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Kansas House Bill HB2013

Kansas 2025-2026 Regular Session

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11 Session of 2025
22 HOUSE BILL No. 2013
33 By Committee on Taxation
44 Requested by Blaine Finch
55 1-15
66 AN ACT concerning sales taxation; discontinuing the imposition of tax on
77 cable, community antennae and television services; amending K.S.A.
88 2024 Supp. 79-3603 and repealing the existing section.
99 Be it enacted by the Legislature of the State of Kansas:
1010 Section 1. K.S.A. 2024 Supp. 79-3603 is hereby amended to read as
1111 follows: 79-3603. For the privilege of engaging in the business of selling
1212 tangible personal property at retail in this state or rendering or furnishing
1313 any of the services taxable under this act, there is hereby levied and there
1414 shall be collected and paid a tax at the rate of 6.5%. On and after January
1515 1, 2023, 17% and on and after January 1, 2025, 18% of the tax rate
1616 imposed pursuant to this section and the rate provided in K.S.A. 2024
1717 Supp. 79-3603d, and amendments thereto, shall be levied for the state
1818 highway fund, the state highway fund purposes and those purposes
1919 specified in K.S.A. 68-416, and amendments thereto, and all revenue
2020 collected and received from such tax levy shall be deposited in the state
2121 highway fund.
2222 Within a redevelopment district established pursuant to K.S.A. 74-
2323 8921, and amendments thereto, there is hereby levied and there shall be
2424 collected and paid an additional tax at the rate of 2% until the earlier of the
2525 date the bonds issued to finance or refinance the redevelopment project
2626 have been paid in full or the final scheduled maturity of the first series of
2727 bonds issued to finance any part of the project.
2828 Such tax shall be imposed upon:
2929 (a) The gross receipts received from the sale of tangible personal
3030 property at retail within this state;
3131 (b) the gross receipts from intrastate, interstate or international
3232 telecommunications services and any ancillary services sourced to this
3333 state in accordance with K.S.A. 79-3673, and amendments thereto, except
3434 that telecommunications service does not include: (1) Any interstate or
3535 international 800 or 900 service; (2) any interstate or international private
3636 communications service as defined in K.S.A. 79-3673, and amendments
3737 thereto; (3) any value-added nonvoice data service; (4) any
3838 telecommunication service to a provider of telecommunication services
3939 which will be used to render telecommunications services, including
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7575 carrier access services; or (5) any service or transaction defined in this
7676 section among entities classified as members of an affiliated group as
7777 provided by section 1504 of the federal internal revenue code of 1986, as
7878 in effect on January 1, 2001;
7979 (c) the gross receipts from the sale or furnishing of gas, water,
8080 electricity and heat, which sale is not otherwise exempt from taxation
8181 under the provisions of this act, and whether furnished by municipally or
8282 privately owned utilities, except that, on and after January 1, 2006, for
8383 sales of gas, electricity and heat delivered through mains, lines or pipes to
8484 residential premises for noncommercial use by the occupant of such
8585 premises, and for agricultural use and also, for such use, all sales of
8686 propane gas, the state rate shall be 0%; and for all sales of propane gas, LP
8787 gas, coal, wood and other fuel sources for the production of heat or
8888 lighting for noncommercial use of an occupant of residential premises, the
8989 state rate shall be 0%, but such tax shall not be levied and collected upon
9090 the gross receipts from: (1) The sale of a rural water district benefit unit;
9191 (2) a water system impact fee, system enhancement fee or similar fee
9292 collected by a water supplier as a condition for establishing service; or (3)
9393 connection or reconnection fees collected by a water supplier;
9494 (d) the gross receipts from the sale of meals or drinks furnished at any
9595 private club, drinking establishment, catered event, restaurant, eating
9696 house, dining car, hotel, drugstore or other place where meals or drinks are
9797 regularly sold to the public;
9898 (e) the gross receipts from the sale of admissions to any place
9999 providing amusement, entertainment or recreation services including
100100 admissions to state, county, district and local fairs, but such tax shall not
101101 be levied and collected upon the gross receipts received from sales of
102102 admissions to any cultural and historical event which occurs triennially;
103103 (f) the gross receipts from the operation of any coin-operated device
104104 dispensing or providing tangible personal property, amusement or other
105105 services except laundry services, whether automatic or manually operated;
106106 (g) the gross receipts from the service of renting of rooms by hotels,
107107 as defined by K.S.A. 36-501, and amendments thereto, or by
108108 accommodation brokers, as defined by K.S.A. 12-1692, and amendments
109109 thereto, but such tax shall not be levied and collected upon the gross
110110 receipts received from sales of such service to the federal government and
111111 any agency, officer or employee thereof in association with the
112112 performance of official government duties;
113113 (h) the gross receipts from the service of renting or leasing of tangible
114114 personal property except such tax shall not apply to the renting or leasing
115115 of machinery, equipment or other personal property owned by a city and
116116 purchased from the proceeds of industrial revenue bonds issued prior to
117117 July 1, 1973, in accordance with the provisions of K.S.A. 12-1740 through
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161161 12-1749, and amendments thereto, and any city or lessee renting or leasing
162162 such machinery, equipment or other personal property purchased with the
163163 proceeds of such bonds who shall have paid a tax under the provisions of
164164 this section upon sales made prior to July 1, 1973, shall be entitled to a
165165 refund from the sales tax refund fund of all taxes paid thereon;
166166 (i) the gross receipts from the rendering of dry cleaning, pressing,
167167 dyeing and laundry services except laundry services rendered through a
168168 coin-operated device whether automatic or manually operated;
169169 (j) the gross receipts from the rendering of the services of washing
170170 and washing and waxing of vehicles;
171171 (k) the gross receipts from cable, community antennae and other
172172 subscriber radio and television services;
173173 (l) (1) except as otherwise provided by paragraph (2), the gross
174174 receipts received from the sales of tangible personal property to all
175175 contractors, subcontractors or repairmen for use by them in erecting
176176 structures, or building on, or otherwise improving, altering, or repairing
177177 real or personal property.
178178 (2) Any such contractor, subcontractor or repairman who maintains
179179 an inventory of such property both for sale at retail and for use by them for
180180 the purposes described by paragraph (1) shall be deemed a retailer with
181181 respect to purchases for and sales from such inventory, except that the
182182 gross receipts received from any such sale, other than a sale at retail, shall
183183 be equal to the total purchase price paid for such property and the tax
184184 imposed thereon shall be paid by the deemed retailer;
185185 (m) the gross receipts received from fees and charges by public and
186186 private clubs, drinking establishments, organizations and businesses for
187187 participation in sports, games and other recreational activities, but such tax
188188 shall not be levied and collected upon the gross receipts received from: (1)
189189 Fees and charges by any political subdivision, by any organization exempt
190190 from property taxation pursuant to K.S.A. 79-201 Ninth, and amendments
191191 thereto, or by any youth recreation organization exclusively providing
192192 services to persons 18 years of age or younger which is exempt from
193193 federal income taxation pursuant to section 501(c)(3) of the federal
194194 internal revenue code of 1986, for participation in sports, games and other
195195 recreational activities; and (2) entry fees and charges for participation in a
196196 special event or tournament sanctioned by a national sporting association
197197 to which spectators are charged an admission which is taxable pursuant to
198198 subsection (e);
199199 (n) the gross receipts received from dues charged by public and
200200 private clubs, drinking establishments, organizations and businesses,
201201 payment of which entitles a member to the use of facilities for recreation
202202 or entertainment, but such tax shall not be levied and collected upon the
203203 gross receipts received from: (1) Dues charged by any organization exempt
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247247 from property taxation pursuant to K.S.A. 79-201 Eighth and Ninth, and
248248 amendments thereto; and (2) sales of memberships in a nonprofit
249249 organization which is exempt from federal income taxation pursuant to
250250 section 501(c)(3) of the federal internal revenue code of 1986, and whose
251251 purpose is to support the operation of a nonprofit zoo;
252252 (o) the gross receipts received from the isolated or occasional sale of
253253 motor vehicles or trailers but not including: (1) The transfer of motor
254254 vehicles or trailers by a person to a corporation or limited liability
255255 company solely in exchange for stock securities or membership interest in
256256 such corporation or limited liability company; (2) the transfer of motor
257257 vehicles or trailers by one corporation or limited liability company to
258258 another when all of the assets of such corporation or limited liability
259259 company are transferred to such other corporation or limited liability
260260 company; or (3) the sale of motor vehicles or trailers which are subject to
261261 taxation pursuant to the provisions of K.S.A. 79-5101 et seq., and
262262 amendments thereto, by an immediate family member to another
263263 immediate family member. For the purposes of paragraph (3), immediate
264264 family member means lineal ascendants or descendants, and their spouses.
265265 Any amount of sales tax paid pursuant to the Kansas retailers sales tax act
266266 on the isolated or occasional sale of motor vehicles or trailers on and after
267267 July 1, 2004, which the base for computing the tax was the value pursuant
268268 to K.S.A. 79-5105(a), (b)(1) and (b)(2), and amendments thereto, when
269269 such amount was higher than the amount of sales tax which would have
270270 been paid under the law as it existed on June 30, 2004, shall be refunded to
271271 the taxpayer pursuant to the procedure prescribed by this section. Such
272272 refund shall be in an amount equal to the difference between the amount of
273273 sales tax paid by the taxpayer and the amount of sales tax which would
274274 have been paid by the taxpayer under the law as it existed on June 30,
275275 2004. Each claim for a sales tax refund shall be verified and submitted not
276276 later than six months from the effective date of this act to the director of
277277 taxation upon forms furnished by the director and shall be accompanied by
278278 any additional documentation required by the director. The director shall
279279 review each claim and shall refund that amount of tax paid as provided by
280280 this act. All such refunds shall be paid from the sales tax refund fund, upon
281281 warrants of the director of accounts and reports pursuant to vouchers
282282 approved by the director of taxation or the director's designee. No refund
283283 for an amount less than $10 shall be paid pursuant to this act. In
284284 determining the base for computing the tax on such isolated or occasional
285285 sale, the fair market value of any motor vehicle or trailer traded in by the
286286 purchaser to the seller may be deducted from the selling price;
287287 (p) the gross receipts received for the service of installing or applying
288288 tangible personal property which when installed or applied is not being
289289 held for sale in the regular course of business, and whether or not such
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333333 tangible personal property when installed or applied remains tangible
334334 personal property or becomes a part of real estate, except that no tax shall
335335 be imposed upon the service of installing or applying tangible personal
336336 property in connection with the original construction of a building or
337337 facility, the original construction, reconstruction, restoration, remodeling,
338338 renovation, repair or replacement of a residence or the construction,
339339 reconstruction, restoration, replacement or repair of a bridge or highway.
340340 For the purposes of this subsection:
341341 (1) "Original construction" means the first or initial construction of a
342342 new building or facility. The term "original construction" shall include the
343343 addition of an entire room or floor to any existing building or facility, the
344344 completion of any unfinished portion of any existing building or facility
345345 and the restoration, reconstruction or replacement of a building, facility or
346346 utility structure damaged or destroyed by fire, flood, tornado, lightning,
347347 explosion, windstorm, ice loading and attendant winds, terrorism or
348348 earthquake, but such term, except with regard to a residence, shall not
349349 include replacement, remodeling, restoration, renovation or reconstruction
350350 under any other circumstances;
351351 (2) "building" means only those enclosures within which individuals
352352 customarily are employed, or which are customarily used to house
353353 machinery, equipment or other property, and including the land
354354 improvements immediately surrounding such building;
355355 (3) "facility" means a mill, plant, refinery, oil or gas well, water well,
356356 feedlot or any conveyance, transmission or distribution line of any
357357 cooperative, nonprofit, membership corporation organized under or subject
358358 to the provisions of K.S.A. 17-4601 et seq., and amendments thereto, or
359359 municipal or quasi-municipal corporation, including the land
360360 improvements immediately surrounding such facility;
361361 (4) "residence" means only those enclosures within which individuals
362362 customarily live;
363363 (5) "utility structure" means transmission and distribution lines
364364 owned by an independent transmission company or cooperative, the
365365 Kansas electric transmission authority or natural gas or electric public
366366 utility; and
367367 (6) "windstorm" means straight line winds of at least 80 miles per
368368 hour as determined by a recognized meteorological reporting agency or
369369 organization;
370370 (q) the gross receipts received for the service of repairing, servicing,
371371 altering or maintaining tangible personal property which when such
372372 services are rendered is not being held for sale in the regular course of
373373 business, and whether or not any tangible personal property is transferred
374374 in connection therewith. The tax imposed by this subsection shall be
375375 applicable to the services of repairing, servicing, altering or maintaining an
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419419 item of tangible personal property which has been and is fastened to,
420420 connected with or built into real property;
421421 (r) the gross receipts from fees or charges made under service or
422422 maintenance agreement contracts for services, charges for the providing of
423423 which are taxable under the provisions of subsection (p) or (q);
424424 (s) on and after January 1, 2005, the gross receipts received from the
425425 sale of prewritten computer software and the sale of the services of
426426 modifying, altering, updating or maintaining prewritten computer
427427 software, whether the prewritten computer software is installed or
428428 delivered electronically by tangible storage media physically transferred to
429429 the purchaser or by load and leave;
430430 (t) the gross receipts received for telephone answering services;
431431 (u) the gross receipts received from the sale of prepaid calling service
432432 and prepaid wireless calling service as defined in K.S.A. 79-3673, and
433433 amendments thereto;
434434 (v) all sales of bingo cards, bingo faces and instant bingo tickets by
435435 licensees under K.S.A. 75-5171 et seq., and amendments thereto, shall be
436436 exempt from taxes imposed pursuant to this section;
437437 (w) all sales of charitable raffle tickets in accordance with K.S.A. 75-
438438 5171 et seq., and amendments thereto, shall be exempt from taxes imposed
439439 pursuant to this section; and
440440 (x) commencing on January 1, 2023, and thereafter, the state rate on
441441 the gross receipts from the sale of food and food ingredients shall be as set
442442 forth in K.S.A. 2024 Supp. 79-3603d, and amendments thereto.
443443 Sec. 2. K.S.A. 2024 Supp. 79-3603 is hereby repealed.
444444 Sec. 3. This act shall take effect and be in force from and after its
445445 publication in the statute book.
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