Kansas 2024 1st Special Session

Kansas Senate Bill SB8 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Special Session of 2024
2	2	SENATE BILL No. 8
3	3	By Senator Claeys
4	4	6-18
5	5	AN ACT concerning sales tax; relating to exemptions; providing a sales
6	6	tax exemption for sales of firearms, firearms accessories, ammunition,
7	7	firearm safes and firearm safety devices; amending K.S.A. 2023 Supp.
8	8	79-3606, as amended by section 15 of 2023 Senate Bill No. 27, and
9	9	repealing the existing section.
10	10	Be it enacted by the Legislature of the State of Kansas:
11	11	Section 1. K.S.A. 2023 Supp. 79-3606, as amended by section 15 of
12	12	2023 Senate Bill No. 27, is hereby amended to read as follows: 79-3606.
13	13	The following shall be exempt from the tax imposed by this act:
14	14	(a) All sales of motor-vehicle fuel or other articles upon which a sales
15	15	or excise tax has been paid, not subject to refund, under the laws of this
16	16	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
17	17	3301, and amendments thereto, including consumable material for such
18	18	electronic cigarettes, cereal malt beverages and malt products as defined
19	19	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
20	20	malt syrup and malt extract, that is not subject to taxation under the
21	21	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
22	22	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
23	23	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
24	24	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
25	25	thereto, and gross receipts from regulated sports contests taxed pursuant to
26	26	the Kansas professional regulated sports act, and amendments thereto;
27	27	(b) all sales of tangible personal property or service, including the
28	28	renting and leasing of tangible personal property, purchased directly by the
29	29	state of Kansas, a political subdivision thereof, other than a school or
30	30	educational institution, or purchased by a public or private nonprofit
31	31	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
32	32	nonprofit integrated community care organization and used exclusively for
33	33	state, political subdivision, hospital, public hospital authority, nonprofit
34	34	blood, tissue or organ bank or nonprofit integrated community care
35	35	organization purposes, except when: (1) Such state, hospital or public
36	36	hospital authority is engaged or proposes to engage in any business
37	37	specifically taxable under the provisions of this act and such items of
38	38	tangible personal property or service are used or proposed to be used in
39	39	such business; or (2) such political subdivision is engaged or proposes to
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76	76	engage in the business of furnishing gas, electricity or heat to others and
77	77	such items of personal property or service are used or proposed to be used
78	78	in such business;
79	79	(c) all sales of tangible personal property or services, including the
80	80	renting and leasing of tangible personal property, purchased directly by a
81	81	public or private elementary or secondary school or public or private
82	82	nonprofit educational institution and used primarily by such school or
83	83	institution for nonsectarian programs and activities provided or sponsored
84	84	by such school or institution or in the erection, repair or enlargement of
85	85	buildings to be used for such purposes. The exemption herein provided
86	86	shall not apply to erection, construction, repair, enlargement or equipment
87	87	of buildings used primarily for human habitation, except that such
88	88	exemption shall apply to the erection, construction, repair, enlargement or
89	89	equipment of buildings used for human habitation by the cerebral palsy
90	90	research foundation of Kansas located in Wichita, Kansas, multi
91	91	community diversified services, incorporated, located in McPherson,
92	92	Kansas, the Kansas state school for the blind and the Kansas state school
93	93	for the deaf;
94	94	(d) all sales of tangible personal property or services purchased by a
95	95	contractor for the purpose of constructing, equipping, reconstructing,
96	96	maintaining, repairing, enlarging, furnishing or remodeling facilities for
97	97	any public or private nonprofit hospital or public hospital authority, public
98	98	or private elementary or secondary school, a public or private nonprofit
99	99	educational institution, state correctional institution including a privately
100	100	constructed correctional institution contracted for state use and ownership,
101	101	that would be exempt from taxation under the provisions of this act if
102	102	purchased directly by such hospital or public hospital authority, school,
103	103	educational institution or a state correctional institution; and all sales of
104	104	tangible personal property or services purchased by a contractor for the
105	105	purpose of constructing, equipping, reconstructing, maintaining, repairing,
106	106	enlarging, furnishing or remodeling facilities for any political subdivision
107	107	of the state or district described in subsection (s), the total cost of which is
108	108	paid from funds of such political subdivision or district and that would be
109	109	exempt from taxation under the provisions of this act if purchased directly
110	110	by such political subdivision or district. Nothing in this subsection or in
111	111	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
112	112	deemed to exempt the purchase of any construction machinery, equipment
113	113	or tools used in the constructing, equipping, reconstructing, maintaining,
114	114	repairing, enlarging, furnishing or remodeling facilities for any political
115	115	subdivision of the state or any such district. As used in this subsection,
116	116	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
117	117	political subdivision" shall mean general tax revenues, the proceeds of any
118	118	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
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162	162	purpose of constructing, equipping, reconstructing, repairing, enlarging,
163	163	furnishing or remodeling facilities that are to be leased to the donor. When
164	164	any political subdivision of the state, district described in subsection (s),
165	165	public or private nonprofit hospital or public hospital authority, public or
166	166	private elementary or secondary school, public or private nonprofit
167	167	educational institution, state correctional institution including a privately
168	168	constructed correctional institution contracted for state use and ownership
169	169	shall contract for the purpose of constructing, equipping, reconstructing,
170	170	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
171	171	shall obtain from the state and furnish to the contractor an exemption
172	172	certificate for the project involved, and the contractor may purchase
173	173	materials for incorporation in such project. The contractor shall furnish the
174	174	number of such certificate to all suppliers from whom such purchases are
175	175	made, and such suppliers shall execute invoices covering the same bearing
176	176	the number of such certificate. Upon completion of the project the
177	177	contractor shall furnish to the political subdivision, district described in
178	178	subsection (s), hospital or public hospital authority, school, educational
179	179	institution or department of corrections concerned a sworn statement, on a
180	180	form to be provided by the director of taxation, that all purchases so made
181	181	were entitled to exemption under this subsection. As an alternative to the
182	182	foregoing procedure, any such contracting entity may apply to the
183	183	secretary of revenue for agent status for the sole purpose of issuing and
184	184	furnishing project exemption certificates to contractors pursuant to rules
185	185	and regulations adopted by the secretary establishing conditions and
186	186	standards for the granting and maintaining of such status. All invoices
187	187	shall be held by the contractor for a period of five years and shall be
188	188	subject to audit by the director of taxation. If any materials purchased
189	189	under such a certificate are found not to have been incorporated in the
190	190	building or other project or not to have been returned for credit or the sales
191	191	or compensating tax otherwise imposed upon such materials that will not
192	192	be so incorporated in the building or other project reported and paid by
193	193	such contractor to the director of taxation not later than the 20
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195	195	day of the
196	196	month following the close of the month in which it shall be determined
197	197	that such materials will not be used for the purpose for which such
198	198	certificate was issued, the political subdivision, district described in
199	199	subsection (s), hospital or public hospital authority, school, educational
200	200	institution or the contractor contracting with the department of corrections
201	201	for a correctional institution concerned shall be liable for tax on all
202	202	materials purchased for the project, and upon payment thereof it may
203	203	recover the same from the contractor together with reasonable attorney
204	204	fees. Any contractor or any agent, employee or subcontractor thereof, who
205	205	shall use or otherwise dispose of any materials purchased under such a
206	206	certificate for any purpose other than that for which such a certificate is
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250	250	issued without the payment of the sales or compensating tax otherwise
251	251	imposed upon such materials, shall be guilty of a misdemeanor and, upon
252	252	conviction therefor, shall be subject to the penalties provided for in K.S.A.
253	253	79-3615(h), and amendments thereto;
254	254	(e) all sales of tangible personal property or services purchased by a
255	255	contractor for the erection, repair or enlargement of buildings or other
256	256	projects for the government of the United States, its agencies or
257	257	instrumentalities, that would be exempt from taxation if purchased directly
258	258	by the government of the United States, its agencies or instrumentalities.
259	259	When the government of the United States, its agencies or
260	260	instrumentalities shall contract for the erection, repair, or enlargement of
261	261	any building or other project, it shall obtain from the state and furnish to
262	262	the contractor an exemption certificate for the project involved, and the
263	263	contractor may purchase materials for incorporation in such project. The
264	264	contractor shall furnish the number of such certificates to all suppliers
265	265	from whom such purchases are made, and such suppliers shall execute
266	266	invoices covering the same bearing the number of such certificate. Upon
267	267	completion of the project the contractor shall furnish to the government of
268	268	the United States, its agencies or instrumentalities concerned a sworn
269	269	statement, on a form to be provided by the director of taxation, that all
270	270	purchases so made were entitled to exemption under this subsection. As an
271	271	alternative to the foregoing procedure, any such contracting entity may
272	272	apply to the secretary of revenue for agent status for the sole purpose of
273	273	issuing and furnishing project exemption certificates to contractors
274	274	pursuant to rules and regulations adopted by the secretary establishing
275	275	conditions and standards for the granting and maintaining of such status.
276	276	All invoices shall be held by the contractor for a period of five years and
277	277	shall be subject to audit by the director of taxation. Any contractor or any
278	278	agent, employee or subcontractor thereof, who shall use or otherwise
279	279	dispose of any materials purchased under such a certificate for any purpose
280	280	other than that for which such a certificate is issued without the payment
281	281	of the sales or compensating tax otherwise imposed upon such materials,
282	282	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
283	283	subject to the penalties provided for in K.S.A. 79-3615(h), and
284	284	amendments thereto;
285	285	(f) tangible personal property purchased by a railroad or public utility
286	286	for consumption or movement directly and immediately in interstate
287	287	commerce;
288	288	(g) sales of aircraft including remanufactured and modified aircraft
289	289	sold to persons using directly or through an authorized agent such aircraft
290	290	as certified or licensed carriers of persons or property in interstate or
291	291	foreign commerce under authority of the laws of the United States or any
292	292	foreign government or sold to any foreign government or agency or
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336	336	instrumentality of such foreign government and all sales of aircraft for use
337	337	outside of the United States and sales of aircraft repair, modification and
338	338	replacement parts and sales of services employed in the remanufacture,
339	339	modification and repair of aircraft;
340	340	(h) all rentals of nonsectarian textbooks by public or private
341	341	elementary or secondary schools;
342	342	(i) the lease or rental of all films, records, tapes, or any type of sound
343	343	or picture transcriptions used by motion picture exhibitors;
344	344	(j) meals served without charge or food used in the preparation of
345	345	such meals to employees of any restaurant, eating house, dining car, hotel,
346	346	drugstore or other place where meals or drinks are regularly sold to the
347	347	public if such employees' duties are related to the furnishing or sale of
348	348	such meals or drinks;
349	349	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
350	350	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
351	351	delivered in this state to a bona fide resident of another state, which motor
352	352	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
353	353	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
354	354	remain in this state more than 10 days;
355	355	(l) all isolated or occasional sales of tangible personal property,
356	356	services, substances or things, except isolated or occasional sale of motor
357	357	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
358	358	amendments thereto;
359	359	(m) all sales of tangible personal property that become an ingredient
360	360	or component part of tangible personal property or services produced,
361	361	manufactured or compounded for ultimate sale at retail within or without
362	362	the state of Kansas; and any such producer, manufacturer or compounder
363	363	may obtain from the director of taxation and furnish to the supplier an
364	364	exemption certificate number for tangible personal property for use as an
365	365	ingredient or component part of the property or services produced,
366	366	manufactured or compounded;
367	367	(n) all sales of tangible personal property that is consumed in the
368	368	production, manufacture, processing, mining, drilling, refining or
369	369	compounding of tangible personal property, the treating of by-products or
370	370	wastes derived from any such production process, the providing of
371	371	services or the irrigation of crops for ultimate sale at retail within or
372	372	without the state of Kansas; and any purchaser of such property may
373	373	obtain from the director of taxation and furnish to the supplier an
374	374	exemption certificate number for tangible personal property for
375	375	consumption in such production, manufacture, processing, mining,
376	376	drilling, refining, compounding, treating, irrigation and in providing such
377	377	services;
378	378	(o) all sales of animals, fowl and aquatic plants and animals, the
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422	422	primary purpose of which is use in agriculture or aquaculture, as defined in
423	423	K.S.A. 47-1901, and amendments thereto, the production of food for
424	424	human consumption, the production of animal, dairy, poultry or aquatic
425	425	plant and animal products, fiber or fur, or the production of offspring for
426	426	use for any such purpose or purposes;
427	427	(p) all sales of drugs dispensed pursuant to a prescription order by a
428	428	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
429	429	1626, and amendments thereto. As used in this subsection, "drug" means a
430	430	compound, substance or preparation and any component of a compound,
431	431	substance or preparation, other than food and food ingredients, dietary
432	432	supplements or alcoholic beverages, recognized in the official United
433	433	States pharmacopeia, official homeopathic pharmacopoeia of the United
434	434	States or official national formulary, and supplement to any of them,
435	435	intended for use in the diagnosis, cure, mitigation, treatment or prevention
436	436	of disease or intended to affect the structure or any function of the body,
437	437	except that for taxable years commencing after December 31, 2013, this
438	438	subsection shall not apply to any sales of drugs used in the performance or
439	439	induction of an abortion, as defined in K.S.A. 65-6701, and amendments
440	440	thereto;
441	441	(q) all sales of insulin dispensed by a person licensed by the state
442	442	board of pharmacy to a person for treatment of diabetes at the direction of
443	443	a person licensed to practice medicine by the state board of healing arts;
444	444	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
445	445	enteral feeding systems, prosthetic devices and mobility enhancing
446	446	equipment prescribed in writing by a person licensed to practice the
447	447	healing arts, dentistry or optometry, and in addition to such sales, all sales
448	448	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
449	449	and repair and replacement parts therefor, including batteries, by a person
450	450	licensed in the practice of dispensing and fitting hearing aids pursuant to
451	451	the provisions of K.S.A. 74-5808, and amendments thereto. For the
452	452	purposes of this subsection: (1) "Mobility enhancing equipment" means
453	453	equipment including repair and replacement parts to same, but does not
454	454	include durable medical equipment, which is primarily and customarily
455	455	used to provide or increase the ability to move from one place to another
456	456	and which is appropriate for use either in a home or a motor vehicle; is not
457	457	generally used by persons with normal mobility; and does not include any
458	458	motor vehicle or equipment on a motor vehicle normally provided by a
459	459	motor vehicle manufacturer; and (2) "prosthetic device" means a
460	460	replacement, corrective or supportive device including repair and
461	461	replacement parts for same worn on or in the body to artificially replace a
462	462	missing portion of the body, prevent or correct physical deformity or
463	463	malfunction or support a weak or deformed portion of the body;
464	464	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
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508	508	all sales of tangible personal property or services purchased directly or
509	509	indirectly by a groundwater management district organized or operating
510	510	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
511	511	by a rural water district organized or operating under the authority of
512	512	K.S.A. 82a-612, and amendments thereto, or by a water supply district
513	513	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
514	514	3522 et seq. or 19-3545, and amendments thereto, which property or
515	515	services are used in the construction activities, operation or maintenance of
516	516	the district;
517	517	(t) all sales of farm machinery and equipment or aquaculture
518	518	machinery and equipment, repair and replacement parts therefor and
519	519	services performed in the repair and maintenance of such machinery and
520	520	equipment. For the purposes of this subsection the term "farm machinery
521	521	and equipment or aquaculture machinery and equipment" shall include a
522	522	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
523	523	thereto, and is equipped with a bed or cargo box for hauling materials, and
524	524	shall also include machinery and equipment used in the operation of
525	525	Christmas tree farming but shall not include any passenger vehicle, truck,
526	526	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
527	527	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
528	528	machinery and equipment" includes precision farming equipment that is
529	529	portable or is installed or purchased to be installed on farm machinery and
530	530	equipment. "Precision farming equipment" includes the following items
531	531	used only in computer-assisted farming, ranching or aquaculture
532	532	production operations: Soil testing sensors, yield monitors, computers,
533	533	monitors, software, global positioning and mapping systems, guiding
534	534	systems, modems, data communications equipment and any necessary
535	535	mounting hardware, wiring and antennas. Each purchaser of farm
536	536	machinery and equipment or aquaculture machinery and equipment
537	537	exempted herein must certify in writing on the copy of the invoice or sales
538	538	ticket to be retained by the seller that the farm machinery and equipment
539	539	or aquaculture machinery and equipment purchased will be used only in
540	540	farming, ranching or aquaculture production. Farming or ranching shall
541	541	include the operation of a feedlot and farm and ranch work for hire and the
542	542	operation of a nursery;
543	543	(u) all leases or rentals of tangible personal property used as a
544	544	dwelling if such tangible personal property is leased or rented for a period
545	545	of more than 28 consecutive days;
546	546	(v) all sales of tangible personal property to any contractor for use in
547	547	preparing meals for delivery to homebound elderly persons over 60 years
548	548	of age and to homebound disabled persons or to be served at a group-
549	549	sitting at a location outside of the home to otherwise homebound elderly
550	550	persons over 60 years of age and to otherwise homebound disabled
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594	594	persons, as all or part of any food service project funded in whole or in
595	595	part by government or as part of a private nonprofit food service project
596	596	available to all such elderly or disabled persons residing within an area of
597	597	service designated by the private nonprofit organization, and all sales of
598	598	tangible personal property for use in preparing meals for consumption by
599	599	indigent or homeless individuals whether or not such meals are consumed
600	600	at a place designated for such purpose, and all sales of food products by or
601	601	on behalf of any such contractor or organization for any such purpose;
602	602	(w) all sales of natural gas, electricity, heat and water delivered
603	603	through mains, lines or pipes: (1) To residential premises for
604	604	noncommercial use by the occupant of such premises; (2) for agricultural
605	605	use and also, for such use, all sales of propane gas; (3) for use in the
606	606	severing of oil; and (4) to any property which is exempt from property
607	607	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
608	608	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
609	609	and amendments thereto. For all sales of natural gas, electricity and heat
610	610	delivered through mains, lines or pipes pursuant to the provisions of
611	611	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
612	612	on December 31, 2005;
613	613	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
614	614	for the production of heat or lighting for noncommercial use of an
615	615	occupant of residential premises occurring prior to January 1, 2006;
616	616	(y) all sales of materials and services used in the repairing, servicing,
617	617	altering, maintaining, manufacturing, remanufacturing, or modification of
618	618	railroad rolling stock for use in interstate or foreign commerce under
619	619	authority of the laws of the United States;
620	620	(z) all sales of tangible personal property and services purchased
621	621	directly by a port authority or by a contractor therefor as provided by the
622	622	provisions of K.S.A. 12-3418, and amendments thereto;
623	623	(aa) all sales of materials and services applied to equipment that is
624	624	transported into the state from without the state for repair, service,
625	625	alteration, maintenance, remanufacture or modification and that is
626	626	subsequently transported outside the state for use in the transmission of
627	627	liquids or natural gas by means of pipeline in interstate or foreign
628	628	commerce under authority of the laws of the United States;
629	629	(bb) all sales of used mobile homes or manufactured homes. As used
630	630	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
631	631	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
632	632	"sales of used mobile homes or manufactured homes" means sales other
633	633	than the original retail sale thereof;
634	634	(cc) all sales of tangible personal property or services purchased prior
635	635	to January 1, 2012, except as otherwise provided, for the purpose of and in
636	636	conjunction with constructing, reconstructing, enlarging or remodeling a
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679	679	43 SB 8 9
680	680	business or retail business that meets the requirements established in
681	681	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
682	682	machinery and equipment purchased for installation at any such business
683	683	or retail business, and all sales of tangible personal property or services
684	684	purchased on or after January 1, 2012, for the purpose of and in
685	685	conjunction with constructing, reconstructing, enlarging or remodeling a
686	686	business that meets the requirements established in K.S.A. 74-50,115(e),
687	687	and amendments thereto, and the sale and installation of machinery and
688	688	equipment purchased for installation at any such business. When a person
689	689	shall contract for the construction, reconstruction, enlargement or
690	690	remodeling of any such business or retail business, such person shall
691	691	obtain from the state and furnish to the contractor an exemption certificate
692	692	for the project involved, and the contractor may purchase materials,
693	693	machinery and equipment for incorporation in such project. The contractor
694	694	shall furnish the number of such certificates to all suppliers from whom
695	695	such purchases are made, and such suppliers shall execute invoices
696	696	covering the same bearing the number of such certificate. Upon
697	697	completion of the project the contractor shall furnish to the owner of the
698	698	business or retail business a sworn statement, on a form to be provided by
699	699	the director of taxation, that all purchases so made were entitled to
700	700	exemption under this subsection. All invoices shall be held by the
701	701	contractor for a period of five years and shall be subject to audit by the
702	702	director of taxation. Any contractor or any agent, employee or
703	703	subcontractor thereof, who shall use or otherwise dispose of any materials,
704	704	machinery or equipment purchased under such a certificate for any
705	705	purpose other than that for which such a certificate is issued without the
706	706	payment of the sales or compensating tax otherwise imposed thereon, shall
707	707	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
708	708	to the penalties provided for in K.S.A. 79-3615(h), and amendments
709	709	thereto. As used in this subsection, "business" and "retail business" mean
710	710	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
711	711	exemption certificates that have been previously issued under this
712	712	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
713	713	and amendments thereto, but not including K.S.A. 74-50,115(e), and
714	714	amendments thereto, prior to January 1, 2012, and have not expired will be
715	715	effective for the term of the project or two years from the effective date of
716	716	the certificate, whichever occurs earlier. Project exemption certificates that
717	717	are submitted to the department of revenue prior to January 1, 2012, and
718	718	are found to qualify will be issued a project exemption certificate that will
719	719	be effective for a two-year period or for the term of the project, whichever
720	720	occurs earlier;
721	721	(dd) all sales of tangible personal property purchased with food
722	722	stamps issued by the United States department of agriculture;
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765	765	43 SB 8 10
766	766	(ee) all sales of lottery tickets and shares made as part of a lottery
767	767	operated by the state of Kansas;
768	768	(ff) on and after July 1, 1988, all sales of new mobile homes or
769	769	manufactured homes to the extent of 40% of the gross receipts, determined
770	770	without regard to any trade-in allowance, received from such sale. As used
771	771	in this subsection, "mobile homes" and "manufactured homes" mean the
772	772	same as defined in K.S.A. 58-4202, and amendments thereto;
773	773	(gg) all sales of tangible personal property purchased in accordance
774	774	with vouchers issued pursuant to the federal special supplemental food
775	775	program for women, infants and children;
776	776	(hh) all sales of medical supplies and equipment, including durable
777	777	medical equipment, purchased directly by a nonprofit skilled nursing home
778	778	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
779	779	and amendments thereto, for the purpose of providing medical services to
780	780	residents thereof. This exemption shall not apply to tangible personal
781	781	property customarily used for human habitation purposes. As used in this
782	782	subsection, "durable medical equipment" means equipment including
783	783	repair and replacement parts for such equipment, that can withstand
784	784	repeated use, is primarily and customarily used to serve a medical purpose,
785	785	generally is not useful to a person in the absence of illness or injury and is
786	786	not worn in or on the body, but does not include mobility enhancing
787	787	equipment as defined in subsection (r), oxygen delivery equipment, kidney
788	788	dialysis equipment or enteral feeding systems;
789	789	(ii) all sales of tangible personal property purchased directly by a
790	790	nonprofit organization for nonsectarian comprehensive multidiscipline
791	791	youth development programs and activities provided or sponsored by such
792	792	organization, and all sales of tangible personal property by or on behalf of
793	793	any such organization. This exemption shall not apply to tangible personal
794	794	property customarily used for human habitation purposes;
795	795	(jj) all sales of tangible personal property or services, including the
796	796	renting and leasing of tangible personal property, purchased directly on
797	797	behalf of a community-based facility for people with intellectual disability
798	798	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
799	799	amendments thereto, and licensed in accordance with the provisions of
800	800	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
801	801	personal property or services purchased by contractors during the time
802	802	period from July, 2003, through June, 2006, for the purpose of
803	803	constructing, equipping, maintaining or furnishing a new facility for a
804	804	community-based facility for people with intellectual disability or mental
805	805	health center located in Riverton, Cherokee County, Kansas, that would
806	806	have been eligible for sales tax exemption pursuant to this subsection if
807	807	purchased directly by such facility or center. This exemption shall not
808	808	apply to tangible personal property customarily used for human habitation
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851	851	43 SB 8 11
852	852	purposes;
853	853	(kk) (1) (A) all sales of machinery and equipment that are used in this
854	854	state as an integral or essential part of an integrated production operation
855	855	by a manufacturing or processing plant or facility;
856	856	(B) all sales of installation, repair and maintenance services
857	857	performed on such machinery and equipment; and
858	858	(C) all sales of repair and replacement parts and accessories
859	859	purchased for such machinery and equipment.
860	860	(2) For purposes of this subsection:
861	861	(A) "Integrated production operation" means an integrated series of
862	862	operations engaged in at a manufacturing or processing plant or facility to
863	863	process, transform or convert tangible personal property by physical,
864	864	chemical or other means into a different form, composition or character
865	865	from that in which it originally existed. Integrated production operations
866	866	shall include: (i) Production line operations, including packaging
867	867	operations; (ii) preproduction operations to handle, store and treat raw
868	868	materials; (iii) post production handling, storage, warehousing and
869	869	distribution operations; and (iv) waste, pollution and environmental
870	870	control operations, if any;
871	871	(B) "production line" means the assemblage of machinery and
872	872	equipment at a manufacturing or processing plant or facility where the
873	873	actual transformation or processing of tangible personal property occurs;
874	874	(C) "manufacturing or processing plant or facility" means a single,
875	875	fixed location owned or controlled by a manufacturing or processing
876	876	business that consists of one or more structures or buildings in a
877	877	contiguous area where integrated production operations are conducted to
878	878	manufacture or process tangible personal property to be ultimately sold at
879	879	retail. Such term shall not include any facility primarily operated for the
880	880	purpose of conveying or assisting in the conveyance of natural gas,
881	881	electricity, oil or water. A business may operate one or more manufacturing
882	882	or processing plants or facilities at different locations to manufacture or
883	883	process a single product of tangible personal property to be ultimately sold
884	884	at retail;
885	885	(D) "manufacturing or processing business" means a business that
886	886	utilizes an integrated production operation to manufacture, process,
887	887	fabricate, finish or assemble items for wholesale and retail distribution as
888	888	part of what is commonly regarded by the general public as an industrial
889	889	manufacturing or processing operation or an agricultural commodity
890	890	processing operation. (i) Industrial manufacturing or processing operations
891	891	include, by way of illustration but not of limitation, the fabrication of
892	892	automobiles, airplanes, machinery or transportation equipment, the
893	893	fabrication of metal, plastic, wood or paper products, electricity power
894	894	generation, water treatment, petroleum refining, chemical production,
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937	937	43 SB 8 12
938	938	wholesale bottling, newspaper printing, ready mixed concrete production,
939	939	and the remanufacturing of used parts for wholesale or retail sale. Such
940	940	processing operations shall include operations at an oil well, gas well,
941	941	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
942	942	sand or gravel that has been extracted from the earth is cleaned, separated,
943	943	crushed, ground, milled, screened, washed or otherwise treated or prepared
944	944	before its transmission to a refinery or before any other wholesale or retail
945	945	distribution. (ii) Agricultural commodity processing operations include, by
946	946	way of illustration but not of limitation, meat packing, poultry slaughtering
947	947	and dressing, processing and packaging farm and dairy products in sealed
948	948	containers for wholesale and retail distribution, feed grinding, grain
949	949	milling, frozen food processing, and grain handling, cleaning, blending,
950	950	fumigation, drying and aeration operations engaged in by grain elevators
951	951	or other grain storage facilities. (iii) Manufacturing or processing
952	952	businesses do not include, by way of illustration but not of limitation,
953	953	nonindustrial businesses whose operations are primarily retail and that
954	954	produce or process tangible personal property as an incidental part of
955	955	conducting the retail business, such as retailers who bake, cook or prepare
956	956	food products in the regular course of their retail trade, grocery stores,
957	957	meat lockers and meat markets that butcher or dress livestock or poultry in
958	958	the regular course of their retail trade, contractors who alter, service, repair
959	959	or improve real property, and retail businesses that clean, service or
960	960	refurbish and repair tangible personal property for its owner;
961	961	(E) "repair and replacement parts and accessories" means all parts
962	962	and accessories for exempt machinery and equipment, including, but not
963	963	limited to, dies, jigs, molds, patterns and safety devices that are attached to
964	964	exempt machinery or that are otherwise used in production, and parts and
965	965	accessories that require periodic replacement such as belts, drill bits,
966	966	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
967	967	other refractory items for exempt kiln equipment used in production
968	968	operations;
969	969	(F) "primary" or "primarily" mean more than 50% of the time.
970	970	(3) For purposes of this subsection, machinery and equipment shall
971	971	be deemed to be used as an integral or essential part of an integrated
972	972	production operation when used to:
973	973	(A) Receive, transport, convey, handle, treat or store raw materials in
974	974	preparation of its placement on the production line;
975	975	(B) transport, convey, handle or store the property undergoing
976	976	manufacturing or processing at any point from the beginning of the
977	977	production line through any warehousing or distribution operation of the
978	978	final product that occurs at the plant or facility;
979	979	(C) act upon, effect, promote or otherwise facilitate a physical change
980	980	to the property undergoing manufacturing or processing;
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1023	1023	43 SB 8 13
1024	1024	(D) guide, control or direct the movement of property undergoing
1025	1025	manufacturing or processing;
1026	1026	(E) test or measure raw materials, the property undergoing
1027	1027	manufacturing or processing or the finished product, as a necessary part of
1028	1028	the manufacturer's integrated production operations;
1029	1029	(F) plan, manage, control or record the receipt and flow of inventories
1030	1030	of raw materials, consumables and component parts, the flow of the
1031	1031	property undergoing manufacturing or processing and the management of
1032	1032	inventories of the finished product;
1033	1033	(G) produce energy for, lubricate, control the operating of or
1034	1034	otherwise enable the functioning of other production machinery and
1035	1035	equipment and the continuation of production operations;
1036	1036	(H) package the property being manufactured or processed in a
1037	1037	container or wrapping in which such property is normally sold or
1038	1038	transported;
1039	1039	(I) transmit or transport electricity, coke, gas, water, steam or similar
1040	1040	substances used in production operations from the point of generation, if
1041	1041	produced by the manufacturer or processor at the plant site, to that
1042	1042	manufacturer's production operation; or, if purchased or delivered from
1043	1043	off-site, from the point where the substance enters the site of the plant or
1044	1044	facility to that manufacturer's production operations;
1045	1045	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
1046	1046	solvents or other substances that are used in production operations;
1047	1047	(K) provide and control an environment required to maintain certain
1048	1048	levels of air quality, humidity or temperature in special and limited areas
1049	1049	of the plant or facility, where such regulation of temperature or humidity is
1050	1050	part of and essential to the production process;
1051	1051	(L) treat, transport or store waste or other byproducts of production
1052	1052	operations at the plant or facility; or
1053	1053	(M) control pollution at the plant or facility where the pollution is
1054	1054	produced by the manufacturing or processing operation.
1055	1055	(4) The following machinery, equipment and materials shall be
1056	1056	deemed to be exempt even though it may not otherwise qualify as
1057	1057	machinery and equipment used as an integral or essential part of an
1058	1058	integrated production operation: (A) Computers and related peripheral
1059	1059	equipment that are utilized by a manufacturing or processing business for
1060	1060	engineering of the finished product or for research and development or
1061	1061	product design; (B) machinery and equipment that is utilized by a
1062	1062	manufacturing or processing business to manufacture or rebuild tangible
1063	1063	personal property that is used in manufacturing or processing operations,
1064	1064	including tools, dies, molds, forms and other parts of qualifying machinery
1065	1065	and equipment; (C) portable plants for aggregate concrete, bulk cement
1066	1066	and asphalt including cement mixing drums to be attached to a motor
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1109	1109	43 SB 8 14
1110	1110	vehicle; (D) industrial fixtures, devices, support facilities and special
1111	1111	foundations necessary for manufacturing and production operations, and
1112	1112	materials and other tangible personal property sold for the purpose of
1113	1113	fabricating such fixtures, devices, facilities and foundations. An exemption
1114	1114	certificate for such purchases shall be signed by the manufacturer or
1115	1115	processor. If the fabricator purchases such material, the fabricator shall
1116	1116	also sign the exemption certificate; (E) a manufacturing or processing
1117	1117	business' laboratory equipment that is not located at the plant or facility,
1118	1118	but that would otherwise qualify for exemption under subsection (3)(E);
1119	1119	(F) all machinery and equipment used in surface mining activities as
1120	1120	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
1121	1121	from the time a reclamation plan is filed to the acceptance of the
1122	1122	completed final site reclamation.
1123	1123	(5) "Machinery and equipment used as an integral or essential part of
1124	1124	an integrated production operation" shall not include:
1125	1125	(A) Machinery and equipment used for nonproduction purposes,
1126	1126	including, but not limited to, machinery and equipment used for plant
1127	1127	security, fire prevention, first aid, accounting, administration, record
1128	1128	keeping, advertising, marketing, sales or other related activities, plant
1129	1129	cleaning, plant communications and employee work scheduling;
1130	1130	(B) machinery, equipment and tools used primarily in maintaining
1131	1131	and repairing any type of machinery and equipment or the building and
1132	1132	plant;
1133	1133	(C) transportation, transmission and distribution equipment not
1134	1134	primarily used in a production, warehousing or material handling
1135	1135	operation at the plant or facility, including the means of conveyance of
1136	1136	natural gas, electricity, oil or water, and equipment related thereto, located
1137	1137	outside the plant or facility;
1138	1138	(D) office machines and equipment including computers and related
1139	1139	peripheral equipment not used directly and primarily to control or measure
1140	1140	the manufacturing process;
1141	1141	(E) furniture and other furnishings;
1142	1142	(F) buildings, other than exempt machinery and equipment that is
1143	1143	permanently affixed to or becomes a physical part of the building, and any
1144	1144	other part of real estate that is not otherwise exempt;
1145	1145	(G) building fixtures that are not integral to the manufacturing
1146	1146	operation, such as utility systems for heating, ventilation, air conditioning,
1147	1147	communications, plumbing or electrical;
1148	1148	(H) machinery and equipment used for general plant heating, cooling
1149	1149	and lighting;
1150	1150	(I) motor vehicles that are registered for operation on public
1151	1151	highways; or
1152	1152	(J) employee apparel, except safety and protective apparel that is
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1193	1193	41
1194	1194	42
1195	1195	43 SB 8 15
1196	1196	purchased by an employer and furnished gratuitously to employees who
1197	1197	are involved in production or research activities.
1198	1198	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
1199	1199	of the machinery and equipment that qualify or do not qualify as an
1200	1200	integral or essential part of an integrated production operation. When
1201	1201	machinery or equipment is used as an integral or essential part of
1202	1202	production operations part of the time and for nonproduction purposes at
1203	1203	other times, the primary use of the machinery or equipment shall
1204	1204	determine whether or not such machinery or equipment qualifies for
1205	1205	exemption.
1206	1206	(7) The secretary of revenue shall adopt rules and regulations
1207	1207	necessary to administer the provisions of this subsection;
1208	1208	(ll) all sales of educational materials purchased for distribution to the
1209	1209	public at no charge by a nonprofit corporation organized for the purpose of
1210	1210	encouraging, fostering and conducting programs for the improvement of
1211	1211	public health, except that for taxable years commencing after December
1212	1212	31, 2013, this subsection shall not apply to any sales of such materials
1213	1213	purchased by a nonprofit corporation which performs any abortion, as
1214	1214	defined in K.S.A. 65-6701, and amendments thereto;
1215	1215	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
1216	1216	herbicides, germicides, pesticides and fungicides; and services, purchased
1217	1217	and used for the purpose of producing plants in order to prevent soil
1218	1218	erosion on land devoted to agricultural use;
1219	1219	(nn) except as otherwise provided in this act, all sales of services
1220	1220	rendered by an advertising agency or licensed broadcast station or any
1221	1221	member, agent or employee thereof;
1222	1222	(oo) all sales of tangible personal property purchased by a community
1223	1223	action group or agency for the exclusive purpose of repairing or
1224	1224	weatherizing housing occupied by low-income individuals;
1225	1225	(pp) all sales of drill bits and explosives actually utilized in the
1226	1226	exploration and production of oil or gas;
1227	1227	(qq) all sales of tangible personal property and services purchased by
1228	1228	a nonprofit museum or historical society or any combination thereof,
1229	1229	including a nonprofit organization that is organized for the purpose of
1230	1230	stimulating public interest in the exploration of space by providing
1231	1231	educational information, exhibits and experiences, that is exempt from
1232	1232	federal income taxation pursuant to section 501(c)(3) of the federal
1233	1233	internal revenue code of 1986;
1234	1234	(rr) all sales of tangible personal property that will admit the
1235	1235	purchaser thereof to any annual event sponsored by a nonprofit
1236	1236	organization that is exempt from federal income taxation pursuant to
1237	1237	section 501(c)(3) of the federal internal revenue code of 1986, except that
1238	1238	for taxable years commencing after December 31, 2013, this subsection
1239	1239	1
1240	1240	2
1241	1241	3
1242	1242	4
1243	1243	5
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1273	1273	35
1274	1274	36
1275	1275	37
1276	1276	38
1277	1277	39
1278	1278	40
1279	1279	41
1280	1280	42
1281	1281	43 SB 8 16
1282	1282	shall not apply to any sales of such tangible personal property purchased
1283	1283	by a nonprofit organization which performs any abortion, as defined in
1284	1284	K.S.A. 65-6701, and amendments thereto;
1285	1285	(ss) all sales of tangible personal property and services purchased by
1286	1286	a public broadcasting station licensed by the federal communications
1287	1287	commission as a noncommercial educational television or radio station;
1288	1288	(tt) all sales of tangible personal property and services purchased by
1289	1289	or on behalf of a not-for-profit corporation that is exempt from federal
1290	1290	income taxation pursuant to section 501(c)(3) of the federal internal
1291	1291	revenue code of 1986, for the sole purpose of constructing a Kansas
1292	1292	Korean War memorial;
1293	1293	(uu) all sales of tangible personal property and services purchased by
1294	1294	or on behalf of any rural volunteer fire-fighting organization for use
1295	1295	exclusively in the performance of its duties and functions;
1296	1296	(vv) all sales of tangible personal property purchased by any of the
1297	1297	following organizations that are exempt from federal income taxation
1298	1298	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
1299	1299	for the following purposes, and all sales of any such property by or on
1300	1300	behalf of any such organization for any such purpose:
1301	1301	(1) The American heart association, Kansas affiliate, inc. for the
1302	1302	purposes of providing education, training, certification in emergency
1303	1303	cardiac care, research and other related services to reduce disability and
1304	1304	death from cardiovascular diseases and stroke;
1305	1305	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
1306	1306	advocacy for persons with mental illness and to education, research and
1307	1307	support for their families;
1308	1308	(3) the Kansas mental illness awareness council for the purposes of
1309	1309	advocacy for persons who are mentally ill and for education, research and
1310	1310	support for them and their families;
1311	1311	(4) the American diabetes association Kansas affiliate, inc. for the
1312	1312	purpose of eliminating diabetes through medical research, public education
1313	1313	focusing on disease prevention and education, patient education including
1314	1314	information on coping with diabetes, and professional education and
1315	1315	training;
1316	1316	(5) the American lung association of Kansas, inc. for the purpose of
1317	1317	eliminating all lung diseases through medical research, public education
1318	1318	including information on coping with lung diseases, professional education
1319	1319	and training related to lung disease and other related services to reduce the
1320	1320	incidence of disability and death due to lung disease;
1321	1321	(6) the Kansas chapters of the Alzheimer's disease and related
1322	1322	disorders association, inc. for the purpose of providing assistance and
1323	1323	support to persons in Kansas with Alzheimer's disease, and their families
1324	1324	and caregivers;
1325	1325	1
1326	1326	2
1327	1327	3
1328	1328	4
1329	1329	5
1330	1330	6
1331	1331	7
1332	1332	8
1333	1333	9
1334	1334	10
1335	1335	11
1336	1336	12
1337	1337	13
1338	1338	14
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1354	1354	30
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1363	1363	39
1364	1364	40
1365	1365	41
1366	1366	42
1367	1367	43 SB 8 17
1368	1368	(7) the Kansas chapters of the Parkinson's disease association for the
1369	1369	purpose of eliminating Parkinson's disease through medical research and
1370	1370	public and professional education related to such disease;
1371	1371	(8) the national kidney foundation of Kansas and western Missouri
1372	1372	for the purpose of eliminating kidney disease through medical research
1373	1373	and public and private education related to such disease;
1374	1374	(9) the heartstrings community foundation for the purpose of
1375	1375	providing training, employment and activities for adults with
1376	1376	developmental disabilities;
1377	1377	(10) the cystic fibrosis foundation, heart of America chapter, for the
1378	1378	purposes of assuring the development of the means to cure and control
1379	1379	cystic fibrosis and improving the quality of life for those with the disease;
1380	1380	(11) the spina bifida association of Kansas for the purpose of
1381	1381	providing financial, educational and practical aid to families and
1382	1382	individuals with spina bifida. Such aid includes, but is not limited to,
1383	1383	funding for medical devices, counseling and medical educational
1384	1384	opportunities;
1385	1385	(12) the CHWC, Inc., for the purpose of rebuilding urban core
1386	1386	neighborhoods through the construction of new homes, acquiring and
1387	1387	renovating existing homes and other related activities, and promoting
1388	1388	economic development in such neighborhoods;
1389	1389	(13) the cross-lines cooperative council for the purpose of providing
1390	1390	social services to low income individuals and families;
1391	1391	(14) the dreams work, inc., for the purpose of providing young adult
1392	1392	day services to individuals with developmental disabilities and assisting
1393	1393	families in avoiding institutional or nursing home care for a
1394	1394	developmentally disabled member of their family;
1395	1395	(15) the KSDS, Inc., for the purpose of promoting the independence
1396	1396	and inclusion of people with disabilities as fully participating and
1397	1397	contributing members of their communities and society through the
1398	1398	training and providing of guide and service dogs to people with
1399	1399	disabilities, and providing disability education and awareness to the
1400	1400	general public;
1401	1401	(16) the lyme association of greater Kansas City, Inc., for the purpose
1402	1402	of providing support to persons with lyme disease and public education
1403	1403	relating to the prevention, treatment and cure of lyme disease;
1404	1404	(17) the dream factory, inc., for the purpose of granting the dreams of
1405	1405	children with critical and chronic illnesses;
1406	1406	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
1407	1407	students and families with education and resources necessary to enable
1408	1408	each child to develop fine character and musical ability to the fullest
1409	1409	potential;
1410	1410	(19) the international association of lions clubs for the purpose of
1411	1411	1
1412	1412	2
1413	1413	3
1414	1414	4
1415	1415	5
1416	1416	6
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1442	1442	32
1443	1443	33
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1450	1450	40
1451	1451	41
1452	1452	42
1453	1453	43 SB 8 18
1454	1454	creating and fostering a spirit of understanding among all people for
1455	1455	humanitarian needs by providing voluntary services through community
1456	1456	involvement and international cooperation;
1457	1457	(20) the Johnson county young matrons, inc., for the purpose of
1458	1458	promoting a positive future for members of the community through
1459	1459	volunteerism, financial support and education through the efforts of an all
1460	1460	volunteer organization;
1461	1461	(21) the American cancer society, inc., for the purpose of eliminating
1462	1462	cancer as a major health problem by preventing cancer, saving lives and
1463	1463	diminishing suffering from cancer, through research, education, advocacy
1464	1464	and service;
1465	1465	(22) the community services of Shawnee, inc., for the purpose of
1466	1466	providing food and clothing to those in need;
1467	1467	(23) the angel babies association, for the purpose of providing
1468	1468	assistance, support and items of necessity to teenage mothers and their
1469	1469	babies; and
1470	1470	(24) the Kansas fairgrounds foundation for the purpose of the
1471	1471	preservation, renovation and beautification of the Kansas state fairgrounds;
1472	1472	(ww) all sales of tangible personal property purchased by the habitat
1473	1473	for humanity for the exclusive use of being incorporated within a housing
1474	1474	project constructed by such organization;
1475	1475	(xx) all sales of tangible personal property and services purchased by
1476	1476	a nonprofit zoo that is exempt from federal income taxation pursuant to
1477	1477	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
1478	1478	of such zoo by an entity itself exempt from federal income taxation
1479	1479	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
1480	1480	contracted with to operate such zoo and all sales of tangible personal
1481	1481	property or services purchased by a contractor for the purpose of
1482	1482	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1483	1483	furnishing or remodeling facilities for any nonprofit zoo that would be
1484	1484	exempt from taxation under the provisions of this section if purchased
1485	1485	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
1486	1486	this subsection shall be deemed to exempt the purchase of any construction
1487	1487	machinery, equipment or tools used in the constructing, equipping,
1488	1488	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1489	1489	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
1490	1490	the purpose of constructing, equipping, reconstructing, maintaining,
1491	1491	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
1492	1492	from the state and furnish to the contractor an exemption certificate for the
1493	1493	project involved, and the contractor may purchase materials for
1494	1494	incorporation in such project. The contractor shall furnish the number of
1495	1495	such certificate to all suppliers from whom such purchases are made, and
1496	1496	such suppliers shall execute invoices covering the same bearing the
1497	1497	1
1498	1498	2
1499	1499	3
1500	1500	4
1501	1501	5
1502	1502	6
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1512	1512	16
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1537	1537	41
1538	1538	42
1539	1539	43 SB 8 19
1540	1540	number of such certificate. Upon completion of the project the contractor
1541	1541	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
1542	1542	to be provided by the director of taxation, that all purchases so made were
1543	1543	entitled to exemption under this subsection. All invoices shall be held by
1544	1544	the contractor for a period of five years and shall be subject to audit by the
1545	1545	director of taxation. If any materials purchased under such a certificate are
1546	1546	found not to have been incorporated in the building or other project or not
1547	1547	to have been returned for credit or the sales or compensating tax otherwise
1548	1548	imposed upon such materials that will not be so incorporated in the
1549	1549	building or other project reported and paid by such contractor to the
1550	1550	director of taxation not later than the 20
1551	1551	th
1552	1552	day of the month following the
1553	1553	close of the month in which it shall be determined that such materials will
1554	1554	not be used for the purpose for which such certificate was issued, the
1555	1555	nonprofit zoo concerned shall be liable for tax on all materials purchased
1556	1556	for the project, and upon payment thereof it may recover the same from
1557	1557	the contractor together with reasonable attorney fees. Any contractor or
1558	1558	any agent, employee or subcontractor thereof, who shall use or otherwise
1559	1559	dispose of any materials purchased under such a certificate for any purpose
1560	1560	other than that for which such a certificate is issued without the payment
1561	1561	of the sales or compensating tax otherwise imposed upon such materials,
1562	1562	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1563	1563	subject to the penalties provided for in K.S.A. 79-3615(h), and
1564	1564	amendments thereto;
1565	1565	(yy) all sales of tangible personal property and services purchased by
1566	1566	a parent-teacher association or organization, and all sales of tangible
1567	1567	personal property by or on behalf of such association or organization;
1568	1568	(zz) all sales of machinery and equipment purchased by over-the-air,
1569	1569	free access radio or television station that is used directly and primarily for
1570	1570	the purpose of producing a broadcast signal or is such that the failure of
1571	1571	the machinery or equipment to operate would cause broadcasting to cease.
1572	1572	For purposes of this subsection, machinery and equipment shall include,
1573	1573	but not be limited to, that required by rules and regulations of the federal
1574	1574	communications commission, and all sales of electricity which are
1575	1575	essential or necessary for the purpose of producing a broadcast signal or is
1576	1576	such that the failure of the electricity would cause broadcasting to cease;
1577	1577	(aaa) all sales of tangible personal property and services purchased by
1578	1578	a religious organization that is exempt from federal income taxation
1579	1579	pursuant to section 501(c)(3) of the federal internal revenue code, and used
1580	1580	exclusively for religious purposes, and all sales of tangible personal
1581	1581	property or services purchased by a contractor for the purpose of
1582	1582	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1583	1583	furnishing or remodeling facilities for any such organization that would be
1584	1584	exempt from taxation under the provisions of this section if purchased
1585	1585	1
1586	1586	2
1587	1587	3
1588	1588	4
1589	1589	5
1590	1590	6
1591	1591	7
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1614	1614	30
1615	1615	31
1616	1616	32
1617	1617	33
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1621	1621	37
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1626	1626	42
1627	1627	43 SB 8 20
1628	1628	directly by such organization. Nothing in this subsection shall be deemed
1629	1629	to exempt the purchase of any construction machinery, equipment or tools
1630	1630	used in the constructing, equipping, reconstructing, maintaining, repairing,
1631	1631	enlarging, furnishing or remodeling facilities for any such organization.
1632	1632	When any such organization shall contract for the purpose of constructing,
1633	1633	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1634	1634	remodeling facilities, it shall obtain from the state and furnish to the
1635	1635	contractor an exemption certificate for the project involved, and the
1636	1636	contractor may purchase materials for incorporation in such project. The
1637	1637	contractor shall furnish the number of such certificate to all suppliers from
1638	1638	whom such purchases are made, and such suppliers shall execute invoices
1639	1639	covering the same bearing the number of such certificate. Upon
1640	1640	completion of the project the contractor shall furnish to such organization
1641	1641	concerned a sworn statement, on a form to be provided by the director of
1642	1642	taxation, that all purchases so made were entitled to exemption under this
1643	1643	subsection. All invoices shall be held by the contractor for a period of five
1644	1644	years and shall be subject to audit by the director of taxation. If any
1645	1645	materials purchased under such a certificate are found not to have been
1646	1646	incorporated in the building or other project or not to have been returned
1647	1647	for credit or the sales or compensating tax otherwise imposed upon such
1648	1648	materials that will not be so incorporated in the building or other project
1649	1649	reported and paid by such contractor to the director of taxation not later
1650	1650	than the 20
1651	1651	th
1652	1652	day of the month following the close of the month in which it
1653	1653	shall be determined that such materials will not be used for the purpose for
1654	1654	which such certificate was issued, such organization concerned shall be
1655	1655	liable for tax on all materials purchased for the project, and upon payment
1656	1656	thereof it may recover the same from the contractor together with
1657	1657	reasonable attorney fees. Any contractor or any agent, employee or
1658	1658	subcontractor thereof, who shall use or otherwise dispose of any materials
1659	1659	purchased under such a certificate for any purpose other than that for
1660	1660	which such a certificate is issued without the payment of the sales or
1661	1661	compensating tax otherwise imposed upon such materials, shall be guilty
1662	1662	of a misdemeanor and, upon conviction therefor, shall be subject to the
1663	1663	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
1664	1664	Sales tax paid on and after July 1, 1998, but prior to the effective date of
1665	1665	this act upon the gross receipts received from any sale exempted by the
1666	1666	amendatory provisions of this subsection shall be refunded. Each claim for
1667	1667	a sales tax refund shall be verified and submitted to the director of taxation
1668	1668	upon forms furnished by the director and shall be accompanied by any
1669	1669	additional documentation required by the director. The director shall
1670	1670	review each claim and shall refund that amount of sales tax paid as
1671	1671	determined under the provisions of this subsection. All refunds shall be
1672	1672	paid from the sales tax refund fund upon warrants of the director of
1673	1673	1
1674	1674	2
1675	1675	3
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1715	1715	43 SB 8 21
1716	1716	accounts and reports pursuant to vouchers approved by the director or the
1717	1717	director's designee;
1718	1718	(bbb) all sales of food for human consumption by an organization that
1719	1719	is exempt from federal income taxation pursuant to section 501(c)(3) of
1720	1720	the federal internal revenue code of 1986, pursuant to a food distribution
1721	1721	program that offers such food at a price below cost in exchange for the
1722	1722	performance of community service by the purchaser thereof;
1723	1723	(ccc) on and after July 1, 1999, all sales of tangible personal property
1724	1724	and services purchased by a primary care clinic or health center the
1725	1725	primary purpose of which is to provide services to medically underserved
1726	1726	individuals and families, and that is exempt from federal income taxation
1727	1727	pursuant to section 501(c)(3) of the federal internal revenue code, and all
1728	1728	sales of tangible personal property or services purchased by a contractor
1729	1729	for the purpose of constructing, equipping, reconstructing, maintaining,
1730	1730	repairing, enlarging, furnishing or remodeling facilities for any such clinic
1731	1731	or center that would be exempt from taxation under the provisions of this
1732	1732	section if purchased directly by such clinic or center, except that for
1733	1733	taxable years commencing after December 31, 2013, this subsection shall
1734	1734	not apply to any sales of such tangible personal property and services
1735	1735	purchased by a primary care clinic or health center which performs any
1736	1736	abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
1737	1737	in this subsection shall be deemed to exempt the purchase of any
1738	1738	construction machinery, equipment or tools used in the constructing,
1739	1739	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1740	1740	remodeling facilities for any such clinic or center. When any such clinic or
1741	1741	center shall contract for the purpose of constructing, equipping,
1742	1742	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1743	1743	facilities, it shall obtain from the state and furnish to the contractor an
1744	1744	exemption certificate for the project involved, and the contractor may
1745	1745	purchase materials for incorporation in such project. The contractor shall
1746	1746	furnish the number of such certificate to all suppliers from whom such
1747	1747	purchases are made, and such suppliers shall execute invoices covering the
1748	1748	same bearing the number of such certificate. Upon completion of the
1749	1749	project the contractor shall furnish to such clinic or center concerned a
1750	1750	sworn statement, on a form to be provided by the director of taxation, that
1751	1751	all purchases so made were entitled to exemption under this subsection.
1752	1752	All invoices shall be held by the contractor for a period of five years and
1753	1753	shall be subject to audit by the director of taxation. If any materials
1754	1754	purchased under such a certificate are found not to have been incorporated
1755	1755	in the building or other project or not to have been returned for credit or
1756	1756	the sales or compensating tax otherwise imposed upon such materials that
1757	1757	will not be so incorporated in the building or other project reported and
1758	1758	paid by such contractor to the director of taxation not later than the 20
1759	1759	th
1760	1760	1
1761	1761	2
1762	1762	3
1763	1763	4
1764	1764	5
1765	1765	6
1766	1766	7
1767	1767	8
1768	1768	9
1769	1769	10
1770	1770	11
1771	1771	12
1772	1772	13
1773	1773	14
1774	1774	15
1775	1775	16
1776	1776	17
1777	1777	18
1778	1778	19
1779	1779	20
1780	1780	21
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1785	1785	26
1786	1786	27
1787	1787	28
1788	1788	29
1789	1789	30
1790	1790	31
1791	1791	32
1792	1792	33
1793	1793	34
1794	1794	35
1795	1795	36
1796	1796	37
1797	1797	38
1798	1798	39
1799	1799	40
1800	1800	41
1801	1801	42
1802	1802	43 SB 8 22
1803	1803	day of the month following the close of the month in which it shall be
1804	1804	determined that such materials will not be used for the purpose for which
1805	1805	such certificate was issued, such clinic or center concerned shall be liable
1806	1806	for tax on all materials purchased for the project, and upon payment
1807	1807	thereof it may recover the same from the contractor together with
1808	1808	reasonable attorney fees. Any contractor or any agent, employee or
1809	1809	subcontractor thereof, who shall use or otherwise dispose of any materials
1810	1810	purchased under such a certificate for any purpose other than that for
1811	1811	which such a certificate is issued without the payment of the sales or
1812	1812	compensating tax otherwise imposed upon such materials, shall be guilty
1813	1813	of a misdemeanor and, upon conviction therefor, shall be subject to the
1814	1814	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
1815	1815	(ddd) on and after January 1, 1999, and before January 1, 2000, all
1816	1816	sales of materials and services purchased by any class II or III railroad as
1817	1817	classified by the federal surface transportation board for the construction,
1818	1818	renovation, repair or replacement of class II or III railroad track and
1819	1819	facilities used directly in interstate commerce. In the event any such track
1820	1820	or facility for which materials and services were purchased sales tax
1821	1821	exempt is not operational for five years succeeding the allowance of such
1822	1822	exemption, the total amount of sales tax that would have been payable
1823	1823	except for the operation of this subsection shall be recouped in accordance
1824	1824	with rules and regulations adopted for such purpose by the secretary of
1825	1825	revenue;
1826	1826	(eee) on and after January 1, 1999, and before January 1, 2001, all
1827	1827	sales of materials and services purchased for the original construction,
1828	1828	reconstruction, repair or replacement of grain storage facilities, including
1829	1829	railroad sidings providing access thereto;
1830	1830	(fff) all sales of material handling equipment, racking systems and
1831	1831	other related machinery and equipment that is used for the handling,
1832	1832	movement or storage of tangible personal property in a warehouse or
1833	1833	distribution facility in this state; all sales of installation, repair and
1834	1834	maintenance services performed on such machinery and equipment; and
1835	1835	all sales of repair and replacement parts for such machinery and
1836	1836	equipment. For purposes of this subsection, a warehouse or distribution
1837	1837	facility means a single, fixed location that consists of buildings or
1838	1838	structures in a contiguous area where storage or distribution operations are
1839	1839	conducted that are separate and apart from the business' retail operations,
1840	1840	if any, and that do not otherwise qualify for exemption as occurring at a
1841	1841	manufacturing or processing plant or facility. Material handling and
1842	1842	storage equipment shall include aeration, dust control, cleaning, handling
1843	1843	and other such equipment that is used in a public grain warehouse or other
1844	1844	commercial grain storage facility, whether used for grain handling, grain
1845	1845	storage, grain refining or processing, or other grain treatment operation;
1846	1846	1
1847	1847	2
1848	1848	3
1849	1849	4
1850	1850	5
1851	1851	6
1852	1852	7
1853	1853	8
1854	1854	9
1855	1855	10
1856	1856	11
1857	1857	12
1858	1858	13
1859	1859	14
1860	1860	15
1861	1861	16
1862	1862	17
1863	1863	18
1864	1864	19
1865	1865	20
1866	1866	21
1867	1867	22
1868	1868	23
1869	1869	24
1870	1870	25
1871	1871	26
1872	1872	27
1873	1873	28
1874	1874	29
1875	1875	30
1876	1876	31
1877	1877	32
1878	1878	33
1879	1879	34
1880	1880	35
1881	1881	36
1882	1882	37
1883	1883	38
1884	1884	39
1885	1885	40
1886	1886	41
1887	1887	42
1888	1888	43 SB 8 23
1889	1889	(ggg) all sales of tangible personal property and services purchased
1890	1890	by or on behalf of the Kansas academy of science, which is exempt from
1891	1891	federal income taxation pursuant to section 501(c)(3) of the federal
1892	1892	internal revenue code of 1986, and used solely by such academy for the
1893	1893	preparation, publication and dissemination of education materials;
1894	1894	(hhh) all sales of tangible personal property and services purchased
1895	1895	by or on behalf of all domestic violence shelters that are member agencies
1896	1896	of the Kansas coalition against sexual and domestic violence;
1897	1897	(iii) all sales of personal property and services purchased by an
1898	1898	organization that is exempt from federal income taxation pursuant to
1899	1899	section 501(c)(3) of the federal internal revenue code of 1986, and such
1900	1900	personal property and services are used by any such organization in the
1901	1901	collection, storage and distribution of food products to nonprofit
1902	1902	organizations that distribute such food products to persons pursuant to a
1903	1903	food distribution program on a charitable basis without fee or charge, and
1904	1904	all sales of tangible personal property or services purchased by a
1905	1905	contractor for the purpose of constructing, equipping, reconstructing,
1906	1906	maintaining, repairing, enlarging, furnishing or remodeling facilities used
1907	1907	for the collection and storage of such food products for any such
1908	1908	organization which is exempt from federal income taxation pursuant to
1909	1909	section 501(c)(3) of the federal internal revenue code of 1986, that would
1910	1910	be exempt from taxation under the provisions of this section if purchased
1911	1911	directly by such organization. Nothing in this subsection shall be deemed
1912	1912	to exempt the purchase of any construction machinery, equipment or tools
1913	1913	used in the constructing, equipping, reconstructing, maintaining, repairing,
1914	1914	enlarging, furnishing or remodeling facilities for any such organization.
1915	1915	When any such organization shall contract for the purpose of constructing,
1916	1916	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1917	1917	remodeling facilities, it shall obtain from the state and furnish to the
1918	1918	contractor an exemption certificate for the project involved, and the
1919	1919	contractor may purchase materials for incorporation in such project. The
1920	1920	contractor shall furnish the number of such certificate to all suppliers from
1921	1921	whom such purchases are made, and such suppliers shall execute invoices
1922	1922	covering the same bearing the number of such certificate. Upon
1923	1923	completion of the project the contractor shall furnish to such organization
1924	1924	concerned a sworn statement, on a form to be provided by the director of
1925	1925	taxation, that all purchases so made were entitled to exemption under this
1926	1926	subsection. All invoices shall be held by the contractor for a period of five
1927	1927	years and shall be subject to audit by the director of taxation. If any
1928	1928	materials purchased under such a certificate are found not to have been
1929	1929	incorporated in such facilities or not to have been returned for credit or the
1930	1930	sales or compensating tax otherwise imposed upon such materials that will
1931	1931	not be so incorporated in such facilities reported and paid by such
1932	1932	1
1933	1933	2
1934	1934	3
1935	1935	4
1936	1936	5
1937	1937	6
1938	1938	7
1939	1939	8
1940	1940	9
1941	1941	10
1942	1942	11
1943	1943	12
1944	1944	13
1945	1945	14
1946	1946	15
1947	1947	16
1948	1948	17
1949	1949	18
1950	1950	19
1951	1951	20
1952	1952	21
1953	1953	22
1954	1954	23
1955	1955	24
1956	1956	25
1957	1957	26
1958	1958	27
1959	1959	28
1960	1960	29
1961	1961	30
1962	1962	31
1963	1963	32
1964	1964	33
1965	1965	34
1966	1966	35
1967	1967	36
1968	1968	37
1969	1969	38
1970	1970	39
1971	1971	40
1972	1972	41
1973	1973	42
1974	1974	43 SB 8 24
1975	1975	contractor to the director of taxation not later than the 20
1976	1976	th
1977	1977	day of the
1978	1978	month following the close of the month in which it shall be determined
1979	1979	that such materials will not be used for the purpose for which such
1980	1980	certificate was issued, such organization concerned shall be liable for tax
1981	1981	on all materials purchased for the project, and upon payment thereof it
1982	1982	may recover the same from the contractor together with reasonable
1983	1983	attorney fees. Any contractor or any agent, employee or subcontractor
1984	1984	thereof, who shall use or otherwise dispose of any materials purchased
1985	1985	under such a certificate for any purpose other than that for which such a
1986	1986	certificate is issued without the payment of the sales or compensating tax
1987	1987	otherwise imposed upon such materials, shall be guilty of a misdemeanor
1988	1988	and, upon conviction therefor, shall be subject to the penalties provided for
1989	1989	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
1990	1990	July 1, 2005, but prior to the effective date of this act upon the gross
1991	1991	receipts received from any sale exempted by the amendatory provisions of
1992	1992	this subsection shall be refunded. Each claim for a sales tax refund shall be
1993	1993	verified and submitted to the director of taxation upon forms furnished by
1994	1994	the director and shall be accompanied by any additional documentation
1995	1995	required by the director. The director shall review each claim and shall
1996	1996	refund that amount of sales tax paid as determined under the provisions of
1997	1997	this subsection. All refunds shall be paid from the sales tax refund fund
1998	1998	upon warrants of the director of accounts and reports pursuant to vouchers
1999	1999	approved by the director or the director's designee;
2000	2000	(jjj) all sales of dietary supplements dispensed pursuant to a
2001	2001	prescription order by a licensed practitioner or a mid-level practitioner as
2002	2002	defined by K.S.A. 65-1626, and amendments thereto. As used in this
2003	2003	subsection, "dietary supplement" means any product, other than tobacco,
2004	2004	intended to supplement the diet that: (1) Contains one or more of the
2005	2005	following dietary ingredients: A vitamin, a mineral, an herb or other
2006	2006	botanical, an amino acid, a dietary substance for use by humans to
2007	2007	supplement the diet by increasing the total dietary intake or a concentrate,
2008	2008	metabolite, constituent, extract or combination of any such ingredient; (2)
2009	2009	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
2010	2010	liquid form, or if not intended for ingestion, in such a form, is not
2011	2011	represented as conventional food and is not represented for use as a sole
2012	2012	item of a meal or of the diet; and (3) is required to be labeled as a dietary
2013	2013	supplement, identifiable by the supplemental facts box found on the label
2014	2014	and as required pursuant to 21 C.F.R. § 101.36;
2015	2015	(lll) all sales of tangible personal property and services purchased by
2016	2016	special olympics Kansas, inc. for the purpose of providing year-round
2017	2017	sports training and athletic competition in a variety of olympic-type sports
2018	2018	for individuals with intellectual disabilities by giving them continuing
2019	2019	opportunities to develop physical fitness, demonstrate courage, experience
2020	2020	1
2021	2021	2
2022	2022	3
2023	2023	4
2024	2024	5
2025	2025	6
2026	2026	7
2027	2027	8
2028	2028	9
2029	2029	10
2030	2030	11
2031	2031	12
2032	2032	13
2033	2033	14
2034	2034	15
2035	2035	16
2036	2036	17
2037	2037	18
2038	2038	19
2039	2039	20
2040	2040	21
2041	2041	22
2042	2042	23
2043	2043	24
2044	2044	25
2045	2045	26
2046	2046	27
2047	2047	28
2048	2048	29
2049	2049	30
2050	2050	31
2051	2051	32
2052	2052	33
2053	2053	34
2054	2054	35
2055	2055	36
2056	2056	37
2057	2057	38
2058	2058	39
2059	2059	40
2060	2060	41
2061	2061	42
2062	2062	43 SB 8 25
2063	2063	joy and participate in a sharing of gifts, skills and friendship with their
2064	2064	families, other special olympics athletes and the community, and activities
2065	2065	provided or sponsored by such organization, and all sales of tangible
2066	2066	personal property by or on behalf of any such organization;
2067	2067	(mmm) all sales of tangible personal property purchased by or on
2068	2068	behalf of the Marillac center, inc., which is exempt from federal income
2069	2069	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2070	2070	for the purpose of providing psycho-social-biological and special
2071	2071	education services to children, and all sales of any such property by or on
2072	2072	behalf of such organization for such purpose;
2073	2073	(nnn) all sales of tangible personal property and services purchased
2074	2074	by the west Sedgwick county-sunrise rotary club and sunrise charitable
2075	2075	fund for the purpose of constructing a boundless playground which is an
2076	2076	integrated, barrier free and developmentally advantageous play
2077	2077	environment for children of all abilities and disabilities;
2078	2078	(ooo) all sales of tangible personal property by or on behalf of a
2079	2079	public library serving the general public and supported in whole or in part
2080	2080	with tax money or a not-for-profit organization whose purpose is to raise
2081	2081	funds for or provide services or other benefits to any such public library;
2082	2082	(ppp) all sales of tangible personal property and services purchased
2083	2083	by or on behalf of a homeless shelter that is exempt from federal income
2084	2084	taxation pursuant to section 501(c)(3) of the federal income tax code of
2085	2085	1986, and used by any such homeless shelter to provide emergency and
2086	2086	transitional housing for individuals and families experiencing
2087	2087	homelessness, and all sales of any such property by or on behalf of any
2088	2088	such homeless shelter for any such purpose;
2089	2089	(qqq) all sales of tangible personal property and services purchased
2090	2090	by TLC for children and families, inc., hereinafter referred to as TLC,
2091	2091	which is exempt from federal income taxation pursuant to section 501(c)
2092	2092	(3) of the federal internal revenue code of 1986, and such property and
2093	2093	services are used for the purpose of providing emergency shelter and
2094	2094	treatment for abused and neglected children as well as meeting additional
2095	2095	critical needs for children, juveniles and family, and all sales of any such
2096	2096	property by or on behalf of TLC for any such purpose; and all sales of
2097	2097	tangible personal property or services purchased by a contractor for the
2098	2098	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2099	2099	remodeling facilities for the operation of services for TLC for any such
2100	2100	purpose that would be exempt from taxation under the provisions of this
2101	2101	section if purchased directly by TLC. Nothing in this subsection shall be
2102	2102	deemed to exempt the purchase of any construction machinery, equipment
2103	2103	or tools used in the constructing, maintaining, repairing, enlarging,
2104	2104	furnishing or remodeling such facilities for TLC. When TLC contracts for
2105	2105	the purpose of constructing, maintaining, repairing, enlarging, furnishing
2106	2106	1
2107	2107	2
2108	2108	3
2109	2109	4
2110	2110	5
2111	2111	6
2112	2112	7
2113	2113	8
2114	2114	9
2115	2115	10
2116	2116	11
2117	2117	12
2118	2118	13
2119	2119	14
2120	2120	15
2121	2121	16
2122	2122	17
2123	2123	18
2124	2124	19
2125	2125	20
2126	2126	21
2127	2127	22
2128	2128	23
2129	2129	24
2130	2130	25
2131	2131	26
2132	2132	27
2133	2133	28
2134	2134	29
2135	2135	30
2136	2136	31
2137	2137	32
2138	2138	33
2139	2139	34
2140	2140	35
2141	2141	36
2142	2142	37
2143	2143	38
2144	2144	39
2145	2145	40
2146	2146	41
2147	2147	42
2148	2148	43 SB 8 26
2149	2149	or remodeling such facilities, it shall obtain from the state and furnish to
2150	2150	the contractor an exemption certificate for the project involved, and the
2151	2151	contractor may purchase materials for incorporation in such project. The
2152	2152	contractor shall furnish the number of such certificate to all suppliers from
2153	2153	whom such purchases are made, and such suppliers shall execute invoices
2154	2154	covering the same bearing the number of such certificate. Upon
2155	2155	completion of the project the contractor shall furnish to TLC a sworn
2156	2156	statement, on a form to be provided by the director of taxation, that all
2157	2157	purchases so made were entitled to exemption under this subsection. All
2158	2158	invoices shall be held by the contractor for a period of five years and shall
2159	2159	be subject to audit by the director of taxation. If any materials purchased
2160	2160	under such a certificate are found not to have been incorporated in the
2161	2161	building or other project or not to have been returned for credit or the sales
2162	2162	or compensating tax otherwise imposed upon such materials that will not
2163	2163	be so incorporated in the building or other project reported and paid by
2164	2164	such contractor to the director of taxation not later than the 20
2165	2165	th
2166	2166	day of the
2167	2167	month following the close of the month in which it shall be determined
2168	2168	that such materials will not be used for the purpose for which such
2169	2169	certificate was issued, TLC shall be liable for tax on all materials
2170	2170	purchased for the project, and upon payment thereof it may recover the
2171	2171	same from the contractor together with reasonable attorney fees. Any
2172	2172	contractor or any agent, employee or subcontractor thereof, who shall use
2173	2173	or otherwise dispose of any materials purchased under such a certificate
2174	2174	for any purpose other than that for which such a certificate is issued
2175	2175	without the payment of the sales or compensating tax otherwise imposed
2176	2176	upon such materials, shall be guilty of a misdemeanor and, upon
2177	2177	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2178	2178	79-3615(h), and amendments thereto;
2179	2179	(rrr) all sales of tangible personal property and services purchased by
2180	2180	any county law library maintained pursuant to law and sales of tangible
2181	2181	personal property and services purchased by an organization that would
2182	2182	have been exempt from taxation under the provisions of this subsection if
2183	2183	purchased directly by the county law library for the purpose of providing
2184	2184	legal resources to attorneys, judges, students and the general public, and
2185	2185	all sales of any such property by or on behalf of any such county law
2186	2186	library;
2187	2187	(sss) all sales of tangible personal property and services purchased by
2188	2188	catholic charities or youthville, hereinafter referred to as charitable family
2189	2189	providers, which is exempt from federal income taxation pursuant to
2190	2190	section 501(c)(3) of the federal internal revenue code of 1986, and which
2191	2191	such property and services are used for the purpose of providing
2192	2192	emergency shelter and treatment for abused and neglected children as well
2193	2193	as meeting additional critical needs for children, juveniles and family, and
2194	2194	1
2195	2195	2
2196	2196	3
2197	2197	4
2198	2198	5
2199	2199	6
2200	2200	7
2201	2201	8
2202	2202	9
2203	2203	10
2204	2204	11
2205	2205	12
2206	2206	13
2207	2207	14
2208	2208	15
2209	2209	16
2210	2210	17
2211	2211	18
2212	2212	19
2213	2213	20
2214	2214	21
2215	2215	22
2216	2216	23
2217	2217	24
2218	2218	25
2219	2219	26
2220	2220	27
2221	2221	28
2222	2222	29
2223	2223	30
2224	2224	31
2225	2225	32
2226	2226	33
2227	2227	34
2228	2228	35
2229	2229	36
2230	2230	37
2231	2231	38
2232	2232	39
2233	2233	40
2234	2234	41
2235	2235	42
2236	2236	43 SB 8 27
2237	2237	all sales of any such property by or on behalf of charitable family
2238	2238	providers for any such purpose; and all sales of tangible personal property
2239	2239	or services purchased by a contractor for the purpose of constructing,
2240	2240	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2241	2241	the operation of services for charitable family providers for any such
2242	2242	purpose which would be exempt from taxation under the provisions of this
2243	2243	section if purchased directly by charitable family providers. Nothing in
2244	2244	this subsection shall be deemed to exempt the purchase of any construction
2245	2245	machinery, equipment or tools used in the constructing, maintaining,
2246	2246	repairing, enlarging, furnishing or remodeling such facilities for charitable
2247	2247	family providers. When charitable family providers contracts for the
2248	2248	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2249	2249	remodeling such facilities, it shall obtain from the state and furnish to the
2250	2250	contractor an exemption certificate for the project involved, and the
2251	2251	contractor may purchase materials for incorporation in such project. The
2252	2252	contractor shall furnish the number of such certificate to all suppliers from
2253	2253	whom such purchases are made, and such suppliers shall execute invoices
2254	2254	covering the same bearing the number of such certificate. Upon
2255	2255	completion of the project the contractor shall furnish to charitable family
2256	2256	providers a sworn statement, on a form to be provided by the director of
2257	2257	taxation, that all purchases so made were entitled to exemption under this
2258	2258	subsection. All invoices shall be held by the contractor for a period of five
2259	2259	years and shall be subject to audit by the director of taxation. If any
2260	2260	materials purchased under such a certificate are found not to have been
2261	2261	incorporated in the building or other project or not to have been returned
2262	2262	for credit or the sales or compensating tax otherwise imposed upon such
2263	2263	materials that will not be so incorporated in the building or other project
2264	2264	reported and paid by such contractor to the director of taxation not later
2265	2265	than the 20
2266	2266	th
2267	2267	day of the month following the close of the month in which it
2268	2268	shall be determined that such materials will not be used for the purpose for
2269	2269	which such certificate was issued, charitable family providers shall be
2270	2270	liable for tax on all materials purchased for the project, and upon payment
2271	2271	thereof it may recover the same from the contractor together with
2272	2272	reasonable attorney fees. Any contractor or any agent, employee or
2273	2273	subcontractor thereof, who shall use or otherwise dispose of any materials
2274	2274	purchased under such a certificate for any purpose other than that for
2275	2275	which such a certificate is issued without the payment of the sales or
2276	2276	compensating tax otherwise imposed upon such materials, shall be guilty
2277	2277	of a misdemeanor and, upon conviction therefor, shall be subject to the
2278	2278	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2279	2279	(ttt) all sales of tangible personal property or services purchased by a
2280	2280	contractor for a project for the purpose of restoring, constructing,
2281	2281	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
2282	2282	1
2283	2283	2
2284	2284	3
2285	2285	4
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2320	2320	39
2321	2321	40
2322	2322	41
2323	2323	42
2324	2324	43 SB 8 28
2325	2325	remodeling a home or facility owned by a nonprofit museum that has been
2326	2326	granted an exemption pursuant to subsection (qq), which such home or
2327	2327	facility is located in a city that has been designated as a qualified
2328	2328	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
2329	2329	amendments thereto, and which such project is related to the purposes of
2330	2330	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
2331	2331	exempt from taxation under the provisions of this section if purchased
2332	2332	directly by such nonprofit museum. Nothing in this subsection shall be
2333	2333	deemed to exempt the purchase of any construction machinery, equipment
2334	2334	or tools used in the restoring, constructing, equipping, reconstructing,
2335	2335	maintaining, repairing, enlarging, furnishing or remodeling a home or
2336	2336	facility for any such nonprofit museum. When any such nonprofit museum
2337	2337	shall contract for the purpose of restoring, constructing, equipping,
2338	2338	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2339	2339	a home or facility, it shall obtain from the state and furnish to the
2340	2340	contractor an exemption certificate for the project involved, and the
2341	2341	contractor may purchase materials for incorporation in such project. The
2342	2342	contractor shall furnish the number of such certificates to all suppliers
2343	2343	from whom such purchases are made, and such suppliers shall execute
2344	2344	invoices covering the same bearing the number of such certificate. Upon
2345	2345	completion of the project, the contractor shall furnish to such nonprofit
2346	2346	museum a sworn statement on a form to be provided by the director of
2347	2347	taxation that all purchases so made were entitled to exemption under this
2348	2348	subsection. All invoices shall be held by the contractor for a period of five
2349	2349	years and shall be subject to audit by the director of taxation. If any
2350	2350	materials purchased under such a certificate are found not to have been
2351	2351	incorporated in the building or other project or not to have been returned
2352	2352	for credit or the sales or compensating tax otherwise imposed upon such
2353	2353	materials that will not be so incorporated in a home or facility or other
2354	2354	project reported and paid by such contractor to the director of taxation not
2355	2355	later than the 20
2356	2356	th
2357	2357	day of the month following the close of the month in
2358	2358	which it shall be determined that such materials will not be used for the
2359	2359	purpose for which such certificate was issued, such nonprofit museum
2360	2360	shall be liable for tax on all materials purchased for the project, and upon
2361	2361	payment thereof it may recover the same from the contractor together with
2362	2362	reasonable attorney fees. Any contractor or any agent, employee or
2363	2363	subcontractor thereof, who shall use or otherwise dispose of any materials
2364	2364	purchased under such a certificate for any purpose other than that for
2365	2365	which such a certificate is issued without the payment of the sales or
2366	2366	compensating tax otherwise imposed upon such materials, shall be guilty
2367	2367	of a misdemeanor and, upon conviction therefor, shall be subject to the
2368	2368	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2369	2369	(uuu) all sales of tangible personal property and services purchased
2370	2370	1
2371	2371	2
2372	2372	3
2373	2373	4
2374	2374	5
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2404	2404	35
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2408	2408	39
2409	2409	40
2410	2410	41
2411	2411	42
2412	2412	43 SB 8 29
2413	2413	by Kansas children's service league, hereinafter referred to as KCSL,
2414	2414	which is exempt from federal income taxation pursuant to section 501(c)
2415	2415	(3) of the federal internal revenue code of 1986, and which such property
2416	2416	and services are used for the purpose of providing for the prevention and
2417	2417	treatment of child abuse and maltreatment as well as meeting additional
2418	2418	critical needs for children, juveniles and family, and all sales of any such
2419	2419	property by or on behalf of KCSL for any such purpose; and all sales of
2420	2420	tangible personal property or services purchased by a contractor for the
2421	2421	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2422	2422	remodeling facilities for the operation of services for KCSL for any such
2423	2423	purpose that would be exempt from taxation under the provisions of this
2424	2424	section if purchased directly by KCSL. Nothing in this subsection shall be
2425	2425	deemed to exempt the purchase of any construction machinery, equipment
2426	2426	or tools used in the constructing, maintaining, repairing, enlarging,
2427	2427	furnishing or remodeling such facilities for KCSL. When KCSL contracts
2428	2428	for the purpose of constructing, maintaining, repairing, enlarging,
2429	2429	furnishing or remodeling such facilities, it shall obtain from the state and
2430	2430	furnish to the contractor an exemption certificate for the project involved,
2431	2431	and the contractor may purchase materials for incorporation in such
2432	2432	project. The contractor shall furnish the number of such certificate to all
2433	2433	suppliers from whom such purchases are made, and such suppliers shall
2434	2434	execute invoices covering the same bearing the number of such certificate.
2435	2435	Upon completion of the project the contractor shall furnish to KCSL a
2436	2436	sworn statement, on a form to be provided by the director of taxation, that
2437	2437	all purchases so made were entitled to exemption under this subsection.
2438	2438	All invoices shall be held by the contractor for a period of five years and
2439	2439	shall be subject to audit by the director of taxation. If any materials
2440	2440	purchased under such a certificate are found not to have been incorporated
2441	2441	in the building or other project or not to have been returned for credit or
2442	2442	the sales or compensating tax otherwise imposed upon such materials that
2443	2443	will not be so incorporated in the building or other project reported and
2444	2444	paid by such contractor to the director of taxation not later than the 20
2445	2445	th
2446	2446	day of the month following the close of the month in which it shall be
2447	2447	determined that such materials will not be used for the purpose for which
2448	2448	such certificate was issued, KCSL shall be liable for tax on all materials
2449	2449	purchased for the project, and upon payment thereof it may recover the
2450	2450	same from the contractor together with reasonable attorney fees. Any
2451	2451	contractor or any agent, employee or subcontractor thereof, who shall use
2452	2452	or otherwise dispose of any materials purchased under such a certificate
2453	2453	for any purpose other than that for which such a certificate is issued
2454	2454	without the payment of the sales or compensating tax otherwise imposed
2455	2455	upon such materials, shall be guilty of a misdemeanor and, upon
2456	2456	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2457	2457	1
2458	2458	2
2459	2459	3
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2497	2497	41
2498	2498	42
2499	2499	43 SB 8 30
2500	2500	79-3615(h), and amendments thereto;
2501	2501	(vvv) all sales of tangible personal property or services, including the
2502	2502	renting and leasing of tangible personal property or services, purchased by
2503	2503	jazz in the woods, inc., a Kansas corporation that is exempt from federal
2504	2504	income taxation pursuant to section 501(c)(3) of the federal internal
2505	2505	revenue code, for the purpose of providing jazz in the woods, an event
2506	2506	benefiting children-in-need and other nonprofit charities assisting such
2507	2507	children, and all sales of any such property by or on behalf of such
2508	2508	organization for such purpose;
2509	2509	(www) all sales of tangible personal property purchased by or on
2510	2510	behalf of the Frontenac education foundation, which is exempt from
2511	2511	federal income taxation pursuant to section 501(c)(3) of the federal
2512	2512	internal revenue code, for the purpose of providing education support for
2513	2513	students, and all sales of any such property by or on behalf of such
2514	2514	organization for such purpose;
2515	2515	(xxx) all sales of personal property and services purchased by the
2516	2516	booth theatre foundation, inc., an organization, which is exempt from
2517	2517	federal income taxation pursuant to section 501(c)(3) of the federal
2518	2518	internal revenue code of 1986, and which such personal property and
2519	2519	services are used by any such organization in the constructing, equipping,
2520	2520	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2521	2521	of the booth theatre, and all sales of tangible personal property or services
2522	2522	purchased by a contractor for the purpose of constructing, equipping,
2523	2523	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2524	2524	the booth theatre for such organization, that would be exempt from
2525	2525	taxation under the provisions of this section if purchased directly by such
2526	2526	organization. Nothing in this subsection shall be deemed to exempt the
2527	2527	purchase of any construction machinery, equipment or tools used in the
2528	2528	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
2529	2529	furnishing or remodeling facilities for any such organization. When any
2530	2530	such organization shall contract for the purpose of constructing, equipping,
2531	2531	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2532	2532	facilities, it shall obtain from the state and furnish to the contractor an
2533	2533	exemption certificate for the project involved, and the contractor may
2534	2534	purchase materials for incorporation in such project. The contractor shall
2535	2535	furnish the number of such certificate to all suppliers from whom such
2536	2536	purchases are made, and such suppliers shall execute invoices covering the
2537	2537	same bearing the number of such certificate. Upon completion of the
2538	2538	project the contractor shall furnish to such organization concerned a sworn
2539	2539	statement, on a form to be provided by the director of taxation, that all
2540	2540	purchases so made were entitled to exemption under this subsection. All
2541	2541	invoices shall be held by the contractor for a period of five years and shall
2542	2542	be subject to audit by the director of taxation. If any materials purchased
2543	2543	1
2544	2544	2
2545	2545	3
2546	2546	4
2547	2547	5
2548	2548	6
2549	2549	7
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2582	2582	40
2583	2583	41
2584	2584	42
2585	2585	43 SB 8 31
2586	2586	under such a certificate are found not to have been incorporated in such
2587	2587	facilities or not to have been returned for credit or the sales or
2588	2588	compensating tax otherwise imposed upon such materials that will not be
2589	2589	so incorporated in such facilities reported and paid by such contractor to
2590	2590	the director of taxation not later than the 20
2591	2591	th
2592	2592	day of the month following
2593	2593	the close of the month in which it shall be determined that such materials
2594	2594	will not be used for the purpose for which such certificate was issued, such
2595	2595	organization concerned shall be liable for tax on all materials purchased
2596	2596	for the project, and upon payment thereof it may recover the same from
2597	2597	the contractor together with reasonable attorney fees. Any contractor or
2598	2598	any agent, employee or subcontractor thereof, who shall use or otherwise
2599	2599	dispose of any materials purchased under such a certificate for any purpose
2600	2600	other than that for which such a certificate is issued without the payment
2601	2601	of the sales or compensating tax otherwise imposed upon such materials,
2602	2602	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2603	2603	subject to the penalties provided for in K.S.A. 79-3615(h), and
2604	2604	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
2605	2605	to the effective date of this act upon the gross receipts received from any
2606	2606	sale which would have been exempted by the provisions of this subsection
2607	2607	had such sale occurred after the effective date of this act shall be refunded.
2608	2608	Each claim for a sales tax refund shall be verified and submitted to the
2609	2609	director of taxation upon forms furnished by the director and shall be
2610	2610	accompanied by any additional documentation required by the director.
2611	2611	The director shall review each claim and shall refund that amount of sales
2612	2612	tax paid as determined under the provisions of this subsection. All refunds
2613	2613	shall be paid from the sales tax refund fund upon warrants of the director
2614	2614	of accounts and reports pursuant to vouchers approved by the director or
2615	2615	the director's designee;
2616	2616	(yyy) all sales of tangible personal property and services purchased
2617	2617	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
2618	2618	which is exempt from federal income taxation pursuant to section 501(c)
2619	2619	(3) of the federal internal revenue code of 1986, and which such property
2620	2620	and services are used for the purpose of encouraging private philanthropy
2621	2621	to further the vision, values, and goals of TLC for children and families,
2622	2622	inc.; and all sales of such property and services by or on behalf of TLC
2623	2623	charities for any such purpose and all sales of tangible personal property or
2624	2624	services purchased by a contractor for the purpose of constructing,
2625	2625	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2626	2626	the operation of services for TLC charities for any such purpose that would
2627	2627	be exempt from taxation under the provisions of this section if purchased
2628	2628	directly by TLC charities. Nothing in this subsection shall be deemed to
2629	2629	exempt the purchase of any construction machinery, equipment or tools
2630	2630	used in the constructing, maintaining, repairing, enlarging, furnishing or
2631	2631	1
2632	2632	2
2633	2633	3
2634	2634	4
2635	2635	5
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2667	2667	37
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2669	2669	39
2670	2670	40
2671	2671	41
2672	2672	42
2673	2673	43 SB 8 32
2674	2674	remodeling such facilities for TLC charities. When TLC charities contracts
2675	2675	for the purpose of constructing, maintaining, repairing, enlarging,
2676	2676	furnishing or remodeling such facilities, it shall obtain from the state and
2677	2677	furnish to the contractor an exemption certificate for the project involved,
2678	2678	and the contractor may purchase materials for incorporation in such
2679	2679	project. The contractor shall furnish the number of such certificate to all
2680	2680	suppliers from whom such purchases are made, and such suppliers shall
2681	2681	execute invoices covering the same bearing the number of such certificate.
2682	2682	Upon completion of the project the contractor shall furnish to TLC
2683	2683	charities a sworn statement, on a form to be provided by the director of
2684	2684	taxation, that all purchases so made were entitled to exemption under this
2685	2685	subsection. All invoices shall be held by the contractor for a period of five
2686	2686	years and shall be subject to audit by the director of taxation. If any
2687	2687	materials purchased under such a certificate are found not to have been
2688	2688	incorporated in the building or other project or not to have been returned
2689	2689	for credit or the sales or compensating tax otherwise imposed upon such
2690	2690	materials that will not be incorporated into the building or other project
2691	2691	reported and paid by such contractor to the director of taxation not later
2692	2692	than the 20
2693	2693	th
2694	2694	day of the month following the close of the month in which it
2695	2695	shall be determined that such materials will not be used for the purpose for
2696	2696	which such certificate was issued, TLC charities shall be liable for tax on
2697	2697	all materials purchased for the project, and upon payment thereof it may
2698	2698	recover the same from the contractor together with reasonable attorney
2699	2699	fees. Any contractor or any agent, employee or subcontractor thereof, who
2700	2700	shall use or otherwise dispose of any materials purchased under such a
2701	2701	certificate for any purpose other than that for which such a certificate is
2702	2702	issued without the payment of the sales or compensating tax otherwise
2703	2703	imposed upon such materials, shall be guilty of a misdemeanor and, upon
2704	2704	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2705	2705	79-3615(h), and amendments thereto;
2706	2706	(zzz) all sales of tangible personal property purchased by the rotary
2707	2707	club of shawnee foundation, which is exempt from federal income taxation
2708	2708	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2709	2709	as amended, used for the purpose of providing contributions to community
2710	2710	service organizations and scholarships;
2711	2711	(aaaa) all sales of personal property and services purchased by or on
2712	2712	behalf of victory in the valley, inc., which is exempt from federal income
2713	2713	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2714	2714	for the purpose of providing a cancer support group and services for
2715	2715	persons with cancer, and all sales of any such property by or on behalf of
2716	2716	any such organization for any such purpose;
2717	2717	(bbbb) all sales of entry or participation fees, charges or tickets by
2718	2718	Guadalupe health foundation, which is exempt from federal income
2719	2719	1
2720	2720	2
2721	2721	3
2722	2722	4
2723	2723	5
2724	2724	6
2725	2725	7
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2748	2748	30
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2750	2750	32
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2752	2752	34
2753	2753	35
2754	2754	36
2755	2755	37
2756	2756	38
2757	2757	39
2758	2758	40
2759	2759	41
2760	2760	42
2761	2761	43 SB 8 33
2762	2762	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2763	2763	for such organization's annual fundraising event which purpose is to
2764	2764	provide health care services for uninsured workers;
2765	2765	(cccc) all sales of tangible personal property or services purchased by
2766	2766	or on behalf of wayside waifs, inc., which is exempt from federal income
2767	2767	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2768	2768	for the purpose of providing such organization's annual fundraiser, an
2769	2769	event whose purpose is to support the care of homeless and abandoned
2770	2770	animals, animal adoption efforts, education programs for children and
2771	2771	efforts to reduce animal over-population and animal welfare services, and
2772	2772	all sales of any such property, including entry or participation fees or
2773	2773	charges, by or on behalf of such organization for such purpose;
2774	2774	(dddd) all sales of tangible personal property or services purchased
2775	2775	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
2776	2776	of which are exempt from federal income taxation pursuant to section
2777	2777	501(c)(3) of the federal internal revenue code, for the purpose of providing
2778	2778	education, training and employment opportunities for people with
2779	2779	disabilities and other barriers to employment;
2780	2780	(eeee) all sales of tangible personal property or services purchased by
2781	2781	or on behalf of all American beef battalion, inc., which is exempt from
2782	2782	federal income taxation pursuant to section 501(c)(3) of the federal
2783	2783	internal revenue code, for the purpose of educating, promoting and
2784	2784	participating as a contact group through the beef cattle industry in order to
2785	2785	carry out such projects that provide support and morale to members of the
2786	2786	United States armed forces and military services;
2787	2787	(ffff) all sales of tangible personal property and services purchased by
2788	2788	sheltered living, inc., which is exempt from federal income taxation
2789	2789	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2790	2790	and which such property and services are used for the purpose of
2791	2791	providing residential and day services for people with developmental
2792	2792	disabilities or intellectual disability, or both, and all sales of any such
2793	2793	property by or on behalf of sheltered living, inc., for any such purpose; and
2794	2794	all sales of tangible personal property or services purchased by a
2795	2795	contractor for the purpose of rehabilitating, constructing, maintaining,
2796	2796	repairing, enlarging, furnishing or remodeling homes and facilities for
2797	2797	sheltered living, inc., for any such purpose that would be exempt from
2798	2798	taxation under the provisions of this section if purchased directly by
2799	2799	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
2800	2800	the purchase of any construction machinery, equipment or tools used in the
2801	2801	constructing, maintaining, repairing, enlarging, furnishing or remodeling
2802	2802	such homes and facilities for sheltered living, inc. When sheltered living,
2803	2803	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
2804	2804	repairing, enlarging, furnishing or remodeling such homes and facilities, it
2805	2805	1
2806	2806	2
2807	2807	3
2808	2808	4
2809	2809	5
2810	2810	6
2811	2811	7
2812	2812	8
2813	2813	9
2814	2814	10
2815	2815	11
2816	2816	12
2817	2817	13
2818	2818	14
2819	2819	15
2820	2820	16
2821	2821	17
2822	2822	18
2823	2823	19
2824	2824	20
2825	2825	21
2826	2826	22
2827	2827	23
2828	2828	24
2829	2829	25
2830	2830	26
2831	2831	27
2832	2832	28
2833	2833	29
2834	2834	30
2835	2835	31
2836	2836	32
2837	2837	33
2838	2838	34
2839	2839	35
2840	2840	36
2841	2841	37
2842	2842	38
2843	2843	39
2844	2844	40
2845	2845	41
2846	2846	42
2847	2847	43 SB 8 34
2848	2848	shall obtain from the state and furnish to the contractor an exemption
2849	2849	certificate for the project involved, and the contractor may purchase
2850	2850	materials for incorporation in such project. The contractor shall furnish the
2851	2851	number of such certificate to all suppliers from whom such purchases are
2852	2852	made, and such suppliers shall execute invoices covering the same bearing
2853	2853	the number of such certificate. Upon completion of the project the
2854	2854	contractor shall furnish to sheltered living, inc., a sworn statement, on a
2855	2855	form to be provided by the director of taxation, that all purchases so made
2856	2856	were entitled to exemption under this subsection. All invoices shall be held
2857	2857	by the contractor for a period of five years and shall be subject to audit by
2858	2858	the director of taxation. If any materials purchased under such a certificate
2859	2859	are found not to have been incorporated in the building or other project or
2860	2860	not to have been returned for credit or the sales or compensating tax
2861	2861	otherwise imposed upon such materials that will not be so incorporated in
2862	2862	the building or other project reported and paid by such contractor to the
2863	2863	director of taxation not later than the 20
2864	2864	th
2865	2865	day of the month following the
2866	2866	close of the month in which it shall be determined that such materials will
2867	2867	not be used for the purpose for which such certificate was issued, sheltered
2868	2868	living, inc., shall be liable for tax on all materials purchased for the
2869	2869	project, and upon payment thereof it may recover the same from the
2870	2870	contractor together with reasonable attorney fees. Any contractor or any
2871	2871	agent, employee or subcontractor thereof, who shall use or otherwise
2872	2872	dispose of any materials purchased under such a certificate for any purpose
2873	2873	other than that for which such a certificate is issued without the payment
2874	2874	of the sales or compensating tax otherwise imposed upon such materials,
2875	2875	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2876	2876	subject to the penalties provided for in K.S.A. 79-3615(h), and
2877	2877	amendments thereto;
2878	2878	(gggg) all sales of game birds for which the primary purpose is use in
2879	2879	hunting;
2880	2880	(hhhh) all sales of tangible personal property or services purchased
2881	2881	on or after July 1, 2014, for the purpose of and in conjunction with
2882	2882	constructing, reconstructing, enlarging or remodeling a business identified
2883	2883	under the North American industry classification system (NAICS)
2884	2884	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
2885	2885	installation of machinery and equipment purchased for installation at any
2886	2886	such business. The exemption provided in this subsection shall not apply
2887	2887	to projects that have actual total costs less than $50,000. When a person
2888	2888	contracts for the construction, reconstruction, enlargement or remodeling
2889	2889	of any such business, such person shall obtain from the state and furnish to
2890	2890	the contractor an exemption certificate for the project involved, and the
2891	2891	contractor may purchase materials, machinery and equipment for
2892	2892	incorporation in such project. The contractor shall furnish the number of
2893	2893	1
2894	2894	2
2895	2895	3
2896	2896	4
2897	2897	5
2898	2898	6
2899	2899	7
2900	2900	8
2901	2901	9
2902	2902	10
2903	2903	11
2904	2904	12
2905	2905	13
2906	2906	14
2907	2907	15
2908	2908	16
2909	2909	17
2910	2910	18
2911	2911	19
2912	2912	20
2913	2913	21
2914	2914	22
2915	2915	23
2916	2916	24
2917	2917	25
2918	2918	26
2919	2919	27
2920	2920	28
2921	2921	29
2922	2922	30
2923	2923	31
2924	2924	32
2925	2925	33
2926	2926	34
2927	2927	35
2928	2928	36
2929	2929	37
2930	2930	38
2931	2931	39
2932	2932	40
2933	2933	41
2934	2934	42
2935	2935	43 SB 8 35
2936	2936	such certificates to all suppliers from whom such purchases are made, and
2937	2937	such suppliers shall execute invoices covering the same bearing the
2938	2938	number of such certificate. Upon completion of the project, the contractor
2939	2939	shall furnish to the owner of the business a sworn statement, on a form to
2940	2940	be provided by the director of taxation, that all purchases so made were
2941	2941	entitled to exemption under this subsection. All invoices shall be held by
2942	2942	the contractor for a period of five years and shall be subject to audit by the
2943	2943	director of taxation. Any contractor or any agent, employee or
2944	2944	subcontractor of the contractor, who shall use or otherwise dispose of any
2945	2945	materials, machinery or equipment purchased under such a certificate for
2946	2946	any purpose other than that for which such a certificate is issued without
2947	2947	the payment of the sales or compensating tax otherwise imposed thereon,
2948	2948	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2949	2949	subject to the penalties provided for in K.S.A. 79-3615(h), and
2950	2950	amendments thereto;
2951	2951	(iiii) all sales of tangible personal property or services purchased by a
2952	2952	contractor for the purpose of constructing, maintaining, repairing,
2953	2953	enlarging, furnishing or remodeling facilities for the operation of services
2954	2954	for Wichita children's home for any such purpose that would be exempt
2955	2955	from taxation under the provisions of this section if purchased directly by
2956	2956	Wichita children's home. Nothing in this subsection shall be deemed to
2957	2957	exempt the purchase of any construction machinery, equipment or tools
2958	2958	used in the constructing, maintaining, repairing, enlarging, furnishing or
2959	2959	remodeling such facilities for Wichita children's home. When Wichita
2960	2960	children's home contracts for the purpose of constructing, maintaining,
2961	2961	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
2962	2962	from the state and furnish to the contractor an exemption certificate for the
2963	2963	project involved, and the contractor may purchase materials for
2964	2964	incorporation in such project. The contractor shall furnish the number of
2965	2965	such certificate to all suppliers from whom such purchases are made, and
2966	2966	such suppliers shall execute invoices covering the same bearing the
2967	2967	number of such certificate. Upon completion of the project, the contractor
2968	2968	shall furnish to Wichita children's home a sworn statement, on a form to be
2969	2969	provided by the director of taxation, that all purchases so made were
2970	2970	entitled to exemption under this subsection. All invoices shall be held by
2971	2971	the contractor for a period of five years and shall be subject to audit by the
2972	2972	director of taxation. If any materials purchased under such a certificate are
2973	2973	found not to have been incorporated in the building or other project or not
2974	2974	to have been returned for credit or the sales or compensating tax otherwise
2975	2975	imposed upon such materials that will not be so incorporated in the
2976	2976	building or other project reported and paid by such contractor to the
2977	2977	director of taxation not later than the 20
2978	2978	th
2979	2979	day of the month following the
2980	2980	close of the month in which it shall be determined that such materials will
2981	2981	1
2982	2982	2
2983	2983	3
2984	2984	4
2985	2985	5
2986	2986	6
2987	2987	7
2988	2988	8
2989	2989	9
2990	2990	10
2991	2991	11
2992	2992	12
2993	2993	13
2994	2994	14
2995	2995	15
2996	2996	16
2997	2997	17
2998	2998	18
2999	2999	19
3000	3000	20
3001	3001	21
3002	3002	22
3003	3003	23
3004	3004	24
3005	3005	25
3006	3006	26
3007	3007	27
3008	3008	28
3009	3009	29
3010	3010	30
3011	3011	31
3012	3012	32
3013	3013	33
3014	3014	34
3015	3015	35
3016	3016	36
3017	3017	37
3018	3018	38
3019	3019	39
3020	3020	40
3021	3021	41
3022	3022	42
3023	3023	43 SB 8 36
3024	3024	not be used for the purpose for which such certificate was issued, Wichita
3025	3025	children's home shall be liable for the tax on all materials purchased for the
3026	3026	project, and upon payment, it may recover the same from the contractor
3027	3027	together with reasonable attorney fees. Any contractor or any agent,
3028	3028	employee or subcontractor, who shall use or otherwise dispose of any
3029	3029	materials purchased under such a certificate for any purpose other than that
3030	3030	for which such a certificate is issued without the payment of the sales or
3031	3031	compensating tax otherwise imposed upon such materials, shall be guilty
3032	3032	of a misdemeanor and, upon conviction, shall be subject to the penalties
3033	3033	provided for in K.S.A. 79-3615(h), and amendments thereto;
3034	3034	(jjjj) all sales of tangible personal property or services purchased by
3035	3035	or on behalf of the beacon, inc., that is exempt from federal income
3036	3036	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3037	3037	for the purpose of providing those desiring help with food, shelter, clothing
3038	3038	and other necessities of life during times of special need;
3039	3039	(kkkk) all sales of tangible personal property and services purchased
3040	3040	by or on behalf of reaching out from within, inc., which is exempt from
3041	3041	federal income taxation pursuant to section 501(c)(3) of the federal
3042	3042	internal revenue code, for the purpose of sponsoring self-help programs for
3043	3043	incarcerated persons that will enable such incarcerated persons to become
3044	3044	role models for non-violence while in correctional facilities and productive
3045	3045	family members and citizens upon return to the community;
3046	3046	(llll) all sales of tangible personal property and services purchased by
3047	3047	Gove county healthcare endowment foundation, inc., which is exempt
3048	3048	from federal income taxation pursuant to section 501(c)(3) of the federal
3049	3049	internal revenue code of 1986, and which such property and services are
3050	3050	used for the purpose of constructing and equipping an airport in Quinter,
3051	3051	Kansas, and all sales of tangible personal property or services purchased
3052	3052	by a contractor for the purpose of constructing and equipping an airport in
3053	3053	Quinter, Kansas, for such organization, that would be exempt from
3054	3054	taxation under the provisions of this section if purchased directly by such
3055	3055	organization. Nothing in this subsection shall be deemed to exempt the
3056	3056	purchase of any construction machinery, equipment or tools used in the
3057	3057	constructing or equipping of facilities for such organization. When such
3058	3058	organization shall contract for the purpose of constructing or equipping an
3059	3059	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
3060	3060	contractor an exemption certificate for the project involved, and the
3061	3061	contractor may purchase materials for incorporation in such project. The
3062	3062	contractor shall furnish the number of such certificate to all suppliers from
3063	3063	whom such purchases are made, and such suppliers shall execute invoices
3064	3064	covering the same bearing the number of such certificate. Upon
3065	3065	completion of the project, the contractor shall furnish to such organization
3066	3066	concerned a sworn statement, on a form to be provided by the director of
3067	3067	1
3068	3068	2
3069	3069	3
3070	3070	4
3071	3071	5
3072	3072	6
3073	3073	7
3074	3074	8
3075	3075	9
3076	3076	10
3077	3077	11
3078	3078	12
3079	3079	13
3080	3080	14
3081	3081	15
3082	3082	16
3083	3083	17
3084	3084	18
3085	3085	19
3086	3086	20
3087	3087	21
3088	3088	22
3089	3089	23
3090	3090	24
3091	3091	25
3092	3092	26
3093	3093	27
3094	3094	28
3095	3095	29
3096	3096	30
3097	3097	31
3098	3098	32
3099	3099	33
3100	3100	34
3101	3101	35
3102	3102	36
3103	3103	37
3104	3104	38
3105	3105	39
3106	3106	40
3107	3107	41
3108	3108	42
3109	3109	43 SB 8 37
3110	3110	taxation, that all purchases so made were entitled to exemption under this
3111	3111	subsection. All invoices shall be held by the contractor for a period of five
3112	3112	years and shall be subject to audit by the director of taxation. If any
3113	3113	materials purchased under such a certificate are found not to have been
3114	3114	incorporated in such facilities or not to have been returned for credit or the
3115	3115	sales or compensating tax otherwise imposed upon such materials that will
3116	3116	not be so incorporated in such facilities reported and paid by such
3117	3117	contractor to the director of taxation no later than the 20
3118	3118	th
3119	3119	day of the month
3120	3120	following the close of the month in which it shall be determined that such
3121	3121	materials will not be used for the purpose for which such certificate was
3122	3122	issued, such organization concerned shall be liable for tax on all materials
3123	3123	purchased for the project, and upon payment thereof it may recover the
3124	3124	same from the contractor together with reasonable attorney fees. Any
3125	3125	contractor or any agent, employee or subcontractor thereof, who purchased
3126	3126	under such a certificate for any purpose other than that for which such a
3127	3127	certificate is issued without the payment of the sales or compensating tax
3128	3128	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3129	3129	and, upon conviction therefor, shall be subject to the penalties provided for
3130	3130	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
3131	3131	subsection shall expire and have no effect on and after July 1, 2019;
3132	3132	(mmmm) all sales of gold or silver coins; and palladium, platinum,
3133	3133	gold or silver bullion. For the purposes of this subsection, "bullion" means
3134	3134	bars, ingots or commemorative medallions of gold, silver, platinum,
3135	3135	palladium, or a combination thereof, for which the value of the metal
3136	3136	depends on its content and not the form;
3137	3137	(nnnn) all sales of tangible personal property or services purchased
3138	3138	by friends of hospice of Jefferson county, an organization that is exempt
3139	3139	from federal income taxation pursuant to section 501(c)(3) of the federal
3140	3140	internal revenue code of 1986, for the purpose of providing support to the
3141	3141	Jefferson county hospice agency in end-of-life care of Jefferson county
3142	3142	families, friends and neighbors, and all sales of entry or participation fees,
3143	3143	charges or tickets by friends of hospice of Jefferson county for such
3144	3144	organization's fundraising event for such purpose;
3145	3145	(oooo) all sales of tangible personal property or services purchased
3146	3146	for the purpose of and in conjunction with constructing, reconstructing,
3147	3147	enlarging or remodeling a qualified business facility by a qualified firm or
3148	3148	qualified supplier that meets the requirements established in K.S.A. 2023
3149	3149	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
3150	3150	been approved for a project exemption certificate by the secretary of
3151	3151	commerce, and the sale and installation of machinery and equipment
3152	3152	purchased by such qualified firm or qualified supplier for installation at
3153	3153	any such qualified business facility. When a person shall contract for the
3154	3154	construction, reconstruction, enlargement or remodeling of any such
3155	3155	1
3156	3156	2
3157	3157	3
3158	3158	4
3159	3159	5
3160	3160	6
3161	3161	7
3162	3162	8
3163	3163	9
3164	3164	10
3165	3165	11
3166	3166	12
3167	3167	13
3168	3168	14
3169	3169	15
3170	3170	16
3171	3171	17
3172	3172	18
3173	3173	19
3174	3174	20
3175	3175	21
3176	3176	22
3177	3177	23
3178	3178	24
3179	3179	25
3180	3180	26
3181	3181	27
3182	3182	28
3183	3183	29
3184	3184	30
3185	3185	31
3186	3186	32
3187	3187	33
3188	3188	34
3189	3189	35
3190	3190	36
3191	3191	37
3192	3192	38
3193	3193	39
3194	3194	40
3195	3195	41
3196	3196	42
3197	3197	43 SB 8 38
3198	3198	qualified business facility, such person shall obtain from the state and
3199	3199	furnish to the contractor an exemption certificate for the project involved,
3200	3200	and the contractor may purchase materials, machinery and equipment for
3201	3201	incorporation in such project. The contractor shall furnish the number of
3202	3202	such certificates to all suppliers from whom such purchases are made, and
3203	3203	such suppliers shall execute invoices covering the same bearing the
3204	3204	number of such certificate. Upon completion of the project, the contractor
3205	3205	shall furnish to the owner of the qualified firm or qualified supplier a
3206	3206	sworn statement, on a form to be provided by the director of taxation, that
3207	3207	all purchases so made were entitled to exemption under this subsection.
3208	3208	All invoices shall be held by the contractor for a period of five years and
3209	3209	shall be subject to audit by the director of taxation. Any contractor or any
3210	3210	agent, employee or subcontractor thereof who shall use or otherwise
3211	3211	dispose of any materials, machinery or equipment purchased under such a
3212	3212	certificate for any purpose other than that for which such a certificate is
3213	3213	issued without the payment of the sales or compensating tax otherwise
3214	3214	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
3215	3215	therefor, shall be subject to the penalties provided for in K.S.A. 79-
3216	3216	3615(h), and amendments thereto. As used in this subsection, "qualified
3217	3217	business facility," "qualified firm" and "qualified supplier" mean the same
3218	3218	as defined in K.S.A. 2023 Supp. 74-50,311, and amendments thereto;
3219	3219	(pppp) (1) all sales of tangible personal property or services
3220	3220	purchased by a not-for-profit corporation that is designated as an area
3221	3221	agency on aging by the secretary for aging and disabilities services and is
3222	3222	exempt from federal income taxation pursuant to section 501(c)(3) of the
3223	3223	federal internal revenue code for the purpose of coordinating and
3224	3224	providing seniors and those living with disabilities with services that
3225	3225	promote person-centered care, including home-delivered meals,
3226	3226	congregate meal settings, long-term case management, transportation,
3227	3227	information, assistance and other preventative and intervention services to
3228	3228	help service recipients remain in their homes and communities or for the
3229	3229	purpose of constructing, equipping, reconstructing, maintaining, repairing,
3230	3230	enlarging, furnishing or remodeling facilities for such area agency on
3231	3231	aging; and
3232	3232	(2) all sales of tangible personal property or services purchased by a
3233	3233	contractor for the purpose of constructing, equipping, reconstructing,
3234	3234	maintaining, repairing, enlarging, furnishing or remodeling facilities for an
3235	3235	area agency on aging that would be exempt from taxation under the
3236	3236	provisions of this section if purchased directly by such area agency on
3237	3237	aging. Nothing in this paragraph shall be deemed to exempt the purchase
3238	3238	of any construction machinery, equipment or tools used in the
3239	3239	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3240	3240	furnishing or remodeling facilities for an area agency on aging. When an
3241	3241	1
3242	3242	2
3243	3243	3
3244	3244	4
3245	3245	5
3246	3246	6
3247	3247	7
3248	3248	8
3249	3249	9
3250	3250	10
3251	3251	11
3252	3252	12
3253	3253	13
3254	3254	14
3255	3255	15
3256	3256	16
3257	3257	17
3258	3258	18
3259	3259	19
3260	3260	20
3261	3261	21
3262	3262	22
3263	3263	23
3264	3264	24
3265	3265	25
3266	3266	26
3267	3267	27
3268	3268	28
3269	3269	29
3270	3270	30
3271	3271	31
3272	3272	32
3273	3273	33
3274	3274	34
3275	3275	35
3276	3276	36
3277	3277	37
3278	3278	38
3279	3279	39
3280	3280	40
3281	3281	41
3282	3282	42
3283	3283	43 SB 8 39
3284	3284	area agency on aging contracts for the purpose of constructing, equipping,
3285	3285	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3286	3286	facilities, it shall obtain from the state and furnish to the contractor an
3287	3287	exemption certificate for the project involved, and such contractor may
3288	3288	purchase materials for incorporation in such project. The contractor shall
3289	3289	furnish the number of such certificate to all suppliers from whom such
3290	3290	purchases are made, and such suppliers shall execute invoices covering the
3291	3291	same bearing the number of such certificate. Upon completion of the
3292	3292	project, the contractor shall furnish to such area agency on aging a sworn
3293	3293	statement, on a form to be provided by the director of taxation, that all
3294	3294	purchases so made were entitled to exemption under this subsection. All
3295	3295	invoices shall be held by the contractor for a period of five years and shall
3296	3296	be subject to audit by the director of taxation. If any materials purchased
3297	3297	under such a certificate are found not to have been incorporated in the
3298	3298	building or other project or not to have been returned for credit or the sales
3299	3299	or compensating tax otherwise imposed upon such materials that will not
3300	3300	be so incorporated in the building or other project reported and paid by
3301	3301	such contractor to the director of taxation not later than the 20
3302	3302	th
3303	3303	day of the
3304	3304	month following the close of the month in which it shall be determined
3305	3305	that such materials will not be used for the purpose for which such
3306	3306	certificate was issued, the area agency on aging concerned shall be liable
3307	3307	for tax on all materials purchased for the project, and upon payment
3308	3308	thereof, the area agency on aging may recover the same from the
3309	3309	contractor together with reasonable attorney fees. Any contractor or any
3310	3310	agent, employee or subcontractor thereof who shall use or otherwise
3311	3311	dispose of any materials purchased under such a certificate for any purpose
3312	3312	other than that for which such a certificate is issued without the payment
3313	3313	of the sales or compensating tax otherwise imposed upon such materials
3314	3314	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3315	3315	subject to the penalties provided for in K.S.A. 79-3615(h), and
3316	3316	amendments thereto;
3317	3317	(qqqq) all sales of tangible personal property or services purchased
3318	3318	by Kansas suicide prevention HQ, inc., an organization that is exempt
3319	3319	from federal income taxation pursuant to section 501(c)(3) of the federal
3320	3320	internal revenue code of 1986, for the purpose of bringing suicide
3321	3321	prevention training and awareness to communities across the state;
3322	3322	(rrrr) all sales of the services of slaughtering, butchering, custom
3323	3323	cutting, dressing, processing and packaging of an animal for human
3324	3324	consumption when the animal is delivered or furnished by a customer that
3325	3325	owns the animal and such meat or poultry is for use or consumption by
3326	3326	such customer;
3327	3327	(ssss) all sales of tangible personal property or services purchased by
3328	3328	or on behalf of doorstep inc., an organization that is exempt from federal
3329	3329	1
3330	3330	2
3331	3331	3
3332	3332	4
3333	3333	5
3334	3334	6
3335	3335	7
3336	3336	8
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3371	3371	43 SB 8 40
3372	3372	income taxation pursuant to section 501(c)(3) of the federal internal
3373	3373	revenue code of 1986, for the purpose of providing short-term emergency
3374	3374	aid to families and individuals in need, including assistance with food,
3375	3375	clothing, rent, prescription medications, transportation and utilities, and
3376	3376	providing information on services to promote long-term self-sufficiency;
3377	3377	(tttt) on and after January 1, 2024, all sales of tangible personal
3378	3378	property or services purchased by exploration place, inc., an organization
3379	3379	that is exempt from federal income taxation pursuant to section 501(c)(3)
3380	3380	of the federal internal revenue code, and which such property and services
3381	3381	are used for the purpose of constructing, remodeling, furnishing or
3382	3382	equipping a riverfront amphitheater, a destination playscape, an education
3383	3383	center and indoor renovations at exploration place in Wichita, Kansas, all
3384	3384	sales of tangible personal property or services purchased by Kansas
3385	3385	children's discovery center inc. in Topeka, Kansas, and which such
3386	3386	property and services are used for the purpose of constructing, remodeling,
3387	3387	furnishing or equipping projects that include indoor-outdoor classrooms,
3388	3388	an expanded multi-media gallery, a workshop and loading dock and safety
3389	3389	upgrades such as a tornado shelter, lactation room, first aid room and
3390	3390	sensory room and all sales of tangible personal property or services
3391	3391	purchased by a contractor for the purpose of constructing, remodeling,
3392	3392	furnishing or equipping such projects, for such organizations, that would
3393	3393	be exempt from taxation under the provisions of this section if purchased
3394	3394	directly by such organizations. Nothing in this subsection shall be deemed
3395	3395	to exempt the purchase of any construction machinery, equipment or tools
3396	3396	used in the constructing, remodeling, furnishing or equipping of facilities
3397	3397	for such organization. When such organization shall contract for the
3398	3398	purpose of constructing, remodeling, furnishing or equipping such
3399	3399	projects, it shall obtain from the state and furnish to the contractor an
3400	3400	exemption certificate for the project involved, and the contractor may
3401	3401	purchase materials for incorporation in such project. The contractor shall
3402	3402	furnish the number of such certificate to all suppliers from whom such
3403	3403	purchases are made, and such suppliers shall execute invoices covering the
3404	3404	same bearing the number of such certificate. Upon completion of the
3405	3405	project, the contractor shall furnish to such organization a sworn statement,
3406	3406	on a form to be provided by the director of taxation, that all purchases so
3407	3407	made were entitled to exemption under this subsection. All invoices shall
3408	3408	be held by the contractor for a period of five years and shall be subject to
3409	3409	audit by the director of taxation. If any materials purchased under such a
3410	3410	certificate are found not to have been incorporated in such facilities or not
3411	3411	to have been returned for credit or the sales or compensating tax otherwise
3412	3412	imposed upon such materials that will not be so incorporated in such
3413	3413	facilities reported and paid by such contractor to the director of taxation no
3414	3414	later than the 20
3415	3415	th
3416	3416	day of the month following the close of the month in
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3460	3460	which it shall be determined that such materials will not be used for the
3461	3461	purpose for which such certificate was issued, such organization shall be
3462	3462	liable for tax on all materials purchased for the project, and upon payment
3463	3463	thereof may recover the same from the contractor together with reasonable
3464	3464	attorney fees. Any contractor or agent, employee or subcontractor thereof,
3465	3465	who purchased under such a certificate for any purpose other than that for
3466	3466	which such a certificate is issued without the payment of the sales or
3467	3467	compensating tax otherwise imposed upon such materials, shall be guilty
3468	3468	of a misdemeanor and, upon conviction therefor, shall be subject to the
3469	3469	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
3470	3470	Sales tax paid on and after January 1, 2024, but prior to the effective date
3471	3471	of this act, upon the gross receipts received from any sale exempted by the
3472	3472	amendatory provisions of this subsection shall be refunded. Each claim for
3473	3473	a sales tax refund shall be verified and submitted to the director of taxation
3474	3474	upon forms furnished by the director and shall be accompanied by any
3475	3475	additional documentation required by the director. The director shall
3476	3476	review each claim and shall refund that amount of sales tax paid as
3477	3477	determined under the provisions of this subsection. All refunds shall be
3478	3478	paid from the sales tax refund fund upon warrants of the director of
3479	3479	accounts and reports pursuant to vouchers approved by the director or the
3480	3480	director's designee. The provisions of this subsection shall expire and have
3481	3481	no effect on and after December 31, 2030;
3482	3482	(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary
3483	3483	components, appurtenances, accessories or other infrastructure purchased
3484	3484	for use in the provision of communications services; and
3485	3485	(B) all services purchased by a provider in the provision of the
3486	3486	communications service used in the repair, maintenance or installation in
3487	3487	such communications service.
3488	3488	(2) As used in this subsection:
3489	3489	(A) "Communications service" means internet access service,
3490	3490	telecommunications service, video service or any combination thereof.
3491	3491	(B) "Equipment, machinery, software, ancillary components,
3492	3492	appurtenances, accessories or other infrastructure" includes, but is not
3493	3493	limited to:
3494	3494	(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,
3495	3495	amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,
3496	3496	transmitters, circuit cards, insulating and protective materials and cases,
3497	3497	power equipment, backup power equipment, diagnostic equipment, storage
3498	3498	devices, modems, cable modem termination systems and servers;
3499	3499	(ii) other general central office or headend equipment, such as
3500	3500	channel cards, frames and cabinets;
3501	3501	(iii) equipment used in successor technologies, including items used
3502	3502	to monitor, test, maintain, enable or facilitate qualifying equipment,
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3545	3545	43 SB 8 42
3546	3546	machinery, software, ancillary components, appurtenances and
3547	3547	accessories; and
3548	3548	(iv) other infrastructure that is used in whole or in part to provide
3549	3549	communications services, including broadcasting, distributing, sending,
3550	3550	receiving, storing, transmitting, retransmitting, amplifying, switching,
3551	3551	providing connectivity for or routing communications services.
3552	3552	(C) "Internet access service" means the same as internet access as
3553	3553	defined in section 1105 of the internet tax freedom act amendments of
3554	3554	2007, public law 110-108.
3555	3555	(D) "Provider" means a person or entity that sells communications
3556	3556	service, including an affiliate or subsidiary.
3557	3557	(E) "Telecommunications service" means the same as defined in
3558	3558	K.S.A. 79-3602, and amendments thereto.
3559	3559	(F) "Video service" means the same as defined in K.S.A. 12-2022,
3560	3560	and amendments thereto.
3561	3561	(3) The provisions of this subsection shall expire and have no effect
3562	3562	on and after July 1, 2029;
3563	3563	(vvvv) (1) all sales of tangible personal property or services
3564	3564	purchased by a contractor for the purpose of constructing, equipping,
3565	3565	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3566	3566	a building that is operated by, or is intended to be operated by, the Kansas
3567	3567	fairgrounds foundation, a not-for-profit corporation exempt from federal
3568	3568	income taxation pursuant to section 501(c)(3) of the federal internal
3569	3569	revenue code of 1986, and located on the grounds of the Kansas state fair,
3570	3570	and such tangible personal property would be exempt from taxation under
3571	3571	the provisions of this paragraph if purchased directly by such eligible not-
3572	3572	for-profit corporation. Nothing in this subsection shall be deemed to
3573	3573	exempt the purchase of any construction machinery, equipment or tools
3574	3574	used in the constructing, equipping, reconstructing, maintaining, repairing,
3575	3575	enlarging, furnishing or remodeling a building for such eligible not-for-
3576	3576	profit corporation. When such eligible not-for-profit corporation contracts
3577	3577	for the purpose of constructing, equipping, reconstructing, maintaining,
3578	3578	repairing, enlarging, furnishing or remodeling a building, such corporation
3579	3579	shall obtain from the state and furnish to the contractor an exemption
3580	3580	certificate for the project involved, and such contractor may purchase
3581	3581	materials for incorporation in such project. The contractor shall furnish the
3582	3582	number of such certificate to all suppliers from whom such purchases are
3583	3583	made, and such suppliers shall execute invoices covering such purchases
3584	3584	bearing the number of such certificate. Upon completion of the project, the
3585	3585	contractor shall furnish to such eligible not-for-profit corporation a sworn
3586	3586	statement, on a form to be provided by the director of taxation, that all
3587	3587	purchases so made were entitled to exemption under this subsection. All
3588	3588	invoices shall be held by the contractor for a period of five years and shall
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3632	3632	be subject to audit by the director of taxation. If any materials purchased
3633	3633	under such a certificate are found not to have been incorporated in the
3634	3634	building or returned for credit, the contractor shall report and pay the sales
3635	3635	or compensating tax to the director of taxation not later than the 20
3636	3636	th
3637	3637	day of
3638	3638	the month following the close of the month in which it is determined that
3639	3639	such materials will not be used for the purpose for which such certificate
3640	3640	was issued. The eligible not-for-profit corporation concerned shall be
3641	3641	liable for tax on all materials purchased for the project, and upon payment
3642	3642	thereof, the eligible not-for-profit corporation may recover the same from
3643	3643	the contractor together with reasonable attorney fees. Any contractor or
3644	3644	any agent, employee or subcontractor thereof who shall use or otherwise
3645	3645	dispose of any materials purchased under such a certificate for any purpose
3646	3646	other than that for which such a certificate is issued without the payment
3647	3647	of the sales or compensating tax otherwise imposed upon such materials
3648	3648	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3649	3649	subject to the penalties provided for in K.S.A. 79-3615(h), and
3650	3650	amendments thereto.
3651	3651	(2) Sales tax paid on and after May 19, 2023, but prior to the effective
3652	3652	date of this act upon the gross receipts received from any sale which would
3653	3653	have been exempted by the provisions of this subsection had such sale
3654	3654	occurred after the effective date of this act shall be refunded. Each claim
3655	3655	for a sales tax refund shall be verified and submitted to the director of
3656	3656	taxation upon forms furnished by the director and shall be accompanied by
3657	3657	any additional documentation required by the director. The director shall
3658	3658	review each claim and shall refund that amount of sales tax paid as
3659	3659	determined under the provisions of this subsection. All refunds shall be
3660	3660	paid from the sales tax refund fund upon warrants of the director of
3661	3661	accounts and reports pursuant to vouchers approved by the director or the
3662	3662	director's designee; and
3663	3663	(wwww) (1) All sales of tangible personal property or services
3664	3664	purchased by a pregnancy resource center or residential maternity facility.
3665	3665	(2) As used in this subsection, "pregnancy resource center" or
3666	3666	"residential maternity facility" means an organization that is:
3667	3667	(A) Exempt from federal income taxation pursuant to section 501(c)
3668	3668	(3) of the federal internal revenue code of 1986;
3669	3669	(B) a nonprofit organization organized under the laws of this state;
3670	3670	and
3671	3671	(C) a pregnancy resource center or residential maternity facility that:
3672	3672	(i) Maintains a dedicated phone number for clients;
3673	3673	(ii) maintains in this state its primary physical office, clinic or
3674	3674	residential home that is open for clients for a minimum of 20 hours per
3675	3675	week, excluding state holidays;
3676	3676	(iii) offers services, at no cost to the client, for the express purpose of
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3719	3719	43 SB 8 44
3720	3720	providing assistance to women in order to carry their pregnancy to term,
3721	3721	encourage parenting or adoption, prevent abortion and promote healthy
3722	3722	childbirth; and
3723	3723	(iv) utilizes trained healthcare providers, as defined by section 8 of
3724	3724	2024 House Bill No. 2465, and amendments thereto, to perform any
3725	3725	available medical procedures; and
3726	3726	(xxxx) (1) commencing on January 1, 2025, all sales of firearms,
3727	3727	firearms accessories, ammunition, firearm safes and firearm safety
3728	3728	devices.
3729	3729	(2) As used in this subsection:
3730	3730	(A) "Ammunition" means ammunition, bullets, cartridge cases,
3731	3731	primers or propellant powder designed for use in any firearm;
3732	3732	(B) "firearm" means any weapon designed or having the capacity to
3733	3733	propel a projectile by force of an explosion or combustion;
3734	3734	(C) "firearms accessory" means items that are used in conjunction
3735	3735	with or mounted on a firearm but are not essential to the basic function of
3736	3736	a firearm, including, but not limited to, telescopic or laser sights,
3737	3737	magazines, flash or sound suppressors, collapsible or adjustable stocks
3738	3738	and grips, pistol grips, thumbhole stocks, speedloaders, ammunition
3739	3739	carriers and lights for target illumination;
3740	3740	(D) "firearm safe" means a gun safe, gun case, lock box or other
3741	3741	storage container designed for the secure storage of firearms and that can
3742	3742	only be unlocked by means of a key, combination or other similar means;
3743	3743	and
3744	3744	(E) "firearm safety device" means a device that, when installed on a
3745	3745	firearm, is designed to prevent the firearm from being operated without
3746	3746	first deactivating the device, or a device that is incorporated into the
3747	3747	design of the firearm so as to prevent the operation of the firearm by
3748	3748	anyone not having access to the device.
3749	3749	Sec. 2. K.S.A. 2023 Supp. 79-3606, as amended by section 15 of
3750	3750	2023 Senate Bill No. 27, is hereby repealed.
3751	3751	Sec. 3. This act shall take effect and be in force from and after its
3752	3752	publication in the statute book.
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