	1557	date the bonds issued to finance or refinance the redevelopment project
1558	1558	have been paid in full or the final scheduled maturity of the first series of
1559	1559	bonds issued to finance any part of the project.
1560	1560	Such tax shall be imposed upon:
1561	1561	(a) The gross receipts received from the sale of tangible personal
1562	1562	property at retail within this state;
1563	1563	(b) the gross receipts from intrastate, interstate or international
1564	1564	telecommunications services and any ancillary services sourced to this
1565	1565	state in accordance with K.S.A. 79-3673, and amendments thereto, except
1566	1566	that telecommunications service does not include: (1) Any interstate or
1567	1567	international 800 or 900 service; (2) any interstate or international private
1568	1568	communications service as defined in K.S.A. 79-3673, and amendments
1569	1569	thereto; (3) any value-added nonvoice data service; (4) any
1570	1570	telecommunication service to a provider of telecommunication services
1571	1571	which will be used to render telecommunications services, including
1572	1572	carrier access services; or (5) any service or transaction defined in this
1573	1573	section among entities classified as members of an affiliated group as
1574	1574	provided by section 1504 of the federal internal revenue code of 1986, as
1575	1575	in effect on January 1, 2001;
1576	1576	(c) the gross receipts from the sale or furnishing of gas, water,
1577	1577	electricity and heat, which sale is not otherwise exempt from taxation
1578	1578	under the provisions of this act, and whether furnished by municipally or
1579	1579	privately owned utilities, except that, on and after January 1, 2006, for
1580	1580	sales of gas, electricity and heat delivered through mains, lines or pipes to
1581	1581	residential premises for noncommercial use by the occupant of such
1582	1582	premises, and for agricultural use and also, for such use, all sales of
1583	1583	propane gas, the state rate shall be 0%; and for all sales of propane gas, LP
1584	1584	gas, coal, wood and other fuel sources for the production of heat or
1585	1585	lighting for noncommercial use of an occupant of residential premises, the
1586	1586	state rate shall be 0%, but such tax shall not be levied and collected upon
1587	1587	the gross receipts from: (1) The sale of a rural water district benefit unit;
1588	1588	(2) a water system impact fee, system enhancement fee or similar fee
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1631	1631	43 SB 377 20
1632	1632	collected by a water supplier as a condition for establishing service; or (3)
1633	1633	connection or reconnection fees collected by a water supplier;
1634	1634	(d) the gross receipts from the sale of meals or drinks furnished at any
1635	1635	private club, drinking establishment, catered event, restaurant, eating
1636	1636	house, dining car, hotel, drugstore or other place where meals or drinks are
1637	1637	regularly sold to the public;
1638	1638	(e) the gross receipts from the sale of admissions to any place
1639	1639	providing amusement, entertainment or recreation services including
1640	1640	admissions to state, county, district and local fairs, but such tax shall not
1641	1641	be levied and collected upon the gross receipts received from sales of
1642	1642	admissions to any cultural and historical event which occurs triennially;
1643	1643	(f) the gross receipts from the operation of any coin-operated device
1644	1644	dispensing or providing tangible personal property, amusement or other
1645	1645	services except laundry services, whether automatic or manually operated;
1646	1646	(g) the gross receipts from the service of renting of rooms by hotels,
1647	1647	as defined by K.S.A. 36-501, and amendments thereto, or by
1648	1648	accommodation brokers, as defined by K.S.A. 12-1692, and amendments
1649	1649	thereto, but such tax shall not be levied and collected upon the gross
1650	1650	receipts received from sales of such service to the federal government and
1651	1651	any agency, officer or employee thereof in association with the
1652	1652	performance of official government duties;
1653	1653	(h) the gross receipts from the service of renting or leasing of tangible
1654	1654	personal property except such tax shall not apply to the renting or leasing
1655	1655	of machinery, equipment or other personal property owned by a city and
1656	1656	purchased from the proceeds of industrial revenue bonds issued prior to
1657	1657	July 1, 1973, in accordance with the provisions of K.S.A. 12-1740 through
1658	1658	12-1749, and amendments thereto, and any city or lessee renting or leasing
1659	1659	such machinery, equipment or other personal property purchased with the
1660	1660	proceeds of such bonds who shall have paid a tax under the provisions of
1661	1661	this section upon sales made prior to July 1, 1973, shall be entitled to a
1662	1662	refund from the sales tax refund fund of all taxes paid thereon;
1663	1663	(i) the gross receipts from the rendering of dry cleaning, pressing,
1664	1664	dyeing and laundry services except laundry services rendered through a
1665	1665	coin-operated device whether automatic or manually operated;
1666	1666	(j) the gross receipts from the rendering of the services of washing
1667	1667	and washing and waxing of vehicles;
1668	1668	(k) the gross receipts from cable, community antennae and other
1669	1669	subscriber radio and television services;
1670	1670	(l) (1) except as otherwise provided by paragraph (2), the gross
1671	1671	receipts received from the sales of tangible personal property to all
1672	1672	contractors, subcontractors or repairmen for use by them in erecting
1673	1673	structures, or building on, or otherwise improving, altering, or repairing
1674	1674	real or personal property.
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1718	1718	(2) Any such contractor, subcontractor or repairman who maintains
1719	1719	an inventory of such property both for sale at retail and for use by them for
1720	1720	the purposes described by paragraph (1) shall be deemed a retailer with
1721	1721	respect to purchases for and sales from such inventory, except that the
1722	1722	gross receipts received from any such sale, other than a sale at retail, shall
1723	1723	be equal to the total purchase price paid for such property and the tax
1724	1724	imposed thereon shall be paid by the deemed retailer;
1725	1725	(m) the gross receipts received from fees and charges by public and
1726	1726	private clubs, drinking establishments, organizations and businesses for
1727	1727	participation in sports, games and other recreational activities, but such tax
1728	1728	shall not be levied and collected upon the gross receipts received from: (1)
1729	1729	Fees and charges by any political subdivision, by any organization exempt
1730	1730	from property taxation pursuant to K.S.A. 79-201 Ninth, and amendments
1731	1731	thereto, or by any youth recreation organization exclusively providing
1732	1732	services to persons 18 years of age or younger which is exempt from
1733	1733	federal income taxation pursuant to section 501(c)(3) of the federal
1734	1734	internal revenue code of 1986, for participation in sports, games and other
1735	1735	recreational activities; and (2) entry fees and charges for participation in a
1736	1736	special event or tournament sanctioned by a national sporting association
1737	1737	to which spectators are charged an admission which is taxable pursuant to
1738	1738	subsection (e);
1739	1739	(n) the gross receipts received from dues charged by public and
1740	1740	private clubs, drinking establishments, organizations and businesses,
1741	1741	payment of which entitles a member to the use of facilities for recreation
1742	1742	or entertainment, but such tax shall not be levied and collected upon the
1743	1743	gross receipts received from: (1) Dues charged by any organization exempt
1744	1744	from property taxation pursuant to K.S.A. 79-201 Eighth and Ninth, and
1745	1745	amendments thereto; and (2) sales of memberships in a nonprofit
1746	1746	organization which is exempt from federal income taxation pursuant to
1747	1747	section 501(c)(3) of the federal internal revenue code of 1986, and whose
1748	1748	purpose is to support the operation of a nonprofit zoo;
1749	1749	(o) the gross receipts received from the isolated or occasional sale of
1750	1750	motor vehicles or trailers but not including: (1) The transfer of motor
1751	1751	vehicles or trailers by a person to a corporation or limited liability
1752	1752	company solely in exchange for stock securities or membership interest in
1753	1753	such corporation or limited liability company; (2) the transfer of motor
1754	1754	vehicles or trailers by one corporation or limited liability company to
1755	1755	another when all of the assets of such corporation or limited liability
1756	1756	company are transferred to such other corporation or limited liability
1757	1757	company; or (3) the sale of motor vehicles or trailers which are subject to
1758	1758	taxation pursuant to the provisions of K.S.A. 79-5101 et seq., and
1759	1759	amendments thereto, by an immediate family member to another
1760	1760	immediate family member. For the purposes of paragraph (3), immediate
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1803	1803	43 SB 377 22
1804	1804	family member means lineal ascendants or descendants, and their spouses.
1805	1805	Any amount of sales tax paid pursuant to the Kansas retailers sales tax act
1806	1806	on the isolated or occasional sale of motor vehicles or trailers on and after
1807	1807	July 1, 2004, which the base for computing the tax was the value pursuant
1808	1808	to K.S.A. 79-5105(a), (b)(1) and (b)(2), and amendments thereto, when
1809	1809	such amount was higher than the amount of sales tax which would have
1810	1810	been paid under the law as it existed on June 30, 2004, shall be refunded to
1811	1811	the taxpayer pursuant to the procedure prescribed by this section. Such
1812	1812	refund shall be in an amount equal to the difference between the amount of
1813	1813	sales tax paid by the taxpayer and the amount of sales tax which would
1814	1814	have been paid by the taxpayer under the law as it existed on June 30,
1815	1815	2004. Each claim for a sales tax refund shall be verified and submitted not
1816	1816	later than six months from the effective date of this act to the director of
1817	1817	taxation upon forms furnished by the director and shall be accompanied by
1818	1818	any additional documentation required by the director. The director shall
1819	1819	review each claim and shall refund that amount of tax paid as provided by
1820	1820	this act. All such refunds shall be paid from the sales tax refund fund, upon
1821	1821	warrants of the director of accounts and reports pursuant to vouchers
1822	1822	approved by the director of taxation or the director's designee. No refund
1823	1823	for an amount less than $10 shall be paid pursuant to this act. In
1824	1824	determining the base for computing the tax on such isolated or occasional
1825	1825	sale, the fair market value of any motor vehicle or trailer traded in by the
1826	1826	purchaser to the seller may be deducted from the selling price;
1827	1827	(p) the gross receipts received for the service of installing or applying
1828	1828	tangible personal property which when installed or applied is not being
1829	1829	held for sale in the regular course of business, and whether or not such
1830	1830	tangible personal property when installed or applied remains tangible
1831	1831	personal property or becomes a part of real estate, except that no tax shall
1832	1832	be imposed upon the service of installing or applying tangible personal
1833	1833	property in connection with the original construction of a building or
1834	1834	facility, the original construction, reconstruction, restoration, remodeling,
1835	1835	renovation, repair or replacement of a residence or the construction,
1836	1836	reconstruction, restoration, replacement or repair of a bridge or highway.
1837	1837	For the purposes of this subsection:
1838	1838	(1) "Original construction" means the first or initial construction of a
1839	1839	new building or facility. The term "original construction" shall include the
1840	1840	addition of an entire room or floor to any existing building or facility, the
1841	1841	completion of any unfinished portion of any existing building or facility
1842	1842	and the restoration, reconstruction or replacement of a building, facility or
1843	1843	utility structure damaged or destroyed by fire, flood, tornado, lightning,
1844	1844	explosion, windstorm, ice loading and attendant winds, terrorism or
1845	1845	earthquake, but such term, except with regard to a residence, shall not
1846	1846	include replacement, remodeling, restoration, renovation or reconstruction
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1889	1889	43 SB 377 23
1890	1890	under any other circumstances;
1891	1891	(2) "building" means only those enclosures within which individuals
1892	1892	customarily are employed, or which are customarily used to house
1893	1893	machinery, equipment or other property, and including the land
1894	1894	improvements immediately surrounding such building;
1895	1895	(3) "facility" means a mill, plant, refinery, oil or gas well, water well,
1896	1896	feedlot or any conveyance, transmission or distribution line of any
1897	1897	cooperative, nonprofit, membership corporation organized under or subject
1898	1898	to the provisions of K.S.A. 17-4601 et seq., and amendments thereto, or
1899	1899	municipal or quasi-municipal corporation, including the land
1900	1900	improvements immediately surrounding such facility;
1901	1901	(4) "residence" means only those enclosures within which individuals
1902	1902	customarily live;
1903	1903	(5) "utility structure" means transmission and distribution lines
1904	1904	owned by an independent transmission company or cooperative, the
1905	1905	Kansas electric transmission authority or natural gas or electric public
1906	1906	utility; and
1907	1907	(6) "windstorm" means straight line winds of at least 80 miles per
1908	1908	hour as determined by a recognized meteorological reporting agency or
1909	1909	organization;
1910	1910	(q) the gross receipts received for the service of repairing, servicing,
1911	1911	altering or maintaining tangible personal property which when such
1912	1912	services are rendered is not being held for sale in the regular course of
1913	1913	business, and whether or not any tangible personal property is transferred
1914	1914	in connection therewith. The tax imposed by this subsection shall be
1915	1915	applicable to the services of repairing, servicing, altering or maintaining an
1916	1916	item of tangible personal property which has been and is fastened to,
1917	1917	connected with or built into real property;
1918	1918	(r) the gross receipts from fees or charges made under service or
1919	1919	maintenance agreement contracts for services, charges for the providing of
1920	1920	which are taxable under the provisions of subsection (p) or (q);
1921	1921	(s) on and after January 1, 2005, the gross receipts received from the
1922	1922	sale of prewritten computer software and the sale of the services of
1923	1923	modifying, altering, updating or maintaining prewritten computer
1924	1924	software, whether the prewritten computer software is installed or
1925	1925	delivered electronically by tangible storage media physically transferred to
1926	1926	the purchaser or by load and leave;
1927	1927	(t) the gross receipts received for telephone answering services;
1928	1928	(u) the gross receipts received from the sale of prepaid calling service
1929	1929	and prepaid wireless calling service as defined in K.S.A. 79-3673, and
1930	1930	amendments thereto;
1931	1931	(v) all sales of bingo cards, bingo faces and instant bingo tickets by
1932	1932	licensees under K.S.A. 75-5171 et seq., and amendments thereto, shall be
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1975	1975	43 SB 377 24
1976	1976	exempt from taxes imposed pursuant to this section;
1977	1977	(w) all sales of charitable raffle tickets in accordance with K.S.A. 75-
1978	1978	5171 et seq., and amendments thereto, shall be exempt from taxes imposed
1979	1979	pursuant to this section; and
1980	1980	(x) commencing on January 1, 2023, and thereafter, the state rate on
1981	1981	the gross receipts from the sale of food and food ingredients shall be as set
1982	1982	forth in K.S.A. 2023 Supp. 79-3603d, and amendments thereto.
1983	1983	Sec. 9. K.S.A. 2023 Supp. 79-3603d is hereby amended to read as
1984	1984	follows: 79-3603d. (a) There is hereby levied and there shall be collected
1985	1985	and paid a tax upon the gross receipts from the sale of food and food
1986	1986	ingredients. The rate of tax shall be as follows:
1987	1987	(1) Commencing on January 1, 2023, at the rate of 4%;
1988	1988	(2) commencing on January 1, 2024, at the rate of 2%; and
1989	1989	(3) commencing on January 1, 2025 April 1, 2024, and thereafter, at
1990	1990	the rate of 0%.
1991	1991	(b) The provisions of this section shall not apply to prepared food
1992	1992	unless sold without eating utensils provided by the seller and described
1993	1993	below:
1994	1994	(1) Food sold by a seller whose proper primary NAICS classification
1995	1995	is manufacturing in sector 311, except subsector 3118 (bakeries);
1996	1996	(2) (A) food sold in an unheated state by weight or volume as a single
1997	1997	item; or
1998	1998	(B) only meat or seafood sold in an unheated state by weight or
1999	1999	volume as a single item;
2000	2000	(3) bakery items, including bread, rolls, buns, biscuits, bagels,
2001	2001	croissants, pastries, donuts, danish, cakes, tortes, pies, tarts, muffins, bars,
2002	2002	cookies and tortillas; or
2003	2003	(4) food sold that ordinarily requires additional cooking, as opposed
2004	2004	to just reheating, by the consumer prior to consumption.
2005	2005	(c) The provisions of this section shall be a part of and supplemental
2006	2006	to the Kansas retailers' sales tax act.
2007	2007	Sec. 10. K.S.A. 2023 Supp. 79-3606 is hereby amended to read as
2008	2008	follows: 79-3606. The following shall be exempt from the tax imposed by
2009	2009	this act:
2010	2010	(a) All sales of motor-vehicle fuel or other articles upon which a sales
2011	2011	or excise tax has been paid, not subject to refund, under the laws of this
2012	2012	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
2013	2013	3301, and amendments thereto, including consumable material for such
2014	2014	electronic cigarettes, cereal malt beverages and malt products as defined
2015	2015	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
2016	2016	malt syrup and malt extract, that is not subject to taxation under the
2017	2017	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
2018	2018	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
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2061	2061	43 SB 377 25
2062	2062	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
2063	2063	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
2064	2064	thereto, and gross receipts from regulated sports contests taxed pursuant to
2065	2065	the Kansas professional regulated sports act, and amendments thereto;
2066	2066	(b) all sales of tangible personal property or service, including the
2067	2067	renting and leasing of tangible personal property, purchased directly by the
2068	2068	state of Kansas, a political subdivision thereof, other than a school or
2069	2069	educational institution, or purchased by a public or private nonprofit
2070	2070	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
2071	2071	nonprofit integrated community care organization and used exclusively for
2072	2072	state, political subdivision, hospital, public hospital authority, nonprofit
2073	2073	blood, tissue or organ bank or nonprofit integrated community care
2074	2074	organization purposes, except when: (1) Such state, hospital or public
2075	2075	hospital authority is engaged or proposes to engage in any business
2076	2076	specifically taxable under the provisions of this act and such items of
2077	2077	tangible personal property or service are used or proposed to be used in
2078	2078	such business; or (2) such political subdivision is engaged or proposes to
2079	2079	engage in the business of furnishing gas, electricity or heat to others and
2080	2080	such items of personal property or service are used or proposed to be used
2081	2081	in such business;
2082	2082	(c) all sales of tangible personal property or services, including the
2083	2083	renting and leasing of tangible personal property, purchased directly by a
2084	2084	public or private elementary or secondary school or public or private
2085	2085	nonprofit educational institution and used primarily by such school or
2086	2086	institution for nonsectarian programs and activities provided or sponsored
2087	2087	by such school or institution or in the erection, repair or enlargement of
2088	2088	buildings to be used for such purposes. The exemption herein provided
2089	2089	shall not apply to erection, construction, repair, enlargement or equipment
2090	2090	of buildings used primarily for human habitation, except that such
2091	2091	exemption shall apply to the erection, construction, repair, enlargement or
2092	2092	equipment of buildings used for human habitation by the cerebral palsy
2093	2093	research foundation of Kansas located in Wichita, Kansas, and multi
2094	2094	community diversified services, incorporated, located in McPherson,
2095	2095	Kansas;
2096	2096	(d) all sales of tangible personal property or services purchased by a
2097	2097	contractor for the purpose of constructing, equipping, reconstructing,
2098	2098	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2099	2099	any public or private nonprofit hospital or public hospital authority, public
2100	2100	or private elementary or secondary school, a public or private nonprofit
2101	2101	educational institution, state correctional institution including a privately
2102	2102	constructed correctional institution contracted for state use and ownership,
2103	2103	that would be exempt from taxation under the provisions of this act if
2104	2104	purchased directly by such hospital or public hospital authority, school,
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2147	2147	43 SB 377 26
2148	2148	educational institution or a state correctional institution; and all sales of
2149	2149	tangible personal property or services purchased by a contractor for the
2150	2150	purpose of constructing, equipping, reconstructing, maintaining, repairing,
2151	2151	enlarging, furnishing or remodeling facilities for any political subdivision
2152	2152	of the state or district described in subsection (s), the total cost of which is
2153	2153	paid from funds of such political subdivision or district and that would be
2154	2154	exempt from taxation under the provisions of this act if purchased directly
2155	2155	by such political subdivision or district. Nothing in this subsection or in
2156	2156	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
2157	2157	deemed to exempt the purchase of any construction machinery, equipment
2158	2158	or tools used in the constructing, equipping, reconstructing, maintaining,
2159	2159	repairing, enlarging, furnishing or remodeling facilities for any political
2160	2160	subdivision of the state or any such district. As used in this subsection,
2161	2161	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
2162	2162	political subdivision" shall mean general tax revenues, the proceeds of any
2163	2163	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
2164	2164	purpose of constructing, equipping, reconstructing, repairing, enlarging,
2165	2165	furnishing or remodeling facilities that are to be leased to the donor. When
2166	2166	any political subdivision of the state, district described in subsection (s),
2167	2167	public or private nonprofit hospital or public hospital authority, public or
2168	2168	private elementary or secondary school, public or private nonprofit
2169	2169	educational institution, state correctional institution including a privately
2170	2170	constructed correctional institution contracted for state use and ownership
2171	2171	shall contract for the purpose of constructing, equipping, reconstructing,
2172	2172	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
2173	2173	shall obtain from the state and furnish to the contractor an exemption
2174	2174	certificate for the project involved, and the contractor may purchase
2175	2175	materials for incorporation in such project. The contractor shall furnish the
2176	2176	number of such certificate to all suppliers from whom such purchases are
2177	2177	made, and such suppliers shall execute invoices covering the same bearing
2178	2178	the number of such certificate. Upon completion of the project the
2179	2179	contractor shall furnish to the political subdivision, district described in
2180	2180	subsection (s), hospital or public hospital authority, school, educational
2181	2181	institution or department of corrections concerned a sworn statement, on a
2182	2182	form to be provided by the director of taxation, that all purchases so made
2183	2183	were entitled to exemption under this subsection. As an alternative to the
2184	2184	foregoing procedure, any such contracting entity may apply to the
2185	2185	secretary of revenue for agent status for the sole purpose of issuing and
2186	2186	furnishing project exemption certificates to contractors pursuant to rules
2187	2187	and regulations adopted by the secretary establishing conditions and
2188	2188	standards for the granting and maintaining of such status. All invoices
2189	2189	shall be held by the contractor for a period of five years and shall be
2190	2190	subject to audit by the director of taxation. If any materials purchased
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2233	2233	43 SB 377 27
2234	2234	under such a certificate are found not to have been incorporated in the
2235	2235	building or other project or not to have been returned for credit or the sales
2236	2236	or compensating tax otherwise imposed upon such materials that will not
2237	2237	be so incorporated in the building or other project reported and paid by
2238	2238	such contractor to the director of taxation not later than the 20
2239	2239	th
2240	2240	day of the
2241	2241	month following the close of the month in which it shall be determined
2242	2242	that such materials will not be used for the purpose for which such
2243	2243	certificate was issued, the political subdivision, district described in
2244	2244	subsection (s), hospital or public hospital authority, school, educational
2245	2245	institution or the contractor contracting with the department of corrections
2246	2246	for a correctional institution concerned shall be liable for tax on all
2247	2247	materials purchased for the project, and upon payment thereof it may
2248	2248	recover the same from the contractor together with reasonable attorney
2249	2249	fees. Any contractor or any agent, employee or subcontractor thereof, who
2250	2250	shall use or otherwise dispose of any materials purchased under such a
2251	2251	certificate for any purpose other than that for which such a certificate is
2252	2252	issued without the payment of the sales or compensating tax otherwise
2253	2253	imposed upon such materials, shall be guilty of a misdemeanor and, upon
2254	2254	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2255	2255	79-3615(h), and amendments thereto;
2256	2256	(e) all sales of tangible personal property or services purchased by a
2257	2257	contractor for the erection, repair or enlargement of buildings or other
2258	2258	projects for the government of the United States, its agencies or
2259	2259	instrumentalities, that would be exempt from taxation if purchased directly
2260	2260	by the government of the United States, its agencies or instrumentalities.
2261	2261	When the government of the United States, its agencies or
2262	2262	instrumentalities shall contract for the erection, repair, or enlargement of
2263	2263	any building or other project, it shall obtain from the state and furnish to
2264	2264	the contractor an exemption certificate for the project involved, and the
2265	2265	contractor may purchase materials for incorporation in such project. The
2266	2266	contractor shall furnish the number of such certificates to all suppliers
2267	2267	from whom such purchases are made, and such suppliers shall execute
2268	2268	invoices covering the same bearing the number of such certificate. Upon
2269	2269	completion of the project the contractor shall furnish to the government of
2270	2270	the United States, its agencies or instrumentalities concerned a sworn
2271	2271	statement, on a form to be provided by the director of taxation, that all
2272	2272	purchases so made were entitled to exemption under this subsection. As an
2273	2273	alternative to the foregoing procedure, any such contracting entity may
2274	2274	apply to the secretary of revenue for agent status for the sole purpose of
2275	2275	issuing and furnishing project exemption certificates to contractors
2276	2276	pursuant to rules and regulations adopted by the secretary establishing
2277	2277	conditions and standards for the granting and maintaining of such status.
2278	2278	All invoices shall be held by the contractor for a period of five years and
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2322	2322	shall be subject to audit by the director of taxation. Any contractor or any
2323	2323	agent, employee or subcontractor thereof, who shall use or otherwise
2324	2324	dispose of any materials purchased under such a certificate for any purpose
2325	2325	other than that for which such a certificate is issued without the payment
2326	2326	of the sales or compensating tax otherwise imposed upon such materials,
2327	2327	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2328	2328	subject to the penalties provided for in K.S.A. 79-3615(h), and
2329	2329	amendments thereto;
2330	2330	(f) tangible personal property purchased by a railroad or public utility
2331	2331	for consumption or movement directly and immediately in interstate
2332	2332	commerce;
2333	2333	(g) sales of aircraft including remanufactured and modified aircraft
2334	2334	sold to persons using directly or through an authorized agent such aircraft
2335	2335	as certified or licensed carriers of persons or property in interstate or
2336	2336	foreign commerce under authority of the laws of the United States or any
2337	2337	foreign government or sold to any foreign government or agency or
2338	2338	instrumentality of such foreign government and all sales of aircraft for use
2339	2339	outside of the United States and sales of aircraft repair, modification and
2340	2340	replacement parts and sales of services employed in the remanufacture,
2341	2341	modification and repair of aircraft;
2342	2342	(h) all rentals of nonsectarian textbooks by public or private
2343	2343	elementary or secondary schools;
2344	2344	(i) the lease or rental of all films, records, tapes, or any type of sound
2345	2345	or picture transcriptions used by motion picture exhibitors;
2346	2346	(j) meals served without charge or food used in the preparation of
2347	2347	such meals to employees of any restaurant, eating house, dining car, hotel,
2348	2348	drugstore or other place where meals or drinks are regularly sold to the
2349	2349	public if such employees' duties are related to the furnishing or sale of
2350	2350	such meals or drinks;
2351	2351	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
2352	2352	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
2353	2353	delivered in this state to a bona fide resident of another state, which motor
2354	2354	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
2355	2355	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
2356	2356	remain in this state more than 10 days;
2357	2357	(l) all isolated or occasional sales of tangible personal property,
2358	2358	services, substances or things, except isolated or occasional sale of motor
2359	2359	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
2360	2360	amendments thereto;
2361	2361	(m) all sales of tangible personal property that become an ingredient
2362	2362	or component part of tangible personal property or services produced,
2363	2363	manufactured or compounded for ultimate sale at retail within or without
2364	2364	the state of Kansas; and any such producer, manufacturer or compounder
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2408	2408	may obtain from the director of taxation and furnish to the supplier an
2409	2409	exemption certificate number for tangible personal property for use as an
2410	2410	ingredient or component part of the property or services produced,
2411	2411	manufactured or compounded;
2412	2412	(n) all sales of tangible personal property that is consumed in the
2413	2413	production, manufacture, processing, mining, drilling, refining or
2414	2414	compounding of tangible personal property, the treating of by-products or
2415	2415	wastes derived from any such production process, the providing of
2416	2416	services or the irrigation of crops for ultimate sale at retail within or
2417	2417	without the state of Kansas; and any purchaser of such property may
2418	2418	obtain from the director of taxation and furnish to the supplier an
2419	2419	exemption certificate number for tangible personal property for
2420	2420	consumption in such production, manufacture, processing, mining,
2421	2421	drilling, refining, compounding, treating, irrigation and in providing such
2422	2422	services;
2423	2423	(o) all sales of animals, fowl and aquatic plants and animals, the
2424	2424	primary purpose of which is use in agriculture or aquaculture, as defined in
2425	2425	K.S.A. 47-1901, and amendments thereto, the production of food for
2426	2426	human consumption, the production of animal, dairy, poultry or aquatic
2427	2427	plant and animal products, fiber or fur, or the production of offspring for
2428	2428	use for any such purpose or purposes;
2429	2429	(p) all sales of drugs dispensed pursuant to a prescription order by a
2430	2430	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
2431	2431	1626, and amendments thereto. As used in this subsection, "drug" means a
2432	2432	compound, substance or preparation and any component of a compound,
2433	2433	substance or preparation, other than food and food ingredients, dietary
2434	2434	supplements or alcoholic beverages, recognized in the official United
2435	2435	States pharmacopeia, official homeopathic pharmacopoeia of the United
2436	2436	States or official national formulary, and supplement to any of them,
2437	2437	intended for use in the diagnosis, cure, mitigation, treatment or prevention
2438	2438	of disease or intended to affect the structure or any function of the body,
2439	2439	except that for taxable years commencing after December 31, 2013, this
2440	2440	subsection shall not apply to any sales of drugs used in the performance or
2441	2441	induction of an abortion, as defined in K.S.A. 65-6701, and amendments
2442	2442	thereto;
2443	2443	(q) all sales of insulin dispensed by a person licensed by the state
2444	2444	board of pharmacy to a person for treatment of diabetes at the direction of
2445	2445	a person licensed to practice medicine by the state board of healing arts;
2446	2446	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
2447	2447	enteral feeding systems, prosthetic devices and mobility enhancing
2448	2448	equipment prescribed in writing by a person licensed to practice the
2449	2449	healing arts, dentistry or optometry, and in addition to such sales, all sales
2450	2450	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
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2494	2494	and repair and replacement parts therefor, including batteries, by a person
2495	2495	licensed in the practice of dispensing and fitting hearing aids pursuant to
2496	2496	the provisions of K.S.A. 74-5808, and amendments thereto. For the
2497	2497	purposes of this subsection: (1) "Mobility enhancing equipment" means
2498	2498	equipment including repair and replacement parts to same, but does not
2499	2499	include durable medical equipment, which is primarily and customarily
2500	2500	used to provide or increase the ability to move from one place to another
2501	2501	and which is appropriate for use either in a home or a motor vehicle; is not
2502	2502	generally used by persons with normal mobility; and does not include any
2503	2503	motor vehicle or equipment on a motor vehicle normally provided by a
2504	2504	motor vehicle manufacturer; and (2) "prosthetic device" means a
2505	2505	replacement, corrective or supportive device including repair and
2506	2506	replacement parts for same worn on or in the body to artificially replace a
2507	2507	missing portion of the body, prevent or correct physical deformity or
2508	2508	malfunction or support a weak or deformed portion of the body;
2509	2509	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
2510	2510	all sales of tangible personal property or services purchased directly or
2511	2511	indirectly by a groundwater management district organized or operating
2512	2512	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
2513	2513	by a rural water district organized or operating under the authority of
2514	2514	K.S.A. 82a-612, and amendments thereto, or by a water supply district
2515	2515	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
2516	2516	3522 et seq. or 19-3545, and amendments thereto, which property or
2517	2517	services are used in the construction activities, operation or maintenance of
2518	2518	the district;
2519	2519	(t) all sales of farm machinery and equipment or aquaculture
2520	2520	machinery and equipment, repair and replacement parts therefor and
2521	2521	services performed in the repair and maintenance of such machinery and
2522	2522	equipment. For the purposes of this subsection the term "farm machinery
2523	2523	and equipment or aquaculture machinery and equipment" shall include a
2524	2524	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
2525	2525	thereto, and is equipped with a bed or cargo box for hauling materials, and
2526	2526	shall also include machinery and equipment used in the operation of
2527	2527	Christmas tree farming but shall not include any passenger vehicle, truck,
2528	2528	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
2529	2529	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
2530	2530	machinery and equipment" includes precision farming equipment that is
2531	2531	portable or is installed or purchased to be installed on farm machinery and
2532	2532	equipment. "Precision farming equipment" includes the following items
2533	2533	used only in computer-assisted farming, ranching or aquaculture
2534	2534	production operations: Soil testing sensors, yield monitors, computers,
2535	2535	monitors, software, global positioning and mapping systems, guiding
2536	2536	systems, modems, data communications equipment and any necessary
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2580	2580	mounting hardware, wiring and antennas. Each purchaser of farm
2581	2581	machinery and equipment or aquaculture machinery and equipment
2582	2582	exempted herein must certify in writing on the copy of the invoice or sales
2583	2583	ticket to be retained by the seller that the farm machinery and equipment
2584	2584	or aquaculture machinery and equipment purchased will be used only in
2585	2585	farming, ranching or aquaculture production. Farming or ranching shall
2586	2586	include the operation of a feedlot and farm and ranch work for hire and the
2587	2587	operation of a nursery;
2588	2588	(u) all leases or rentals of tangible personal property used as a
2589	2589	dwelling if such tangible personal property is leased or rented for a period
2590	2590	of more than 28 consecutive days;
2591	2591	(v) all sales of tangible personal property to any contractor for use in
2592	2592	preparing meals for delivery to homebound elderly persons over 60 years
2593	2593	of age and to homebound disabled persons or to be served at a group-
2594	2594	sitting at a location outside of the home to otherwise homebound elderly
2595	2595	persons over 60 years of age and to otherwise homebound disabled
2596	2596	persons, as all or part of any food service project funded in whole or in
2597	2597	part by government or as part of a private nonprofit food service project
2598	2598	available to all such elderly or disabled persons residing within an area of
2599	2599	service designated by the private nonprofit organization, and all sales of
2600	2600	tangible personal property for use in preparing meals for consumption by
2601	2601	indigent or homeless individuals whether or not such meals are consumed
2602	2602	at a place designated for such purpose, and all sales of food products by or
2603	2603	on behalf of any such contractor or organization for any such purpose;
2604	2604	(w) all sales of natural gas, electricity, heat and water delivered
2605	2605	through mains, lines or pipes: (1) To residential premises for
2606	2606	noncommercial use by the occupant of such premises; (2) for agricultural
2607	2607	use and also, for such use, all sales of propane gas; (3) for use in the
2608	2608	severing of oil; and (4) to any property which is exempt from property
2609	2609	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
2610	2610	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
2611	2611	and amendments thereto. For all sales of natural gas, electricity and heat
2612	2612	delivered through mains, lines or pipes pursuant to the provisions of
2613	2613	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
2614	2614	on December 31, 2005;
2615	2615	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
2616	2616	for the production of heat or lighting for noncommercial use of an
2617	2617	occupant of residential premises occurring prior to January 1, 2006;
2618	2618	(y) all sales of materials and services used in the repairing, servicing,
2619	2619	altering, maintaining, manufacturing, remanufacturing, or modification of
2620	2620	railroad rolling stock for use in interstate or foreign commerce under
2621	2621	authority of the laws of the United States;
2622	2622	(z) all sales of tangible personal property and services purchased
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2666	2666	directly by a port authority or by a contractor therefor as provided by the
2667	2667	provisions of K.S.A. 12-3418, and amendments thereto;
2668	2668	(aa) all sales of materials and services applied to equipment that is
2669	2669	transported into the state from without the state for repair, service,
2670	2670	alteration, maintenance, remanufacture or modification and that is
2671	2671	subsequently transported outside the state for use in the transmission of
2672	2672	liquids or natural gas by means of pipeline in interstate or foreign
2673	2673	commerce under authority of the laws of the United States;
2674	2674	(bb) all sales of used mobile homes or manufactured homes. As used
2675	2675	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
2676	2676	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
2677	2677	"sales of used mobile homes or manufactured homes" means sales other
2678	2678	than the original retail sale thereof;
2679	2679	(cc) all sales of tangible personal property or services purchased prior
2680	2680	to January 1, 2012, except as otherwise provided, for the purpose of and in
2681	2681	conjunction with constructing, reconstructing, enlarging or remodeling a
2682	2682	business or retail business that meets the requirements established in
2683	2683	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
2684	2684	machinery and equipment purchased for installation at any such business
2685	2685	or retail business, and all sales of tangible personal property or services
2686	2686	purchased on or after January 1, 2012, for the purpose of and in
2687	2687	conjunction with constructing, reconstructing, enlarging or remodeling a
2688	2688	business that meets the requirements established in K.S.A. 74-50,115(e),
2689	2689	and amendments thereto, and the sale and installation of machinery and
2690	2690	equipment purchased for installation at any such business. When a person
2691	2691	shall contract for the construction, reconstruction, enlargement or
2692	2692	remodeling of any such business or retail business, such person shall
2693	2693	obtain from the state and furnish to the contractor an exemption certificate
2694	2694	for the project involved, and the contractor may purchase materials,
2695	2695	machinery and equipment for incorporation in such project. The contractor
2696	2696	shall furnish the number of such certificates to all suppliers from whom
2697	2697	such purchases are made, and such suppliers shall execute invoices
2698	2698	covering the same bearing the number of such certificate. Upon
2699	2699	completion of the project the contractor shall furnish to the owner of the
2700	2700	business or retail business a sworn statement, on a form to be provided by
2701	2701	the director of taxation, that all purchases so made were entitled to
2702	2702	exemption under this subsection. All invoices shall be held by the
2703	2703	contractor for a period of five years and shall be subject to audit by the
2704	2704	director of taxation. Any contractor or any agent, employee or
2705	2705	subcontractor thereof, who shall use or otherwise dispose of any materials,
2706	2706	machinery or equipment purchased under such a certificate for any
2707	2707	purpose other than that for which such a certificate is issued without the
2708	2708	payment of the sales or compensating tax otherwise imposed thereon, shall
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2752	2752	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
2753	2753	to the penalties provided for in K.S.A. 79-3615(h), and amendments
2754	2754	thereto. As used in this subsection, "business" and "retail business" mean
2755	2755	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
2756	2756	exemption certificates that have been previously issued under this
2757	2757	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
2758	2758	and amendments thereto, but not including K.S.A. 74-50,115(e), and
2759	2759	amendments thereto, prior to January 1, 2012, and have not expired will be
2760	2760	effective for the term of the project or two years from the effective date of
2761	2761	the certificate, whichever occurs earlier. Project exemption certificates that
2762	2762	are submitted to the department of revenue prior to January 1, 2012, and
2763	2763	are found to qualify will be issued a project exemption certificate that will
2764	2764	be effective for a two-year period or for the term of the project, whichever
2765	2765	occurs earlier;
2766	2766	(dd) all sales of tangible personal property purchased with food
2767	2767	stamps issued by the United States department of agriculture;
2768	2768	(ee) all sales of lottery tickets and shares made as part of a lottery
2769	2769	operated by the state of Kansas;
2770	2770	(ff) on and after July 1, 1988, all sales of new mobile homes or
2771	2771	manufactured homes to the extent of 40% of the gross receipts, determined
2772	2772	without regard to any trade-in allowance, received from such sale. As used
2773	2773	in this subsection, "mobile homes" and "manufactured homes" mean the
2774	2774	same as defined in K.S.A. 58-4202, and amendments thereto;
2775	2775	(gg) all sales of tangible personal property purchased in accordance
2776	2776	with vouchers issued pursuant to the federal special supplemental food
2777	2777	program for women, infants and children;
2778	2778	(hh) all sales of medical supplies and equipment, including durable
2779	2779	medical equipment, purchased directly by a nonprofit skilled nursing home
2780	2780	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
2781	2781	and amendments thereto, for the purpose of providing medical services to
2782	2782	residents thereof. This exemption shall not apply to tangible personal
2783	2783	property customarily used for human habitation purposes. As used in this
2784	2784	subsection, "durable medical equipment" means equipment including
2785	2785	repair and replacement parts for such equipment, that can withstand
2786	2786	repeated use, is primarily and customarily used to serve a medical purpose,
2787	2787	generally is not useful to a person in the absence of illness or injury and is
2788	2788	not worn in or on the body, but does not include mobility enhancing
2789	2789	equipment as defined in subsection (r), oxygen delivery equipment, kidney
2790	2790	dialysis equipment or enteral feeding systems;
2791	2791	(ii) all sales of tangible personal property purchased directly by a
2792	2792	nonprofit organization for nonsectarian comprehensive multidiscipline
2793	2793	youth development programs and activities provided or sponsored by such
2794	2794	organization, and all sales of tangible personal property by or on behalf of
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2838	2838	any such organization. This exemption shall not apply to tangible personal
2839	2839	property customarily used for human habitation purposes;
2840	2840	(jj) all sales of tangible personal property or services, including the
2841	2841	renting and leasing of tangible personal property, purchased directly on
2842	2842	behalf of a community-based facility for people with intellectual disability
2843	2843	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
2844	2844	amendments thereto, and licensed in accordance with the provisions of
2845	2845	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
2846	2846	personal property or services purchased by contractors during the time
2847	2847	period from July, 2003, through June, 2006, for the purpose of
2848	2848	constructing, equipping, maintaining or furnishing a new facility for a
2849	2849	community-based facility for people with intellectual disability or mental
2850	2850	health center located in Riverton, Cherokee County, Kansas, that would
2851	2851	have been eligible for sales tax exemption pursuant to this subsection if
2852	2852	purchased directly by such facility or center. This exemption shall not
2853	2853	apply to tangible personal property customarily used for human habitation
2854	2854	purposes;
2855	2855	(kk) (1) (A) all sales of machinery and equipment that are used in this
2856	2856	state as an integral or essential part of an integrated production operation
2857	2857	by a manufacturing or processing plant or facility;
2858	2858	(B) all sales of installation, repair and maintenance services
2859	2859	performed on such machinery and equipment; and
2860	2860	(C) all sales of repair and replacement parts and accessories
2861	2861	purchased for such machinery and equipment.
2862	2862	(2) For purposes of this subsection:
2863	2863	(A) "Integrated production operation" means an integrated series of
2864	2864	operations engaged in at a manufacturing or processing plant or facility to
2865	2865	process, transform or convert tangible personal property by physical,
2866	2866	chemical or other means into a different form, composition or character
2867	2867	from that in which it originally existed. Integrated production operations
2868	2868	shall include: (i) Production line operations, including packaging
2869	2869	operations; (ii) preproduction operations to handle, store and treat raw
2870	2870	materials; (iii) post production handling, storage, warehousing and
2871	2871	distribution operations; and (iv) waste, pollution and environmental
2872	2872	control operations, if any;
2873	2873	(B) "production line" means the assemblage of machinery and
2874	2874	equipment at a manufacturing or processing plant or facility where the
2875	2875	actual transformation or processing of tangible personal property occurs;
2876	2876	(C) "manufacturing or processing plant or facility" means a single,
2877	2877	fixed location owned or controlled by a manufacturing or processing
2878	2878	business that consists of one or more structures or buildings in a
2879	2879	contiguous area where integrated production operations are conducted to
2880	2880	manufacture or process tangible personal property to be ultimately sold at
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2923	2923	43 SB 377 35
2924	2924	retail. Such term shall not include any facility primarily operated for the
2925	2925	purpose of conveying or assisting in the conveyance of natural gas,
2926	2926	electricity, oil or water. A business may operate one or more manufacturing
2927	2927	or processing plants or facilities at different locations to manufacture or
2928	2928	process a single product of tangible personal property to be ultimately sold
2929	2929	at retail;
2930	2930	(D) "manufacturing or processing business" means a business that
2931	2931	utilizes an integrated production operation to manufacture, process,
2932	2932	fabricate, finish or assemble items for wholesale and retail distribution as
2933	2933	part of what is commonly regarded by the general public as an industrial
2934	2934	manufacturing or processing operation or an agricultural commodity
2935	2935	processing operation. (i) Industrial manufacturing or processing operations
2936	2936	include, by way of illustration but not of limitation, the fabrication of
2937	2937	automobiles, airplanes, machinery or transportation equipment, the
2938	2938	fabrication of metal, plastic, wood or paper products, electricity power
2939	2939	generation, water treatment, petroleum refining, chemical production,
2940	2940	wholesale bottling, newspaper printing, ready mixed concrete production,
2941	2941	and the remanufacturing of used parts for wholesale or retail sale. Such
2942	2942	processing operations shall include operations at an oil well, gas well,
2943	2943	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
2944	2944	sand or gravel that has been extracted from the earth is cleaned, separated,
2945	2945	crushed, ground, milled, screened, washed or otherwise treated or prepared
2946	2946	before its transmission to a refinery or before any other wholesale or retail
2947	2947	distribution. (ii) Agricultural commodity processing operations include, by
2948	2948	way of illustration but not of limitation, meat packing, poultry slaughtering
2949	2949	and dressing, processing and packaging farm and dairy products in sealed
2950	2950	containers for wholesale and retail distribution, feed grinding, grain
2951	2951	milling, frozen food processing, and grain handling, cleaning, blending,
2952	2952	fumigation, drying and aeration operations engaged in by grain elevators
2953	2953	or other grain storage facilities. (iii) Manufacturing or processing
2954	2954	businesses do not include, by way of illustration but not of limitation,
2955	2955	nonindustrial businesses whose operations are primarily retail and that
2956	2956	produce or process tangible personal property as an incidental part of
2957	2957	conducting the retail business, such as retailers who bake, cook or prepare
2958	2958	food products in the regular course of their retail trade, grocery stores,
2959	2959	meat lockers and meat markets that butcher or dress livestock or poultry in
2960	2960	the regular course of their retail trade, contractors who alter, service, repair
2961	2961	or improve real property, and retail businesses that clean, service or
2962	2962	refurbish and repair tangible personal property for its owner;
2963	2963	(E) "repair and replacement parts and accessories" means all parts
2964	2964	and accessories for exempt machinery and equipment, including, but not
2965	2965	limited to, dies, jigs, molds, patterns and safety devices that are attached to
2966	2966	exempt machinery or that are otherwise used in production, and parts and
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3009	3009	43 SB 377 36
3010	3010	accessories that require periodic replacement such as belts, drill bits,
3011	3011	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
3012	3012	other refractory items for exempt kiln equipment used in production
3013	3013	operations;
3014	3014	(F) "primary" or "primarily" mean more than 50% of the time.
3015	3015	(3) For purposes of this subsection, machinery and equipment shall
3016	3016	be deemed to be used as an integral or essential part of an integrated
3017	3017	production operation when used to:
3018	3018	(A) Receive, transport, convey, handle, treat or store raw materials in
3019	3019	preparation of its placement on the production line;
3020	3020	(B) transport, convey, handle or store the property undergoing
3021	3021	manufacturing or processing at any point from the beginning of the
3022	3022	production line through any warehousing or distribution operation of the
3023	3023	final product that occurs at the plant or facility;
3024	3024	(C) act upon, effect, promote or otherwise facilitate a physical change
3025	3025	to the property undergoing manufacturing or processing;
3026	3026	(D) guide, control or direct the movement of property undergoing
3027	3027	manufacturing or processing;
3028	3028	(E) test or measure raw materials, the property undergoing
3029	3029	manufacturing or processing or the finished product, as a necessary part of
3030	3030	the manufacturer's integrated production operations;
3031	3031	(F) plan, manage, control or record the receipt and flow of inventories
3032	3032	of raw materials, consumables and component parts, the flow of the
3033	3033	property undergoing manufacturing or processing and the management of
3034	3034	inventories of the finished product;
3035	3035	(G) produce energy for, lubricate, control the operating of or
3036	3036	otherwise enable the functioning of other production machinery and
3037	3037	equipment and the continuation of production operations;
3038	3038	(H) package the property being manufactured or processed in a
3039	3039	container or wrapping in which such property is normally sold or
3040	3040	transported;
3041	3041	(I) transmit or transport electricity, coke, gas, water, steam or similar
3042	3042	substances used in production operations from the point of generation, if
3043	3043	produced by the manufacturer or processor at the plant site, to that
3044	3044	manufacturer's production operation; or, if purchased or delivered from
3045	3045	off-site, from the point where the substance enters the site of the plant or
3046	3046	facility to that manufacturer's production operations;
3047	3047	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
3048	3048	solvents or other substances that are used in production operations;
3049	3049	(K) provide and control an environment required to maintain certain
3050	3050	levels of air quality, humidity or temperature in special and limited areas
3051	3051	of the plant or facility, where such regulation of temperature or humidity is
3052	3052	part of and essential to the production process;
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3095	3095	43 SB 377 37
3096	3096	(L) treat, transport or store waste or other byproducts of production
3097	3097	operations at the plant or facility; or
3098	3098	(M) control pollution at the plant or facility where the pollution is
3099	3099	produced by the manufacturing or processing operation.
3100	3100	(4) The following machinery, equipment and materials shall be
3101	3101	deemed to be exempt even though it may not otherwise qualify as
3102	3102	machinery and equipment used as an integral or essential part of an
3103	3103	integrated production operation: (A) Computers and related peripheral
3104	3104	equipment that are utilized by a manufacturing or processing business for
3105	3105	engineering of the finished product or for research and development or
3106	3106	product design; (B) machinery and equipment that is utilized by a
3107	3107	manufacturing or processing business to manufacture or rebuild tangible
3108	3108	personal property that is used in manufacturing or processing operations,
3109	3109	including tools, dies, molds, forms and other parts of qualifying machinery
3110	3110	and equipment; (C) portable plants for aggregate concrete, bulk cement
3111	3111	and asphalt including cement mixing drums to be attached to a motor
3112	3112	vehicle; (D) industrial fixtures, devices, support facilities and special
3113	3113	foundations necessary for manufacturing and production operations, and
3114	3114	materials and other tangible personal property sold for the purpose of
3115	3115	fabricating such fixtures, devices, facilities and foundations. An exemption
3116	3116	certificate for such purchases shall be signed by the manufacturer or
3117	3117	processor. If the fabricator purchases such material, the fabricator shall
3118	3118	also sign the exemption certificate; (E) a manufacturing or processing
3119	3119	business' laboratory equipment that is not located at the plant or facility,
3120	3120	but that would otherwise qualify for exemption under subsection (3)(E);
3121	3121	(F) all machinery and equipment used in surface mining activities as
3122	3122	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
3123	3123	from the time a reclamation plan is filed to the acceptance of the
3124	3124	completed final site reclamation.
3125	3125	(5) "Machinery and equipment used as an integral or essential part of
3126	3126	an integrated production operation" shall not include:
3127	3127	(A) Machinery and equipment used for nonproduction purposes,
3128	3128	including, but not limited to, machinery and equipment used for plant
3129	3129	security, fire prevention, first aid, accounting, administration, record
3130	3130	keeping, advertising, marketing, sales or other related activities, plant
3131	3131	cleaning, plant communications and employee work scheduling;
3132	3132	(B) machinery, equipment and tools used primarily in maintaining
3133	3133	and repairing any type of machinery and equipment or the building and
3134	3134	plant;
3135	3135	(C) transportation, transmission and distribution equipment not
3136	3136	primarily used in a production, warehousing or material handling
3137	3137	operation at the plant or facility, including the means of conveyance of
3138	3138	natural gas, electricity, oil or water, and equipment related thereto, located
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3181	3181	43 SB 377 38
3182	3182	outside the plant or facility;
3183	3183	(D) office machines and equipment including computers and related
3184	3184	peripheral equipment not used directly and primarily to control or measure
3185	3185	the manufacturing process;
3186	3186	(E) furniture and other furnishings;
3187	3187	(F) buildings, other than exempt machinery and equipment that is
3188	3188	permanently affixed to or becomes a physical part of the building, and any
3189	3189	other part of real estate that is not otherwise exempt;
3190	3190	(G) building fixtures that are not integral to the manufacturing
3191	3191	operation, such as utility systems for heating, ventilation, air conditioning,
3192	3192	communications, plumbing or electrical;
3193	3193	(H) machinery and equipment used for general plant heating, cooling
3194	3194	and lighting;
3195	3195	(I) motor vehicles that are registered for operation on public
3196	3196	highways; or
3197	3197	(J) employee apparel, except safety and protective apparel that is
3198	3198	purchased by an employer and furnished gratuitously to employees who
3199	3199	are involved in production or research activities.
3200	3200	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
3201	3201	of the machinery and equipment that qualify or do not qualify as an
3202	3202	integral or essential part of an integrated production operation. When
3203	3203	machinery or equipment is used as an integral or essential part of
3204	3204	production operations part of the time and for nonproduction purposes at
3205	3205	other times, the primary use of the machinery or equipment shall
3206	3206	determine whether or not such machinery or equipment qualifies for
3207	3207	exemption.
3208	3208	(7) The secretary of revenue shall adopt rules and regulations
3209	3209	necessary to administer the provisions of this subsection;
3210	3210	(ll) all sales of educational materials purchased for distribution to the
3211	3211	public at no charge by a nonprofit corporation organized for the purpose of
3212	3212	encouraging, fostering and conducting programs for the improvement of
3213	3213	public health, except that for taxable years commencing after December
3214	3214	31, 2013, this subsection shall not apply to any sales of such materials
3215	3215	purchased by a nonprofit corporation which performs any abortion, as
3216	3216	defined in K.S.A. 65-6701, and amendments thereto;
3217	3217	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
3218	3218	herbicides, germicides, pesticides and fungicides; and services, purchased
3219	3219	and used for the purpose of producing plants in order to prevent soil
3220	3220	erosion on land devoted to agricultural use;
3221	3221	(nn) except as otherwise provided in this act, all sales of services
3222	3222	rendered by an advertising agency or licensed broadcast station or any
3223	3223	member, agent or employee thereof;
3224	3224	(oo) all sales of tangible personal property purchased by a community
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3267	3267	43 SB 377 39
3268	3268	action group or agency for the exclusive purpose of repairing or
3269	3269	weatherizing housing occupied by low-income individuals;
3270	3270	(pp) all sales of drill bits and explosives actually utilized in the
3271	3271	exploration and production of oil or gas;
3272	3272	(qq) all sales of tangible personal property and services purchased by
3273	3273	a nonprofit museum or historical society or any combination thereof,
3274	3274	including a nonprofit organization that is organized for the purpose of
3275	3275	stimulating public interest in the exploration of space by providing
3276	3276	educational information, exhibits and experiences, that is exempt from
3277	3277	federal income taxation pursuant to section 501(c)(3) of the federal
3278	3278	internal revenue code of 1986;
3279	3279	(rr) all sales of tangible personal property that will admit the
3280	3280	purchaser thereof to any annual event sponsored by a nonprofit
3281	3281	organization that is exempt from federal income taxation pursuant to
3282	3282	section 501(c)(3) of the federal internal revenue code of 1986, except that
3283	3283	for taxable years commencing after December 31, 2013, this subsection
3284	3284	shall not apply to any sales of such tangible personal property purchased
3285	3285	by a nonprofit organization which performs any abortion, as defined in
3286	3286	K.S.A. 65-6701, and amendments thereto;
3287	3287	(ss) all sales of tangible personal property and services purchased by
3288	3288	a public broadcasting station licensed by the federal communications
3289	3289	commission as a noncommercial educational television or radio station;
3290	3290	(tt) all sales of tangible personal property and services purchased by
3291	3291	or on behalf of a not-for-profit corporation that is exempt from federal
3292	3292	income taxation pursuant to section 501(c)(3) of the federal internal
3293	3293	revenue code of 1986, for the sole purpose of constructing a Kansas
3294	3294	Korean War memorial;
3295	3295	(uu) all sales of tangible personal property and services purchased by
3296	3296	or on behalf of any rural volunteer fire-fighting organization for use
3297	3297	exclusively in the performance of its duties and functions;
3298	3298	(vv) all sales of tangible personal property purchased by any of the
3299	3299	following organizations that are exempt from federal income taxation
3300	3300	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
3301	3301	for the following purposes, and all sales of any such property by or on
3302	3302	behalf of any such organization for any such purpose:
3303	3303	(1) The American heart association, Kansas affiliate, inc. for the
3304	3304	purposes of providing education, training, certification in emergency
3305	3305	cardiac care, research and other related services to reduce disability and
3306	3306	death from cardiovascular diseases and stroke;
3307	3307	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
3308	3308	advocacy for persons with mental illness and to education, research and
3309	3309	support for their families;
3310	3310	(3) the Kansas mental illness awareness council for the purposes of
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3339	3339	29
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3341	3341	31
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3347	3347	37
3348	3348	38
3349	3349	39
3350	3350	40
3351	3351	41
3352	3352	42
3353	3353	43 SB 377 40
3354	3354	advocacy for persons who are mentally ill and for education, research and
3355	3355	support for them and their families;
3356	3356	(4) the American diabetes association Kansas affiliate, inc. for the
3357	3357	purpose of eliminating diabetes through medical research, public education
3358	3358	focusing on disease prevention and education, patient education including
3359	3359	information on coping with diabetes, and professional education and
3360	3360	training;
3361	3361	(5) the American lung association of Kansas, inc. for the purpose of
3362	3362	eliminating all lung diseases through medical research, public education
3363	3363	including information on coping with lung diseases, professional education
3364	3364	and training related to lung disease and other related services to reduce the
3365	3365	incidence of disability and death due to lung disease;
3366	3366	(6) the Kansas chapters of the Alzheimer's disease and related
3367	3367	disorders association, inc. for the purpose of providing assistance and
3368	3368	support to persons in Kansas with Alzheimer's disease, and their families
3369	3369	and caregivers;
3370	3370	(7) the Kansas chapters of the Parkinson's disease association for the
3371	3371	purpose of eliminating Parkinson's disease through medical research and
3372	3372	public and professional education related to such disease;
3373	3373	(8) the national kidney foundation of Kansas and western Missouri
3374	3374	for the purpose of eliminating kidney disease through medical research
3375	3375	and public and private education related to such disease;
3376	3376	(9) the heartstrings community foundation for the purpose of
3377	3377	providing training, employment and activities for adults with
3378	3378	developmental disabilities;
3379	3379	(10) the cystic fibrosis foundation, heart of America chapter, for the
3380	3380	purposes of assuring the development of the means to cure and control
3381	3381	cystic fibrosis and improving the quality of life for those with the disease;
3382	3382	(11) the spina bifida association of Kansas for the purpose of
3383	3383	providing financial, educational and practical aid to families and
3384	3384	individuals with spina bifida. Such aid includes, but is not limited to,
3385	3385	funding for medical devices, counseling and medical educational
3386	3386	opportunities;
3387	3387	(12) the CHWC, Inc., for the purpose of rebuilding urban core
3388	3388	neighborhoods through the construction of new homes, acquiring and
3389	3389	renovating existing homes and other related activities, and promoting
3390	3390	economic development in such neighborhoods;
3391	3391	(13) the cross-lines cooperative council for the purpose of providing
3392	3392	social services to low income individuals and families;
3393	3393	(14) the dreams work, inc., for the purpose of providing young adult
3394	3394	day services to individuals with developmental disabilities and assisting
3395	3395	families in avoiding institutional or nursing home care for a
3396	3396	developmentally disabled member of their family;
3397	3397	1
3398	3398	2
3399	3399	3
3400	3400	4
3401	3401	5
3402	3402	6
3403	3403	7
3404	3404	8
3405	3405	9
3406	3406	10
3407	3407	11
3408	3408	12
3409	3409	13
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3412	3412	16
3413	3413	17
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3422	3422	26
3423	3423	27
3424	3424	28
3425	3425	29
3426	3426	30
3427	3427	31
3428	3428	32
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3430	3430	34
3431	3431	35
3432	3432	36
3433	3433	37
3434	3434	38
3435	3435	39
3436	3436	40
3437	3437	41
3438	3438	42
3439	3439	43 SB 377 41
3440	3440	(15) the KSDS, Inc., for the purpose of promoting the independence
3441	3441	and inclusion of people with disabilities as fully participating and
3442	3442	contributing members of their communities and society through the
3443	3443	training and providing of guide and service dogs to people with
3444	3444	disabilities, and providing disability education and awareness to the
3445	3445	general public;
3446	3446	(16) the lyme association of greater Kansas City, Inc., for the purpose
3447	3447	of providing support to persons with lyme disease and public education
3448	3448	relating to the prevention, treatment and cure of lyme disease;
3449	3449	(17) the dream factory, inc., for the purpose of granting the dreams of
3450	3450	children with critical and chronic illnesses;
3451	3451	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
3452	3452	students and families with education and resources necessary to enable
3453	3453	each child to develop fine character and musical ability to the fullest
3454	3454	potential;
3455	3455	(19) the international association of lions clubs for the purpose of
3456	3456	creating and fostering a spirit of understanding among all people for
3457	3457	humanitarian needs by providing voluntary services through community
3458	3458	involvement and international cooperation;
3459	3459	(20) the Johnson county young matrons, inc., for the purpose of
3460	3460	promoting a positive future for members of the community through
3461	3461	volunteerism, financial support and education through the efforts of an all
3462	3462	volunteer organization;
3463	3463	(21) the American cancer society, inc., for the purpose of eliminating
3464	3464	cancer as a major health problem by preventing cancer, saving lives and
3465	3465	diminishing suffering from cancer, through research, education, advocacy
3466	3466	and service;
3467	3467	(22) the community services of Shawnee, inc., for the purpose of
3468	3468	providing food and clothing to those in need;
3469	3469	(23) the angel babies association, for the purpose of providing
3470	3470	assistance, support and items of necessity to teenage mothers and their
3471	3471	babies; and
3472	3472	(24) the Kansas fairgrounds foundation for the purpose of the
3473	3473	preservation, renovation and beautification of the Kansas state fairgrounds;
3474	3474	(ww) all sales of tangible personal property purchased by the habitat
3475	3475	for humanity for the exclusive use of being incorporated within a housing
3476	3476	project constructed by such organization;
3477	3477	(xx) all sales of tangible personal property and services purchased by
3478	3478	a nonprofit zoo that is exempt from federal income taxation pursuant to
3479	3479	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
3480	3480	of such zoo by an entity itself exempt from federal income taxation
3481	3481	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
3482	3482	contracted with to operate such zoo and all sales of tangible personal
3483	3483	1
3484	3484	2
3485	3485	3
3486	3486	4
3487	3487	5
3488	3488	6
3489	3489	7
3490	3490	8
3491	3491	9
3492	3492	10
3493	3493	11
3494	3494	12
3495	3495	13
3496	3496	14
3497	3497	15
3498	3498	16
3499	3499	17
3500	3500	18
3501	3501	19
3502	3502	20
3503	3503	21
3504	3504	22
3505	3505	23
3506	3506	24
3507	3507	25
3508	3508	26
3509	3509	27
3510	3510	28
3511	3511	29
3512	3512	30
3513	3513	31
3514	3514	32
3515	3515	33
3516	3516	34
3517	3517	35
3518	3518	36
3519	3519	37
3520	3520	38
3521	3521	39
3522	3522	40
3523	3523	41
3524	3524	42
3525	3525	43 SB 377 42
3526	3526	property or services purchased by a contractor for the purpose of
3527	3527	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3528	3528	furnishing or remodeling facilities for any nonprofit zoo that would be
3529	3529	exempt from taxation under the provisions of this section if purchased
3530	3530	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
3531	3531	this subsection shall be deemed to exempt the purchase of any construction
3532	3532	machinery, equipment or tools used in the constructing, equipping,
3533	3533	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3534	3534	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
3535	3535	the purpose of constructing, equipping, reconstructing, maintaining,
3536	3536	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
3537	3537	from the state and furnish to the contractor an exemption certificate for the
3538	3538	project involved, and the contractor may purchase materials for
3539	3539	incorporation in such project. The contractor shall furnish the number of
3540	3540	such certificate to all suppliers from whom such purchases are made, and
3541	3541	such suppliers shall execute invoices covering the same bearing the
3542	3542	number of such certificate. Upon completion of the project the contractor
3543	3543	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
3544	3544	to be provided by the director of taxation, that all purchases so made were
3545	3545	entitled to exemption under this subsection. All invoices shall be held by
3546	3546	the contractor for a period of five years and shall be subject to audit by the
3547	3547	director of taxation. If any materials purchased under such a certificate are
3548	3548	found not to have been incorporated in the building or other project or not
3549	3549	to have been returned for credit or the sales or compensating tax otherwise
3550	3550	imposed upon such materials that will not be so incorporated in the
3551	3551	building or other project reported and paid by such contractor to the
3552	3552	director of taxation not later than the 20
3553	3553	th
3554	3554	day of the month following the
3555	3555	close of the month in which it shall be determined that such materials will
3556	3556	not be used for the purpose for which such certificate was issued, the
3557	3557	nonprofit zoo concerned shall be liable for tax on all materials purchased
3558	3558	for the project, and upon payment thereof it may recover the same from
3559	3559	the contractor together with reasonable attorney fees. Any contractor or
3560	3560	any agent, employee or subcontractor thereof, who shall use or otherwise
3561	3561	dispose of any materials purchased under such a certificate for any purpose
3562	3562	other than that for which such a certificate is issued without the payment
3563	3563	of the sales or compensating tax otherwise imposed upon such materials,
3564	3564	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3565	3565	subject to the penalties provided for in K.S.A. 79-3615(h), and
3566	3566	amendments thereto;
3567	3567	(yy) all sales of tangible personal property and services purchased by
3568	3568	a parent-teacher association or organization, and all sales of tangible
3569	3569	personal property by or on behalf of such association or organization;
3570	3570	(zz) all sales of machinery and equipment purchased by over-the-air,
3571	3571	1
3572	3572	2
3573	3573	3
3574	3574	4
3575	3575	5
3576	3576	6
3577	3577	7
3578	3578	8
3579	3579	9
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3583	3583	13
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3592	3592	22
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3595	3595	25
3596	3596	26
3597	3597	27
3598	3598	28
3599	3599	29
3600	3600	30
3601	3601	31
3602	3602	32
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3604	3604	34
3605	3605	35
3606	3606	36
3607	3607	37
3608	3608	38
3609	3609	39
3610	3610	40
3611	3611	41
3612	3612	42
3613	3613	43 SB 377 43
3614	3614	free access radio or television station that is used directly and primarily for
3615	3615	the purpose of producing a broadcast signal or is such that the failure of
3616	3616	the machinery or equipment to operate would cause broadcasting to cease.
3617	3617	For purposes of this subsection, machinery and equipment shall include,
3618	3618	but not be limited to, that required by rules and regulations of the federal
3619	3619	communications commission, and all sales of electricity which are
3620	3620	essential or necessary for the purpose of producing a broadcast signal or is
3621	3621	such that the failure of the electricity would cause broadcasting to cease;
3622	3622	(aaa) all sales of tangible personal property and services purchased by
3623	3623	a religious organization that is exempt from federal income taxation
3624	3624	pursuant to section 501(c)(3) of the federal internal revenue code, and used
3625	3625	exclusively for religious purposes, and all sales of tangible personal
3626	3626	property or services purchased by a contractor for the purpose of
3627	3627	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3628	3628	furnishing or remodeling facilities for any such organization that would be
3629	3629	exempt from taxation under the provisions of this section if purchased
3630	3630	directly by such organization. Nothing in this subsection shall be deemed
3631	3631	to exempt the purchase of any construction machinery, equipment or tools
3632	3632	used in the constructing, equipping, reconstructing, maintaining, repairing,
3633	3633	enlarging, furnishing or remodeling facilities for any such organization.
3634	3634	When any such organization shall contract for the purpose of constructing,
3635	3635	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3636	3636	remodeling facilities, it shall obtain from the state and furnish to the
3637	3637	contractor an exemption certificate for the project involved, and the
3638	3638	contractor may purchase materials for incorporation in such project. The
3639	3639	contractor shall furnish the number of such certificate to all suppliers from
3640	3640	whom such purchases are made, and such suppliers shall execute invoices
3641	3641	covering the same bearing the number of such certificate. Upon
3642	3642	completion of the project the contractor shall furnish to such organization
3643	3643	concerned a sworn statement, on a form to be provided by the director of
3644	3644	taxation, that all purchases so made were entitled to exemption under this
3645	3645	subsection. All invoices shall be held by the contractor for a period of five
3646	3646	years and shall be subject to audit by the director of taxation. If any
3647	3647	materials purchased under such a certificate are found not to have been
3648	3648	incorporated in the building or other project or not to have been returned
3649	3649	for credit or the sales or compensating tax otherwise imposed upon such
3650	3650	materials that will not be so incorporated in the building or other project
3651	3651	reported and paid by such contractor to the director of taxation not later
3652	3652	than the 20
3653	3653	th
3654	3654	day of the month following the close of the month in which it
3655	3655	shall be determined that such materials will not be used for the purpose for
3656	3656	which such certificate was issued, such organization concerned shall be
3657	3657	liable for tax on all materials purchased for the project, and upon payment
3658	3658	thereof it may recover the same from the contractor together with
3659	3659	1
3660	3660	2
3661	3661	3
3662	3662	4
3663	3663	5
3664	3664	6
3665	3665	7
3666	3666	8
3667	3667	9
3668	3668	10
3669	3669	11
3670	3670	12
3671	3671	13
3672	3672	14
3673	3673	15
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3675	3675	17
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3678	3678	20
3679	3679	21
3680	3680	22
3681	3681	23
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3683	3683	25
3684	3684	26
3685	3685	27
3686	3686	28
3687	3687	29
3688	3688	30
3689	3689	31
3690	3690	32
3691	3691	33
3692	3692	34
3693	3693	35
3694	3694	36
3695	3695	37
3696	3696	38
3697	3697	39
3698	3698	40
3699	3699	41
3700	3700	42
3701	3701	43 SB 377 44
3702	3702	reasonable attorney fees. Any contractor or any agent, employee or
3703	3703	subcontractor thereof, who shall use or otherwise dispose of any materials
3704	3704	purchased under such a certificate for any purpose other than that for
3705	3705	which such a certificate is issued without the payment of the sales or
3706	3706	compensating tax otherwise imposed upon such materials, shall be guilty
3707	3707	of a misdemeanor and, upon conviction therefor, shall be subject to the
3708	3708	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
3709	3709	Sales tax paid on and after July 1, 1998, but prior to the effective date of
3710	3710	this act upon the gross receipts received from any sale exempted by the
3711	3711	amendatory provisions of this subsection shall be refunded. Each claim for
3712	3712	a sales tax refund shall be verified and submitted to the director of taxation
3713	3713	upon forms furnished by the director and shall be accompanied by any
3714	3714	additional documentation required by the director. The director shall
3715	3715	review each claim and shall refund that amount of sales tax paid as
3716	3716	determined under the provisions of this subsection. All refunds shall be
3717	3717	paid from the sales tax refund fund upon warrants of the director of
3718	3718	accounts and reports pursuant to vouchers approved by the director or the
3719	3719	director's designee;
3720	3720	(bbb) all sales of food for human consumption by an organization that
3721	3721	is exempt from federal income taxation pursuant to section 501(c)(3) of
3722	3722	the federal internal revenue code of 1986, pursuant to a food distribution
3723	3723	program that offers such food at a price below cost in exchange for the
3724	3724	performance of community service by the purchaser thereof;
3725	3725	(ccc) on and after July 1, 1999, all sales of tangible personal property
3726	3726	and services purchased by a primary care clinic or health center the
3727	3727	primary purpose of which is to provide services to medically underserved
3728	3728	individuals and families, and that is exempt from federal income taxation
3729	3729	pursuant to section 501(c)(3) of the federal internal revenue code, and all
3730	3730	sales of tangible personal property or services purchased by a contractor
3731	3731	for the purpose of constructing, equipping, reconstructing, maintaining,
3732	3732	repairing, enlarging, furnishing or remodeling facilities for any such clinic
3733	3733	or center that would be exempt from taxation under the provisions of this
3734	3734	section if purchased directly by such clinic or center, except that for
3735	3735	taxable years commencing after December 31, 2013, this subsection shall
3736	3736	not apply to any sales of such tangible personal property and services
3737	3737	purchased by a primary care clinic or health center which performs any
3738	3738	abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
3739	3739	in this subsection shall be deemed to exempt the purchase of any
3740	3740	construction machinery, equipment or tools used in the constructing,
3741	3741	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3742	3742	remodeling facilities for any such clinic or center. When any such clinic or
3743	3743	center shall contract for the purpose of constructing, equipping,
3744	3744	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3745	3745	1
3746	3746	2
3747	3747	3
3748	3748	4
3749	3749	5
3750	3750	6
3751	3751	7
3752	3752	8
3753	3753	9
3754	3754	10
3755	3755	11
3756	3756	12
3757	3757	13
3758	3758	14
3759	3759	15
3760	3760	16
3761	3761	17
3762	3762	18
3763	3763	19
3764	3764	20
3765	3765	21
3766	3766	22
3767	3767	23
3768	3768	24
3769	3769	25
3770	3770	26
3771	3771	27
3772	3772	28
3773	3773	29
3774	3774	30
3775	3775	31
3776	3776	32
3777	3777	33
3778	3778	34
3779	3779	35
3780	3780	36
3781	3781	37
3782	3782	38
3783	3783	39
3784	3784	40
3785	3785	41
3786	3786	42
3787	3787	43 SB 377 45
3788	3788	facilities, it shall obtain from the state and furnish to the contractor an
3789	3789	exemption certificate for the project involved, and the contractor may
3790	3790	purchase materials for incorporation in such project. The contractor shall
3791	3791	furnish the number of such certificate to all suppliers from whom such
3792	3792	purchases are made, and such suppliers shall execute invoices covering the
3793	3793	same bearing the number of such certificate. Upon completion of the
3794	3794	project the contractor shall furnish to such clinic or center concerned a
3795	3795	sworn statement, on a form to be provided by the director of taxation, that
3796	3796	all purchases so made were entitled to exemption under this subsection.
3797	3797	All invoices shall be held by the contractor for a period of five years and
3798	3798	shall be subject to audit by the director of taxation. If any materials
3799	3799	purchased under such a certificate are found not to have been incorporated
3800	3800	in the building or other project or not to have been returned for credit or
3801	3801	the sales or compensating tax otherwise imposed upon such materials that
3802	3802	will not be so incorporated in the building or other project reported and
3803	3803	paid by such contractor to the director of taxation not later than the 20
3804	3804	th
3805	3805	day of the month following the close of the month in which it shall be
3806	3806	determined that such materials will not be used for the purpose for which
3807	3807	such certificate was issued, such clinic or center concerned shall be liable
3808	3808	for tax on all materials purchased for the project, and upon payment
3809	3809	thereof it may recover the same from the contractor together with
3810	3810	reasonable attorney fees. Any contractor or any agent, employee or
3811	3811	subcontractor thereof, who shall use or otherwise dispose of any materials
3812	3812	purchased under such a certificate for any purpose other than that for
3813	3813	which such a certificate is issued without the payment of the sales or
3814	3814	compensating tax otherwise imposed upon such materials, shall be guilty
3815	3815	of a misdemeanor and, upon conviction therefor, shall be subject to the
3816	3816	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3817	3817	(ddd) on and after January 1, 1999, and before January 1, 2000, all
3818	3818	sales of materials and services purchased by any class II or III railroad as
3819	3819	classified by the federal surface transportation board for the construction,
3820	3820	renovation, repair or replacement of class II or III railroad track and
3821	3821	facilities used directly in interstate commerce. In the event any such track
3822	3822	or facility for which materials and services were purchased sales tax
3823	3823	exempt is not operational for five years succeeding the allowance of such
3824	3824	exemption, the total amount of sales tax that would have been payable
3825	3825	except for the operation of this subsection shall be recouped in accordance
3826	3826	with rules and regulations adopted for such purpose by the secretary of
3827	3827	revenue;
3828	3828	(eee) on and after January 1, 1999, and before January 1, 2001, all
3829	3829	sales of materials and services purchased for the original construction,
3830	3830	reconstruction, repair or replacement of grain storage facilities, including
3831	3831	railroad sidings providing access thereto;
3832	3832	1
3833	3833	2
3834	3834	3
3835	3835	4
3836	3836	5
3837	3837	6
3838	3838	7
3839	3839	8
3840	3840	9
3841	3841	10
3842	3842	11
3843	3843	12
3844	3844	13
3845	3845	14
3846	3846	15
3847	3847	16
3848	3848	17
3849	3849	18
3850	3850	19
3851	3851	20
3852	3852	21
3853	3853	22
3854	3854	23
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3856	3856	25
3857	3857	26
3858	3858	27
3859	3859	28
3860	3860	29
3861	3861	30
3862	3862	31
3863	3863	32
3864	3864	33
3865	3865	34
3866	3866	35
3867	3867	36
3868	3868	37
3869	3869	38
3870	3870	39
3871	3871	40
3872	3872	41
3873	3873	42
3874	3874	43 SB 377 46
3875	3875	(fff) all sales of material handling equipment, racking systems and
3876	3876	other related machinery and equipment that is used for the handling,
3877	3877	movement or storage of tangible personal property in a warehouse or
3878	3878	distribution facility in this state; all sales of installation, repair and
3879	3879	maintenance services performed on such machinery and equipment; and
3880	3880	all sales of repair and replacement parts for such machinery and
3881	3881	equipment. For purposes of this subsection, a warehouse or distribution
3882	3882	facility means a single, fixed location that consists of buildings or
3883	3883	structures in a contiguous area where storage or distribution operations are
3884	3884	conducted that are separate and apart from the business' retail operations,
3885	3885	if any, and that do not otherwise qualify for exemption as occurring at a
3886	3886	manufacturing or processing plant or facility. Material handling and
3887	3887	storage equipment shall include aeration, dust control, cleaning, handling
3888	3888	and other such equipment that is used in a public grain warehouse or other
3889	3889	commercial grain storage facility, whether used for grain handling, grain
3890	3890	storage, grain refining or processing, or other grain treatment operation;
3891	3891	(ggg) all sales of tangible personal property and services purchased
3892	3892	by or on behalf of the Kansas academy of science, which is exempt from
3893	3893	federal income taxation pursuant to section 501(c)(3) of the federal
3894	3894	internal revenue code of 1986, and used solely by such academy for the
3895	3895	preparation, publication and dissemination of education materials;
3896	3896	(hhh) all sales of tangible personal property and services purchased
3897	3897	by or on behalf of all domestic violence shelters that are member agencies
3898	3898	of the Kansas coalition against sexual and domestic violence;
3899	3899	(iii) all sales of personal property and services purchased by an
3900	3900	organization that is exempt from federal income taxation pursuant to
3901	3901	section 501(c)(3) of the federal internal revenue code of 1986, and such
3902	3902	personal property and services are used by any such organization in the
3903	3903	collection, storage and distribution of food products to nonprofit
3904	3904	organizations that distribute such food products to persons pursuant to a
3905	3905	food distribution program on a charitable basis without fee or charge, and
3906	3906	all sales of tangible personal property or services purchased by a
3907	3907	contractor for the purpose of constructing, equipping, reconstructing,
3908	3908	maintaining, repairing, enlarging, furnishing or remodeling facilities used
3909	3909	for the collection and storage of such food products for any such
3910	3910	organization which is exempt from federal income taxation pursuant to
3911	3911	section 501(c)(3) of the federal internal revenue code of 1986, that would
3912	3912	be exempt from taxation under the provisions of this section if purchased
3913	3913	directly by such organization. Nothing in this subsection shall be deemed
3914	3914	to exempt the purchase of any construction machinery, equipment or tools
3915	3915	used in the constructing, equipping, reconstructing, maintaining, repairing,
3916	3916	enlarging, furnishing or remodeling facilities for any such organization.
3917	3917	When any such organization shall contract for the purpose of constructing,
3918	3918	1
3919	3919	2
3920	3920	3
3921	3921	4
3922	3922	5
3923	3923	6
3924	3924	7
3925	3925	8
3926	3926	9
3927	3927	10
3928	3928	11
3929	3929	12
3930	3930	13
3931	3931	14
3932	3932	15
3933	3933	16
3934	3934	17
3935	3935	18
3936	3936	19
3937	3937	20
3938	3938	21
3939	3939	22
3940	3940	23
3941	3941	24
3942	3942	25
3943	3943	26
3944	3944	27
3945	3945	28
3946	3946	29
3947	3947	30
3948	3948	31
3949	3949	32
3950	3950	33
3951	3951	34
3952	3952	35
3953	3953	36
3954	3954	37
3955	3955	38
3956	3956	39
3957	3957	40
3958	3958	41
3959	3959	42
3960	3960	43 SB 377 47
3961	3961	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3962	3962	remodeling facilities, it shall obtain from the state and furnish to the
3963	3963	contractor an exemption certificate for the project involved, and the
3964	3964	contractor may purchase materials for incorporation in such project. The
3965	3965	contractor shall furnish the number of such certificate to all suppliers from
3966	3966	whom such purchases are made, and such suppliers shall execute invoices
3967	3967	covering the same bearing the number of such certificate. Upon
3968	3968	completion of the project the contractor shall furnish to such organization
3969	3969	concerned a sworn statement, on a form to be provided by the director of
3970	3970	taxation, that all purchases so made were entitled to exemption under this
3971	3971	subsection. All invoices shall be held by the contractor for a period of five
3972	3972	years and shall be subject to audit by the director of taxation. If any
3973	3973	materials purchased under such a certificate are found not to have been
3974	3974	incorporated in such facilities or not to have been returned for credit or the
3975	3975	sales or compensating tax otherwise imposed upon such materials that will
3976	3976	not be so incorporated in such facilities reported and paid by such
3977	3977	contractor to the director of taxation not later than the 20
3978	3978	th
3979	3979	day of the
3980	3980	month following the close of the month in which it shall be determined
3981	3981	that such materials will not be used for the purpose for which such
3982	3982	certificate was issued, such organization concerned shall be liable for tax
3983	3983	on all materials purchased for the project, and upon payment thereof it
3984	3984	may recover the same from the contractor together with reasonable
3985	3985	attorney fees. Any contractor or any agent, employee or subcontractor
3986	3986	thereof, who shall use or otherwise dispose of any materials purchased
3987	3987	under such a certificate for any purpose other than that for which such a
3988	3988	certificate is issued without the payment of the sales or compensating tax
3989	3989	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3990	3990	and, upon conviction therefor, shall be subject to the penalties provided for
3991	3991	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
3992	3992	July 1, 2005, but prior to the effective date of this act upon the gross
3993	3993	receipts received from any sale exempted by the amendatory provisions of
3994	3994	this subsection shall be refunded. Each claim for a sales tax refund shall be
3995	3995	verified and submitted to the director of taxation upon forms furnished by
3996	3996	the director and shall be accompanied by any additional documentation
3997	3997	required by the director. The director shall review each claim and shall
3998	3998	refund that amount of sales tax paid as determined under the provisions of
3999	3999	this subsection. All refunds shall be paid from the sales tax refund fund
4000	4000	upon warrants of the director of accounts and reports pursuant to vouchers
4001	4001	approved by the director or the director's designee;
4002	4002	(jjj) all sales of dietary supplements dispensed pursuant to a
4003	4003	prescription order by a licensed practitioner or a mid-level practitioner as
4004	4004	defined by K.S.A. 65-1626, and amendments thereto. As used in this
4005	4005	subsection, "dietary supplement" means any product, other than tobacco,
4006	4006	1
4007	4007	2
4008	4008	3
4009	4009	4
4010	4010	5
4011	4011	6
4012	4012	7
4013	4013	8
4014	4014	9
4015	4015	10
4016	4016	11
4017	4017	12
4018	4018	13
4019	4019	14
4020	4020	15
4021	4021	16
4022	4022	17
4023	4023	18
4024	4024	19
4025	4025	20
4026	4026	21
4027	4027	22
4028	4028	23
4029	4029	24
4030	4030	25
4031	4031	26
4032	4032	27
4033	4033	28
4034	4034	29
4035	4035	30
4036	4036	31
4037	4037	32
4038	4038	33
4039	4039	34
4040	4040	35
4041	4041	36
4042	4042	37
4043	4043	38
4044	4044	39
4045	4045	40
4046	4046	41
4047	4047	42
4048	4048	43 SB 377 48
4049	4049	intended to supplement the diet that: (1) Contains one or more of the
4050	4050	following dietary ingredients: A vitamin, a mineral, an herb or other
4051	4051	botanical, an amino acid, a dietary substance for use by humans to
4052	4052	supplement the diet by increasing the total dietary intake or a concentrate,
4053	4053	metabolite, constituent, extract or combination of any such ingredient; (2)
4054	4054	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
4055	4055	liquid form, or if not intended for ingestion, in such a form, is not
4056	4056	represented as conventional food and is not represented for use as a sole
4057	4057	item of a meal or of the diet; and (3) is required to be labeled as a dietary
4058	4058	supplement, identifiable by the supplemental facts box found on the label
4059	4059	and as required pursuant to 21 C.F.R. § 101.36;
4060	4060	(lll) all sales of tangible personal property and services purchased by
4061	4061	special olympics Kansas, inc. for the purpose of providing year-round
4062	4062	sports training and athletic competition in a variety of olympic-type sports
4063	4063	for individuals with intellectual disabilities by giving them continuing
4064	4064	opportunities to develop physical fitness, demonstrate courage, experience
4065	4065	joy and participate in a sharing of gifts, skills and friendship with their
4066	4066	families, other special olympics athletes and the community, and activities
4067	4067	provided or sponsored by such organization, and all sales of tangible
4068	4068	personal property by or on behalf of any such organization;
4069	4069	(mmm) all sales of tangible personal property purchased by or on
4070	4070	behalf of the Marillac center, inc., which is exempt from federal income
4071	4071	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4072	4072	for the purpose of providing psycho-social-biological and special
4073	4073	education services to children, and all sales of any such property by or on
4074	4074	behalf of such organization for such purpose;
4075	4075	(nnn) all sales of tangible personal property and services purchased
4076	4076	by the west Sedgwick county-sunrise rotary club and sunrise charitable
4077	4077	fund for the purpose of constructing a boundless playground which is an
4078	4078	integrated, barrier free and developmentally advantageous play
4079	4079	environment for children of all abilities and disabilities;
4080	4080	(ooo) all sales of tangible personal property by or on behalf of a
4081	4081	public library serving the general public and supported in whole or in part
4082	4082	with tax money or a not-for-profit organization whose purpose is to raise
4083	4083	funds for or provide services or other benefits to any such public library;
4084	4084	(ppp) all sales of tangible personal property and services purchased
4085	4085	by or on behalf of a homeless shelter that is exempt from federal income
4086	4086	taxation pursuant to section 501(c)(3) of the federal income tax code of
4087	4087	1986, and used by any such homeless shelter to provide emergency and
4088	4088	transitional housing for individuals and families experiencing
4089	4089	homelessness, and all sales of any such property by or on behalf of any
4090	4090	such homeless shelter for any such purpose;
4091	4091	(qqq) all sales of tangible personal property and services purchased
4092	4092	1
4093	4093	2
4094	4094	3
4095	4095	4
4096	4096	5
4097	4097	6
4098	4098	7
4099	4099	8
4100	4100	9
4101	4101	10
4102	4102	11
4103	4103	12
4104	4104	13
4105	4105	14
4106	4106	15
4107	4107	16
4108	4108	17
4109	4109	18
4110	4110	19
4111	4111	20
4112	4112	21
4113	4113	22
4114	4114	23
4115	4115	24
4116	4116	25
4117	4117	26
4118	4118	27
4119	4119	28
4120	4120	29
4121	4121	30
4122	4122	31
4123	4123	32
4124	4124	33
4125	4125	34
4126	4126	35
4127	4127	36
4128	4128	37
4129	4129	38
4130	4130	39
4131	4131	40
4132	4132	41
4133	4133	42
4134	4134	43 SB 377 49
4135	4135	by TLC for children and families, inc., hereinafter referred to as TLC,
4136	4136	which is exempt from federal income taxation pursuant to section 501(c)
4137	4137	(3) of the federal internal revenue code of 1986, and such property and
4138	4138	services are used for the purpose of providing emergency shelter and
4139	4139	treatment for abused and neglected children as well as meeting additional
4140	4140	critical needs for children, juveniles and family, and all sales of any such
4141	4141	property by or on behalf of TLC for any such purpose; and all sales of
4142	4142	tangible personal property or services purchased by a contractor for the
4143	4143	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4144	4144	remodeling facilities for the operation of services for TLC for any such
4145	4145	purpose that would be exempt from taxation under the provisions of this
4146	4146	section if purchased directly by TLC. Nothing in this subsection shall be
4147	4147	deemed to exempt the purchase of any construction machinery, equipment
4148	4148	or tools used in the constructing, maintaining, repairing, enlarging,
4149	4149	furnishing or remodeling such facilities for TLC. When TLC contracts for
4150	4150	the purpose of constructing, maintaining, repairing, enlarging, furnishing
4151	4151	or remodeling such facilities, it shall obtain from the state and furnish to
4152	4152	the contractor an exemption certificate for the project involved, and the
4153	4153	contractor may purchase materials for incorporation in such project. The
4154	4154	contractor shall furnish the number of such certificate to all suppliers from
4155	4155	whom such purchases are made, and such suppliers shall execute invoices
4156	4156	covering the same bearing the number of such certificate. Upon
4157	4157	completion of the project the contractor shall furnish to TLC a sworn
4158	4158	statement, on a form to be provided by the director of taxation, that all
4159	4159	purchases so made were entitled to exemption under this subsection. All
4160	4160	invoices shall be held by the contractor for a period of five years and shall
4161	4161	be subject to audit by the director of taxation. If any materials purchased
4162	4162	under such a certificate are found not to have been incorporated in the
4163	4163	building or other project or not to have been returned for credit or the sales
4164	4164	or compensating tax otherwise imposed upon such materials that will not
4165	4165	be so incorporated in the building or other project reported and paid by
4166	4166	such contractor to the director of taxation not later than the 20
4167	4167	th
4168	4168	day of the
4169	4169	month following the close of the month in which it shall be determined
4170	4170	that such materials will not be used for the purpose for which such
4171	4171	certificate was issued, TLC shall be liable for tax on all materials
4172	4172	purchased for the project, and upon payment thereof it may recover the
4173	4173	same from the contractor together with reasonable attorney fees. Any
4174	4174	contractor or any agent, employee or subcontractor thereof, who shall use
4175	4175	or otherwise dispose of any materials purchased under such a certificate
4176	4176	for any purpose other than that for which such a certificate is issued
4177	4177	without the payment of the sales or compensating tax otherwise imposed
4178	4178	upon such materials, shall be guilty of a misdemeanor and, upon
4179	4179	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4180	4180	1
4181	4181	2
4182	4182	3
4183	4183	4
4184	4184	5
4185	4185	6
4186	4186	7
4187	4187	8
4188	4188	9
4189	4189	10
4190	4190	11
4191	4191	12
4192	4192	13
4193	4193	14
4194	4194	15
4195	4195	16
4196	4196	17
4197	4197	18
4198	4198	19
4199	4199	20
4200	4200	21
4201	4201	22
4202	4202	23
4203	4203	24
4204	4204	25
4205	4205	26
4206	4206	27
4207	4207	28
4208	4208	29
4209	4209	30
4210	4210	31
4211	4211	32
4212	4212	33
4213	4213	34
4214	4214	35
4215	4215	36
4216	4216	37
4217	4217	38
4218	4218	39
4219	4219	40
4220	4220	41
4221	4221	42
4222	4222	43 SB 377 50
4223	4223	79-3615(h), and amendments thereto;
4224	4224	(rrr) all sales of tangible personal property and services purchased by
4225	4225	any county law library maintained pursuant to law and sales of tangible
4226	4226	personal property and services purchased by an organization that would
4227	4227	have been exempt from taxation under the provisions of this subsection if
4228	4228	purchased directly by the county law library for the purpose of providing
4229	4229	legal resources to attorneys, judges, students and the general public, and
4230	4230	all sales of any such property by or on behalf of any such county law
4231	4231	library;
4232	4232	(sss) all sales of tangible personal property and services purchased by
4233	4233	catholic charities or youthville, hereinafter referred to as charitable family
4234	4234	providers, which is exempt from federal income taxation pursuant to
4235	4235	section 501(c)(3) of the federal internal revenue code of 1986, and which
4236	4236	such property and services are used for the purpose of providing
4237	4237	emergency shelter and treatment for abused and neglected children as well
4238	4238	as meeting additional critical needs for children, juveniles and family, and
4239	4239	all sales of any such property by or on behalf of charitable family
4240	4240	providers for any such purpose; and all sales of tangible personal property
4241	4241	or services purchased by a contractor for the purpose of constructing,
4242	4242	maintaining, repairing, enlarging, furnishing or remodeling facilities for
4243	4243	the operation of services for charitable family providers for any such
4244	4244	purpose which would be exempt from taxation under the provisions of this
4245	4245	section if purchased directly by charitable family providers. Nothing in
4246	4246	this subsection shall be deemed to exempt the purchase of any construction
4247	4247	machinery, equipment or tools used in the constructing, maintaining,
4248	4248	repairing, enlarging, furnishing or remodeling such facilities for charitable
4249	4249	family providers. When charitable family providers contracts for the
4250	4250	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4251	4251	remodeling such facilities, it shall obtain from the state and furnish to the
4252	4252	contractor an exemption certificate for the project involved, and the
4253	4253	contractor may purchase materials for incorporation in such project. The
4254	4254	contractor shall furnish the number of such certificate to all suppliers from
4255	4255	whom such purchases are made, and such suppliers shall execute invoices
4256	4256	covering the same bearing the number of such certificate. Upon
4257	4257	completion of the project the contractor shall furnish to charitable family
4258	4258	providers a sworn statement, on a form to be provided by the director of
4259	4259	taxation, that all purchases so made were entitled to exemption under this
4260	4260	subsection. All invoices shall be held by the contractor for a period of five
4261	4261	years and shall be subject to audit by the director of taxation. If any
4262	4262	materials purchased under such a certificate are found not to have been
4263	4263	incorporated in the building or other project or not to have been returned
4264	4264	for credit or the sales or compensating tax otherwise imposed upon such
4265	4265	materials that will not be so incorporated in the building or other project
4266	4266	1
4267	4267	2
4268	4268	3
4269	4269	4
4270	4270	5
4271	4271	6
4272	4272	7
4273	4273	8
4274	4274	9
4275	4275	10
4276	4276	11
4277	4277	12
4278	4278	13
4279	4279	14
4280	4280	15
4281	4281	16
4282	4282	17
4283	4283	18
4284	4284	19
4285	4285	20
4286	4286	21
4287	4287	22
4288	4288	23
4289	4289	24
4290	4290	25
4291	4291	26
4292	4292	27
4293	4293	28
4294	4294	29
4295	4295	30
4296	4296	31
4297	4297	32
4298	4298	33
4299	4299	34
4300	4300	35
4301	4301	36
4302	4302	37
4303	4303	38
4304	4304	39
4305	4305	40
4306	4306	41
4307	4307	42
4308	4308	43 SB 377 51
4309	4309	reported and paid by such contractor to the director of taxation not later
4310	4310	than the 20
4311	4311	th
4312	4312	day of the month following the close of the month in which it
4313	4313	shall be determined that such materials will not be used for the purpose for
4314	4314	which such certificate was issued, charitable family providers shall be
4315	4315	liable for tax on all materials purchased for the project, and upon payment
4316	4316	thereof it may recover the same from the contractor together with
4317	4317	reasonable attorney fees. Any contractor or any agent, employee or
4318	4318	subcontractor thereof, who shall use or otherwise dispose of any materials
4319	4319	purchased under such a certificate for any purpose other than that for
4320	4320	which such a certificate is issued without the payment of the sales or
4321	4321	compensating tax otherwise imposed upon such materials, shall be guilty
4322	4322	of a misdemeanor and, upon conviction therefor, shall be subject to the
4323	4323	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4324	4324	(ttt) all sales of tangible personal property or services purchased by a
4325	4325	contractor for a project for the purpose of restoring, constructing,
4326	4326	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
4327	4327	remodeling a home or facility owned by a nonprofit museum that has been
4328	4328	granted an exemption pursuant to subsection (qq), which such home or
4329	4329	facility is located in a city that has been designated as a qualified
4330	4330	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
4331	4331	amendments thereto, and which such project is related to the purposes of
4332	4332	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
4333	4333	exempt from taxation under the provisions of this section if purchased
4334	4334	directly by such nonprofit museum. Nothing in this subsection shall be
4335	4335	deemed to exempt the purchase of any construction machinery, equipment
4336	4336	or tools used in the restoring, constructing, equipping, reconstructing,
4337	4337	maintaining, repairing, enlarging, furnishing or remodeling a home or
4338	4338	facility for any such nonprofit museum. When any such nonprofit museum
4339	4339	shall contract for the purpose of restoring, constructing, equipping,
4340	4340	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4341	4341	a home or facility, it shall obtain from the state and furnish to the
4342	4342	contractor an exemption certificate for the project involved, and the
4343	4343	contractor may purchase materials for incorporation in such project. The
4344	4344	contractor shall furnish the number of such certificates to all suppliers
4345	4345	from whom such purchases are made, and such suppliers shall execute
4346	4346	invoices covering the same bearing the number of such certificate. Upon
4347	4347	completion of the project, the contractor shall furnish to such nonprofit
4348	4348	museum a sworn statement on a form to be provided by the director of
4349	4349	taxation that all purchases so made were entitled to exemption under this
4350	4350	subsection. All invoices shall be held by the contractor for a period of five
4351	4351	years and shall be subject to audit by the director of taxation. If any
4352	4352	materials purchased under such a certificate are found not to have been
4353	4353	incorporated in the building or other project or not to have been returned
4354	4354	1
4355	4355	2
4356	4356	3
4357	4357	4
4358	4358	5
4359	4359	6
4360	4360	7
4361	4361	8
4362	4362	9
4363	4363	10
4364	4364	11
4365	4365	12
4366	4366	13
4367	4367	14
4368	4368	15
4369	4369	16
4370	4370	17
4371	4371	18
4372	4372	19
4373	4373	20
4374	4374	21
4375	4375	22
4376	4376	23
4377	4377	24
4378	4378	25
4379	4379	26
4380	4380	27
4381	4381	28
4382	4382	29
4383	4383	30
4384	4384	31
4385	4385	32
4386	4386	33
4387	4387	34
4388	4388	35
4389	4389	36
4390	4390	37
4391	4391	38
4392	4392	39
4393	4393	40
4394	4394	41
4395	4395	42
4396	4396	43 SB 377 52
4397	4397	for credit or the sales or compensating tax otherwise imposed upon such
4398	4398	materials that will not be so incorporated in a home or facility or other
4399	4399	project reported and paid by such contractor to the director of taxation not
4400	4400	later than the 20
4401	4401	th
4402	4402	day of the month following the close of the month in
4403	4403	which it shall be determined that such materials will not be used for the
4404	4404	purpose for which such certificate was issued, such nonprofit museum
4405	4405	shall be liable for tax on all materials purchased for the project, and upon
4406	4406	payment thereof it may recover the same from the contractor together with
4407	4407	reasonable attorney fees. Any contractor or any agent, employee or
4408	4408	subcontractor thereof, who shall use or otherwise dispose of any materials
4409	4409	purchased under such a certificate for any purpose other than that for
4410	4410	which such a certificate is issued without the payment of the sales or
4411	4411	compensating tax otherwise imposed upon such materials, shall be guilty
4412	4412	of a misdemeanor and, upon conviction therefor, shall be subject to the
4413	4413	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4414	4414	(uuu) all sales of tangible personal property and services purchased
4415	4415	by Kansas children's service league, hereinafter referred to as KCSL,
4416	4416	which is exempt from federal income taxation pursuant to section 501(c)
4417	4417	(3) of the federal internal revenue code of 1986, and which such property
4418	4418	and services are used for the purpose of providing for the prevention and
4419	4419	treatment of child abuse and maltreatment as well as meeting additional
4420	4420	critical needs for children, juveniles and family, and all sales of any such
4421	4421	property by or on behalf of KCSL for any such purpose; and all sales of
4422	4422	tangible personal property or services purchased by a contractor for the
4423	4423	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4424	4424	remodeling facilities for the operation of services for KCSL for any such
4425	4425	purpose that would be exempt from taxation under the provisions of this
4426	4426	section if purchased directly by KCSL. Nothing in this subsection shall be
4427	4427	deemed to exempt the purchase of any construction machinery, equipment
4428	4428	or tools used in the constructing, maintaining, repairing, enlarging,
4429	4429	furnishing or remodeling such facilities for KCSL. When KCSL contracts
4430	4430	for the purpose of constructing, maintaining, repairing, enlarging,
4431	4431	furnishing or remodeling such facilities, it shall obtain from the state and
4432	4432	furnish to the contractor an exemption certificate for the project involved,
4433	4433	and the contractor may purchase materials for incorporation in such
4434	4434	project. The contractor shall furnish the number of such certificate to all
4435	4435	suppliers from whom such purchases are made, and such suppliers shall
4436	4436	execute invoices covering the same bearing the number of such certificate.
4437	4437	Upon completion of the project the contractor shall furnish to KCSL a
4438	4438	sworn statement, on a form to be provided by the director of taxation, that
4439	4439	all purchases so made were entitled to exemption under this subsection.
4440	4440	All invoices shall be held by the contractor for a period of five years and
4441	4441	shall be subject to audit by the director of taxation. If any materials
4442	4442	1
4443	4443	2
4444	4444	3
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4447	4447	6
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4481	4481	40
4482	4482	41
4483	4483	42
4484	4484	43 SB 377 53
4485	4485	purchased under such a certificate are found not to have been incorporated
4486	4486	in the building or other project or not to have been returned for credit or
4487	4487	the sales or compensating tax otherwise imposed upon such materials that
4488	4488	will not be so incorporated in the building or other project reported and
4489	4489	paid by such contractor to the director of taxation not later than the 20
4490	4490	th
4491	4491	day of the month following the close of the month in which it shall be
4492	4492	determined that such materials will not be used for the purpose for which
4493	4493	such certificate was issued, KCSL shall be liable for tax on all materials
4494	4494	purchased for the project, and upon payment thereof it may recover the
4495	4495	same from the contractor together with reasonable attorney fees. Any
4496	4496	contractor or any agent, employee or subcontractor thereof, who shall use
4497	4497	or otherwise dispose of any materials purchased under such a certificate
4498	4498	for any purpose other than that for which such a certificate is issued
4499	4499	without the payment of the sales or compensating tax otherwise imposed
4500	4500	upon such materials, shall be guilty of a misdemeanor and, upon
4501	4501	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4502	4502	79-3615(h), and amendments thereto;
4503	4503	(vvv) all sales of tangible personal property or services, including the
4504	4504	renting and leasing of tangible personal property or services, purchased by
4505	4505	jazz in the woods, inc., a Kansas corporation that is exempt from federal
4506	4506	income taxation pursuant to section 501(c)(3) of the federal internal
4507	4507	revenue code, for the purpose of providing jazz in the woods, an event
4508	4508	benefiting children-in-need and other nonprofit charities assisting such
4509	4509	children, and all sales of any such property by or on behalf of such
4510	4510	organization for such purpose;
4511	4511	(www) all sales of tangible personal property purchased by or on
4512	4512	behalf of the Frontenac education foundation, which is exempt from
4513	4513	federal income taxation pursuant to section 501(c)(3) of the federal
4514	4514	internal revenue code, for the purpose of providing education support for
4515	4515	students, and all sales of any such property by or on behalf of such
4516	4516	organization for such purpose;
4517	4517	(xxx) all sales of personal property and services purchased by the
4518	4518	booth theatre foundation, inc., an organization, which is exempt from
4519	4519	federal income taxation pursuant to section 501(c)(3) of the federal
4520	4520	internal revenue code of 1986, and which such personal property and
4521	4521	services are used by any such organization in the constructing, equipping,
4522	4522	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4523	4523	of the booth theatre, and all sales of tangible personal property or services
4524	4524	purchased by a contractor for the purpose of constructing, equipping,
4525	4525	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4526	4526	the booth theatre for such organization, that would be exempt from
4527	4527	taxation under the provisions of this section if purchased directly by such
4528	4528	organization. Nothing in this subsection shall be deemed to exempt the
4529	4529	1
4530	4530	2
4531	4531	3
4532	4532	4
4533	4533	5
4534	4534	6
4535	4535	7
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4537	4537	9
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4558	4558	30
4559	4559	31
4560	4560	32
4561	4561	33
4562	4562	34
4563	4563	35
4564	4564	36
4565	4565	37
4566	4566	38
4567	4567	39
4568	4568	40
4569	4569	41
4570	4570	42
4571	4571	43 SB 377 54
4572	4572	purchase of any construction machinery, equipment or tools used in the
4573	4573	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4574	4574	furnishing or remodeling facilities for any such organization. When any
4575	4575	such organization shall contract for the purpose of constructing, equipping,
4576	4576	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4577	4577	facilities, it shall obtain from the state and furnish to the contractor an
4578	4578	exemption certificate for the project involved, and the contractor may
4579	4579	purchase materials for incorporation in such project. The contractor shall
4580	4580	furnish the number of such certificate to all suppliers from whom such
4581	4581	purchases are made, and such suppliers shall execute invoices covering the
4582	4582	same bearing the number of such certificate. Upon completion of the
4583	4583	project the contractor shall furnish to such organization concerned a sworn
4584	4584	statement, on a form to be provided by the director of taxation, that all
4585	4585	purchases so made were entitled to exemption under this subsection. All
4586	4586	invoices shall be held by the contractor for a period of five years and shall
4587	4587	be subject to audit by the director of taxation. If any materials purchased
4588	4588	under such a certificate are found not to have been incorporated in such
4589	4589	facilities or not to have been returned for credit or the sales or
4590	4590	compensating tax otherwise imposed upon such materials that will not be
4591	4591	so incorporated in such facilities reported and paid by such contractor to
4592	4592	the director of taxation not later than the 20
4593	4593	th
4594	4594	day of the month following
4595	4595	the close of the month in which it shall be determined that such materials
4596	4596	will not be used for the purpose for which such certificate was issued, such
4597	4597	organization concerned shall be liable for tax on all materials purchased
4598	4598	for the project, and upon payment thereof it may recover the same from
4599	4599	the contractor together with reasonable attorney fees. Any contractor or
4600	4600	any agent, employee or subcontractor thereof, who shall use or otherwise
4601	4601	dispose of any materials purchased under such a certificate for any purpose
4602	4602	other than that for which such a certificate is issued without the payment
4603	4603	of the sales or compensating tax otherwise imposed upon such materials,
4604	4604	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4605	4605	subject to the penalties provided for in K.S.A. 79-3615(h), and
4606	4606	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
4607	4607	to the effective date of this act upon the gross receipts received from any
4608	4608	sale which would have been exempted by the provisions of this subsection
4609	4609	had such sale occurred after the effective date of this act shall be refunded.
4610	4610	Each claim for a sales tax refund shall be verified and submitted to the
4611	4611	director of taxation upon forms furnished by the director and shall be
4612	4612	accompanied by any additional documentation required by the director.
4613	4613	The director shall review each claim and shall refund that amount of sales
4614	4614	tax paid as determined under the provisions of this subsection. All refunds
4615	4615	shall be paid from the sales tax refund fund upon warrants of the director
4616	4616	of accounts and reports pursuant to vouchers approved by the director or
4617	4617	1
4618	4618	2
4619	4619	3
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4648	4648	32
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4651	4651	35
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4653	4653	37
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4655	4655	39
4656	4656	40
4657	4657	41
4658	4658	42
4659	4659	43 SB 377 55
4660	4660	the director's designee;
4661	4661	(yyy) all sales of tangible personal property and services purchased
4662	4662	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
4663	4663	which is exempt from federal income taxation pursuant to section 501(c)
4664	4664	(3) of the federal internal revenue code of 1986, and which such property
4665	4665	and services are used for the purpose of encouraging private philanthropy
4666	4666	to further the vision, values, and goals of TLC for children and families,
4667	4667	inc.; and all sales of such property and services by or on behalf of TLC
4668	4668	charities for any such purpose and all sales of tangible personal property or
4669	4669	services purchased by a contractor for the purpose of constructing,
4670	4670	maintaining, repairing, enlarging, furnishing or remodeling facilities for
4671	4671	the operation of services for TLC charities for any such purpose that would
4672	4672	be exempt from taxation under the provisions of this section if purchased
4673	4673	directly by TLC charities. Nothing in this subsection shall be deemed to
4674	4674	exempt the purchase of any construction machinery, equipment or tools
4675	4675	used in the constructing, maintaining, repairing, enlarging, furnishing or
4676	4676	remodeling such facilities for TLC charities. When TLC charities contracts
4677	4677	for the purpose of constructing, maintaining, repairing, enlarging,
4678	4678	furnishing or remodeling such facilities, it shall obtain from the state and
4679	4679	furnish to the contractor an exemption certificate for the project involved,
4680	4680	and the contractor may purchase materials for incorporation in such
4681	4681	project. The contractor shall furnish the number of such certificate to all
4682	4682	suppliers from whom such purchases are made, and such suppliers shall
4683	4683	execute invoices covering the same bearing the number of such certificate.
4684	4684	Upon completion of the project the contractor shall furnish to TLC
4685	4685	charities a sworn statement, on a form to be provided by the director of
4686	4686	taxation, that all purchases so made were entitled to exemption under this
4687	4687	subsection. All invoices shall be held by the contractor for a period of five
4688	4688	years and shall be subject to audit by the director of taxation. If any
4689	4689	materials purchased under such a certificate are found not to have been
4690	4690	incorporated in the building or other project or not to have been returned
4691	4691	for credit or the sales or compensating tax otherwise imposed upon such
4692	4692	materials that will not be incorporated into the building or other project
4693	4693	reported and paid by such contractor to the director of taxation not later
4694	4694	than the 20
4695	4695	th
4696	4696	day of the month following the close of the month in which it
4697	4697	shall be determined that such materials will not be used for the purpose for
4698	4698	which such certificate was issued, TLC charities shall be liable for tax on
4699	4699	all materials purchased for the project, and upon payment thereof it may
4700	4700	recover the same from the contractor together with reasonable attorney
4701	4701	fees. Any contractor or any agent, employee or subcontractor thereof, who
4702	4702	shall use or otherwise dispose of any materials purchased under such a
4703	4703	certificate for any purpose other than that for which such a certificate is
4704	4704	issued without the payment of the sales or compensating tax otherwise
4705	4705	1
4706	4706	2
4707	4707	3
4708	4708	4
4709	4709	5
4710	4710	6
4711	4711	7
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4713	4713	9
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4716	4716	12
4717	4717	13
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4719	4719	15
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4725	4725	21
4726	4726	22
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4729	4729	25
4730	4730	26
4731	4731	27
4732	4732	28
4733	4733	29
4734	4734	30
4735	4735	31
4736	4736	32
4737	4737	33
4738	4738	34
4739	4739	35
4740	4740	36
4741	4741	37
4742	4742	38
4743	4743	39
4744	4744	40
4745	4745	41
4746	4746	42
4747	4747	43 SB 377 56
4748	4748	imposed upon such materials, shall be guilty of a misdemeanor and, upon
4749	4749	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4750	4750	79-3615(h), and amendments thereto;
4751	4751	(zzz) all sales of tangible personal property purchased by the rotary
4752	4752	club of shawnee foundation, which is exempt from federal income taxation
4753	4753	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4754	4754	as amended, used for the purpose of providing contributions to community
4755	4755	service organizations and scholarships;
4756	4756	(aaaa) all sales of personal property and services purchased by or on
4757	4757	behalf of victory in the valley, inc., which is exempt from federal income
4758	4758	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4759	4759	for the purpose of providing a cancer support group and services for
4760	4760	persons with cancer, and all sales of any such property by or on behalf of
4761	4761	any such organization for any such purpose;
4762	4762	(bbbb) all sales of entry or participation fees, charges or tickets by
4763	4763	Guadalupe health foundation, which is exempt from federal income
4764	4764	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4765	4765	for such organization's annual fundraising event which purpose is to
4766	4766	provide health care services for uninsured workers;
4767	4767	(cccc) all sales of tangible personal property or services purchased by
4768	4768	or on behalf of wayside waifs, inc., which is exempt from federal income
4769	4769	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4770	4770	for the purpose of providing such organization's annual fundraiser, an
4771	4771	event whose purpose is to support the care of homeless and abandoned
4772	4772	animals, animal adoption efforts, education programs for children and
4773	4773	efforts to reduce animal over-population and animal welfare services, and
4774	4774	all sales of any such property, including entry or participation fees or
4775	4775	charges, by or on behalf of such organization for such purpose;
4776	4776	(dddd) all sales of tangible personal property or services purchased
4777	4777	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
4778	4778	of which are exempt from federal income taxation pursuant to section
4779	4779	501(c)(3) of the federal internal revenue code, for the purpose of providing
4780	4780	education, training and employment opportunities for people with
4781	4781	disabilities and other barriers to employment;
4782	4782	(eeee) all sales of tangible personal property or services purchased by
4783	4783	or on behalf of all American beef battalion, inc., which is exempt from
4784	4784	federal income taxation pursuant to section 501(c)(3) of the federal
4785	4785	internal revenue code, for the purpose of educating, promoting and
4786	4786	participating as a contact group through the beef cattle industry in order to
4787	4787	carry out such projects that provide support and morale to members of the
4788	4788	United States armed forces and military services;
4789	4789	(ffff) all sales of tangible personal property and services purchased by
4790	4790	sheltered living, inc., which is exempt from federal income taxation
4791	4791	1
4792	4792	2
4793	4793	3
4794	4794	4
4795	4795	5
4796	4796	6
4797	4797	7
4798	4798	8
4799	4799	9
4800	4800	10
4801	4801	11
4802	4802	12
4803	4803	13
4804	4804	14
4805	4805	15
4806	4806	16
4807	4807	17
4808	4808	18
4809	4809	19
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4812	4812	22
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4815	4815	25
4816	4816	26
4817	4817	27
4818	4818	28
4819	4819	29
4820	4820	30
4821	4821	31
4822	4822	32
4823	4823	33
4824	4824	34
4825	4825	35
4826	4826	36
4827	4827	37
4828	4828	38
4829	4829	39
4830	4830	40
4831	4831	41
4832	4832	42
4833	4833	43 SB 377 57
4834	4834	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4835	4835	and which such property and services are used for the purpose of
4836	4836	providing residential and day services for people with developmental
4837	4837	disabilities or intellectual disability, or both, and all sales of any such
4838	4838	property by or on behalf of sheltered living, inc., for any such purpose; and
4839	4839	all sales of tangible personal property or services purchased by a
4840	4840	contractor for the purpose of rehabilitating, constructing, maintaining,
4841	4841	repairing, enlarging, furnishing or remodeling homes and facilities for
4842	4842	sheltered living, inc., for any such purpose that would be exempt from
4843	4843	taxation under the provisions of this section if purchased directly by
4844	4844	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
4845	4845	the purchase of any construction machinery, equipment or tools used in the
4846	4846	constructing, maintaining, repairing, enlarging, furnishing or remodeling
4847	4847	such homes and facilities for sheltered living, inc. When sheltered living,
4848	4848	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
4849	4849	repairing, enlarging, furnishing or remodeling such homes and facilities, it
4850	4850	shall obtain from the state and furnish to the contractor an exemption
4851	4851	certificate for the project involved, and the contractor may purchase
4852	4852	materials for incorporation in such project. The contractor shall furnish the
4853	4853	number of such certificate to all suppliers from whom such purchases are
4854	4854	made, and such suppliers shall execute invoices covering the same bearing
4855	4855	the number of such certificate. Upon completion of the project the
4856	4856	contractor shall furnish to sheltered living, inc., a sworn statement, on a
4857	4857	form to be provided by the director of taxation, that all purchases so made
4858	4858	were entitled to exemption under this subsection. All invoices shall be held
4859	4859	by the contractor for a period of five years and shall be subject to audit by
4860	4860	the director of taxation. If any materials purchased under such a certificate
4861	4861	are found not to have been incorporated in the building or other project or
4862	4862	not to have been returned for credit or the sales or compensating tax
4863	4863	otherwise imposed upon such materials that will not be so incorporated in
4864	4864	the building or other project reported and paid by such contractor to the
4865	4865	director of taxation not later than the 20
4866	4866	th
4867	4867	day of the month following the
4868	4868	close of the month in which it shall be determined that such materials will
4869	4869	not be used for the purpose for which such certificate was issued, sheltered
4870	4870	living, inc., shall be liable for tax on all materials purchased for the
4871	4871	project, and upon payment thereof it may recover the same from the
4872	4872	contractor together with reasonable attorney fees. Any contractor or any
4873	4873	agent, employee or subcontractor thereof, who shall use or otherwise
4874	4874	dispose of any materials purchased under such a certificate for any purpose
4875	4875	other than that for which such a certificate is issued without the payment
4876	4876	of the sales or compensating tax otherwise imposed upon such materials,
4877	4877	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4878	4878	subject to the penalties provided for in K.S.A. 79-3615(h), and
4879	4879	1
4880	4880	2
4881	4881	3
4882	4882	4
4883	4883	5
4884	4884	6
4885	4885	7
4886	4886	8
4887	4887	9
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4889	4889	11
4890	4890	12
4891	4891	13
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4893	4893	15
4894	4894	16
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4903	4903	25
4904	4904	26
4905	4905	27
4906	4906	28
4907	4907	29
4908	4908	30
4909	4909	31
4910	4910	32
4911	4911	33
4912	4912	34
4913	4913	35
4914	4914	36
4915	4915	37
4916	4916	38
4917	4917	39
4918	4918	40
4919	4919	41
4920	4920	42
4921	4921	43 SB 377 58
4922	4922	amendments thereto;
4923	4923	(gggg) all sales of game birds for which the primary purpose is use in
4924	4924	hunting;
4925	4925	(hhhh) all sales of tangible personal property or services purchased
4926	4926	on or after July 1, 2014, for the purpose of and in conjunction with
4927	4927	constructing, reconstructing, enlarging or remodeling a business identified
4928	4928	under the North American industry classification system (NAICS)
4929	4929	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
4930	4930	installation of machinery and equipment purchased for installation at any
4931	4931	such business. The exemption provided in this subsection shall not apply
4932	4932	to projects that have actual total costs less than $50,000. When a person
4933	4933	contracts for the construction, reconstruction, enlargement or remodeling
4934	4934	of any such business, such person shall obtain from the state and furnish to
4935	4935	the contractor an exemption certificate for the project involved, and the
4936	4936	contractor may purchase materials, machinery and equipment for
4937	4937	incorporation in such project. The contractor shall furnish the number of
4938	4938	such certificates to all suppliers from whom such purchases are made, and
4939	4939	such suppliers shall execute invoices covering the same bearing the
4940	4940	number of such certificate. Upon completion of the project, the contractor
4941	4941	shall furnish to the owner of the business a sworn statement, on a form to
4942	4942	be provided by the director of taxation, that all purchases so made were
4943	4943	entitled to exemption under this subsection. All invoices shall be held by
4944	4944	the contractor for a period of five years and shall be subject to audit by the
4945	4945	director of taxation. Any contractor or any agent, employee or
4946	4946	subcontractor of the contractor, who shall use or otherwise dispose of any
4947	4947	materials, machinery or equipment purchased under such a certificate for
4948	4948	any purpose other than that for which such a certificate is issued without
4949	4949	the payment of the sales or compensating tax otherwise imposed thereon,
4950	4950	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4951	4951	subject to the penalties provided for in K.S.A. 79-3615(h), and
4952	4952	amendments thereto;
4953	4953	(iiii) all sales of tangible personal property or services purchased by a
4954	4954	contractor for the purpose of constructing, maintaining, repairing,
4955	4955	enlarging, furnishing or remodeling facilities for the operation of services
4956	4956	for Wichita children's home for any such purpose that would be exempt
4957	4957	from taxation under the provisions of this section if purchased directly by
4958	4958	Wichita children's home. Nothing in this subsection shall be deemed to
4959	4959	exempt the purchase of any construction machinery, equipment or tools
4960	4960	used in the constructing, maintaining, repairing, enlarging, furnishing or
4961	4961	remodeling such facilities for Wichita children's home. When Wichita
4962	4962	children's home contracts for the purpose of constructing, maintaining,
4963	4963	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
4964	4964	from the state and furnish to the contractor an exemption certificate for the
4965	4965	1
4966	4966	2
4967	4967	3
4968	4968	4
4969	4969	5
4970	4970	6
4971	4971	7
4972	4972	8
4973	4973	9
4974	4974	10
4975	4975	11
4976	4976	12
4977	4977	13
4978	4978	14
4979	4979	15
4980	4980	16
4981	4981	17
4982	4982	18
4983	4983	19
4984	4984	20
4985	4985	21
4986	4986	22
4987	4987	23
4988	4988	24
4989	4989	25
4990	4990	26
4991	4991	27
4992	4992	28
4993	4993	29
4994	4994	30
4995	4995	31
4996	4996	32
4997	4997	33
4998	4998	34
4999	4999	35
5000	5000	36
5001	5001	37
5002	5002	38
5003	5003	39
5004	5004	40
5005	5005	41
5006	5006	42
5007	5007	43 SB 377 59
5008	5008	project involved, and the contractor may purchase materials for
5009	5009	incorporation in such project. The contractor shall furnish the number of
5010	5010	such certificate to all suppliers from whom such purchases are made, and
5011	5011	such suppliers shall execute invoices covering the same bearing the
5012	5012	number of such certificate. Upon completion of the project, the contractor
5013	5013	shall furnish to Wichita children's home a sworn statement, on a form to be
5014	5014	provided by the director of taxation, that all purchases so made were
5015	5015	entitled to exemption under this subsection. All invoices shall be held by
5016	5016	the contractor for a period of five years and shall be subject to audit by the
5017	5017	director of taxation. If any materials purchased under such a certificate are
5018	5018	found not to have been incorporated in the building or other project or not
5019	5019	to have been returned for credit or the sales or compensating tax otherwise
5020	5020	imposed upon such materials that will not be so incorporated in the
5021	5021	building or other project reported and paid by such contractor to the
5022	5022	director of taxation not later than the 20
5023	5023	th
5024	5024	day of the month following the
5025	5025	close of the month in which it shall be determined that such materials will
5026	5026	not be used for the purpose for which such certificate was issued, Wichita
5027	5027	children's home shall be liable for the tax on all materials purchased for the
5028	5028	project, and upon payment, it may recover the same from the contractor
5029	5029	together with reasonable attorney fees. Any contractor or any agent,
5030	5030	employee or subcontractor, who shall use or otherwise dispose of any
5031	5031	materials purchased under such a certificate for any purpose other than that
5032	5032	for which such a certificate is issued without the payment of the sales or
5033	5033	compensating tax otherwise imposed upon such materials, shall be guilty
5034	5034	of a misdemeanor and, upon conviction, shall be subject to the penalties
5035	5035	provided for in K.S.A. 79-3615(h), and amendments thereto;
5036	5036	(jjjj) all sales of tangible personal property or services purchased by
5037	5037	or on behalf of the beacon, inc., that is exempt from federal income
5038	5038	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
5039	5039	for the purpose of providing those desiring help with food, shelter, clothing
5040	5040	and other necessities of life during times of special need;
5041	5041	(kkkk) all sales of tangible personal property and services purchased
5042	5042	by or on behalf of reaching out from within, inc., which is exempt from
5043	5043	federal income taxation pursuant to section 501(c)(3) of the federal
5044	5044	internal revenue code, for the purpose of sponsoring self-help programs for
5045	5045	incarcerated persons that will enable such incarcerated persons to become
5046	5046	role models for non-violence while in correctional facilities and productive
5047	5047	family members and citizens upon return to the community;
5048	5048	(llll) all sales of tangible personal property and services purchased by
5049	5049	Gove county healthcare endowment foundation, inc., which is exempt
5050	5050	from federal income taxation pursuant to section 501(c)(3) of the federal
5051	5051	internal revenue code of 1986, and which such property and services are
5052	5052	used for the purpose of constructing and equipping an airport in Quinter,
5053	5053	1
5054	5054	2
5055	5055	3
5056	5056	4
5057	5057	5
5058	5058	6
5059	5059	7
5060	5060	8
5061	5061	9
5062	5062	10
5063	5063	11
5064	5064	12
5065	5065	13
5066	5066	14
5067	5067	15
5068	5068	16
5069	5069	17
5070	5070	18
5071	5071	19
5072	5072	20
5073	5073	21
5074	5074	22
5075	5075	23
5076	5076	24
5077	5077	25
5078	5078	26
5079	5079	27
5080	5080	28
5081	5081	29
5082	5082	30
5083	5083	31
5084	5084	32
5085	5085	33
5086	5086	34
5087	5087	35
5088	5088	36
5089	5089	37
5090	5090	38
5091	5091	39
5092	5092	40
5093	5093	41
5094	5094	42
5095	5095	43 SB 377 60
5096	5096	Kansas, and all sales of tangible personal property or services purchased
5097	5097	by a contractor for the purpose of constructing and equipping an airport in
5098	5098	Quinter, Kansas, for such organization, that would be exempt from
5099	5099	taxation under the provisions of this section if purchased directly by such
5100	5100	organization. Nothing in this subsection shall be deemed to exempt the
5101	5101	purchase of any construction machinery, equipment or tools used in the
5102	5102	constructing or equipping of facilities for such organization. When such
5103	5103	organization shall contract for the purpose of constructing or equipping an
5104	5104	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
5105	5105	contractor an exemption certificate for the project involved, and the
5106	5106	contractor may purchase materials for incorporation in such project. The
5107	5107	contractor shall furnish the number of such certificate to all suppliers from
5108	5108	whom such purchases are made, and such suppliers shall execute invoices
5109	5109	covering the same bearing the number of such certificate. Upon
5110	5110	completion of the project, the contractor shall furnish to such organization
5111	5111	concerned a sworn statement, on a form to be provided by the director of
5112	5112	taxation, that all purchases so made were entitled to exemption under this
5113	5113	subsection. All invoices shall be held by the contractor for a period of five
5114	5114	years and shall be subject to audit by the director of taxation. If any
5115	5115	materials purchased under such a certificate are found not to have been
5116	5116	incorporated in such facilities or not to have been returned for credit or the
5117	5117	sales or compensating tax otherwise imposed upon such materials that will
5118	5118	not be so incorporated in such facilities reported and paid by such
5119	5119	contractor to the director of taxation no later than the 20
5120	5120	th
5121	5121	day of the month
5122	5122	following the close of the month in which it shall be determined that such
5123	5123	materials will not be used for the purpose for which such certificate was
5124	5124	issued, such organization concerned shall be liable for tax on all materials
5125	5125	purchased for the project, and upon payment thereof it may recover the
5126	5126	same from the contractor together with reasonable attorney fees. Any
5127	5127	contractor or any agent, employee or subcontractor thereof, who purchased
5128	5128	under such a certificate for any purpose other than that for which such a
5129	5129	certificate is issued without the payment of the sales or compensating tax
5130	5130	otherwise imposed upon such materials, shall be guilty of a misdemeanor
5131	5131	and, upon conviction therefor, shall be subject to the penalties provided for
5132	5132	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
5133	5133	subsection shall expire and have no effect on and after July 1, 2019;
5134	5134	(mmmm) all sales of gold or silver coins; and palladium, platinum,
5135	5135	gold or silver bullion. For the purposes of this subsection, "bullion" means
5136	5136	bars, ingots or commemorative medallions of gold, silver, platinum,
5137	5137	palladium, or a combination thereof, for which the value of the metal
5138	5138	depends on its content and not the form;
5139	5139	(nnnn) all sales of tangible personal property or services purchased
5140	5140	by friends of hospice of Jefferson county, an organization that is exempt
5141	5141	1
5142	5142	2
5143	5143	3
5144	5144	4
5145	5145	5
5146	5146	6
5147	5147	7
5148	5148	8
5149	5149	9
5150	5150	10
5151	5151	11
5152	5152	12
5153	5153	13
5154	5154	14
5155	5155	15
5156	5156	16
5157	5157	17
5158	5158	18
5159	5159	19
5160	5160	20
5161	5161	21
5162	5162	22
5163	5163	23
5164	5164	24
5165	5165	25
5166	5166	26
5167	5167	27
5168	5168	28
5169	5169	29
5170	5170	30
5171	5171	31
5172	5172	32
5173	5173	33
5174	5174	34
5175	5175	35
5176	5176	36
5177	5177	37
5178	5178	38
5179	5179	39
5180	5180	40
5181	5181	41
5182	5182	42
5183	5183	43 SB 377 61
5184	5184	from federal income taxation pursuant to section 501(c)(3) of the federal
5185	5185	internal revenue code of 1986, for the purpose of providing support to the
5186	5186	Jefferson county hospice agency in end-of-life care of Jefferson county
5187	5187	families, friends and neighbors, and all sales of entry or participation fees,
5188	5188	charges or tickets by friends of hospice of Jefferson county for such
5189	5189	organization's fundraising event for such purpose;
5190	5190	(oooo) all sales of tangible personal property or services purchased
5191	5191	for the purpose of and in conjunction with constructing, reconstructing,
5192	5192	enlarging or remodeling a qualified business facility by a qualified firm or
5193	5193	qualified supplier that meets the requirements established in K.S.A. 2023
5194	5194	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
5195	5195	been approved for a project exemption certificate by the secretary of
5196	5196	commerce, and the sale and installation of machinery and equipment
5197	5197	purchased by such qualified firm or qualified supplier for installation at
5198	5198	any such qualified business facility. When a person shall contract for the
5199	5199	construction, reconstruction, enlargement or remodeling of any such
5200	5200	qualified business facility, such person shall obtain from the state and
5201	5201	furnish to the contractor an exemption certificate for the project involved,
5202	5202	and the contractor may purchase materials, machinery and equipment for
5203	5203	incorporation in such project. The contractor shall furnish the number of
5204	5204	such certificates to all suppliers from whom such purchases are made, and
5205	5205	such suppliers shall execute invoices covering the same bearing the
5206	5206	number of such certificate. Upon completion of the project, the contractor
5207	5207	shall furnish to the owner of the qualified firm or qualified supplier a
5208	5208	sworn statement, on a form to be provided by the director of taxation, that
5209	5209	all purchases so made were entitled to exemption under this subsection.
5210	5210	All invoices shall be held by the contractor for a period of five years and
5211	5211	shall be subject to audit by the director of taxation. Any contractor or any
5212	5212	agent, employee or subcontractor thereof who shall use or otherwise
5213	5213	dispose of any materials, machinery or equipment purchased under such a
5214	5214	certificate for any purpose other than that for which such a certificate is
5215	5215	issued without the payment of the sales or compensating tax otherwise
5216	5216	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
5217	5217	therefor, shall be subject to the penalties provided for in K.S.A. 79-
5218	5218	3615(h), and amendments thereto. As used in this subsection, "qualified
5219	5219	business facility," "qualified firm" and "qualified supplier" mean the same
5220	5220	as defined in K.S.A. 2023 Supp. 74-50,311, and amendments thereto;
5221	5221	(pppp) (1) all sales of tangible personal property or services
5222	5222	purchased by a not-for-profit corporation that is designated as an area
5223	5223	agency on aging by the secretary for aging and disabilities services and is
5224	5224	exempt from federal income taxation pursuant to section 501(c)(3) of the
5225	5225	federal internal revenue code for the purpose of coordinating and
5226	5226	providing seniors and those living with disabilities with services that
5227	5227	1
5228	5228	2
5229	5229	3
5230	5230	4
5231	5231	5
5232	5232	6
5233	5233	7
5234	5234	8
5235	5235	9
5236	5236	10
5237	5237	11
5238	5238	12
5239	5239	13
5240	5240	14
5241	5241	15
5242	5242	16
5243	5243	17
5244	5244	18
5245	5245	19
5246	5246	20
5247	5247	21
5248	5248	22
5249	5249	23
5250	5250	24
5251	5251	25
5252	5252	26
5253	5253	27
5254	5254	28
5255	5255	29
5256	5256	30
5257	5257	31
5258	5258	32
5259	5259	33
5260	5260	34
5261	5261	35
5262	5262	36
5263	5263	37
5264	5264	38
5265	5265	39
5266	5266	40
5267	5267	41
5268	5268	42
5269	5269	43 SB 377 62
5270	5270	promote person-centered care, including home-delivered meals,
5271	5271	congregate meal settings, long-term case management, transportation,
5272	5272	information, assistance and other preventative and intervention services to
5273	5273	help service recipients remain in their homes and communities or for the
5274	5274	purpose of constructing, equipping, reconstructing, maintaining, repairing,
5275	5275	enlarging, furnishing or remodeling facilities for such area agency on
5276	5276	aging; and
5277	5277	(2) all sales of tangible personal property or services purchased by a
5278	5278	contractor for the purpose of constructing, equipping, reconstructing,
5279	5279	maintaining, repairing, enlarging, furnishing or remodeling facilities for an
5280	5280	area agency on aging that would be exempt from taxation under the
5281	5281	provisions of this section if purchased directly by such area agency on
5282	5282	aging. Nothing in this paragraph shall be deemed to exempt the purchase
5283	5283	of any construction machinery, equipment or tools used in the
5284	5284	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
5285	5285	furnishing or remodeling facilities for an area agency on aging. When an
5286	5286	area agency on aging contracts for the purpose of constructing, equipping,
5287	5287	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5288	5288	facilities, it shall obtain from the state and furnish to the contractor an
5289	5289	exemption certificate for the project involved, and such contractor may
5290	5290	purchase materials for incorporation in such project. The contractor shall
5291	5291	furnish the number of such certificate to all suppliers from whom such
5292	5292	purchases are made, and such suppliers shall execute invoices covering the
5293	5293	same bearing the number of such certificate. Upon completion of the
5294	5294	project, the contractor shall furnish to such area agency on aging a sworn
5295	5295	statement, on a form to be provided by the director of taxation, that all
5296	5296	purchases so made were entitled to exemption under this subsection. All
5297	5297	invoices shall be held by the contractor for a period of five years and shall
5298	5298	be subject to audit by the director of taxation. If any materials purchased
5299	5299	under such a certificate are found not to have been incorporated in the
5300	5300	building or other project or not to have been returned for credit or the sales
5301	5301	or compensating tax otherwise imposed upon such materials that will not
5302	5302	be so incorporated in the building or other project reported and paid by
5303	5303	such contractor to the director of taxation not later than the 20
5304	5304	th
5305	5305	day of the
5306	5306	month following the close of the month in which it shall be determined
5307	5307	that such materials will not be used for the purpose for which such
5308	5308	certificate was issued, the area agency on aging concerned shall be liable
5309	5309	for tax on all materials purchased for the project, and upon payment
5310	5310	thereof, the area agency on aging may recover the same from the
5311	5311	contractor together with reasonable attorney fees. Any contractor or any
5312	5312	agent, employee or subcontractor thereof who shall use or otherwise
5313	5313	dispose of any materials purchased under such a certificate for any purpose
5314	5314	other than that for which such a certificate is issued without the payment
5315	5315	1
5316	5316	2
5317	5317	3
5318	5318	4
5319	5319	5
5320	5320	6
5321	5321	7
5322	5322	8
5323	5323	9
5324	5324	10
5325	5325	11
5326	5326	12
5327	5327	13
5328	5328	14
5329	5329	15
5330	5330	16
5331	5331	17
5332	5332	18
5333	5333	19
5334	5334	20
5335	5335	21
5336	5336	22
5337	5337	23
5338	5338	24
5339	5339	25
5340	5340	26
5341	5341	27
5342	5342	28
5343	5343	29
5344	5344	30
5345	5345	31
5346	5346	32
5347	5347	33
5348	5348	34
5349	5349	35
5350	5350	36
5351	5351	37
5352	5352	38
5353	5353	39
5354	5354	40
5355	5355	41
5356	5356	42
5357	5357	43 SB 377 63
5358	5358	of the sales or compensating tax otherwise imposed upon such materials
5359	5359	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5360	5360	subject to the penalties provided for in K.S.A. 79-3615(h), and
5361	5361	amendments thereto; and
5362	5362	(qqqq) all sales of tangible personal property or services purchased
5363	5363	by Kansas suicide prevention HQ, inc., an organization that is exempt
5364	5364	from federal income taxation pursuant to section 501(c)(3) of the federal
5365	5365	internal revenue code of 1986, for the purpose of bringing suicide
5366	5366	prevention training and awareness to communities across the state;
5367	5367	(rrrr) on and after April 1, 2024, all sales of children's diapers. For
5368	5368	purposes of this subsection:
5369	5369	(1) "Children's diapers" means diapers marketed to be worn by
5370	5370	children; and
5371	5371	(2) "diaper" means an absorbent garment worn by humans who are
5372	5372	incapable of, or have difficulty, controlling their bladder or bowel
5373	5373	movements; and
5374	5374	(ssss) on and after April 1, 2024, all sales of feminine hygiene
5375	5375	products. For purposes of this subsection, "feminine hygiene products"
5376	5376	means tampons, panty liners, menstrual cups, sanitary napkins and other
5377	5377	similar tangible personal property designed for feminine hygiene in
5378	5378	connection with the human menstrual cycle.
5379	5379	Sec. 11. K.S.A. 2023 Supp. 79-3620 is hereby amended to read as
5380	5380	follows: 79-3620. (a) All revenue collected or received by the director of
5381	5381	taxation from the taxes imposed by this act shall be remitted to the state
5382	5382	treasurer in accordance with the provisions of K.S.A. 75-4215, and
5383	5383	amendments thereto. Upon receipt of each such remittance, the state
5384	5384	treasurer shall deposit the entire amount in the state treasury, less amounts
5385	5385	withheld as provided in subsection (b) and amounts credited as provided in
5386	5386	subsections (c), (d) and (e), to the credit of the state general fund.
5387	5387	(b) A refund fund, designated as "sales tax refund fund" not to exceed
5388	5388	$100,000 shall be set apart and maintained by the director from sales tax
5389	5389	collections and estimated tax collections and held by the state treasurer for
5390	5390	prompt payment of all sales tax refunds. Such fund shall be in such
5391	5391	amount, within the limit set by this section, as the director shall determine
5392	5392	is necessary to meet current refunding requirements under this act. In the
5393	5393	event such fund as established by this section is, at any time, insufficient to
5394	5394	provide for the payment of refunds due claimants thereof, the director shall
5395	5395	certify the amount of additional funds required to the director of accounts
5396	5396	and reports who shall promptly transfer the required amount from the state
5397	5397	general fund to the sales tax refund fund, and notify the state treasurer,
5398	5398	who shall make proper entry in the records.
5399	5399	(c) (1) On January 1, 2023, the state treasurer shall credit 17% of the
5400	5400	revenue collected and received from the tax imposed by K.S.A. 79-3603,
5401	5401	1
5402	5402	2
5403	5403	3
5404	5404	4
5405	5405	5
5406	5406	6
5407	5407	7
5408	5408	8
5409	5409	9
5410	5410	10
5411	5411	11
5412	5412	12
5413	5413	13
5414	5414	14
5415	5415	15
5416	5416	16
5417	5417	17
5418	5418	18
5419	5419	19
5420	5420	20
5421	5421	21
5422	5422	22
5423	5423	23
5424	5424	24
5425	5425	25
5426	5426	26
5427	5427	27
5428	5428	28
5429	5429	29
5430	5430	30
5431	5431	31
5432	5432	32
5433	5433	33
5434	5434	34
5435	5435	35
5436	5436	36
5437	5437	37
5438	5438	38
5439	5439	39
5440	5440	40
5441	5441	41
5442	5442	42
5443	5443	43 SB 377 64
5444	5444	and amendments thereto, at the rates provided in K.S.A. 79-3603, and
5445	5445	amendments thereto, and K.S.A. 2023 Supp. 79-3603d, and amendments
5446	5446	thereto, and deposited as provided by subsection (a), exclusive of amounts
5447	5447	credited pursuant to subsection (d), in the state highway fund.
5448	5448	(2) On January 1, 2025 April 1, 2024, and thereafter, the state
5449	5449	treasurer shall credit 18% of the revenue collected and received from the
5450	5450	tax imposed by K.S.A. 79-3603, and amendments thereto, at the rates
5451	5451	provided in K.S.A. 79-3603, and amendments thereto, and K.S.A. 2023
5452	5452	Supp. 79-3603d, and amendments thereto, and deposited as provided by
5453	5453	subsection (a), exclusive of amounts credited pursuant to subsection (d), in
5454	5454	the state highway fund.
5455	5455	(d) The state treasurer shall credit all revenue collected or received
5456	5456	from the tax imposed by K.S.A. 79-3603, and amendments thereto, as
5457	5457	certified by the director, from taxpayers doing business within that portion
5458	5458	of a STAR bond project district occupied by a STAR bond project or
5459	5459	taxpayers doing business with such entity financed by a STAR bond
5460	5460	project as defined in K.S.A. 12-17,162, and amendments thereto, that was
5461	5461	determined by the secretary of commerce to be of statewide as well as
5462	5462	local importance or will create a major tourism area for the state or the
5463	5463	project was designated as a STAR bond project as defined in K.S.A. 12-
5464	5464	17,162, and amendments thereto, to the city bond finance fund, which fund
5465	5465	is hereby created. The provisions of this subsection shall expire when the
5466	5466	total of all amounts credited hereunder and under K.S.A. 79-3710(d), and
5467	5467	amendments thereto, is sufficient to retire the special obligation bonds
5468	5468	issued for the purpose of financing all or a portion of the costs of such
5469	5469	STAR bond project.
5470	5470	(e) All revenue certified by the director of taxation as having been
5471	5471	collected or received from the tax imposed by K.S.A. 79-3603(c), and
5472	5472	amendments thereto, on the sale or furnishing of gas, water, electricity and
5473	5473	heat for use or consumption within the intermodal facility district
5474	5474	described in this subsection, shall be credited by the state treasurer to the
5475	5475	state highway fund. Such revenue may be transferred by the secretary of
5476	5476	transportation to the rail service improvement fund pursuant to law. The
5477	5477	provisions of this subsection shall take effect upon certification by the
5478	5478	secretary of transportation that a notice to proceed has been received for
5479	5479	the construction of the improvements within the intermodal facility
5480	5480	district, but not later than December 31, 2010, and shall expire when the
5481	5481	secretary of revenue determines that the total of all amounts credited
5482	5482	hereunder and pursuant to K.S.A. 79-3710(e), and amendments thereto, is
5483	5483	equal to $53,300,000, but not later than December 31, 2045. Thereafter, all
5484	5484	revenues shall be collected and distributed in accordance with applicable
5485	5485	law. For all tax reporting periods during which the provisions of this
5486	5486	subsection are in effect, none of the exemptions contained in K.S.A. 79-
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5530	5530	3601 et seq., and amendments thereto, shall apply to the sale or furnishing
5531	5531	of any gas, water, electricity and heat for use or consumption within the
5532	5532	intermodal facility district. As used in this subsection, "intermodal facility
5533	5533	district" shall consist of an intermodal transportation area as defined by
5534	5534	K.S.A. 12-1770a(oo), and amendments thereto, located in Johnson county
5535	5535	within the polygonal-shaped area having Waverly Road as the eastern
5536	5536	boundary, 191
5537	5537	st
5538	5538	Street as the southern boundary, Four Corners Road as the
5539	5539	western boundary, and Highway 56 as the northern boundary, and the
5540	5540	polygonal-shaped area having Poplar Road as the eastern boundary, 183
5541	5541	rd
5542	5542	Street as the southern boundary, Waverly Road as the western boundary,
5543	5543	and the BNSF mainline track as the northern boundary, that includes
5544	5544	capital investment in an amount exceeding $150 million for the
5545	5545	construction of an intermodal facility to handle the transfer, storage and
5546	5546	distribution of freight through railway and trucking operations.
5547	5547	Sec. 12. K.S.A. 2023 Supp. 79-3703 is hereby amended to read as
5548	5548	follows: 79-3703. (a) There is hereby levied and there shall be collected
5549	5549	from every person in this state a tax or excise for the privilege of using,
5550	5550	storing, or consuming within this state any article of tangible personal
5551	5551	property. Such tax shall be levied and collected in an amount equal to the
5552	5552	consideration paid by the taxpayer multiplied by the rate of 6.5%.
5553	5553	(b) Commencing on January 1, 2023, and thereafter, the state rate on
5554	5554	the amount equal to the consideration paid by the taxpayer from the sale of
5555	5555	food and food ingredients as provided in K.S.A. 79-3603, and amendments
5556	5556	thereto, shall be as set forth in K.S.A. 2023 Supp. 79-3603d, and
5557	5557	amendments thereto.
5558	5558	(c) On and after January 1, 2023, 17% and on and after January 1,
5559	5559	2025 April 1, 2024, 18% of the tax rate imposed pursuant to this section
5560	5560	and the rate provided in K.S.A. 2023 Supp. 79-3603d, and amendments
5561	5561	thereto, shall be levied for the state highway fund, the state highway fund
5562	5562	purposes and those purposes specified in K.S.A. 68-416, and amendments
5563	5563	thereto, and all revenue collected and received from such tax levy shall be
5564	5564	deposited in the state highway fund.
5565	5565	(d) Within a redevelopment district established pursuant to K.S.A.
5566	5566	74-8921, and amendments thereto, there is hereby levied and there shall be
5567	5567	collected and paid an additional tax of 2% until the earlier of: (1) The date
5568	5568	the bonds issued to finance or refinance the redevelopment project
5569	5569	undertaken in the district have been paid in full; or (2) the final scheduled
5570	5570	maturity of the first series of bonds issued to finance the redevelopment
5571	5571	project.
5572	5572	(e) All property purchased or leased within or without this state and
5573	5573	subsequently used, stored or consumed in this state shall be subject to the
5574	5574	compensating tax if the same property or transaction would have been
5575	5575	subject to the Kansas retailers' sales tax had the transaction been wholly
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5619	5619	within this state.
5620	5620	Sec. 13. K.S.A. 2023 Supp. 79-3710 is hereby amended to read as
5621	5621	follows: 79-3710. (a) All revenue collected or received by the director
5622	5622	under the provisions of this act shall be remitted to the state treasurer in
5623	5623	accordance with the provisions of K.S.A. 75-4215, and amendments
5624	5624	thereto. Upon receipt of each such remittance, the state treasurer shall
5625	5625	deposit the entire amount in the state treasury, less amounts set apart as
5626	5626	provided in subsection (b) and amounts credited as provided in subsection
5627	5627	(c), (d) and (e), to the credit of the state general fund.
5628	5628	(b) A revolving fund, designated as "compensating tax refund fund"
5629	5629	not to exceed $10,000 shall be set apart and maintained by the director
5630	5630	from compensating tax collections and estimated tax collections and held
5631	5631	by the state treasurer for prompt payment of all compensating tax refunds.
5632	5632	Such fund shall be in such amount, within the limit set by this section, as
5633	5633	the director shall determine is necessary to meet current refunding
5634	5634	requirements under this act.
5635	5635	(c) (1) On January 1, 2023, the state treasurer shall credit 17% of the
5636	5636	revenue collected and received from the tax imposed by K.S.A. 79-3703,
5637	5637	and amendments thereto, at the rates provided in K.S.A. 79-3703, and
5638	5638	amendments thereto, and K.S.A. 2023 Supp. 79-3603d, and amendments
5639	5639	thereto, and deposited as provided by subsection (a), exclusive of amounts
5640	5640	credited pursuant to subsection (d), in the state highway fund.
5641	5641	(2) On January 1, 2025 April 1, 2024, and thereafter, the state
5642	5642	treasurer shall credit 18% of the revenue collected and received from the
5643	5643	tax imposed by K.S.A. 79-3703, and amendments thereto, at the rates
5644	5644	provided in K.S.A. 79-3703, and amendments thereto, and K.S.A. 2023
5645	5645	Supp. 79-3603d, and amendments thereto, and deposited as provided by
5646	5646	subsection (a), exclusive of amounts credited pursuant to subsection (d), in
5647	5647	the state highway fund.
5648	5648	(d) The state treasurer shall credit all revenue collected or received
5649	5649	from the tax imposed by K.S.A. 79-3703, and amendments thereto, as
5650	5650	certified by the director, from taxpayers doing business within that portion
5651	5651	of a redevelopment district occupied by a redevelopment project that was
5652	5652	determined by the secretary of commerce to be of statewide as well as
5653	5653	local importance or will create a major tourism area for the state as defined
5654	5654	in K.S.A. 12-1770a, and amendments thereto, to the city bond finance
5655	5655	fund created by K.S.A. 79-3620(d), and amendments thereto. The
5656	5656	provisions of this subsection shall expire when the total of all amounts
5657	5657	credited hereunder and under K.S.A. 79-3620(d), and amendments thereto,
5658	5658	is sufficient to retire the special obligation bonds issued for the purpose of
5659	5659	financing all or a portion of the costs of such redevelopment project.
5660	5660	This subsection shall not apply to a project designated as a special bond
5661	5661	project as defined in K.S.A. 12-1770a(z), and amendments thereto.
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5705	5705	(e) All revenue certified by the director of taxation as having been
5706	5706	collected or received from the tax imposed by K.S.A. 79-3603(c), and
5707	5707	amendments thereto, on the sale or furnishing of gas, water, electricity and
5708	5708	heat for use or consumption within the intermodal facility district
5709	5709	described in this subsection, shall be credited by the state treasurer to the
5710	5710	state highway fund. Such revenue may be transferred by the secretary of
5711	5711	transportation to the rail service improvement fund pursuant to law. The
5712	5712	provisions of this subsection shall take effect upon certification by the
5713	5713	secretary of transportation that a notice to proceed has been received for
5714	5714	the construction of the improvements within the intermodal facility
5715	5715	district, but not later than December 31, 2010, and shall expire when the
5716	5716	secretary of revenue determines that the total of all amounts credited
5717	5717	hereunder and pursuant to K.S.A. 79-3620(e), and amendments thereto, is
5718	5718	equal to $53,300,000, but not later than December 31, 2045. Thereafter, all
5719	5719	revenues shall be collected and distributed in accordance with applicable
5720	5720	law. For all tax reporting periods during which the provisions of this
5721	5721	subsection are in effect, none of the exemptions contained in K.S.A. 79-
5722	5722	3601 et seq., and amendments thereto, shall apply to the sale or furnishing
5723	5723	of any gas, water, electricity and heat for use or consumption within the
5724	5724	intermodal facility district. As used in this subsection, "intermodal facility
5725	5725	district" shall consist of an intermodal transportation area as defined by
5726	5726	K.S.A. 12-1770a(oo), and amendments thereto, located in Johnson county
5727	5727	within the polygonal-shaped area having Waverly Road as the eastern
5728	5728	boundary, 191
5729	5729	st
5730	5730	Street as the southern boundary, Four Corners Road as the
5731	5731	western boundary, and Highway 56 as the northern boundary, and the
5732	5732	polygonal-shaped area having Poplar Road as the eastern boundary, 183
5733	5733	rd
5734	5734	Street as the southern boundary, Waverly Road as the western boundary,
5735	5735	and the BNSF mainline track as the northern boundary, that includes
5736	5736	capital investment in an amount exceeding $150 million for the
5737	5737	construction of an intermodal facility to handle the transfer, storage and
5738	5738	distribution of freight through railway and trucking operations.
5739	5739	Sec. 14. K.S.A. 79-1107, 79-1108 and 79-32,111c and K.S.A. 2023
5740	5740	Supp. 79-201x, 79-32,117, 79-32,119, 79-3603, 79-3603d, 79-3606, 79-
5741	5741	3620, 79-3703 and 79-3710 are hereby repealed.
5742	5742	Sec. 15. This act shall take effect and be in force from and after its
5743	5743	publication in the Kansas register.
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