Kansas 2023-2024 Regular Session

Kansas Senate Bill SB53 Compare Versions

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1	1	Session of 2023
2	2	SENATE BILL No. 53
3	3	By Committee on Assessment and Taxation
4	4	1-18
5	5	AN ACT concerning sales taxation; relating to exclusions from the sales or
6	6	selling price; excluding manufacturers' coupons; amending K.S.A.
7	7	2022 Supp. 79-3602c and repealing the existing section.
8	8	Be it enacted by the Legislature of the State of Kansas:
9	9	Section 1. K.S.A. 2022 Supp. 79-3602c is hereby amended to read as
10	10	follows: 79-3602c. Except as otherwise provided, as used in the Kansas
11	11	retailers' sales tax act:
12	12	(a) "Agent" means a person appointed by a seller to represent the
13	13	seller before the member states.
14	14	(b) "Agreement" means the multistate agreement entitled the
15	15	streamlined sales and use tax agreement approved by the streamlined sales
16	16	tax implementing states at Chicago, Illinois on November 12, 2002.
17	17	(c) "Alcoholic beverages" means beverages that are suitable for
18	18	human consumption and contain 0.05% or more of alcohol by volume.
19	19	(d) "Certified automated system (CAS)" means software certified
20	20	under the agreement to calculate the tax imposed by each jurisdiction on a
21	21	transaction, determine the amount of tax to remit to the appropriate state
22	22	and maintain a record of the transaction.
23	23	(e) "Certified service provider (CSP)" means an agent certified under
24	24	the agreement to perform all the seller's sales and use tax functions, other
25	25	than the seller's obligation to remit tax on its own purchases.
26	26	(f) "Computer" means an electronic device that accepts information
27	27	in digital or similar form and manipulates it for a result based on a
28	28	sequence of instructions.
29	29	(g) "Computer software" means a set of coded instructions designed
30	30	to cause a computer or automatic data processing equipment to perform a
31	31	task.
32	32	(h) "Delivered electronically" means delivered to the purchaser by
33	33	means other than tangible storage media.
34	34	(i) "Delivery charges" means charges by the seller of personal
35	35	property or services for preparation and delivery to a location designated
36	36	by the purchaser of personal property or services including, but not limited
37	37	to, transportation, shipping, postage, handling, crating and packing.
38	38	Delivery charges shall not include charges for delivery of direct mail if the
39	39	charges are separately stated on an invoice or similar billing document
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76	76	given to the purchaser.
77	77	(j) "Direct mail" means printed material delivered or distributed by
78	78	United States mail or other delivery services to a mass audience or to
79	79	addressees on a mailing list provided by the purchaser or at the direction of
80	80	the purchaser when the cost of the items are not billed directly to the
81	81	recipients. Direct mail includes tangible personal property supplied
82	82	directly or indirectly by the purchaser to the direct mail seller for inclusion
83	83	in the package containing the printed material. Direct mail does not
84	84	include multiple items of printed material delivered to a single address.
85	85	(k) "Director" means the state director of taxation.
86	86	(l) "Educational institution" means any nonprofit school, college and
87	87	university that offers education at a level above the 12
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90	90	conducts regular classes and courses of study required for accreditation by,
91	91	or membership in, the higher learning commission, the state board of
92	92	education, or that otherwise qualify as an "educational institution," as
93	93	defined by K.S.A. 74-50,103, and amendments thereto. Such phrase shall
94	94	include: (1) A group of educational institutions that operates exclusively
95	95	for an educational purpose; (2) nonprofit endowment associations and
96	96	foundations organized and operated exclusively to receive, hold, invest
97	97	and administer moneys and property as a permanent fund for the support
98	98	and sole benefit of an educational institution; (3) nonprofit trusts,
99	99	foundations and other entities organized and operated principally to hold
100	100	and own receipts from intercollegiate sporting events and to disburse such
101	101	receipts, as well as grants and gifts, in the interest of collegiate and
102	102	intercollegiate athletic programs for the support and sole benefit of an
103	103	educational institution; and (4) nonprofit trusts, foundations and other
104	104	entities organized and operated for the primary purpose of encouraging,
105	105	fostering and conducting scholarly investigations and industrial and other
106	106	types of research for the support and sole benefit of an educational
107	107	institution.
108	108	(m) "Electronic" means relating to technology having electrical,
109	109	digital, magnetic, wireless, optical, electromagnetic or similar capabilities.
110	110	(n) "Food and food ingredients" means substances, whether in liquid,
111	111	concentrated, solid, frozen, dried or dehydrated form, that are sold for
112	112	ingestion or chewing by humans and are consumed for their taste or
113	113	nutritional value. "Food and food ingredients" includes bottled water,
114	114	candy, dietary supplements, food sold through vending machines and soft
115	115	drinks. "Food and food ingredients" does not include alcoholic beverages
116	116	or tobacco.
117	117	(o) "Gross receipts" means the total selling price or the amount
118	118	received as defined in this act, in money, credits, property or other
119	119	consideration valued in money from sales at retail within this state; and
120	120	embraced within the provisions of this act. The taxpayer, may take credit
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164	164	in the report of gross receipts for: (1) An amount equal to the selling price
165	165	of property returned by the purchaser when the full sale price thereof,
166	166	including the tax collected, is refunded in cash or by credit; and (2) an
167	167	amount equal to the allowance given for the trade-in of property.
168	168	(p) "Ingredient or component part" means tangible personal property
169	169	that is necessary or essential to, and that is actually used in and becomes
170	170	an integral and material part of tangible personal property or services
171	171	produced, manufactured or compounded for sale by the producer,
172	172	manufacturer or compounder in its regular course of business. The
173	173	following items of tangible personal property are hereby declared to be
174	174	ingredients or component parts, but the listing of such property shall not be
175	175	deemed to be exclusive nor shall such listing be construed to be a
176	176	restriction upon, or an indication of, the type or types of property to be
177	177	included within the definition of "ingredient or component part" as herein
178	178	set forth:
179	179	(1) Containers, labels and shipping cases used in the distribution of
180	180	property produced, manufactured or compounded for sale that are not to be
181	181	returned to the producer, manufacturer or compounder for reuse.
182	182	(2) Containers, labels, shipping cases, paper bags, drinking straws,
183	183	paper plates, paper cups, twine and wrapping paper used in the distribution
184	184	and sale of property taxable under the provisions of this act by wholesalers
185	185	and retailers and that is not to be returned to such wholesaler or retailer for
186	186	reuse.
187	187	(3) Seeds and seedlings for the production of plants and plant
188	188	products produced for resale.
189	189	(4) Paper and ink used in the publication of newspapers.
190	190	(5) Fertilizer used in the production of plants and plant products
191	191	produced for resale.
192	192	(6) Feed for animals, fowl and aquatic plants and animals, the
193	193	primary purpose of which is use in agriculture or aquaculture, as defined in
194	194	K.S.A. 47-1901, and amendments thereto, the production of food for
195	195	human consumption, the production of animal, dairy, poultry or aquatic
196	196	plant and animal products, fiber, fur, or the production of offspring for use
197	197	for any such purpose or purposes.
198	198	(q) "Isolated or occasional sale" means the nonrecurring sale of
199	199	tangible personal property, or services taxable hereunder by a person not
200	200	engaged at the time of such sale in the business of selling such property or
201	201	services. Any religious organization that makes a nonrecurring sale of
202	202	tangible personal property acquired for the purpose of resale shall be
203	203	deemed to be not engaged at the time of such sale in the business of selling
204	204	such property. Such term shall include:
205	205	(1) Any sale by a bank, savings and loan institution, credit union or
206	206	any finance company licensed under the provisions of the Kansas uniform
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250	250	consumer credit code of tangible personal property that has been
251	251	repossessed by any such entity; and
252	252	(2) any sale of tangible personal property made by an auctioneer or
253	253	agent on behalf of not more than two principals or households if such sale
254	254	is nonrecurring and any such principal or household is not engaged at the
255	255	time of such sale in the business of selling tangible personal property.
256	256	(r) "Lease or rental" means any transfer of possession or control of
257	257	tangible personal property for a fixed or indeterminate term for
258	258	consideration. A lease or rental may include future options to purchase or
259	259	extend.
260	260	(1) Lease or rental does not include:
261	261	(A) A transfer of possession or control of property under a security
262	262	agreement or deferred payment plan that requires the transfer of title upon
263	263	completion of the required payments;
264	264	(B) a transfer or possession or control of property under an agreement
265	265	that requires the transfer of title upon completion of required payments and
266	266	payment of an option price does not exceed the greater of $100 or 1% of
267	267	the total required payments; or
268	268	(C) providing tangible personal property along with an operator for a
269	269	fixed or indeterminate period of time. A condition of this exclusion is that
270	270	the operator is necessary for the equipment to perform as designed. For the
271	271	purpose of this subsection, an operator must do more than maintain,
272	272	inspect or set-up the tangible personal property.
273	273	(2) Lease or rental does include agreements covering motor vehicles
274	274	and trailers where the amount of consideration may be increased or
275	275	decreased by reference to the amount realized upon sale or disposition of
276	276	the property as defined in 26 U.S.C. § 7701(h)(1).
277	277	(3) This definition shall be used for sales and use tax purposes
278	278	regardless if a transaction is characterized as a lease or rental under
279	279	generally accepted accounting principles, the internal revenue code, the
280	280	uniform commercial code, K.S.A. 84-1-101 et seq., and amendments
281	281	thereto, or other provisions of federal, state or local law.
282	282	(4) This definition will be applied only prospectively from the
283	283	effective date of this act and will have no retroactive impact on existing
284	284	leases or rentals.
285	285	(s) "Load and leave" means delivery to the purchaser by use of a
286	286	tangible storage media where the tangible storage media is not physically
287	287	transferred to the purchaser.
288	288	(t) "Member state" means a state that has entered in the agreement,
289	289	pursuant to provisions of article VIII of the agreement.
290	290	(u) "Model 1 seller" means a seller that has selected a CSP as its
291	291	agent to perform all the seller's sales and use tax functions, other than the
292	292	seller's obligation to remit tax on its own purchases.
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336	336	(v) "Model 2 seller" means a seller that has selected a CAS to
337	337	perform part of its sales and use tax functions, but retains responsibility for
338	338	remitting the tax.
339	339	(w) "Model 3 seller" means a seller that has sales in at least five
340	340	member states, has total annual sales revenue of at least $500,000,000, has
341	341	a proprietary system that calculates the amount of tax due each jurisdiction
342	342	and has entered into a performance agreement with the member states that
343	343	establishes a tax performance standard for the seller. As used in this
344	344	subsection a seller includes an affiliated group of sellers using the same
345	345	proprietary system.
346	346	(x) "Municipal corporation" means any city incorporated under the
347	347	laws of Kansas.
348	348	(y) "Nonprofit blood bank" means any nonprofit place, organization,
349	349	institution or establishment that is operated wholly or in part for the
350	350	purpose of obtaining, storing, processing, preparing for transfusing,
351	351	furnishing, donating or distributing human blood or parts or fractions of
352	352	single blood units or products derived from single blood units, whether or
353	353	not any remuneration is paid therefor, or whether such procedures are done
354	354	for direct therapeutic use or for storage for future use of such products.
355	355	(z) "Persons" means any individual, firm, copartnership, joint
356	356	adventure, association, corporation, estate or trust, receiver or trustee, or
357	357	any group or combination acting as a unit, and the plural as well as the
358	358	singular number; and shall specifically mean any city or other political
359	359	subdivision of the state of Kansas engaging in a business or providing a
360	360	service specifically taxable under the provisions of this act.
361	361	(aa) "Political subdivision" means any municipality, agency or
362	362	subdivision of the state that is, or shall hereafter be, authorized to levy
363	363	taxes upon tangible property within the state or that certifies a levy to a
364	364	municipality, agency or subdivision of the state that is, or shall hereafter
365	365	be, authorized to levy taxes upon tangible property within the state. Such
366	366	term also shall include any public building commission, housing, airport,
367	367	port, metropolitan transit or similar authority established pursuant to law
368	368	and the horsethief reservoir benefit district established pursuant to K.S.A.
369	369	82a-2201, and amendments thereto.
370	370	(bb) "Prescription" means an order, formula or recipe issued in any
371	371	form of oral, written, electronic or other means of transmission by a duly
372	372	licensed practitioner authorized by the laws of this state.
373	373	(cc) "Prewritten computer software" means computer software,
374	374	including prewritten upgrades, that is not designed and developed by the
375	375	author or other creator to the specifications of a specific purchaser. The
376	376	combining of two or more prewritten computer software programs or
377	377	prewritten portions thereof does not cause the combination to be other than
378	378	prewritten computer software. Prewritten computer software includes
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422	422	software designed and developed by the author or other creator to the
423	423	specifications of a specific purchaser when it is sold to a person other than
424	424	the purchaser. Where a person modifies or enhances computer software of
425	425	which the person is not the author or creator, the person shall be deemed to
426	426	be the author or creator only of such person's modifications or
427	427	enhancements. Prewritten computer software or a prewritten portion
428	428	thereof that is modified or enhanced to any degree, where such
429	429	modification or enhancement is designed and developed to the
430	430	specifications of a specific purchaser, remains prewritten computer
431	431	software, except that where there is a reasonable, separately stated charge
432	432	or an invoice or other statement of the price given to the purchaser for
433	433	such modification or enhancement, such modification or enhancement
434	434	shall not constitute prewritten computer software.
435	435	(dd) "Property which is consumed" means tangible personal property
436	436	that is essential or necessary to and that is used in the actual process of and
437	437	consumed, depleted or dissipated within one year in:
438	438	(1) The production, manufacture, processing, mining, drilling,
439	439	refining or compounding of tangible personal property;
440	440	(2) the providing of services;
441	441	(3) the irrigation of crops, for sale in the regular course of business;
442	442	or
443	443	(4) the storage or processing of grain by a public grain warehouse or
444	444	other grain storage facility, and which is not reusable for such purpose.
445	445	The following is a listing of tangible personal property, included by way of
446	446	illustration but not of limitation, that qualifies as property that is
447	447	consumed:
448	448	(A) Insecticides, herbicides, germicides, pesticides, fungicides,
449	449	fumigants, antibiotics, biologicals, pharmaceuticals, vitamins and
450	450	chemicals for use in commercial or agricultural production, processing or
451	451	storage of fruit, vegetables, feeds, seeds, grains, animals or animal
452	452	products whether fed, injected, applied, combined with or otherwise used;
453	453	(B) electricity, gas and water; and
454	454	(C) petroleum products, lubricants, chemicals, solvents, reagents and
455	455	catalysts.
456	456	(ee) "Purchase price" applies to the measure subject to use tax and
457	457	has the same meaning as sales price.
458	458	(ff) "Purchaser" means a person to whom a sale of personal property
459	459	is made or to whom a service is furnished.
460	460	(gg) "Quasi-municipal corporation" means any county, township,
461	461	school district, drainage district or any other governmental subdivision in
462	462	the state of Kansas having authority to receive or hold moneys or funds.
463	463	(hh) "Registered under this agreement" means registration by a seller
464	464	with the member states under the central registration system provided in
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508	508	article IV of the agreement.
509	509	(ii) "Retailer" means a seller regularly engaged in the business of
510	510	selling, leasing or renting tangible personal property at retail or furnishing
511	511	electrical energy, gas, water, services or entertainment, and selling only to
512	512	the user or consumer and not for resale.
513	513	(jj) "Retail sale" or "sale at retail" means any sale, lease or rental for
514	514	any purpose other than for resale, sublease or subrent.
515	515	(kk) "Sale" or "sales" means the exchange of tangible personal
516	516	property, as well as the sale thereof for money, and every transaction,
517	517	conditional or otherwise, for a consideration, constituting a sale, including
518	518	the sale or furnishing of electrical energy, gas, water, services or
519	519	entertainment taxable under the terms of this act and including, except as
520	520	provided in the following provision, the sale of the use of tangible personal
521	521	property by way of a lease, license to use or the rental thereof regardless of
522	522	the method by which the title, possession or right to use the tangible
523	523	personal property is transferred. The term "sale" or "sales" shall not mean
524	524	the sale of the use of any tangible personal property used as a dwelling by
525	525	way of a lease or rental thereof for a term of more than 28 consecutive
526	526	days.
527	527	(ll) (1) "Sales or selling price" applies to the measure subject to sales
528	528	tax and means the total amount of consideration, including cash, credit,
529	529	property and services, for which personal property or services are sold,
530	530	leased or rented, valued in money, whether received in money or
531	531	otherwise, without any deduction for the following:
532	532	(A) The seller's cost of the property sold;
533	533	(B) the cost of materials used, labor or service cost, interest, losses,
534	534	all costs of transportation to the seller, all taxes imposed on the seller and
535	535	any other expense of the seller;
536	536	(C) charges by the seller for any services necessary to complete the
537	537	sale, other than delivery and installation charges;
538	538	(D) delivery charges; and
539	539	(E) installation charges.
540	540	(2) "Sales or selling price" includes consideration received by the
541	541	seller from third parties if:
542	542	(A) The seller actually receives consideration from a party other than
543	543	the purchaser and the consideration is directly related to a price reduction
544	544	or discount on the sale;
545	545	(B) the seller has an obligation to pass the price reduction or discount
546	546	through to the purchaser;
547	547	(C) the amount of the consideration attributable to the sale is fixed
548	548	and determinable by the seller at the time of the sale of the item to the
549	549	purchaser; and
550	550	(D) one of the following criteria is met:
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594	594	(i) The purchaser presents a coupon, certificate or other
595	595	documentation to the seller to claim a price reduction or discount where
596	596	the coupon, certificate or documentation is authorized, distributed or
597	597	granted by a third party with the understanding that the third party will
598	598	reimburse any seller to whom the coupon, certificate or documentation is
599	599	presented;
600	600	(ii) the purchaser identifies to the seller that the purchaser is a
601	601	member of a group or organization entitled to a price reduction or
602	602	discount. A preferred customer card that is available to any patron does not
603	603	constitute membership in such a group; or
604	604	(iii) the price reduction or discount is identified as a third party price
605	605	reduction or discount on the invoice received by the purchaser or on a
606	606	coupon, certificate or other documentation presented by the purchaser.
607	607	(3) "Sales or selling price" shall not include:
608	608	(A) Discounts, including cash, term or coupons that are not
609	609	reimbursed by a third party that are allowed by a seller and taken by a
610	610	purchaser on a sale;
611	611	(B) interest, financing and carrying charges from credit extended on
612	612	the sale of personal property or services, if the amount is separately stated
613	613	on the invoice, bill of sale or similar document given to the purchaser;
614	614	(C) any taxes legally imposed directly on the consumer that are
615	615	separately stated on the invoice, bill of sale or similar document given to
616	616	the purchaser;
617	617	(D) the amount equal to the allowance given for the trade-in of
618	618	property, if separately stated on the invoice, billing or similar document
619	619	given to the purchaser; and
620	620	(E) commencing on July 1, 2018, and ending on June 30, 2024, cash
621	621	rebates granted by a manufacturer to a purchaser or lessee of a new motor
622	622	vehicle if paid directly to the retailer as a result of the original sale; and
623	623	(F) notwithstanding the provisions of paragraph (2), coupons issued
624	624	by a manufacturer, supplier or distributor of a product that entitle the
625	625	purchaser to a reduction in sales price and allowed by the seller who is
626	626	reimbursed by the manufacturer, supplier or distributor. When the seller
627	627	accepts such coupons, only the amount paid by the purchaser is included
628	628	in the sales price.
629	629	(mm) "Seller" means a person making sales, leases or rentals of
630	630	personal property or services.
631	631	(nn) "Service" means those services described in and taxed under the
632	632	provisions of K.S.A. 79-3603, and amendments thereto.
633	633	(oo) "Sourcing rules" means the rules set forth in K.S.A. 79-3670
634	634	through 79-3673, 12-191 and 12-191a, and amendments thereto, that shall
635	635	apply to identify and determine the state and local taxing jurisdiction sales
636	636	or use taxes to pay, or collect and remit on a particular retail sale.
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680	680	(pp) "Tangible personal property" means personal property that can
681	681	be seen, weighed, measured, felt or touched, or that is in any other manner
682	682	perceptible to the senses. Tangible personal property includes electricity,
683	683	water, gas, steam and prewritten computer software.
684	684	(qq) "Taxpayer" means any person obligated to account to the
685	685	director for taxes collected under the terms of this act.
686	686	(rr) "Tobacco" means cigarettes, cigars, chewing or pipe tobacco or
687	687	any other item that contains tobacco.
688	688	(ss) "Entity-based exemption" means an exemption based on who
689	689	purchases the product or who sells the product. An exemption that is
690	690	available to all individuals shall not be considered an entity-based
691	691	exemption.
692	692	(tt) "Over-the-counter drug" means a drug that contains a label that
693	693	identifies the product as a drug as required by 21 C.F.R. § 201.66. The
694	694	over-the-counter drug label includes:
695	695	(1) A drug facts panel; or
696	696	(2) a statement of the active ingredients with a list of those
697	697	ingredients contained in the compound, substance or preparation. Over-
698	698	the-counter drugs do not include grooming and hygiene products such as
699	699	soaps, cleaning solutions, shampoo, toothpaste, antiperspirants and sun tan
700	700	lotions and screens.
701	701	(uu) "Ancillary services" means services that are associated with or
702	702	incidental to the provision of telecommunications services, including, but
703	703	not limited to, detailed telecommunications billing, directory assistance,
704	704	vertical service and voice mail services.
705	705	(vv) "Conference bridging service" means an ancillary service that
706	706	links two or more participants of an audio or video conference call and
707	707	may include the provision of a telephone number. Conference bridging
708	708	service does not include the telecommunications services used to reach the
709	709	conference bridge.
710	710	(ww) "Detailed telecommunications billing service" means an
711	711	ancillary service of separately stating information pertaining to individual
712	712	calls on a customer's billing statement.
713	713	(xx) "Directory assistance" means an ancillary service of providing
714	714	telephone number information or address information, or both.
715	715	(yy) "Vertical service" means an ancillary service that is offered in
716	716	connection with one or more telecommunications services, that offers
717	717	advanced calling features that allow customers to identify callers and to
718	718	manage multiple calls and call connections, including conference bridging
719	719	services.
720	720	(zz) "Voice mail service" means an ancillary service that enables the
721	721	customer to store, send or receive recorded messages. Voice mail service
722	722	does not include any vertical services that the customer may be required to
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766	766	have in order to utilize the voice mail service.
767	767	(aaa) "Telecommunications service" means the electronic
768	768	transmission, conveyance or routing of voice, data, audio, video or any
769	769	other information or signals to a point, or between or among points. The
770	770	term telecommunications service includes such transmission, conveyance
771	771	or routing in which computer processing applications are used to act on the
772	772	form, code or protocol of the content for purposes of transmissions,
773	773	conveyance or routing without regard to whether such service is referred to
774	774	as voice over internet protocol services or is classified by the federal
775	775	communications commission as enhanced or value added.
776	776	Telecommunications service does not include:
777	777	(1) Data processing and information services that allow data to be
778	778	generated, acquired, stored, processed or retrieved and delivered by an
779	779	electronic transmission to a purchaser where such purchaser's primary
780	780	purpose for the underlying transaction is the processed data or
781	781	information;
782	782	(2) installation or maintenance of wiring or equipment on a
783	783	customer's premises;
784	784	(3) tangible personal property;
785	785	(4) advertising, including, but not limited to, directory advertising;
786	786	(5) billing and collection services provided to third parties;
787	787	(6) internet access service;
788	788	(7) radio and television audio and video programming services,
789	789	regardless of the medium, including the furnishing of transmission,
790	790	conveyance and routing of such services by the programming service
791	791	provider. Radio and television audio and video programming services shall
792	792	include, but not be limited to, cable service as defined in 47 U.S.C. §
793	793	522(6) and audio and video programming services delivered by
794	794	commercial mobile radio service providers, as defined in 47 C.F.R. § 20.3;
795	795	(8) ancillary services; or
796	796	(9) digital products delivered electronically, including, but not limited
797	797	to, software, music, video, reading materials or ring tones.
798	798	(bbb) "800 service" means a telecommunications service that allows a
799	799	caller to dial a toll-free number without incurring a charge for the call. The
800	800	service is typically marketed under the name 800, 855, 866, 877 and 888
801	801	toll-free calling, and any subsequent numbers designated by the federal
802	802	communications commission.
803	803	(ccc) "900 service" means an inbound toll telecommunications
804	804	service purchased by a subscriber that allows the subscriber's customers to
805	805	call in to the subscriber's prerecorded announcement or live service. 900
806	806	service does not include the charge for collection services provided by the
807	807	seller of the telecommunications services to the subscriber, or service or
808	808	product sold by the subscriber to the subscriber's customer. The service is
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852	852	typically marketed under the name 900 service, and any subsequent
853	853	numbers designated by the federal communications commission.
854	854	(ddd) "Value-added non-voice data service" means a service that
855	855	otherwise meets the definition of telecommunications services in which
856	856	computer processing applications are used to act on the form, content,
857	857	code or protocol of the information or data primarily for a purpose other
858	858	than transmission, conveyance or routing.
859	859	(eee) "International" means a telecommunications service that
860	860	originates or terminates in the United States and terminates or originates
861	861	outside the United States, respectively. United States includes the District
862	862	of Columbia or a U.S. territory or possession.
863	863	(fff) "Interstate" means a telecommunications service that originates
864	864	in one United States state, or a United States territory or possession, and
865	865	terminates in a different United States state or a United States territory or
866	866	possession.
867	867	(ggg) "Intrastate" means a telecommunications service that originates
868	868	in one United States state or a United States territory or possession, and
869	869	terminates in the same United States state or a United States territory or
870	870	possession.
871	871	(hhh) "Cereal malt beverage" shall have the same meaning as such
872	872	term is defined in K.S.A. 41-2701, and amendments thereto, except that
873	873	for the purposes of the Kansas retailers sales tax act and for no other
874	874	purpose, such term shall include beer containing not more than 6% alcohol
875	875	by volume when such beer is sold by a retailer licensed under the Kansas
876	876	cereal malt beverage act.
877	877	(iii) "Nonprofit integrated community care organization" means an
878	878	entity that is:
879	879	(1) Exempt from federal income taxation pursuant to section 501(c)
880	880	(3) of the federal internal revenue code of 1986;
881	881	(2) certified to participate in the medicare program as a hospice under
882	882	42 C.F.R. § 418 et seq. and focused on providing care to the aging and
883	883	indigent population at home and through inpatient care, adult daycare or
884	884	assisted living facilities and related facilities and services across multiple
885	885	counties; and
886	886	(3) approved by the Kansas department for aging and disability
887	887	services as an organization providing services under the program of all-
888	888	inclusive care for the elderly as defined in 42 U.S.C. § 1396u-4 and
889	889	regulations implementing such section.
890	890	(jjj) (1) "Bottled water" means water that is placed in a safety sealed
891	891	container or package for human consumption. "Bottled water" is calorie
892	892	free and does not contain sweeteners or other additives, except that it may
893	893	contain:
894	894	(A) Antimicrobial agents;
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938	938	(B) fluoride;
939	939	(C) carbonation;
940	940	(D) vitamins, minerals and electrolytes;
941	941	(E) oxygen;
942	942	(F) preservatives; or
943	943	(G) only those flavors, extracts or essences derived from a spice or
944	944	fruit.
945	945	(2) "Bottled water" includes water that is delivered to the buyer in a
946	946	reusable container that is not sold with the water.
947	947	(lll) (1) "Candy" means a preparation of sugar, honey or other natural
948	948	or artificial sweeteners in combination with chocolate, fruits, nuts or other
949	949	ingredients or flavorings in the form of bars, drops or pieces.
950	950	(2) "Candy" does not include any preparation containing flour and
951	951	shall require no refrigeration.
952	952	(mmm) "Dietary supplement" means the same as defined in K.S.A.
953	953	79-3606(jjj), and amendments thereto.
954	954	(nnn) "Food sold through vending machines" means food dispensed
955	955	from a machine or other mechanical device that accepts payment.
956	956	(ooo) (1) "Prepared food" means:
957	957	(A) Food sold in a heated state or heated by the seller;
958	958	(B) two or more food ingredients mixed or combined by the seller for
959	959	sale as a single item; or
960	960	(C) food sold with eating utensils provided by the seller, including,
961	961	but not limited to, plates, knives, forks, spoons, glasses, cups, napkins or
962	962	straws. A plate does not include a container or packaging used to transport
963	963	the food.
964	964	(2) "Prepared food" does not include:
965	965	(A) Food that is only cut, repackaged or pasteurized by the seller; or
966	966	(B) eggs, fish, meat, poultry or foods containing these raw animal
967	967	foods that require cooking by the consumer as recommended by the food
968	968	and drug administration in chapter 3, part 401.11 of the food and drug
969	969	administration food code so as to prevent food borne foodborne illnesses.
970	970	(ppp) (1) "Soft drinks" means nonalcoholic beverages that contain
971	971	natural or artificial sweeteners.
972	972	(2) "Soft drinks" does not include beverages that contain milk or milk
973	973	products, soy, rice or similar milk substitutes or beverages that are greater
974	974	than 50% vegetable or fruit juice by volume.
975	975	Sec. 2. K.S.A. 2022 Supp. 79-3602c is hereby repealed.
976	976	Sec. 3. This act shall take effect and be in force from and after its
977	977	publication in the statute book.
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