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Kansas Senate Bill SB55

Kansas 2023-2024 Regular Session

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11 Session of 2023
22 SENATE BILL No. 55
33 By Committee on Assessment and Taxation
44 1-18
55 AN ACT concerning sales taxation; relating to exemptions; providing an
66 exemption for sales of certain school supplies, computers and clothing
77 during an annual sales tax holiday.
88 Be it enacted by the Legislature of the State of Kansas:
99 Section 1. (a) (1) On and after July 1, 2023, during the four-day
1010 period beginning at 12:01 a.m. on the first Thursday in August and ending
1111 at midnight on the Sunday following, all back-to-school-related sales of
1212 the following items shall be exempt from the tax imposed by the Kansas
1313 retailers' sales tax act:
1414 (A) Clothing or clothing accessories or equipment with a sales price
1515 of $300 or less per item;
1616 (B) school supplies, school instructional materials or school art
1717 supplies with a sales price of $100 or less per item;
1818 (C) prewritten computer software with a sales price of $300 or less
1919 per item; and
2020 (D) computers or school computer supplies with a sales price of
2121 $2,000 or less per item.
2222 (2) Only items priced at or below the price threshold established in
2323 this subsection shall be exempt from taxation pursuant to this subsection.
2424 Notwithstanding K.S.A. 79-3609, and amendments thereto, the seller of
2525 items specified in this subsection is not required to obtain an exemption
2626 certificate from the purchaser of such items during the period of time
2727 specified in this subsection. There shall be no exemption pursuant to this
2828 subsection for only a portion of the price of an individual item.
2929 (b) As used in this section:
3030 (1) "Clothing" means all human wearing apparel suitable for general
3131 use.
3232 (A) "Clothing" includes, but is not limited to:
3333 (i) Aprons, household and shop;
3434 (ii) athletic supporters;
3535 (iii) baby receiving blankets;
3636 (iv) bathing suits and caps;
3737 (v) beach capes and coats;
3838 (vi) belts and suspenders;
3939 (vii) boots;
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7676 (viii) coats and jackets;
7777 (ix) costumes;
7878 (x) diapers, children and adult, including disposable diapers;
7979 (xi) ear muffs;
8080 (xii) footlets;
8181 (xiii) formal wear;
8282 (xiv) garters and garter belts;
8383 (xv) girdles;
8484 (xvi) gloves and mittens for general use;
8585 (xvii) hats and caps;
8686 (xviii) hosiery;
8787 (xix) insoles for shoes;
8888 (xx) lab coats;
8989 (xxi) neckties;
9090 (xxii) overshoes;
9191 (xxiii) pantyhose;
9292 (xxiv) rainwear;
9393 (xxv) rubber pants;
9494 (xxvi) sandals;
9595 (xxvii) scarves;
9696 (xxviii) shoes and shoe laces;
9797 (xxix) slippers;
9898 (xxx) sneakers;
9999 (xxxi) socks and stockings;
100100 (xxxii) steel-toed shoes;
101101 (xxxiii) underwear;
102102 (xxxiv) uniforms, athletic and non-athletic; and
103103 (xxxv) wedding apparel.
104104 (B) "Clothing" does not include:
105105 (i) Belt buckles sold separately;
106106 (ii) costume masks sold separately;
107107 (iii) patches and emblems sold separately;
108108 (iv) sewing equipment and supplies, including, but not limited to,
109109 knitting needles,
110110 patterns, pins, scissors, sewing machines, sewing needles, tape
111111 measures and thimbles; and
112112 (v) sewing materials that become part of clothing, including, but not
113113 limited to, buttons,
114114 fabric, lace, thread, yarn and zippers.
115115 (2) "Clothing accessories or equipment" means incidental items worn
116116 on the person or in conjunction with clothing. "Clothing accessories or
117117 equipment" includes, but is not limited to:
118118 (A) Briefcases;
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162162 (B) cosmetics;
163163 (C) hair notions, including, but not limited to, barrettes, hair bows
164164 and hair nets;
165165 (D) handbags;
166166 (E) handkerchiefs;
167167 (F) jewelry;
168168 (G) sunglasses, nonprescription;
169169 (H) umbrellas;
170170 (I) wallets;
171171 (J) watches; and
172172 (K) wigs and hairpieces.
173173 (3) "Eligible property" means an item of a type, such as clothing, that
174174 qualifies for the sales tax exemption as provided in this section.
175175 (4) "Layaway sale" means a transaction in which property is set aside
176176 for future delivery to a customer who makes a deposit, agrees to pay the
177177 balance of the purchase price over a period of time and, at the end of the
178178 payment period, receives the property. An order is accepted for layaway by
179179 the seller when the seller removes the property from normal inventory or
180180 clearly identifies the property as sold to the purchaser.
181181 (5) "Rain check" means the seller allows a customer to purchase an
182182 item at a certain price at a later time, because the particular item was out of
183183 stock.
184184 (6) "School art supply" means an item commonly used by a student in
185185 a course of study for artwork. The following is an all-inclusive list:
186186 (A) Clay and glazes;
187187 (B) paints; acrylic, tempera and oil;
188188 (C) paintbrushes for artwork;
189189 (D) sketch and drawing pads; and
190190 (E) watercolors.
191191 (7) "School computer supply" means an item commonly used by a
192192 student in a course of study in which a computer is used. The following is
193193 an all-inclusive list:
194194 (A) Computer storage media; diskettes, compact disks;
195195 (B) handheld electronic schedulers, except devices that are cellular
196196 phones;
197197 (C) personal digital assistants, except devices that are cellular phones;
198198 (D) computer printers; and
199199 (E) printer supplies for computers; printer paper, printer ink.
200200 (8) "School instructional material" means written material commonly
201201 used by a student in a course of study as a reference and to learn the
202202 subject being taught. The following is an all-inclusive list:
203203 (A) Reference books;
204204 (B) reference maps and globes;
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248248 (C) textbooks; and
249249 (D) workbooks.
250250 (9) "School supply" means an item commonly used by a student in a
251251 course of study. The following is an all-inclusive list:
252252 (A) Binders;
253253 (B) book bags;
254254 (C) calculators;
255255 (D) cellophane tape;
256256 (E) blackboard chalk;
257257 (F) compasses;
258258 (G) composition books;
259259 (H) crayons;
260260 (I) erasers;
261261 (J) folders; expandable, pocket, plastic and manila;
262262 (K) glue, paste and paste sticks;
263263 (L) highlighters;
264264 (M) index cards;
265265 (N) index card boxes;
266266 (O) legal pads;
267267 (P) lunch boxes;
268268 (Q) markers;
269269 (R) notebooks;
270270 (S) paper; loose leaf ruled notebook paper, copy paper, graph paper,
271271 tracing paper, manila paper, colored paper, poster board and construction
272272 paper;
273273 (T) pencil boxes and other school supply boxes;
274274 (U) pencil sharpeners;
275275 (V) pencils;
276276 (W) pens;
277277 (X) protractors;
278278 (Y) rulers;
279279 (Z) scissors; and
280280 (AA) writing tablets.
281281 (c) The secretary of revenue shall provide notice of the exemption
282282 period to retailers at least 60 days prior to the first day of the calendar
283283 month in which the exemption period established in this section
284284 commences.
285285 (d) The following procedures are to be used in administering the
286286 exemption as provided in this section:
287287 (1) A sale of eligible property under a layaway sale qualifies for
288288 exemption if:
289289 (A) Final payment on a layaway order is made by, and the property is
290290 given to, the purchaser during the exemption period; or
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334334 (B) the purchaser selects the property and the retailer accepts the
335335 order for the item during the exemption period for immediate delivery
336336 upon full payment, even if delivery is made after the exemption period.
337337 (2) There shall be no change during the period of exemption for the
338338 handling of a bundled sale as treated for sales tax purposes at times other
339339 than the exemption period.
340340 (3) A discount by the seller reduces the sales price of the property,
341341 and the discounted sales price determines whether the sales price is within
342342 the price threshold provided in subsection (a). A coupon that reduces the
343343 sales price is treated as a discount if the seller is not reimbursed for the
344344 coupon amount by a third party. If a discount applies to the total amount
345345 paid by a purchaser rather than to the sales price of a particular item and
346346 the purchaser has purchased both eligible property and taxable property,
347347 the seller shall allocate the discount based on the total sales prices of the
348348 taxable property compared to the total sales prices of all property sold in
349349 that same transaction.
350350 (4) Articles that are normally sold as a single unit must continue to be
351351 sold in that manner. Such articles cannot be priced separately and sold as
352352 individual items in order to obtain the exemption.
353353 (5) Eligible property that customers purchase during the exemption
354354 period with use of a rain check will qualify for the exemption regardless of
355355 when the rain check was issued. Issuance of a rain check during the
356356 exemption period shall not qualify an eligible property for the exemption if
357357 the property is actually purchased after the exemption period.
358358 (6) The procedure for an exchange in regards to an exemption is as
359359 follows:
360360 (A) If a customer purchases an item of eligible property during the
361361 exemption period but later exchanges the item for a similar eligible item,
362362 even if a different size, different color or other feature, no additional tax is
363363 due even if the exchange is made after the exemption period;
364364 (B) if a customer purchases an item of eligible property during the
365365 exemption period, but after the exemption period has ended the customer
366366 returns the item and receives credit on the purchase of a different item, the
367367 appropriate sales tax is due on the sale of the new item; and
368368 (C) if a customer purchases an item of eligible property before the
369369 exemption period, but during the exemption period the customer returns
370370 the item and receives credit on the purchase of a different item of eligible
371371 property, no sales tax is due on the sale of the new item if the new item is
372372 purchased during the exemption period.
373373 (7) For the purpose of an exemption, eligible property qualifies for
374374 the exemption if:
375375 (A) The item is both delivered to and paid for by the customer during
376376 the exemption
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420420 period; or
421421 (B) the customer orders and pays for the item and the seller accepts
422422 the order during the exemption period for immediate shipment, even if
423423 delivery is made after the exemption period. For purposes of this
424424 subparagraph, the seller accepts an order when the seller has taken action
425425 to fill the order for immediate shipment. Actions to fill an order include
426426 placement of an "in date" stamp on a mail order or assignment of an order
427427 number to a telephone order. For purposes of this subparagraph, an order is
428428 for immediate shipment when the customer does not request delayed
429429 shipment. An order is for immediate shipment notwithstanding that the
430430 shipment may be delayed because of a backlog of orders or because stock
431431 is currently unavailable to, or on back order by, the seller.
432432 (8) For a 60-day period immediately after the exemption period,
433433 when a customer returns an item that would qualify for the exemption, no
434434 credit for or refund of sales tax shall be given unless the customer provides
435435 a receipt or invoice that shows tax was paid or that the seller has sufficient
436436 documentation to show that tax was paid on the specific item. Such 60-day
437437 period is set solely for the purpose of designating a time period during
438438 which the customer must provide documentation that shows that sales tax
439439 was paid on returned merchandise. Such 60-day period is not intended to
440440 change a seller's policy on the time period during which the seller will
441441 accept returns.
442442 (9) The time zone of the seller's location determines the authorized
443443 time period for a sales tax holiday when the purchaser is located in one
444444 time zone and a seller is located in another.
445445 (e) The provisions of this section shall be a part of and supplemental
446446 to the Kansas retailers' sales tax act.
447447 Sec. 2. This act shall take effect and be in force from and after its
448448 publication in the statute book.
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