Kansas 2025-2026 Regular Session

Kansas House Bill HB2081 Compare Versions

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

Old	New	Differences
1	1	Session of 2025
2	2	HOUSE BILL No. 2081
3	3	By Committee on Taxation
4	4	Requested by Representative Kessler
5	5	1-23
6	6	AN ACT relating to taxation; providing a sales tax exemption for
7	7	community pharmacies that provide services to medically underserved
8	8	individuals and families; amending K.S.A. 2024 Supp. 79-3606 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. 2024 Supp. 79-3606 is hereby amended to read as
12	12	follows: 79-3606. The following shall be exempt from the tax imposed by
13	13	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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75	75	engage in the business of furnishing gas, electricity or heat to others and
76	76	such items of personal property or service are used or proposed to be used
77	77	in such business;
78	78	(c) all sales of tangible personal property or services, including the
79	79	renting and leasing of tangible personal property, purchased directly by a
80	80	public or private elementary or secondary school or public or private
81	81	nonprofit educational institution and used primarily by such school or
82	82	institution for nonsectarian programs and activities provided or sponsored
83	83	by such school or institution or in the erection, repair or enlargement of
84	84	buildings to be used for such purposes. The exemption herein provided
85	85	shall not apply to erection, construction, repair, enlargement or equipment
86	86	of buildings used primarily for human habitation, except that such
87	87	exemption shall apply to the erection, construction, repair, enlargement or
88	88	equipment of buildings used for human habitation by the cerebral palsy
89	89	research foundation of Kansas located in Wichita, Kansas, multi
90	90	community diversified services, incorporated, located in McPherson,
91	91	Kansas, the Kansas state school for the blind and the Kansas state school
92	92	for the deaf;
93	93	(d) all sales of tangible personal property or services purchased by a
94	94	contractor for the purpose of constructing, equipping, reconstructing,
95	95	maintaining, repairing, enlarging, furnishing or remodeling facilities for
96	96	any public or private nonprofit hospital or public hospital authority, public
97	97	or private elementary or secondary school, a public or private nonprofit
98	98	educational institution, state correctional institution including a privately
99	99	constructed correctional institution contracted for state use and ownership,
100	100	that would be exempt from taxation under the provisions of this act if
101	101	purchased directly by such hospital or public hospital authority, school,
102	102	educational institution or a state correctional institution; and all sales of
103	103	tangible personal property or services purchased by a contractor for the
104	104	purpose of constructing, equipping, reconstructing, maintaining, repairing,
105	105	enlarging, furnishing or remodeling facilities for any political subdivision
106	106	of the state or district described in subsection (s), the total cost of which is
107	107	paid from funds of such political subdivision or district and that would be
108	108	exempt from taxation under the provisions of this act if purchased directly
109	109	by such political subdivision or district. Nothing in this subsection or in
110	110	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
111	111	deemed to exempt the purchase of any construction machinery, equipment
112	112	or tools used in the constructing, equipping, reconstructing, maintaining,
113	113	repairing, enlarging, furnishing or remodeling facilities for any political
114	114	subdivision of the state or any such district. As used in this subsection,
115	115	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
116	116	political subdivision" shall mean general tax revenues, the proceeds of any
117	117	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
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161	161	purpose of constructing, equipping, reconstructing, repairing, enlarging,
162	162	furnishing or remodeling facilities that are to be leased to the donor. When
163	163	any political subdivision of the state, district described in subsection (s),
164	164	public or private nonprofit hospital or public hospital authority, public or
165	165	private elementary or secondary school, public or private nonprofit
166	166	educational institution, state correctional institution including a privately
167	167	constructed correctional institution contracted for state use and ownership
168	168	shall contract for the purpose of constructing, equipping, reconstructing,
169	169	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
170	170	shall obtain from the state and furnish to the contractor an exemption
171	171	certificate for the project involved, and the contractor may purchase
172	172	materials for incorporation in such project. The contractor shall furnish the
173	173	number of such certificate to all suppliers from whom such purchases are
174	174	made, and such suppliers shall execute invoices covering the same bearing
175	175	the number of such certificate. Upon completion of the project the
176	176	contractor shall furnish to the political subdivision, district described in
177	177	subsection (s), hospital or public hospital authority, school, educational
178	178	institution or department of corrections concerned a sworn statement, on a
179	179	form to be provided by the director of taxation, that all purchases so made
180	180	were entitled to exemption under this subsection. As an alternative to the
181	181	foregoing procedure, any such contracting entity may apply to the
182	182	secretary of revenue for agent status for the sole purpose of issuing and
183	183	furnishing project exemption certificates to contractors pursuant to rules
184	184	and regulations adopted by the secretary establishing conditions and
185	185	standards for the granting and maintaining of such status. All invoices
186	186	shall be held by the contractor for a period of five years and shall be
187	187	subject to audit by the director of taxation. If any materials purchased
188	188	under such a certificate are found not to have been incorporated in the
189	189	building or other project or not to have been returned for credit or the sales
190	190	or compensating tax otherwise imposed upon such materials that will not
191	191	be so incorporated in the building or other project reported and paid by
192	192	such contractor to the director of taxation not later than the 20
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194	194	day of the
195	195	month following the close of the month in which it shall be determined
196	196	that such materials will not be used for the purpose for which such
197	197	certificate was issued, the political subdivision, district described in
198	198	subsection (s), hospital or public hospital authority, school, educational
199	199	institution or the contractor contracting with the department of corrections
200	200	for a correctional institution concerned shall be liable for tax on all
201	201	materials purchased for the project, and upon payment thereof it may
202	202	recover the same from the contractor together with reasonable attorney
203	203	fees. Any contractor or any agent, employee or subcontractor thereof, who
204	204	shall use or otherwise dispose of any materials purchased under such a
205	205	certificate for any purpose other than that for which such a certificate is
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249	249	issued without the payment of the sales or compensating tax otherwise
250	250	imposed upon such materials, shall be guilty of a misdemeanor and, upon
251	251	conviction therefor, shall be subject to the penalties provided for in K.S.A.
252	252	79-3615(h), and amendments thereto;
253	253	(e) all sales of tangible personal property or services purchased by a
254	254	contractor for the erection, repair or enlargement of buildings or other
255	255	projects for the government of the United States, its agencies or
256	256	instrumentalities, that would be exempt from taxation if purchased directly
257	257	by the government of the United States, its agencies or instrumentalities.
258	258	When the government of the United States, its agencies or
259	259	instrumentalities shall contract for the erection, repair, or enlargement of
260	260	any building or other project, it shall obtain from the state and furnish to
261	261	the contractor an exemption certificate for the project involved, and the
262	262	contractor may purchase materials for incorporation in such project. The
263	263	contractor shall furnish the number of such certificates to all suppliers
264	264	from whom such purchases are made, and such suppliers shall execute
265	265	invoices covering the same bearing the number of such certificate. Upon
266	266	completion of the project the contractor shall furnish to the government of
267	267	the United States, its agencies or instrumentalities concerned a sworn
268	268	statement, on a form to be provided by the director of taxation, that all
269	269	purchases so made were entitled to exemption under this subsection. As an
270	270	alternative to the foregoing procedure, any such contracting entity may
271	271	apply to the secretary of revenue for agent status for the sole purpose of
272	272	issuing and furnishing project exemption certificates to contractors
273	273	pursuant to rules and regulations adopted by the secretary establishing
274	274	conditions and standards for the granting and maintaining of such status.
275	275	All invoices shall be held by the contractor for a period of five years and
276	276	shall be subject to audit by the director of taxation. Any contractor or any
277	277	agent, employee or subcontractor thereof, who shall use or otherwise
278	278	dispose of any materials purchased under such a certificate for any purpose
279	279	other than that for which such a certificate is issued without the payment
280	280	of the sales or compensating tax otherwise imposed upon such materials,
281	281	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
282	282	subject to the penalties provided for in K.S.A. 79-3615(h), and
283	283	amendments thereto;
284	284	(f) tangible personal property purchased by a railroad or public utility
285	285	for consumption or movement directly and immediately in interstate
286	286	commerce;
287	287	(g) sales of aircraft including remanufactured and modified aircraft
288	288	sold to persons using directly or through an authorized agent such aircraft
289	289	as certified or licensed carriers of persons or property in interstate or
290	290	foreign commerce under authority of the laws of the United States or any
291	291	foreign government or sold to any foreign government or agency or
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335	335	instrumentality of such foreign government and all sales of aircraft for use
336	336	outside of the United States and sales of aircraft repair, modification and
337	337	replacement parts and sales of services employed in the remanufacture,
338	338	modification and repair of aircraft;
339	339	(h) all rentals of nonsectarian textbooks by public or private
340	340	elementary or secondary schools;
341	341	(i) the lease or rental of all films, records, tapes, or any type of sound
342	342	or picture transcriptions used by motion picture exhibitors;
343	343	(j) meals served without charge or food used in the preparation of
344	344	such meals to employees of any restaurant, eating house, dining car, hotel,
345	345	drugstore or other place where meals or drinks are regularly sold to the
346	346	public if such employees' duties are related to the furnishing or sale of
347	347	such meals or drinks;
348	348	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
349	349	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
350	350	delivered in this state to a bona fide resident of another state, which motor
351	351	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
352	352	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
353	353	remain in this state more than 10 days;
354	354	(l) all isolated or occasional sales of tangible personal property,
355	355	services, substances or things, except isolated or occasional sale of motor
356	356	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
357	357	amendments thereto;
358	358	(m) all sales of tangible personal property that become an ingredient
359	359	or component part of tangible personal property or services produced,
360	360	manufactured or compounded for ultimate sale at retail within or without
361	361	the state of Kansas; and any such producer, manufacturer or compounder
362	362	may obtain from the director of taxation and furnish to the supplier an
363	363	exemption certificate number for tangible personal property for use as an
364	364	ingredient or component part of the property or services produced,
365	365	manufactured or compounded;
366	366	(n) all sales of tangible personal property that is consumed in the
367	367	production, manufacture, processing, mining, drilling, refining or
368	368	compounding of tangible personal property, the treating of by-products or
369	369	wastes derived from any such production process, the providing of
370	370	services or the irrigation of crops for ultimate sale at retail within or
371	371	without the state of Kansas; and any purchaser of such property may
372	372	obtain from the director of taxation and furnish to the supplier an
373	373	exemption certificate number for tangible personal property for
374	374	consumption in such production, manufacture, processing, mining,
375	375	drilling, refining, compounding, treating, irrigation and in providing such
376	376	services;
377	377	(o) all sales of animals, fowl and aquatic plants and animals, the
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421	421	primary purpose of which is use in agriculture or aquaculture, as defined in
422	422	K.S.A. 47-1901, and amendments thereto, the production of food for
423	423	human consumption, the production of animal, dairy, poultry or aquatic
424	424	plant and animal products, fiber or fur, or the production of offspring for
425	425	use for any such purpose or purposes;
426	426	(p) all sales of drugs dispensed pursuant to a prescription order by a
427	427	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
428	428	1626, and amendments thereto. As used in this subsection, "drug" means a
429	429	compound, substance or preparation and any component of a compound,
430	430	substance or preparation, other than food and food ingredients, dietary
431	431	supplements or alcoholic beverages, recognized in the official United
432	432	States pharmacopeia, official homeopathic pharmacopoeia of the United
433	433	States or official national formulary, and supplement to any of them,
434	434	intended for use in the diagnosis, cure, mitigation, treatment or prevention
435	435	of disease or intended to affect the structure or any function of the body,
436	436	except that for taxable years commencing after December 31, 2013, this
437	437	subsection shall not apply to any sales of drugs used in the performance or
438	438	induction of an abortion, as defined in K.S.A. 65-6701, and amendments
439	439	thereto;
440	440	(q) all sales of insulin dispensed by a person licensed by the state
441	441	board of pharmacy to a person for treatment of diabetes at the direction of
442	442	a person licensed to practice medicine by the state board of healing arts;
443	443	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
444	444	enteral feeding systems, prosthetic devices and mobility enhancing
445	445	equipment prescribed in writing by a person licensed to practice the
446	446	healing arts, dentistry or optometry, and in addition to such sales, all sales
447	447	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
448	448	and repair and replacement parts therefor, including batteries, by a person
449	449	licensed in the practice of dispensing and fitting hearing aids pursuant to
450	450	the provisions of K.S.A. 74-5808, and amendments thereto. For the
451	451	purposes of this subsection: (1) "Mobility enhancing equipment" means
452	452	equipment including repair and replacement parts to same, but does not
453	453	include durable medical equipment, which is primarily and customarily
454	454	used to provide or increase the ability to move from one place to another
455	455	and which is appropriate for use either in a home or a motor vehicle; is not
456	456	generally used by persons with normal mobility; and does not include any
457	457	motor vehicle or equipment on a motor vehicle normally provided by a
458	458	motor vehicle manufacturer; and (2) "prosthetic device" means a
459	459	replacement, corrective or supportive device including repair and
460	460	replacement parts for same worn on or in the body to artificially replace a
461	461	missing portion of the body, prevent or correct physical deformity or
462	462	malfunction or support a weak or deformed portion of the body;
463	463	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
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507	507	all sales of tangible personal property or services purchased directly or
508	508	indirectly by a groundwater management district organized or operating
509	509	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
510	510	by a rural water district organized or operating under the authority of
511	511	K.S.A. 82a-612, and amendments thereto, or by a water supply district
512	512	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
513	513	3522 et seq. or 19-3545, and amendments thereto, which property or
514	514	services are used in the construction activities, operation or maintenance of
515	515	the district;
516	516	(t) all sales of farm machinery and equipment or aquaculture
517	517	machinery and equipment, repair and replacement parts therefor and
518	518	services performed in the repair and maintenance of such machinery and
519	519	equipment. For the purposes of this subsection the term "farm machinery
520	520	and equipment or aquaculture machinery and equipment" shall include a
521	521	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
522	522	thereto, and is equipped with a bed or cargo box for hauling materials, and
523	523	shall also include machinery and equipment used in the operation of
524	524	Christmas tree farming but shall not include any passenger vehicle, truck,
525	525	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
526	526	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
527	527	machinery and equipment" includes precision farming equipment that is
528	528	portable or is installed or purchased to be installed on farm machinery and
529	529	equipment. "Precision farming equipment" includes the following items
530	530	used only in computer-assisted farming, ranching or aquaculture
531	531	production operations: Soil testing sensors, yield monitors, computers,
532	532	monitors, software, global positioning and mapping systems, guiding
533	533	systems, modems, data communications equipment and any necessary
534	534	mounting hardware, wiring and antennas. Each purchaser of farm
535	535	machinery and equipment or aquaculture machinery and equipment
536	536	exempted herein must certify in writing on the copy of the invoice or sales
537	537	ticket to be retained by the seller that the farm machinery and equipment
538	538	or aquaculture machinery and equipment purchased will be used only in
539	539	farming, ranching or aquaculture production. Farming or ranching shall
540	540	include the operation of a feedlot and farm and ranch work for hire and the
541	541	operation of a nursery;
542	542	(u) all leases or rentals of tangible personal property used as a
543	543	dwelling if such tangible personal property is leased or rented for a period
544	544	of more than 28 consecutive days;
545	545	(v) all sales of tangible personal property to any contractor for use in
546	546	preparing meals for delivery to homebound elderly persons over 60 years
547	547	of age and to homebound disabled persons or to be served at a group-
548	548	sitting at a location outside of the home to otherwise homebound elderly
549	549	persons over 60 years of age and to otherwise homebound disabled
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593	593	persons, as all or part of any food service project funded in whole or in
594	594	part by government or as part of a private nonprofit food service project
595	595	available to all such elderly or disabled persons residing within an area of
596	596	service designated by the private nonprofit organization, and all sales of
597	597	tangible personal property for use in preparing meals for consumption by
598	598	indigent or homeless individuals whether or not such meals are consumed
599	599	at a place designated for such purpose, and all sales of food products by or
600	600	on behalf of any such contractor or organization for any such purpose;
601	601	(w) all sales of natural gas, electricity, heat and water delivered
602	602	through mains, lines or pipes: (1) To residential premises for
603	603	noncommercial use by the occupant of such premises; (2) for agricultural
604	604	use and also, for such use, all sales of propane gas; (3) for use in the
605	605	severing of oil; and (4) to any property which is exempt from property
606	606	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
607	607	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
608	608	and amendments thereto. For all sales of natural gas, electricity and heat
609	609	delivered through mains, lines or pipes pursuant to the provisions of
610	610	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
611	611	on December 31, 2005;
612	612	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
613	613	for the production of heat or lighting for noncommercial use of an
614	614	occupant of residential premises occurring prior to January 1, 2006;
615	615	(y) all sales of materials and services used in the repairing, servicing,
616	616	altering, maintaining, manufacturing, remanufacturing, or modification of
617	617	railroad rolling stock for use in interstate or foreign commerce under
618	618	authority of the laws of the United States;
619	619	(z) all sales of tangible personal property and services purchased
620	620	directly by a port authority or by a contractor therefor as provided by the
621	621	provisions of K.S.A. 12-3418, and amendments thereto;
622	622	(aa) all sales of materials and services applied to equipment that is
623	623	transported into the state from without the state for repair, service,
624	624	alteration, maintenance, remanufacture or modification and that is
625	625	subsequently transported outside the state for use in the transmission of
626	626	liquids or natural gas by means of pipeline in interstate or foreign
627	627	commerce under authority of the laws of the United States;
628	628	(bb) all sales of used mobile homes or manufactured homes. As used
629	629	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
630	630	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
631	631	"sales of used mobile homes or manufactured homes" means sales other
632	632	than the original retail sale thereof;
633	633	(cc) all sales of tangible personal property or services purchased prior
634	634	to January 1, 2012, except as otherwise provided, for the purpose of and in
635	635	conjunction with constructing, reconstructing, enlarging or remodeling a
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678	678	43 HB 2081 9
679	679	business or retail business that meets the requirements established in
680	680	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
681	681	machinery and equipment purchased for installation at any such business
682	682	or retail business, and all sales of tangible personal property or services
683	683	purchased on or after January 1, 2012, for the purpose of and in
684	684	conjunction with constructing, reconstructing, enlarging or remodeling a
685	685	business that meets the requirements established in K.S.A. 74-50,115(e),
686	686	and amendments thereto, and the sale and installation of machinery and
687	687	equipment purchased for installation at any such business. When a person
688	688	shall contract for the construction, reconstruction, enlargement or
689	689	remodeling of any such business or retail business, such person shall
690	690	obtain from the state and furnish to the contractor an exemption certificate
691	691	for the project involved, and the contractor may purchase materials,
692	692	machinery and equipment for incorporation in such project. The contractor
693	693	shall furnish the number of such certificates to all suppliers from whom
694	694	such purchases are made, and such suppliers shall execute invoices
695	695	covering the same bearing the number of such certificate. Upon
696	696	completion of the project the contractor shall furnish to the owner of the
697	697	business or retail business a sworn statement, on a form to be provided by
698	698	the director of taxation, that all purchases so made were entitled to
699	699	exemption under this subsection. All invoices shall be held by the
700	700	contractor for a period of five years and shall be subject to audit by the
701	701	director of taxation. Any contractor or any agent, employee or
702	702	subcontractor thereof, who shall use or otherwise dispose of any materials,
703	703	machinery or equipment purchased under such a certificate for any
704	704	purpose other than that for which such a certificate is issued without the
705	705	payment of the sales or compensating tax otherwise imposed thereon, shall
706	706	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
707	707	to the penalties provided for in K.S.A. 79-3615(h), and amendments
708	708	thereto. As used in this subsection, "business" and "retail business" mean
709	709	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
710	710	exemption certificates that have been previously issued under this
711	711	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
712	712	and amendments thereto, but not including K.S.A. 74-50,115(e), and
713	713	amendments thereto, prior to January 1, 2012, and have not expired will be
714	714	effective for the term of the project or two years from the effective date of
715	715	the certificate, whichever occurs earlier. Project exemption certificates that
716	716	are submitted to the department of revenue prior to January 1, 2012, and
717	717	are found to qualify will be issued a project exemption certificate that will
718	718	be effective for a two-year period or for the term of the project, whichever
719	719	occurs earlier;
720	720	(dd) all sales of tangible personal property purchased with food
721	721	stamps issued by the United States department of agriculture;
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764	764	43 HB 2081 10
765	765	(ee) all sales of lottery tickets and shares made as part of a lottery
766	766	operated by the state of Kansas;
767	767	(ff) on and after July 1, 1988, all sales of new mobile homes or
768	768	manufactured homes to the extent of 40% of the gross receipts, determined
769	769	without regard to any trade-in allowance, received from such sale. As used
770	770	in this subsection, "mobile homes" and "manufactured homes" mean the
771	771	same as defined in K.S.A. 58-4202, and amendments thereto;
772	772	(gg) all sales of tangible personal property purchased in accordance
773	773	with vouchers issued pursuant to the federal special supplemental food
774	774	program for women, infants and children;
775	775	(hh) all sales of medical supplies and equipment, including durable
776	776	medical equipment, purchased directly by a nonprofit skilled nursing home
777	777	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
778	778	and amendments thereto, for the purpose of providing medical services to
779	779	residents thereof. This exemption shall not apply to tangible personal
780	780	property customarily used for human habitation purposes. As used in this
781	781	subsection, "durable medical equipment" means equipment including
782	782	repair and replacement parts for such equipment, that can withstand
783	783	repeated use, is primarily and customarily used to serve a medical purpose,
784	784	generally is not useful to a person in the absence of illness or injury and is
785	785	not worn in or on the body, but does not include mobility enhancing
786	786	equipment as defined in subsection (r), oxygen delivery equipment, kidney
787	787	dialysis equipment or enteral feeding systems;
788	788	(ii) all sales of tangible personal property purchased directly by a
789	789	nonprofit organization for nonsectarian comprehensive multidiscipline
790	790	youth development programs and activities provided or sponsored by such
791	791	organization, and all sales of tangible personal property by or on behalf of
792	792	any such organization. This exemption shall not apply to tangible personal
793	793	property customarily used for human habitation purposes;
794	794	(jj) all sales of tangible personal property or services, including the
795	795	renting and leasing of tangible personal property, purchased directly on
796	796	behalf of a community-based facility for people with intellectual disability
797	797	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
798	798	amendments thereto, and licensed in accordance with the provisions of
799	799	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
800	800	personal property or services purchased by contractors during the time
801	801	period from July, 2003, through June, 2006, for the purpose of
802	802	constructing, equipping, maintaining or furnishing a new facility for a
803	803	community-based facility for people with intellectual disability or mental
804	804	health center located in Riverton, Cherokee County, Kansas, that would
805	805	have been eligible for sales tax exemption pursuant to this subsection if
806	806	purchased directly by such facility or center. This exemption shall not
807	807	apply to tangible personal property customarily used for human habitation
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850	850	43 HB 2081 11
851	851	purposes;
852	852	(kk) (1) (A) all sales of machinery and equipment that are used in this
853	853	state as an integral or essential part of an integrated production operation
854	854	by a manufacturing or processing plant or facility;
855	855	(B) all sales of installation, repair and maintenance services
856	856	performed on such machinery and equipment; and
857	857	(C) all sales of repair and replacement parts and accessories
858	858	purchased for such machinery and equipment.
859	859	(2) For purposes of this subsection:
860	860	(A) "Integrated production operation" means an integrated series of
861	861	operations engaged in at a manufacturing or processing plant or facility to
862	862	process, transform or convert tangible personal property by physical,
863	863	chemical or other means into a different form, composition or character
864	864	from that in which it originally existed. Integrated production operations
865	865	shall include: (i) Production line operations, including packaging
866	866	operations; (ii) preproduction operations to handle, store and treat raw
867	867	materials; (iii) post production handling, storage, warehousing and
868	868	distribution operations; and (iv) waste, pollution and environmental
869	869	control operations, if any;
870	870	(B) "production line" means the assemblage of machinery and
871	871	equipment at a manufacturing or processing plant or facility where the
872	872	actual transformation or processing of tangible personal property occurs;
873	873	(C) "manufacturing or processing plant or facility" means a single,
874	874	fixed location owned or controlled by a manufacturing or processing
875	875	business that consists of one or more structures or buildings in a
876	876	contiguous area where integrated production operations are conducted to
877	877	manufacture or process tangible personal property to be ultimately sold at
878	878	retail. Such term shall not include any facility primarily operated for the
879	879	purpose of conveying or assisting in the conveyance of natural gas,
880	880	electricity, oil or water. A business may operate one or more manufacturing
881	881	or processing plants or facilities at different locations to manufacture or
882	882	process a single product of tangible personal property to be ultimately sold
883	883	at retail;
884	884	(D) "manufacturing or processing business" means a business that
885	885	utilizes an integrated production operation to manufacture, process,
886	886	fabricate, finish or assemble items for wholesale and retail distribution as
887	887	part of what is commonly regarded by the general public as an industrial
888	888	manufacturing or processing operation or an agricultural commodity
889	889	processing operation. (i) Industrial manufacturing or processing operations
890	890	include, by way of illustration but not of limitation, the fabrication of
891	891	automobiles, airplanes, machinery or transportation equipment, the
892	892	fabrication of metal, plastic, wood or paper products, electricity power
893	893	generation, water treatment, petroleum refining, chemical production,
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936	936	43 HB 2081 12
937	937	wholesale bottling, newspaper printing, ready mixed concrete production,
938	938	and the remanufacturing of used parts for wholesale or retail sale. Such
939	939	processing operations shall include operations at an oil well, gas well,
940	940	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
941	941	sand or gravel that has been extracted from the earth is cleaned, separated,
942	942	crushed, ground, milled, screened, washed or otherwise treated or prepared
943	943	before its transmission to a refinery or before any other wholesale or retail
944	944	distribution. (ii) Agricultural commodity processing operations include, by
945	945	way of illustration but not of limitation, meat packing, poultry slaughtering
946	946	and dressing, processing and packaging farm and dairy products in sealed
947	947	containers for wholesale and retail distribution, feed grinding, grain
948	948	milling, frozen food processing, and grain handling, cleaning, blending,
949	949	fumigation, drying and aeration operations engaged in by grain elevators
950	950	or other grain storage facilities. (iii) Manufacturing or processing
951	951	businesses do not include, by way of illustration but not of limitation,
952	952	nonindustrial businesses whose operations are primarily retail and that
953	953	produce or process tangible personal property as an incidental part of
954	954	conducting the retail business, such as retailers who bake, cook or prepare
955	955	food products in the regular course of their retail trade, grocery stores,
956	956	meat lockers and meat markets that butcher or dress livestock or poultry in
957	957	the regular course of their retail trade, contractors who alter, service, repair
958	958	or improve real property, and retail businesses that clean, service or
959	959	refurbish and repair tangible personal property for its owner;
960	960	(E) "repair and replacement parts and accessories" means all parts
961	961	and accessories for exempt machinery and equipment, including, but not
962	962	limited to, dies, jigs, molds, patterns and safety devices that are attached to
963	963	exempt machinery or that are otherwise used in production, and parts and
964	964	accessories that require periodic replacement such as belts, drill bits,
965	965	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
966	966	other refractory items for exempt kiln equipment used in production
967	967	operations;
968	968	(F) "primary" or "primarily" mean more than 50% of the time.
969	969	(3) For purposes of this subsection, machinery and equipment shall
970	970	be deemed to be used as an integral or essential part of an integrated
971	971	production operation when used to:
972	972	(A) Receive, transport, convey, handle, treat or store raw materials in
973	973	preparation of its placement on the production line;
974	974	(B) transport, convey, handle or store the property undergoing
975	975	manufacturing or processing at any point from the beginning of the
976	976	production line through any warehousing or distribution operation of the
977	977	final product that occurs at the plant or facility;
978	978	(C) act upon, effect, promote or otherwise facilitate a physical change
979	979	to the property undergoing manufacturing or processing;
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1022	1022	43 HB 2081 13
1023	1023	(D) guide, control or direct the movement of property undergoing
1024	1024	manufacturing or processing;
1025	1025	(E) test or measure raw materials, the property undergoing
1026	1026	manufacturing or processing or the finished product, as a necessary part of
1027	1027	the manufacturer's integrated production operations;
1028	1028	(F) plan, manage, control or record the receipt and flow of inventories
1029	1029	of raw materials, consumables and component parts, the flow of the
1030	1030	property undergoing manufacturing or processing and the management of
1031	1031	inventories of the finished product;
1032	1032	(G) produce energy for, lubricate, control the operating of or
1033	1033	otherwise enable the functioning of other production machinery and
1034	1034	equipment and the continuation of production operations;
1035	1035	(H) package the property being manufactured or processed in a
1036	1036	container or wrapping in which such property is normally sold or
1037	1037	transported;
1038	1038	(I) transmit or transport electricity, coke, gas, water, steam or similar
1039	1039	substances used in production operations from the point of generation, if
1040	1040	produced by the manufacturer or processor at the plant site, to that
1041	1041	manufacturer's production operation; or, if purchased or delivered from
1042	1042	off-site, from the point where the substance enters the site of the plant or
1043	1043	facility to that manufacturer's production operations;
1044	1044	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
1045	1045	solvents or other substances that are used in production operations;
1046	1046	(K) provide and control an environment required to maintain certain
1047	1047	levels of air quality, humidity or temperature in special and limited areas
1048	1048	of the plant or facility, where such regulation of temperature or humidity is
1049	1049	part of and essential to the production process;
1050	1050	(L) treat, transport or store waste or other byproducts of production
1051	1051	operations at the plant or facility; or
1052	1052	(M) control pollution at the plant or facility where the pollution is
1053	1053	produced by the manufacturing or processing operation.
1054	1054	(4) The following machinery, equipment and materials shall be
1055	1055	deemed to be exempt even though it may not otherwise qualify as
1056	1056	machinery and equipment used as an integral or essential part of an
1057	1057	integrated production operation: (A) Computers and related peripheral
1058	1058	equipment that are utilized by a manufacturing or processing business for
1059	1059	engineering of the finished product or for research and development or
1060	1060	product design; (B) machinery and equipment that is utilized by a
1061	1061	manufacturing or processing business to manufacture or rebuild tangible
1062	1062	personal property that is used in manufacturing or processing operations,
1063	1063	including tools, dies, molds, forms and other parts of qualifying machinery
1064	1064	and equipment; (C) portable plants for aggregate concrete, bulk cement
1065	1065	and asphalt including cement mixing drums to be attached to a motor
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1108	1108	43 HB 2081 14
1109	1109	vehicle; (D) industrial fixtures, devices, support facilities and special
1110	1110	foundations necessary for manufacturing and production operations, and
1111	1111	materials and other tangible personal property sold for the purpose of
1112	1112	fabricating such fixtures, devices, facilities and foundations. An exemption
1113	1113	certificate for such purchases shall be signed by the manufacturer or
1114	1114	processor. If the fabricator purchases such material, the fabricator shall
1115	1115	also sign the exemption certificate; (E) a manufacturing or processing
1116	1116	business' laboratory equipment that is not located at the plant or facility,
1117	1117	but that would otherwise qualify for exemption under subsection (3)(E);
1118	1118	(F) all machinery and equipment used in surface mining activities as
1119	1119	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
1120	1120	from the time a reclamation plan is filed to the acceptance of the
1121	1121	completed final site reclamation.
1122	1122	(5) "Machinery and equipment used as an integral or essential part of
1123	1123	an integrated production operation" shall not include:
1124	1124	(A) Machinery and equipment used for nonproduction purposes,
1125	1125	including, but not limited to, machinery and equipment used for plant
1126	1126	security, fire prevention, first aid, accounting, administration, record
1127	1127	keeping, advertising, marketing, sales or other related activities, plant
1128	1128	cleaning, plant communications and employee work scheduling;
1129	1129	(B) machinery, equipment and tools used primarily in maintaining
1130	1130	and repairing any type of machinery and equipment or the building and
1131	1131	plant;
1132	1132	(C) transportation, transmission and distribution equipment not
1133	1133	primarily used in a production, warehousing or material handling
1134	1134	operation at the plant or facility, including the means of conveyance of
1135	1135	natural gas, electricity, oil or water, and equipment related thereto, located
1136	1136	outside the plant or facility;
1137	1137	(D) office machines and equipment including computers and related
1138	1138	peripheral equipment not used directly and primarily to control or measure
1139	1139	the manufacturing process;
1140	1140	(E) furniture and other furnishings;
1141	1141	(F) buildings, other than exempt machinery and equipment that is
1142	1142	permanently affixed to or becomes a physical part of the building, and any
1143	1143	other part of real estate that is not otherwise exempt;
1144	1144	(G) building fixtures that are not integral to the manufacturing
1145	1145	operation, such as utility systems for heating, ventilation, air conditioning,
1146	1146	communications, plumbing or electrical;
1147	1147	(H) machinery and equipment used for general plant heating, cooling
1148	1148	and lighting;
1149	1149	(I) motor vehicles that are registered for operation on public
1150	1150	highways; or
1151	1151	(J) employee apparel, except safety and protective apparel that is
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1186	1186	35
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1188	1188	37
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1190	1190	39
1191	1191	40
1192	1192	41
1193	1193	42
1194	1194	43 HB 2081 15
1195	1195	purchased by an employer and furnished gratuitously to employees who
1196	1196	are involved in production or research activities.
1197	1197	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
1198	1198	of the machinery and equipment that qualify or do not qualify as an
1199	1199	integral or essential part of an integrated production operation. When
1200	1200	machinery or equipment is used as an integral or essential part of
1201	1201	production operations part of the time and for nonproduction purposes at
1202	1202	other times, the primary use of the machinery or equipment shall
1203	1203	determine whether or not such machinery or equipment qualifies for
1204	1204	exemption.
1205	1205	(7) The secretary of revenue shall adopt rules and regulations
1206	1206	necessary to administer the provisions of this subsection;
1207	1207	(ll) all sales of educational materials purchased for distribution to the
1208	1208	public at no charge by a nonprofit corporation organized for the purpose of
1209	1209	encouraging, fostering and conducting programs for the improvement of
1210	1210	public health, except that for taxable years commencing after December
1211	1211	31, 2013, this subsection shall not apply to any sales of such materials
1212	1212	purchased by a nonprofit corporation which performs any abortion, as
1213	1213	defined in K.S.A. 65-6701, and amendments thereto;
1214	1214	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
1215	1215	herbicides, germicides, pesticides and fungicides; and services, purchased
1216	1216	and used for the purpose of producing plants in order to prevent soil
1217	1217	erosion on land devoted to agricultural use;
1218	1218	(nn) except as otherwise provided in this act, all sales of services
1219	1219	rendered by an advertising agency or licensed broadcast station or any
1220	1220	member, agent or employee thereof;
1221	1221	(oo) all sales of tangible personal property purchased by a community
1222	1222	action group or agency for the exclusive purpose of repairing or
1223	1223	weatherizing housing occupied by low-income individuals;
1224	1224	(pp) all sales of drill bits and explosives actually utilized in the
1225	1225	exploration and production of oil or gas;
1226	1226	(qq) all sales of tangible personal property and services purchased by
1227	1227	a nonprofit museum or historical society or any combination thereof,
1228	1228	including a nonprofit organization that is organized for the purpose of
1229	1229	stimulating public interest in the exploration of space by providing
1230	1230	educational information, exhibits and experiences, that is exempt from
1231	1231	federal income taxation pursuant to section 501(c)(3) of the federal
1232	1232	internal revenue code of 1986;
1233	1233	(rr) all sales of tangible personal property that will admit the
1234	1234	purchaser thereof to any annual event sponsored by a nonprofit
1235	1235	organization that is exempt from federal income taxation pursuant to
1236	1236	section 501(c)(3) of the federal internal revenue code of 1986, except that
1237	1237	for taxable years commencing after December 31, 2013, this subsection
1238	1238	1
1239	1239	2
1240	1240	3
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1278	1278	41
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1280	1280	43 HB 2081 16
1281	1281	shall not apply to any sales of such tangible personal property purchased
1282	1282	by a nonprofit organization which performs any abortion, as defined in
1283	1283	K.S.A. 65-6701, and amendments thereto;
1284	1284	(ss) all sales of tangible personal property and services purchased by
1285	1285	a public broadcasting station licensed by the federal communications
1286	1286	commission as a noncommercial educational television or radio station;
1287	1287	(tt) all sales of tangible personal property and services purchased by
1288	1288	or on behalf of a not-for-profit corporation that is exempt from federal
1289	1289	income taxation pursuant to section 501(c)(3) of the federal internal
1290	1290	revenue code of 1986, for the sole purpose of constructing a Kansas
1291	1291	Korean War memorial;
1292	1292	(uu) all sales of tangible personal property and services purchased by
1293	1293	or on behalf of any rural volunteer fire-fighting organization for use
1294	1294	exclusively in the performance of its duties and functions;
1295	1295	(vv) all sales of tangible personal property purchased by any of the
1296	1296	following organizations that are exempt from federal income taxation
1297	1297	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
1298	1298	for the following purposes, and all sales of any such property by or on
1299	1299	behalf of any such organization for any such purpose:
1300	1300	(1) The American heart association, Kansas affiliate, inc. for the
1301	1301	purposes of providing education, training, certification in emergency
1302	1302	cardiac care, research and other related services to reduce disability and
1303	1303	death from cardiovascular diseases and stroke;
1304	1304	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
1305	1305	advocacy for persons with mental illness and to education, research and
1306	1306	support for their families;
1307	1307	(3) the Kansas mental illness awareness council for the purposes of
1308	1308	advocacy for persons who are mentally ill and for education, research and
1309	1309	support for them and their families;
1310	1310	(4) the American diabetes association Kansas affiliate, inc. for the
1311	1311	purpose of eliminating diabetes through medical research, public education
1312	1312	focusing on disease prevention and education, patient education including
1313	1313	information on coping with diabetes, and professional education and
1314	1314	training;
1315	1315	(5) the American lung association of Kansas, inc. for the purpose of
1316	1316	eliminating all lung diseases through medical research, public education
1317	1317	including information on coping with lung diseases, professional education
1318	1318	and training related to lung disease and other related services to reduce the
1319	1319	incidence of disability and death due to lung disease;
1320	1320	(6) the Kansas chapters of the Alzheimer's disease and related
1321	1321	disorders association, inc. for the purpose of providing assistance and
1322	1322	support to persons in Kansas with Alzheimer's disease, and their families
1323	1323	and caregivers;
1324	1324	1
1325	1325	2
1326	1326	3
1327	1327	4
1328	1328	5
1329	1329	6
1330	1330	7
1331	1331	8
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1336	1336	13
1337	1337	14
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1363	1363	40
1364	1364	41
1365	1365	42
1366	1366	43 HB 2081 17
1367	1367	(7) the Kansas chapters of the Parkinson's disease association for the
1368	1368	purpose of eliminating Parkinson's disease through medical research and
1369	1369	public and professional education related to such disease;
1370	1370	(8) the national kidney foundation of Kansas and western Missouri
1371	1371	for the purpose of eliminating kidney disease through medical research
1372	1372	and public and private education related to such disease;
1373	1373	(9) the heartstrings community foundation for the purpose of
1374	1374	providing training, employment and activities for adults with
1375	1375	developmental disabilities;
1376	1376	(10) the cystic fibrosis foundation, heart of America chapter, for the
1377	1377	purposes of assuring the development of the means to cure and control
1378	1378	cystic fibrosis and improving the quality of life for those with the disease;
1379	1379	(11) the spina bifida association of Kansas for the purpose of
1380	1380	providing financial, educational and practical aid to families and
1381	1381	individuals with spina bifida. Such aid includes, but is not limited to,
1382	1382	funding for medical devices, counseling and medical educational
1383	1383	opportunities;
1384	1384	(12) the CHWC, Inc., for the purpose of rebuilding urban core
1385	1385	neighborhoods through the construction of new homes, acquiring and
1386	1386	renovating existing homes and other related activities, and promoting
1387	1387	economic development in such neighborhoods;
1388	1388	(13) the cross-lines cooperative council for the purpose of providing
1389	1389	social services to low income individuals and families;
1390	1390	(14) the dreams work, inc., for the purpose of providing young adult
1391	1391	day services to individuals with developmental disabilities and assisting
1392	1392	families in avoiding institutional or nursing home care for a
1393	1393	developmentally disabled member of their family;
1394	1394	(15) the KSDS, Inc., for the purpose of promoting the independence
1395	1395	and inclusion of people with disabilities as fully participating and
1396	1396	contributing members of their communities and society through the
1397	1397	training and providing of guide and service dogs to people with
1398	1398	disabilities, and providing disability education and awareness to the
1399	1399	general public;
1400	1400	(16) the lyme association of greater Kansas City, Inc., for the purpose
1401	1401	of providing support to persons with lyme disease and public education
1402	1402	relating to the prevention, treatment and cure of lyme disease;
1403	1403	(17) the dream factory, inc., for the purpose of granting the dreams of
1404	1404	children with critical and chronic illnesses;
1405	1405	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
1406	1406	students and families with education and resources necessary to enable
1407	1407	each child to develop fine character and musical ability to the fullest
1408	1408	potential;
1409	1409	(19) the international association of lions clubs for the purpose of
1410	1410	1
1411	1411	2
1412	1412	3
1413	1413	4
1414	1414	5
1415	1415	6
1416	1416	7
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1419	1419	10
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1421	1421	12
1422	1422	13
1423	1423	14
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1425	1425	16
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1435	1435	26
1436	1436	27
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1438	1438	29
1439	1439	30
1440	1440	31
1441	1441	32
1442	1442	33
1443	1443	34
1444	1444	35
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1449	1449	40
1450	1450	41
1451	1451	42
1452	1452	43 HB 2081 18
1453	1453	creating and fostering a spirit of understanding among all people for
1454	1454	humanitarian needs by providing voluntary services through community
1455	1455	involvement and international cooperation;
1456	1456	(20) the Johnson county young matrons, inc., for the purpose of
1457	1457	promoting a positive future for members of the community through
1458	1458	volunteerism, financial support and education through the efforts of an all
1459	1459	volunteer organization;
1460	1460	(21) the American cancer society, inc., for the purpose of eliminating
1461	1461	cancer as a major health problem by preventing cancer, saving lives and
1462	1462	diminishing suffering from cancer, through research, education, advocacy
1463	1463	and service;
1464	1464	(22) the community services of Shawnee, inc., for the purpose of
1465	1465	providing food and clothing to those in need;
1466	1466	(23) the angel babies association, for the purpose of providing
1467	1467	assistance, support and items of necessity to teenage mothers and their
1468	1468	babies; and
1469	1469	(24) the Kansas fairgrounds foundation for the purpose of the
1470	1470	preservation, renovation and beautification of the Kansas state fairgrounds;
1471	1471	(ww) all sales of tangible personal property purchased by the habitat
1472	1472	for humanity for the exclusive use of being incorporated within a housing
1473	1473	project constructed by such organization;
1474	1474	(xx) all sales of tangible personal property and services purchased by
1475	1475	a nonprofit zoo that is exempt from federal income taxation pursuant to
1476	1476	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
1477	1477	of such zoo by an entity itself exempt from federal income taxation
1478	1478	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
1479	1479	contracted with to operate such zoo and all sales of tangible personal
1480	1480	property or services purchased by a contractor for the purpose of
1481	1481	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1482	1482	furnishing or remodeling facilities for any nonprofit zoo that would be
1483	1483	exempt from taxation under the provisions of this section if purchased
1484	1484	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
1485	1485	this subsection shall be deemed to exempt the purchase of any construction
1486	1486	machinery, equipment or tools used in the constructing, equipping,
1487	1487	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1488	1488	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
1489	1489	the purpose of constructing, equipping, reconstructing, maintaining,
1490	1490	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
1491	1491	from the state and furnish to the contractor an exemption certificate for the
1492	1492	project involved, and the contractor may purchase materials for
1493	1493	incorporation in such project. The contractor shall furnish the number of
1494	1494	such certificate to all suppliers from whom such purchases are made, and
1495	1495	such suppliers shall execute invoices covering the same bearing the
1496	1496	1
1497	1497	2
1498	1498	3
1499	1499	4
1500	1500	5
1501	1501	6
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1510	1510	15
1511	1511	16
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1536	1536	41
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1538	1538	43 HB 2081 19
1539	1539	number of such certificate. Upon completion of the project the contractor
1540	1540	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
1541	1541	to be provided by the director of taxation, that all purchases so made were
1542	1542	entitled to exemption under this subsection. All invoices shall be held by
1543	1543	the contractor for a period of five years and shall be subject to audit by the
1544	1544	director of taxation. If any materials purchased under such a certificate are
1545	1545	found not to have been incorporated in the building or other project or not
1546	1546	to have been returned for credit or the sales or compensating tax otherwise
1547	1547	imposed upon such materials that will not be so incorporated in the
1548	1548	building or other project reported and paid by such contractor to the
1549	1549	director of taxation not later than the 20
1550	1550	th
1551	1551	day of the month following the
1552	1552	close of the month in which it shall be determined that such materials will
1553	1553	not be used for the purpose for which such certificate was issued, the
1554	1554	nonprofit zoo concerned shall be liable for tax on all materials purchased
1555	1555	for the project, and upon payment thereof it may recover the same from
1556	1556	the contractor together with reasonable attorney fees. Any contractor or
1557	1557	any agent, employee or subcontractor thereof, who shall use or otherwise
1558	1558	dispose of any materials purchased under such a certificate for any purpose
1559	1559	other than that for which such a certificate is issued without the payment
1560	1560	of the sales or compensating tax otherwise imposed upon such materials,
1561	1561	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1562	1562	subject to the penalties provided for in K.S.A. 79-3615(h), and
1563	1563	amendments thereto;
1564	1564	(yy) all sales of tangible personal property and services purchased by
1565	1565	a parent-teacher association or organization, and all sales of tangible
1566	1566	personal property by or on behalf of such association or organization;
1567	1567	(zz) all sales of machinery and equipment purchased by over-the-air,
1568	1568	free access radio or television station that is used directly and primarily for
1569	1569	the purpose of producing a broadcast signal or is such that the failure of
1570	1570	the machinery or equipment to operate would cause broadcasting to cease.
1571	1571	For purposes of this subsection, machinery and equipment shall include,
1572	1572	but not be limited to, that required by rules and regulations of the federal
1573	1573	communications commission, and all sales of electricity which are
1574	1574	essential or necessary for the purpose of producing a broadcast signal or is
1575	1575	such that the failure of the electricity would cause broadcasting to cease;
1576	1576	(aaa) all sales of tangible personal property and services purchased by
1577	1577	a religious organization that is exempt from federal income taxation
1578	1578	pursuant to section 501(c)(3) of the federal internal revenue code, and used
1579	1579	exclusively for religious purposes, and all sales of tangible personal
1580	1580	property or services purchased by a contractor for the purpose of
1581	1581	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1582	1582	furnishing or remodeling facilities for any such organization that would be
1583	1583	exempt from taxation under the provisions of this section if purchased
1584	1584	1
1585	1585	2
1586	1586	3
1587	1587	4
1588	1588	5
1589	1589	6
1590	1590	7
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1626	1626	43 HB 2081 20
1627	1627	directly by such organization. Nothing in this subsection shall be deemed
1628	1628	to exempt the purchase of any construction machinery, equipment or tools
1629	1629	used in the constructing, equipping, reconstructing, maintaining, repairing,
1630	1630	enlarging, furnishing or remodeling facilities for any such organization.
1631	1631	When any such organization shall contract for the purpose of constructing,
1632	1632	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1633	1633	remodeling facilities, it shall obtain from the state and furnish to the
1634	1634	contractor an exemption certificate for the project involved, and the
1635	1635	contractor may purchase materials for incorporation in such project. The
1636	1636	contractor shall furnish the number of such certificate to all suppliers from
1637	1637	whom such purchases are made, and such suppliers shall execute invoices
1638	1638	covering the same bearing the number of such certificate. Upon
1639	1639	completion of the project the contractor shall furnish to such organization
1640	1640	concerned a sworn statement, on a form to be provided by the director of
1641	1641	taxation, that all purchases so made were entitled to exemption under this
1642	1642	subsection. All invoices shall be held by the contractor for a period of five
1643	1643	years and shall be subject to audit by the director of taxation. If any
1644	1644	materials purchased under such a certificate are found not to have been
1645	1645	incorporated in the building or other project or not to have been returned
1646	1646	for credit or the sales or compensating tax otherwise imposed upon such
1647	1647	materials that will not be so incorporated in the building or other project
1648	1648	reported and paid by such contractor to the director of taxation not later
1649	1649	than the 20
1650	1650	th
1651	1651	day of the month following the close of the month in which it
1652	1652	shall be determined that such materials will not be used for the purpose for
1653	1653	which such certificate was issued, such organization concerned shall be
1654	1654	liable for tax on all materials purchased for the project, and upon payment
1655	1655	thereof it may recover the same from the contractor together with
1656	1656	reasonable attorney fees. Any contractor or any agent, employee or
1657	1657	subcontractor thereof, who shall use or otherwise dispose of any materials
1658	1658	purchased under such a certificate for any purpose other than that for
1659	1659	which such a certificate is issued without the payment of the sales or
1660	1660	compensating tax otherwise imposed upon such materials, shall be guilty
1661	1661	of a misdemeanor and, upon conviction therefor, shall be subject to the
1662	1662	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
1663	1663	Sales tax paid on and after July 1, 1998, but prior to the effective date of
1664	1664	this act upon the gross receipts received from any sale exempted by the
1665	1665	amendatory provisions of this subsection shall be refunded. Each claim for
1666	1666	a sales tax refund shall be verified and submitted to the director of taxation
1667	1667	upon forms furnished by the director and shall be accompanied by any
1668	1668	additional documentation required by the director. The director shall
1669	1669	review each claim and shall refund that amount of sales tax paid as
1670	1670	determined under the provisions of this subsection. All refunds shall be
1671	1671	paid from the sales tax refund fund upon warrants of the director of
1672	1672	1
1673	1673	2
1674	1674	3
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1714	1714	43 HB 2081 21
1715	1715	accounts and reports pursuant to vouchers approved by the director or the
1716	1716	director's designee;
1717	1717	(bbb) all sales of food for human consumption by an organization that
1718	1718	is exempt from federal income taxation pursuant to section 501(c)(3) of
1719	1719	the federal internal revenue code of 1986, pursuant to a food distribution
1720	1720	program that offers such food at a price below cost in exchange for the
1721	1721	performance of community service by the purchaser thereof;
1722	1722	(ccc) (1) on and after July 1, 1999, as provided by paragraph (3), all
1723	1723	sales of tangible personal property and services purchased by a community
1724	1724	pharmacy, primary care clinic or health center the primary purpose of
1725	1725	which is to provide services to medically underserved individuals and
1726	1726	families, and that is exempt from federal income taxation pursuant to
1727	1727	section 501(c)(3) of the federal internal revenue code, and all sales of
1728	1728	tangible personal property or services purchased by a contractor for the
1729	1729	purpose of constructing, equipping, reconstructing, maintaining, repairing,
1730	1730	enlarging, furnishing or remodeling facilities for any such pharmacy, clinic
1731	1731	or center that would be exempt from taxation under the provisions of this
1732	1732	section if purchased directly by such pharmacy, clinic or center, except
1733	1733	that for taxable years commencing after December 31, 2013, this
1734	1734	subsection shall not apply to any sales of such tangible personal property
1735	1735	and services purchased by a primary care clinic or health center which that
1736	1736	performs any abortion, as defined in K.S.A. 65-6701, and amendments
1737	1737	thereto, or a community pharmacy that dispenses a prescription drug
1738	1738	intended to be used for the purpose of causing an abortion, as defined in
1739	1739	K.S.A. 65-6701, and amendments thereto, of a pregnancy. Nothing in this
1740	1740	subsection shall be deemed to exempt the purchase of any construction
1741	1741	machinery, equipment or tools used in the constructing, equipping,
1742	1742	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1743	1743	facilities for any such pharmacy, clinic or center. When any such
1744	1744	pharmacy, clinic or center shall contract for the purpose of constructing,
1745	1745	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1746	1746	remodeling facilities, it shall obtain from the state and furnish to the
1747	1747	contractor an exemption certificate for the project involved, and the
1748	1748	contractor may purchase materials for incorporation in such project. The
1749	1749	contractor shall furnish the number of such certificate to all suppliers from
1750	1750	whom such purchases are made, and such suppliers shall execute invoices
1751	1751	covering the same such purchases bearing the number of such certificate.
1752	1752	Upon completion of the project the contractor shall furnish to such
1753	1753	pharmacy, clinic or center concerned a sworn statement, on a form to be
1754	1754	provided by the director of taxation, that all purchases so made were
1755	1755	entitled to exemption under this subsection. All invoices shall be held by
1756	1756	the contractor for a period of five years and shall be subject to audit by the
1757	1757	director of taxation. If any materials purchased under such a certificate are
1758	1758	1
1759	1759	2
1760	1760	3
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1794	1794	37
1795	1795	38
1796	1796	39
1797	1797	40
1798	1798	41
1799	1799	42
1800	1800	43 HB 2081 22
1801	1801	found not to have been incorporated in the building or other project or not
1802	1802	to have been returned for credit or the sales or compensating tax otherwise
1803	1803	imposed upon such materials that will not be so incorporated in the
1804	1804	building or other project not reported and paid by such contractor to the
1805	1805	director of taxation not later than the 20
1806	1806	th
1807	1807	day of the month following the
1808	1808	close of the month in which it shall be determined that such materials will
1809	1809	not be used for the purpose for which such certificate was issued, such
1810	1810	pharmacy, clinic or center concerned shall be liable for tax not paid on all
1811	1811	such materials purchased for the project, and upon payment thereof it such
1812	1812	pharmacy, clinic or center may recover the same from the contractor
1813	1813	together with reasonable attorney fees. Any contractor or any agent,
1814	1814	employee or subcontractor thereof, who shall use or otherwise dispose of
1815	1815	any materials purchased under such a certificate for any purpose other than
1816	1816	that for which such a certificate is issued without the payment of the sales
1817	1817	or compensating tax otherwise imposed upon such materials, shall be
1818	1818	guilty of a misdemeanor and, upon conviction therefor, shall be subject to
1819	1819	the penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
1820	1820	(2) For purposes of this subsection, "community pharmacy" or
1821	1821	"pharmacy" means a retail pharmacy engaged in the dispensing of
1822	1822	prescriptions and that may also provide other healthcare products or
1823	1823	services.
1824	1824	(3) The provisions of paragraph (1) shall apply to a community
1825	1825	pharmacy on and after July 1, 2025;
1826	1826	(ddd) on and after January 1, 1999, and before January 1, 2000, all
1827	1827	sales of materials and services purchased by any class II or III railroad as
1828	1828	classified by the federal surface transportation board for the construction,
1829	1829	renovation, repair or replacement of class II or III railroad track and
1830	1830	facilities used directly in interstate commerce. In the event any such track
1831	1831	or facility for which materials and services were purchased sales tax
1832	1832	exempt is not operational for five years succeeding the allowance of such
1833	1833	exemption, the total amount of sales tax that would have been payable
1834	1834	except for the operation of this subsection shall be recouped in accordance
1835	1835	with rules and regulations adopted for such purpose by the secretary of
1836	1836	revenue;
1837	1837	(eee) on and after January 1, 1999, and before January 1, 2001, all
1838	1838	sales of materials and services purchased for the original construction,
1839	1839	reconstruction, repair or replacement of grain storage facilities, including
1840	1840	railroad sidings providing access thereto;
1841	1841	(fff) all sales of material handling equipment, racking systems and
1842	1842	other related machinery and equipment that is used for the handling,
1843	1843	movement or storage of tangible personal property in a warehouse or
1844	1844	distribution facility in this state; all sales of installation, repair and
1845	1845	maintenance services performed on such machinery and equipment; and
1846	1846	1
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1875	1875	30
1876	1876	31
1877	1877	32
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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 HB 2081 23
1889	1889	all sales of repair and replacement parts for such machinery and
1890	1890	equipment. For purposes of this subsection, a warehouse or distribution
1891	1891	facility means a single, fixed location that consists of buildings or
1892	1892	structures in a contiguous area where storage or distribution operations are
1893	1893	conducted that are separate and apart from the business' retail operations,
1894	1894	if any, and that do not otherwise qualify for exemption as occurring at a
1895	1895	manufacturing or processing plant or facility. Material handling and
1896	1896	storage equipment shall include aeration, dust control, cleaning, handling
1897	1897	and other such equipment that is used in a public grain warehouse or other
1898	1898	commercial grain storage facility, whether used for grain handling, grain
1899	1899	storage, grain refining or processing, or other grain treatment operation;
1900	1900	(ggg) all sales of tangible personal property and services purchased
1901	1901	by or on behalf of the Kansas academy of science, which is exempt from
1902	1902	federal income taxation pursuant to section 501(c)(3) of the federal
1903	1903	internal revenue code of 1986, and used solely by such academy for the
1904	1904	preparation, publication and dissemination of education materials;
1905	1905	(hhh) all sales of tangible personal property and services purchased
1906	1906	by or on behalf of all domestic violence shelters that are member agencies
1907	1907	of the Kansas coalition against sexual and domestic violence;
1908	1908	(iii) all sales of personal property and services purchased by an
1909	1909	organization that is exempt from federal income taxation pursuant to
1910	1910	section 501(c)(3) of the federal internal revenue code of 1986, and such
1911	1911	personal property and services are used by any such organization in the
1912	1912	collection, storage and distribution of food products to nonprofit
1913	1913	organizations that distribute such food products to persons pursuant to a
1914	1914	food distribution program on a charitable basis without fee or charge, and
1915	1915	all sales of tangible personal property or services purchased by a
1916	1916	contractor for the purpose of constructing, equipping, reconstructing,
1917	1917	maintaining, repairing, enlarging, furnishing or remodeling facilities used
1918	1918	for the collection and storage of such food products for any such
1919	1919	organization which is exempt from federal income taxation pursuant to
1920	1920	section 501(c)(3) of the federal internal revenue code of 1986, that would
1921	1921	be exempt from taxation under the provisions of this section if purchased
1922	1922	directly by such organization. Nothing in this subsection shall be deemed
1923	1923	to exempt the purchase of any construction machinery, equipment or tools
1924	1924	used in the constructing, equipping, reconstructing, maintaining, repairing,
1925	1925	enlarging, furnishing or remodeling facilities for any such organization.
1926	1926	When any such organization shall contract for the purpose of constructing,
1927	1927	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1928	1928	remodeling facilities, it shall obtain from the state and furnish to the
1929	1929	contractor an exemption certificate for the project involved, and the
1930	1930	contractor may purchase materials for incorporation in such project. The
1931	1931	contractor shall furnish the number of such certificate to all suppliers from
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1933	1933	2
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1972	1972	41
1973	1973	42
1974	1974	43 HB 2081 24
1975	1975	whom such purchases are made, and such suppliers shall execute invoices
1976	1976	covering the same bearing the number of such certificate. Upon
1977	1977	completion of the project the contractor shall furnish to such organization
1978	1978	concerned a sworn statement, on a form to be provided by the director of
1979	1979	taxation, that all purchases so made were entitled to exemption under this
1980	1980	subsection. All invoices shall be held by the contractor for a period of five
1981	1981	years and shall be subject to audit by the director of taxation. If any
1982	1982	materials purchased under such a certificate are found not to have been
1983	1983	incorporated in such facilities or not to have been returned for credit or the
1984	1984	sales or compensating tax otherwise imposed upon such materials that will
1985	1985	not be so incorporated in such facilities reported and paid by such
1986	1986	contractor to the director of taxation not later than the 20
1987	1987	th
1988	1988	day of the
1989	1989	month following the close of the month in which it shall be determined
1990	1990	that such materials will not be used for the purpose for which such
1991	1991	certificate was issued, such organization concerned shall be liable for tax
1992	1992	on all materials purchased for the project, and upon payment thereof it
1993	1993	may recover the same from the contractor together with reasonable
1994	1994	attorney fees. Any contractor or any agent, employee or subcontractor
1995	1995	thereof, who shall use or otherwise dispose of any materials purchased
1996	1996	under such a certificate for any purpose other than that for which such a
1997	1997	certificate is issued without the payment of the sales or compensating tax
1998	1998	otherwise imposed upon such materials, shall be guilty of a misdemeanor
1999	1999	and, upon conviction therefor, shall be subject to the penalties provided for
2000	2000	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
2001	2001	July 1, 2005, but prior to the effective date of this act upon the gross
2002	2002	receipts received from any sale exempted by the amendatory provisions of
2003	2003	this subsection shall be refunded. Each claim for a sales tax refund shall be
2004	2004	verified and submitted to the director of taxation upon forms furnished by
2005	2005	the director and shall be accompanied by any additional documentation
2006	2006	required by the director. The director shall review each claim and shall
2007	2007	refund that amount of sales tax paid as determined under the provisions of
2008	2008	this subsection. All refunds shall be paid from the sales tax refund fund
2009	2009	upon warrants of the director of accounts and reports pursuant to vouchers
2010	2010	approved by the director or the director's designee;
2011	2011	(jjj) all sales of dietary supplements dispensed pursuant to a
2012	2012	prescription order by a licensed practitioner or a mid-level practitioner as
2013	2013	defined by K.S.A. 65-1626, and amendments thereto. As used in this
2014	2014	subsection, "dietary supplement" means any product, other than tobacco,
2015	2015	intended to supplement the diet that: (1) Contains one or more of the
2016	2016	following dietary ingredients: A vitamin, a mineral, an herb or other
2017	2017	botanical, an amino acid, a dietary substance for use by humans to
2018	2018	supplement the diet by increasing the total dietary intake or a concentrate,
2019	2019	metabolite, constituent, extract or combination of any such ingredient; (2)
2020	2020	1
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2058	2058	39
2059	2059	40
2060	2060	41
2061	2061	42
2062	2062	43 HB 2081 25
2063	2063	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
2064	2064	liquid form, or if not intended for ingestion, in such a form, is not
2065	2065	represented as conventional food and is not represented for use as a sole
2066	2066	item of a meal or of the diet; and (3) is required to be labeled as a dietary
2067	2067	supplement, identifiable by the supplemental facts box found on the label
2068	2068	and as required pursuant to 21 C.F.R. § 101.36;
2069	2069	(lll) all sales of tangible personal property and services purchased by
2070	2070	special olympics Kansas, inc. for the purpose of providing year-round
2071	2071	sports training and athletic competition in a variety of olympic-type sports
2072	2072	for individuals with intellectual disabilities by giving them continuing
2073	2073	opportunities to develop physical fitness, demonstrate courage, experience
2074	2074	joy and participate in a sharing of gifts, skills and friendship with their
2075	2075	families, other special olympics athletes and the community, and activities
2076	2076	provided or sponsored by such organization, and all sales of tangible
2077	2077	personal property by or on behalf of any such organization;
2078	2078	(mmm) all sales of tangible personal property purchased by or on
2079	2079	behalf of the Marillac center, inc., which is exempt from federal income
2080	2080	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2081	2081	for the purpose of providing psycho-social-biological and special
2082	2082	education services to children, and all sales of any such property by or on
2083	2083	behalf of such organization for such purpose;
2084	2084	(nnn) all sales of tangible personal property and services purchased
2085	2085	by the west Sedgwick county-sunrise rotary club and sunrise charitable
2086	2086	fund for the purpose of constructing a boundless playground which is an
2087	2087	integrated, barrier free and developmentally advantageous play
2088	2088	environment for children of all abilities and disabilities;
2089	2089	(ooo) all sales of tangible personal property by or on behalf of a
2090	2090	public library serving the general public and supported in whole or in part
2091	2091	with tax money or a not-for-profit organization whose purpose is to raise
2092	2092	funds for or provide services or other benefits to any such public library;
2093	2093	(ppp) all sales of tangible personal property and services purchased
2094	2094	by or on behalf of a homeless shelter that is exempt from federal income
2095	2095	taxation pursuant to section 501(c)(3) of the federal income tax code of
2096	2096	1986, and used by any such homeless shelter to provide emergency and
2097	2097	transitional housing for individuals and families experiencing
2098	2098	homelessness, and all sales of any such property by or on behalf of any
2099	2099	such homeless shelter for any such purpose;
2100	2100	(qqq) all sales of tangible personal property and services purchased
2101	2101	by TLC for children and families, inc., hereinafter referred to as TLC,
2102	2102	which is exempt from federal income taxation pursuant to section 501(c)
2103	2103	(3) of the federal internal revenue code of 1986, and such property and
2104	2104	services are used for the purpose of providing emergency shelter and
2105	2105	treatment for abused and neglected children as well as meeting additional
2106	2106	1
2107	2107	2
2108	2108	3
2109	2109	4
2110	2110	5
2111	2111	6
2112	2112	7
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2114	2114	9
2115	2115	10
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2117	2117	12
2118	2118	13
2119	2119	14
2120	2120	15
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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 HB 2081 26
2149	2149	critical needs for children, juveniles and family, and all sales of any such
2150	2150	property by or on behalf of TLC for any such purpose; and all sales of
2151	2151	tangible personal property or services purchased by a contractor for the
2152	2152	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2153	2153	remodeling facilities for the operation of services for TLC for any such
2154	2154	purpose that would be exempt from taxation under the provisions of this
2155	2155	section if purchased directly by TLC. Nothing in this subsection shall be
2156	2156	deemed to exempt the purchase of any construction machinery, equipment
2157	2157	or tools used in the constructing, maintaining, repairing, enlarging,
2158	2158	furnishing or remodeling such facilities for TLC. When TLC contracts for
2159	2159	the purpose of constructing, maintaining, repairing, enlarging, furnishing
2160	2160	or remodeling such facilities, it shall obtain from the state and furnish to
2161	2161	the contractor an exemption certificate for the project involved, and the
2162	2162	contractor may purchase materials for incorporation in such project. The
2163	2163	contractor shall furnish the number of such certificate to all suppliers from
2164	2164	whom such purchases are made, and such suppliers shall execute invoices
2165	2165	covering the same bearing the number of such certificate. Upon
2166	2166	completion of the project the contractor shall furnish to TLC a sworn
2167	2167	statement, on a form to be provided by the director of taxation, that all
2168	2168	purchases so made were entitled to exemption under this subsection. All
2169	2169	invoices shall be held by the contractor for a period of five years and shall
2170	2170	be subject to audit by the director of taxation. If any materials purchased
2171	2171	under such a certificate are found not to have been incorporated in the
2172	2172	building or other project or not to have been returned for credit or the sales
2173	2173	or compensating tax otherwise imposed upon such materials that will not
2174	2174	be so incorporated in the building or other project reported and paid by
2175	2175	such contractor to the director of taxation not later than the 20
2176	2176	th
2177	2177	day of the
2178	2178	month following the close of the month in which it shall be determined
2179	2179	that such materials will not be used for the purpose for which such
2180	2180	certificate was issued, TLC shall be liable for tax on all materials
2181	2181	purchased for the project, and upon payment thereof it may recover the
2182	2182	same from the contractor together with reasonable attorney fees. Any
2183	2183	contractor or any agent, employee or subcontractor thereof, who shall use
2184	2184	or otherwise dispose of any materials purchased under such a certificate
2185	2185	for any purpose other than that for which such a certificate is issued
2186	2186	without the payment of the sales or compensating tax otherwise imposed
2187	2187	upon such materials, shall be guilty of a misdemeanor and, upon
2188	2188	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2189	2189	79-3615(h), and amendments thereto;
2190	2190	(rrr) all sales of tangible personal property and services purchased by
2191	2191	any county law library maintained pursuant to law and sales of tangible
2192	2192	personal property and services purchased by an organization that would
2193	2193	have been exempt from taxation under the provisions of this subsection if
2194	2194	1
2195	2195	2
2196	2196	3
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2232	2232	39
2233	2233	40
2234	2234	41
2235	2235	42
2236	2236	43 HB 2081 27
2237	2237	purchased directly by the county law library for the purpose of providing
2238	2238	legal resources to attorneys, judges, students and the general public, and
2239	2239	all sales of any such property by or on behalf of any such county law
2240	2240	library;
2241	2241	(sss) all sales of tangible personal property and services purchased by
2242	2242	catholic charities or youthville, hereinafter referred to as charitable family
2243	2243	providers, which is exempt from federal income taxation pursuant to
2244	2244	section 501(c)(3) of the federal internal revenue code of 1986, and which
2245	2245	such property and services are used for the purpose of providing
2246	2246	emergency shelter and treatment for abused and neglected children as well
2247	2247	as meeting additional critical needs for children, juveniles and family, and
2248	2248	all sales of any such property by or on behalf of charitable family
2249	2249	providers for any such purpose; and all sales of tangible personal property
2250	2250	or services purchased by a contractor for the purpose of constructing,
2251	2251	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2252	2252	the operation of services for charitable family providers for any such
2253	2253	purpose which would be exempt from taxation under the provisions of this
2254	2254	section if purchased directly by charitable family providers. Nothing in
2255	2255	this subsection shall be deemed to exempt the purchase of any construction
2256	2256	machinery, equipment or tools used in the constructing, maintaining,
2257	2257	repairing, enlarging, furnishing or remodeling such facilities for charitable
2258	2258	family providers. When charitable family providers contracts for the
2259	2259	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2260	2260	remodeling such facilities, it shall obtain from the state and furnish to the
2261	2261	contractor an exemption certificate for the project involved, and the
2262	2262	contractor may purchase materials for incorporation in such project. The
2263	2263	contractor shall furnish the number of such certificate to all suppliers from
2264	2264	whom such purchases are made, and such suppliers shall execute invoices
2265	2265	covering the same bearing the number of such certificate. Upon
2266	2266	completion of the project the contractor shall furnish to charitable family
2267	2267	providers a sworn statement, on a form to be provided by the director of
2268	2268	taxation, that all purchases so made were entitled to exemption under this
2269	2269	subsection. All invoices shall be held by the contractor for a period of five
2270	2270	years and shall be subject to audit by the director of taxation. If any
2271	2271	materials purchased under such a certificate are found not to have been
2272	2272	incorporated in the building or other project or not to have been returned
2273	2273	for credit or the sales or compensating tax otherwise imposed upon such
2274	2274	materials that will not be so incorporated in the building or other project
2275	2275	reported and paid by such contractor to the director of taxation not later
2276	2276	than the 20
2277	2277	th
2278	2278	day of the month following the close of the month in which it
2279	2279	shall be determined that such materials will not be used for the purpose for
2280	2280	which such certificate was issued, charitable family providers shall be
2281	2281	liable for tax on all materials purchased for the project, and upon payment
2282	2282	1
2283	2283	2
2284	2284	3
2285	2285	4
2286	2286	5
2287	2287	6
2288	2288	7
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2311	2311	30
2312	2312	31
2313	2313	32
2314	2314	33
2315	2315	34
2316	2316	35
2317	2317	36
2318	2318	37
2319	2319	38
2320	2320	39
2321	2321	40
2322	2322	41
2323	2323	42
2324	2324	43 HB 2081 28
2325	2325	thereof it may recover the same from the contractor together with
2326	2326	reasonable attorney fees. Any contractor or any agent, employee or
2327	2327	subcontractor thereof, who shall use or otherwise dispose of any materials
2328	2328	purchased under such a certificate for any purpose other than that for
2329	2329	which such a certificate is issued without the payment of the sales or
2330	2330	compensating tax otherwise imposed upon such materials, shall be guilty
2331	2331	of a misdemeanor and, upon conviction therefor, shall be subject to the
2332	2332	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2333	2333	(ttt) all sales of tangible personal property or services purchased by a
2334	2334	contractor for a project for the purpose of restoring, constructing,
2335	2335	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
2336	2336	remodeling a home or facility owned by a nonprofit museum that has been
2337	2337	granted an exemption pursuant to subsection (qq), which such home or
2338	2338	facility is located in a city that has been designated as a qualified
2339	2339	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
2340	2340	amendments thereto, and which such project is related to the purposes of
2341	2341	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
2342	2342	exempt from taxation under the provisions of this section if purchased
2343	2343	directly by such nonprofit museum. Nothing in this subsection shall be
2344	2344	deemed to exempt the purchase of any construction machinery, equipment
2345	2345	or tools used in the restoring, constructing, equipping, reconstructing,
2346	2346	maintaining, repairing, enlarging, furnishing or remodeling a home or
2347	2347	facility for any such nonprofit museum. When any such nonprofit museum
2348	2348	shall contract for the purpose of restoring, constructing, equipping,
2349	2349	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2350	2350	a home or facility, it shall obtain from the state and furnish to the
2351	2351	contractor an exemption certificate for the project involved, and the
2352	2352	contractor may purchase materials for incorporation in such project. The
2353	2353	contractor shall furnish the number of such certificates to all suppliers
2354	2354	from whom such purchases are made, and such suppliers shall execute
2355	2355	invoices covering the same bearing the number of such certificate. Upon
2356	2356	completion of the project, the contractor shall furnish to such nonprofit
2357	2357	museum a sworn statement on a form to be provided by the director of
2358	2358	taxation that all purchases so made were entitled to exemption under this
2359	2359	subsection. All invoices shall be held by the contractor for a period of five
2360	2360	years and shall be subject to audit by the director of taxation. If any
2361	2361	materials purchased under such a certificate are found not to have been
2362	2362	incorporated in the building or other project or not to have been returned
2363	2363	for credit or the sales or compensating tax otherwise imposed upon such
2364	2364	materials that will not be so incorporated in a home or facility or other
2365	2365	project reported and paid by such contractor to the director of taxation not
2366	2366	later than the 20
2367	2367	th
2368	2368	day of the month following the close of the month in
2369	2369	which it shall be determined that such materials will not be used for the
2370	2370	1
2371	2371	2
2372	2372	3
2373	2373	4
2374	2374	5
2375	2375	6
2376	2376	7
2377	2377	8
2378	2378	9
2379	2379	10
2380	2380	11
2381	2381	12
2382	2382	13
2383	2383	14
2384	2384	15
2385	2385	16
2386	2386	17
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2393	2393	24
2394	2394	25
2395	2395	26
2396	2396	27
2397	2397	28
2398	2398	29
2399	2399	30
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2402	2402	33
2403	2403	34
2404	2404	35
2405	2405	36
2406	2406	37
2407	2407	38
2408	2408	39
2409	2409	40
2410	2410	41
2411	2411	42
2412	2412	43 HB 2081 29
2413	2413	purpose for which such certificate was issued, such nonprofit museum
2414	2414	shall be liable for tax on all materials purchased for the project, and upon
2415	2415	payment thereof it may recover the same from the contractor together with
2416	2416	reasonable attorney fees. Any contractor or any agent, employee or
2417	2417	subcontractor thereof, who shall use or otherwise dispose of any materials
2418	2418	purchased under such a certificate for any purpose other than that for
2419	2419	which such a certificate is issued without the payment of the sales or
2420	2420	compensating tax otherwise imposed upon such materials, shall be guilty
2421	2421	of a misdemeanor and, upon conviction therefor, shall be subject to the
2422	2422	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2423	2423	(uuu) all sales of tangible personal property and services purchased
2424	2424	by Kansas children's service league, hereinafter referred to as KCSL,
2425	2425	which is exempt from federal income taxation pursuant to section 501(c)
2426	2426	(3) of the federal internal revenue code of 1986, and which such property
2427	2427	and services are used for the purpose of providing for the prevention and
2428	2428	treatment of child abuse and maltreatment as well as meeting additional
2429	2429	critical needs for children, juveniles and family, and all sales of any such
2430	2430	property by or on behalf of KCSL for any such purpose; and all sales of
2431	2431	tangible personal property or services purchased by a contractor for the
2432	2432	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2433	2433	remodeling facilities for the operation of services for KCSL for any such
2434	2434	purpose that would be exempt from taxation under the provisions of this
2435	2435	section if purchased directly by KCSL. Nothing in this subsection shall be
2436	2436	deemed to exempt the purchase of any construction machinery, equipment
2437	2437	or tools used in the constructing, maintaining, repairing, enlarging,
2438	2438	furnishing or remodeling such facilities for KCSL. When KCSL contracts
2439	2439	for the purpose of constructing, maintaining, repairing, enlarging,
2440	2440	furnishing or remodeling such facilities, it shall obtain from the state and
2441	2441	furnish to the contractor an exemption certificate for the project involved,
2442	2442	and the contractor may purchase materials for incorporation in such
2443	2443	project. The contractor shall furnish the number of such certificate to all
2444	2444	suppliers from whom such purchases are made, and such suppliers shall
2445	2445	execute invoices covering the same bearing the number of such certificate.
2446	2446	Upon completion of the project the contractor shall furnish to KCSL a
2447	2447	sworn statement, on a form to be provided by the director of taxation, that
2448	2448	all purchases so made were entitled to exemption under this subsection.
2449	2449	All invoices shall be held by the contractor for a period of five years and
2450	2450	shall be subject to audit by the director of taxation. If any materials
2451	2451	purchased under such a certificate are found not to have been incorporated
2452	2452	in the building or other project or not to have been returned for credit or
2453	2453	the sales or compensating tax otherwise imposed upon such materials that
2454	2454	will not be so incorporated in the building or other project reported and
2455	2455	paid by such contractor to the director of taxation not later than the 20
2456	2456	th
2457	2457	1
2458	2458	2
2459	2459	3
2460	2460	4
2461	2461	5
2462	2462	6
2463	2463	7
2464	2464	8
2465	2465	9
2466	2466	10
2467	2467	11
2468	2468	12
2469	2469	13
2470	2470	14
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2485	2485	29
2486	2486	30
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2495	2495	39
2496	2496	40
2497	2497	41
2498	2498	42
2499	2499	43 HB 2081 30
2500	2500	day of the month following the close of the month in which it shall be
2501	2501	determined that such materials will not be used for the purpose for which
2502	2502	such certificate was issued, KCSL shall be liable for tax on all materials
2503	2503	purchased for the project, and upon payment thereof it may recover the
2504	2504	same from the contractor together with reasonable attorney fees. Any
2505	2505	contractor or any agent, employee or subcontractor thereof, who shall use
2506	2506	or otherwise dispose of any materials purchased under such a certificate
2507	2507	for any purpose other than that for which such a certificate is issued
2508	2508	without the payment of the sales or compensating tax otherwise imposed
2509	2509	upon such materials, shall be guilty of a misdemeanor and, upon
2510	2510	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2511	2511	79-3615(h), and amendments thereto;
2512	2512	(vvv) all sales of tangible personal property or services, including the
2513	2513	renting and leasing of tangible personal property or services, purchased by
2514	2514	jazz in the woods, inc., a Kansas corporation that is exempt from federal
2515	2515	income taxation pursuant to section 501(c)(3) of the federal internal
2516	2516	revenue code, for the purpose of providing jazz in the woods, an event
2517	2517	benefiting children-in-need and other nonprofit charities assisting such
2518	2518	children, and all sales of any such property by or on behalf of such
2519	2519	organization for such purpose;
2520	2520	(www) all sales of tangible personal property purchased by or on
2521	2521	behalf of the Frontenac education foundation, which is exempt from
2522	2522	federal income taxation pursuant to section 501(c)(3) of the federal
2523	2523	internal revenue code, for the purpose of providing education support for
2524	2524	students, and all sales of any such property by or on behalf of such
2525	2525	organization for such purpose;
2526	2526	(xxx) all sales of personal property and services purchased by the
2527	2527	booth theatre foundation, inc., an organization, which is exempt from
2528	2528	federal income taxation pursuant to section 501(c)(3) of the federal
2529	2529	internal revenue code of 1986, and which such personal property and
2530	2530	services are used by any such organization in the constructing, equipping,
2531	2531	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2532	2532	of the booth theatre, and all sales of tangible personal property or services
2533	2533	purchased by a contractor for the purpose of constructing, equipping,
2534	2534	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2535	2535	the booth theatre for such organization, that would be exempt from
2536	2536	taxation under the provisions of this section if purchased directly by such
2537	2537	organization. Nothing in this subsection shall be deemed to exempt the
2538	2538	purchase of any construction machinery, equipment or tools used in the
2539	2539	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
2540	2540	furnishing or remodeling facilities for any such organization. When any
2541	2541	such organization shall contract for the purpose of constructing, equipping,
2542	2542	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2543	2543	1
2544	2544	2
2545	2545	3
2546	2546	4
2547	2547	5
2548	2548	6
2549	2549	7
2550	2550	8
2551	2551	9
2552	2552	10
2553	2553	11
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2558	2558	16
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2561	2561	19
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2567	2567	25
2568	2568	26
2569	2569	27
2570	2570	28
2571	2571	29
2572	2572	30
2573	2573	31
2574	2574	32
2575	2575	33
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2577	2577	35
2578	2578	36
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2581	2581	39
2582	2582	40
2583	2583	41
2584	2584	42
2585	2585	43 HB 2081 31
2586	2586	facilities, it shall obtain from the state and furnish to the contractor an
2587	2587	exemption certificate for the project involved, and the contractor may
2588	2588	purchase materials for incorporation in such project. The contractor shall
2589	2589	furnish the number of such certificate to all suppliers from whom such
2590	2590	purchases are made, and such suppliers shall execute invoices covering the
2591	2591	same bearing the number of such certificate. Upon completion of the
2592	2592	project the contractor shall furnish to such organization concerned a sworn
2593	2593	statement, on a form to be provided by the director of taxation, that all
2594	2594	purchases so made were entitled to exemption under this subsection. All
2595	2595	invoices shall be held by the contractor for a period of five years and shall
2596	2596	be subject to audit by the director of taxation. If any materials purchased
2597	2597	under such a certificate are found not to have been incorporated in such
2598	2598	facilities or not to have been returned for credit or the sales or
2599	2599	compensating tax otherwise imposed upon such materials that will not be
2600	2600	so incorporated in such facilities reported and paid by such contractor to
2601	2601	the director of taxation not later than the 20
2602	2602	th
2603	2603	day of the month following
2604	2604	the close of the month in which it shall be determined that such materials
2605	2605	will not be used for the purpose for which such certificate was issued, such
2606	2606	organization concerned shall be liable for tax on all materials purchased
2607	2607	for the project, and upon payment thereof it may recover the same from
2608	2608	the contractor together with reasonable attorney fees. Any contractor or
2609	2609	any agent, employee or subcontractor thereof, who shall use or otherwise
2610	2610	dispose of any materials purchased under such a certificate for any purpose
2611	2611	other than that for which such a certificate is issued without the payment
2612	2612	of the sales or compensating tax otherwise imposed upon such materials,
2613	2613	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2614	2614	subject to the penalties provided for in K.S.A. 79-3615(h), and
2615	2615	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
2616	2616	to the effective date of this act upon the gross receipts received from any
2617	2617	sale which would have been exempted by the provisions of this subsection
2618	2618	had such sale occurred after the effective date of this act shall be refunded.
2619	2619	Each claim for a sales tax refund shall be verified and submitted to the
2620	2620	director of taxation upon forms furnished by the director and shall be
2621	2621	accompanied by any additional documentation required by the director.
2622	2622	The director shall review each claim and shall refund that amount of sales
2623	2623	tax paid as determined under the provisions of this subsection. All refunds
2624	2624	shall be paid from the sales tax refund fund upon warrants of the director
2625	2625	of accounts and reports pursuant to vouchers approved by the director or
2626	2626	the director's designee;
2627	2627	(yyy) all sales of tangible personal property and services purchased
2628	2628	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
2629	2629	which is exempt from federal income taxation pursuant to section 501(c)
2630	2630	(3) of the federal internal revenue code of 1986, and which such property
2631	2631	1
2632	2632	2
2633	2633	3
2634	2634	4
2635	2635	5
2636	2636	6
2637	2637	7
2638	2638	8
2639	2639	9
2640	2640	10
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2642	2642	12
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2644	2644	14
2645	2645	15
2646	2646	16
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2654	2654	24
2655	2655	25
2656	2656	26
2657	2657	27
2658	2658	28
2659	2659	29
2660	2660	30
2661	2661	31
2662	2662	32
2663	2663	33
2664	2664	34
2665	2665	35
2666	2666	36
2667	2667	37
2668	2668	38
2669	2669	39
2670	2670	40
2671	2671	41
2672	2672	42
2673	2673	43 HB 2081 32
2674	2674	and services are used for the purpose of encouraging private philanthropy
2675	2675	to further the vision, values, and goals of TLC for children and families,
2676	2676	inc.; and all sales of such property and services by or on behalf of TLC
2677	2677	charities for any such purpose and all sales of tangible personal property or
2678	2678	services purchased by a contractor for the purpose of constructing,
2679	2679	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2680	2680	the operation of services for TLC charities for any such purpose that would
2681	2681	be exempt from taxation under the provisions of this section if purchased
2682	2682	directly by TLC charities. Nothing in this subsection shall be deemed to
2683	2683	exempt the purchase of any construction machinery, equipment or tools
2684	2684	used in the constructing, maintaining, repairing, enlarging, furnishing or
2685	2685	remodeling such facilities for TLC charities. When TLC charities contracts
2686	2686	for the purpose of constructing, maintaining, repairing, enlarging,
2687	2687	furnishing or remodeling such facilities, it shall obtain from the state and
2688	2688	furnish to the contractor an exemption certificate for the project involved,
2689	2689	and the contractor may purchase materials for incorporation in such
2690	2690	project. The contractor shall furnish the number of such certificate to all
2691	2691	suppliers from whom such purchases are made, and such suppliers shall
2692	2692	execute invoices covering the same bearing the number of such certificate.
2693	2693	Upon completion of the project the contractor shall furnish to TLC
2694	2694	charities a sworn statement, on a form to be provided by the director of
2695	2695	taxation, that all purchases so made were entitled to exemption under this
2696	2696	subsection. All invoices shall be held by the contractor for a period of five
2697	2697	years and shall be subject to audit by the director of taxation. If any
2698	2698	materials purchased under such a certificate are found not to have been
2699	2699	incorporated in the building or other project or not to have been returned
2700	2700	for credit or the sales or compensating tax otherwise imposed upon such
2701	2701	materials that will not be incorporated into the building or other project
2702	2702	reported and paid by such contractor to the director of taxation not later
2703	2703	than the 20
2704	2704	th
2705	2705	day of the month following the close of the month in which it
2706	2706	shall be determined that such materials will not be used for the purpose for
2707	2707	which such certificate was issued, TLC charities shall be liable for tax on
2708	2708	all materials purchased for the project, and upon payment thereof it may
2709	2709	recover the same from the contractor together with reasonable attorney
2710	2710	fees. Any contractor or any agent, employee or subcontractor thereof, who
2711	2711	shall use or otherwise dispose of any materials purchased under such a
2712	2712	certificate for any purpose other than that for which such a certificate is
2713	2713	issued without the payment of the sales or compensating tax otherwise
2714	2714	imposed upon such materials, shall be guilty of a misdemeanor and, upon
2715	2715	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2716	2716	79-3615(h), and amendments thereto;
2717	2717	(zzz) all sales of tangible personal property purchased by the rotary
2718	2718	club of shawnee foundation, which is exempt from federal income taxation
2719	2719	1
2720	2720	2
2721	2721	3
2722	2722	4
2723	2723	5
2724	2724	6
2725	2725	7
2726	2726	8
2727	2727	9
2728	2728	10
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2730	2730	12
2731	2731	13
2732	2732	14
2733	2733	15
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2742	2742	24
2743	2743	25
2744	2744	26
2745	2745	27
2746	2746	28
2747	2747	29
2748	2748	30
2749	2749	31
2750	2750	32
2751	2751	33
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 HB 2081 33
2762	2762	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2763	2763	as amended, used for the purpose of providing contributions to community
2764	2764	service organizations and scholarships;
2765	2765	(aaaa) all sales of personal property and services purchased by or on
2766	2766	behalf of victory in the valley, 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 a cancer support group and services for
2769	2769	persons with cancer, and all sales of any such property by or on behalf of
2770	2770	any such organization for any such purpose;
2771	2771	(bbbb) all sales of entry or participation fees, charges or tickets by
2772	2772	Guadalupe health foundation, which is exempt from federal income
2773	2773	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2774	2774	for such organization's annual fundraising event which purpose is to
2775	2775	provide health care services for uninsured workers;
2776	2776	(cccc) all sales of tangible personal property or services purchased by
2777	2777	or on behalf of wayside waifs, inc., which is exempt from federal income
2778	2778	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2779	2779	for the purpose of providing such organization's annual fundraiser, an
2780	2780	event whose purpose is to support the care of homeless and abandoned
2781	2781	animals, animal adoption efforts, education programs for children and
2782	2782	efforts to reduce animal over-population and animal welfare services, and
2783	2783	all sales of any such property, including entry or participation fees or
2784	2784	charges, by or on behalf of such organization for such purpose;
2785	2785	(dddd) all sales of tangible personal property or services purchased
2786	2786	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
2787	2787	of which are exempt from federal income taxation pursuant to section
2788	2788	501(c)(3) of the federal internal revenue code, for the purpose of providing
2789	2789	education, training and employment opportunities for people with
2790	2790	disabilities and other barriers to employment;
2791	2791	(eeee) all sales of tangible personal property or services purchased by
2792	2792	or on behalf of all American beef battalion, inc., which is exempt from
2793	2793	federal income taxation pursuant to section 501(c)(3) of the federal
2794	2794	internal revenue code, for the purpose of educating, promoting and
2795	2795	participating as a contact group through the beef cattle industry in order to
2796	2796	carry out such projects that provide support and morale to members of the
2797	2797	United States armed forces and military services;
2798	2798	(ffff) all sales of tangible personal property and services purchased by
2799	2799	sheltered living, inc., which is exempt from federal income taxation
2800	2800	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2801	2801	and which such property and services are used for the purpose of
2802	2802	providing residential and day services for people with developmental
2803	2803	disabilities or intellectual disability, or both, and all sales of any such
2804	2804	property by or on behalf of sheltered living, inc., for any such purpose; and
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 HB 2081 34
2848	2848	all sales of tangible personal property or services purchased by a
2849	2849	contractor for the purpose of rehabilitating, constructing, maintaining,
2850	2850	repairing, enlarging, furnishing or remodeling homes and facilities for
2851	2851	sheltered living, inc., for any such purpose that would be exempt from
2852	2852	taxation under the provisions of this section if purchased directly by
2853	2853	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
2854	2854	the purchase of any construction machinery, equipment or tools used in the
2855	2855	constructing, maintaining, repairing, enlarging, furnishing or remodeling
2856	2856	such homes and facilities for sheltered living, inc. When sheltered living,
2857	2857	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
2858	2858	repairing, enlarging, furnishing or remodeling such homes and facilities, it
2859	2859	shall obtain from the state and furnish to the contractor an exemption
2860	2860	certificate for the project involved, and the contractor may purchase
2861	2861	materials for incorporation in such project. The contractor shall furnish the
2862	2862	number of such certificate to all suppliers from whom such purchases are
2863	2863	made, and such suppliers shall execute invoices covering the same bearing
2864	2864	the number of such certificate. Upon completion of the project the
2865	2865	contractor shall furnish to sheltered living, inc., a sworn statement, on a
2866	2866	form to be provided by the director of taxation, that all purchases so made
2867	2867	were entitled to exemption under this subsection. All invoices shall be held
2868	2868	by the contractor for a period of five years and shall be subject to audit by
2869	2869	the director of taxation. If any materials purchased under such a certificate
2870	2870	are found not to have been incorporated in the building or other project or
2871	2871	not to have been returned for credit or the sales or compensating tax
2872	2872	otherwise imposed upon such materials that will not be so incorporated in
2873	2873	the building or other project reported and paid by such contractor to the
2874	2874	director of taxation not later than the 20
2875	2875	th
2876	2876	day of the month following the
2877	2877	close of the month in which it shall be determined that such materials will
2878	2878	not be used for the purpose for which such certificate was issued, sheltered
2879	2879	living, inc., shall be liable for tax on all materials purchased for the
2880	2880	project, and upon payment thereof it may recover the same from the
2881	2881	contractor together with reasonable attorney fees. Any contractor or any
2882	2882	agent, employee or subcontractor thereof, who shall use or otherwise
2883	2883	dispose of any materials purchased under such a certificate for any purpose
2884	2884	other than that for which such a certificate is issued without the payment
2885	2885	of the sales or compensating tax otherwise imposed upon such materials,
2886	2886	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2887	2887	subject to the penalties provided for in K.S.A. 79-3615(h), and
2888	2888	amendments thereto;
2889	2889	(gggg) all sales of game birds for which the primary purpose is use in
2890	2890	hunting;
2891	2891	(hhhh) all sales of tangible personal property or services purchased
2892	2892	on or after July 1, 2014, for the purpose of and in conjunction with
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 HB 2081 35
2936	2936	constructing, reconstructing, enlarging or remodeling a business identified
2937	2937	under the North American industry classification system (NAICS)
2938	2938	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
2939	2939	installation of machinery and equipment purchased for installation at any
2940	2940	such business. The exemption provided in this subsection shall not apply
2941	2941	to projects that have actual total costs less than $50,000. When a person
2942	2942	contracts for the construction, reconstruction, enlargement or remodeling
2943	2943	of any such business, such person shall obtain from the state and furnish to
2944	2944	the contractor an exemption certificate for the project involved, and the
2945	2945	contractor may purchase materials, machinery and equipment for
2946	2946	incorporation in such project. The contractor shall furnish the number of
2947	2947	such certificates to all suppliers from whom such purchases are made, and
2948	2948	such suppliers shall execute invoices covering the same bearing the
2949	2949	number of such certificate. Upon completion of the project, the contractor
2950	2950	shall furnish to the owner of the business a sworn statement, on a form to
2951	2951	be provided by the director of taxation, that all purchases so made were
2952	2952	entitled to exemption under this subsection. All invoices shall be held by
2953	2953	the contractor for a period of five years and shall be subject to audit by the
2954	2954	director of taxation. Any contractor or any agent, employee or
2955	2955	subcontractor of the contractor, who shall use or otherwise dispose of any
2956	2956	materials, machinery or equipment purchased under such a certificate for
2957	2957	any purpose other than that for which such a certificate is issued without
2958	2958	the payment of the sales or compensating tax otherwise imposed thereon,
2959	2959	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2960	2960	subject to the penalties provided for in K.S.A. 79-3615(h), and
2961	2961	amendments thereto;
2962	2962	(iiii) all sales of tangible personal property or services purchased by a
2963	2963	contractor for the purpose of constructing, maintaining, repairing,
2964	2964	enlarging, furnishing or remodeling facilities for the operation of services
2965	2965	for Wichita children's home for any such purpose that would be exempt
2966	2966	from taxation under the provisions of this section if purchased directly by
2967	2967	Wichita children's home. Nothing in this subsection shall be deemed to
2968	2968	exempt the purchase of any construction machinery, equipment or tools
2969	2969	used in the constructing, maintaining, repairing, enlarging, furnishing or
2970	2970	remodeling such facilities for Wichita children's home. When Wichita
2971	2971	children's home contracts for the purpose of constructing, maintaining,
2972	2972	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
2973	2973	from the state and furnish to the contractor an exemption certificate for the
2974	2974	project involved, and the contractor may purchase materials for
2975	2975	incorporation in such project. The contractor shall furnish the number of
2976	2976	such certificate to all suppliers from whom such purchases are made, and
2977	2977	such suppliers shall execute invoices covering the same bearing the
2978	2978	number of such certificate. Upon completion of the project, the contractor
2979	2979	1
2980	2980	2
2981	2981	3
2982	2982	4
2983	2983	5
2984	2984	6
2985	2985	7
2986	2986	8
2987	2987	9
2988	2988	10
2989	2989	11
2990	2990	12
2991	2991	13
2992	2992	14
2993	2993	15
2994	2994	16
2995	2995	17
2996	2996	18
2997	2997	19
2998	2998	20
2999	2999	21
3000	3000	22
3001	3001	23
3002	3002	24
3003	3003	25
3004	3004	26
3005	3005	27
3006	3006	28
3007	3007	29
3008	3008	30
3009	3009	31
3010	3010	32
3011	3011	33
3012	3012	34
3013	3013	35
3014	3014	36
3015	3015	37
3016	3016	38
3017	3017	39
3018	3018	40
3019	3019	41
3020	3020	42
3021	3021	43 HB 2081 36
3022	3022	shall furnish to Wichita children's home a sworn statement, on a form to be
3023	3023	provided by the director of taxation, that all purchases so made were
3024	3024	entitled to exemption under this subsection. All invoices shall be held by
3025	3025	the contractor for a period of five years and shall be subject to audit by the
3026	3026	director of taxation. If any materials purchased under such a certificate are
3027	3027	found not to have been incorporated in the building or other project or not
3028	3028	to have been returned for credit or the sales or compensating tax otherwise
3029	3029	imposed upon such materials that will not be so incorporated in the
3030	3030	building or other project reported and paid by such contractor to the
3031	3031	director of taxation not later than the 20
3032	3032	th
3033	3033	day of the month following the
3034	3034	close of the month in which it shall be determined that such materials will
3035	3035	not be used for the purpose for which such certificate was issued, Wichita
3036	3036	children's home shall be liable for the tax on all materials purchased for the
3037	3037	project, and upon payment, it may recover the same from the contractor
3038	3038	together with reasonable attorney fees. Any contractor or any agent,
3039	3039	employee or subcontractor, who shall use or otherwise dispose of any
3040	3040	materials purchased under such a certificate for any purpose other than that
3041	3041	for which such a certificate is issued without the payment of the sales or
3042	3042	compensating tax otherwise imposed upon such materials, shall be guilty
3043	3043	of a misdemeanor and, upon conviction, shall be subject to the penalties
3044	3044	provided for in K.S.A. 79-3615(h), and amendments thereto;
3045	3045	(jjjj) all sales of tangible personal property or services purchased by
3046	3046	or on behalf of the beacon, inc., that is exempt from federal income
3047	3047	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3048	3048	for the purpose of providing those desiring help with food, shelter, clothing
3049	3049	and other necessities of life during times of special need;
3050	3050	(kkkk) all sales of tangible personal property and services purchased
3051	3051	by or on behalf of reaching out from within, inc., which is exempt from
3052	3052	federal income taxation pursuant to section 501(c)(3) of the federal
3053	3053	internal revenue code, for the purpose of sponsoring self-help programs for
3054	3054	incarcerated persons that will enable such incarcerated persons to become
3055	3055	role models for non-violence while in correctional facilities and productive
3056	3056	family members and citizens upon return to the community;
3057	3057	(llll) all sales of tangible personal property and services purchased by
3058	3058	Gove county healthcare endowment foundation, inc., which is exempt
3059	3059	from federal income taxation pursuant to section 501(c)(3) of the federal
3060	3060	internal revenue code of 1986, and which such property and services are
3061	3061	used for the purpose of constructing and equipping an airport in Quinter,
3062	3062	Kansas, and all sales of tangible personal property or services purchased
3063	3063	by a contractor for the purpose of constructing and equipping an airport in
3064	3064	Quinter, Kansas, for such organization, that would be exempt from
3065	3065	taxation under the provisions of this section if purchased directly by such
3066	3066	organization. Nothing in this subsection shall be deemed to exempt the
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 HB 2081 37
3110	3110	purchase of any construction machinery, equipment or tools used in the
3111	3111	constructing or equipping of facilities for such organization. When such
3112	3112	organization shall contract for the purpose of constructing or equipping an
3113	3113	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
3114	3114	contractor an exemption certificate for the project involved, and the
3115	3115	contractor may purchase materials for incorporation in such project. The
3116	3116	contractor shall furnish the number of such certificate to all suppliers from
3117	3117	whom such purchases are made, and such suppliers shall execute invoices
3118	3118	covering the same bearing the number of such certificate. Upon
3119	3119	completion of the project, the contractor shall furnish to such organization
3120	3120	concerned a sworn statement, on a form to be provided by the director of
3121	3121	taxation, that all purchases so made were entitled to exemption under this
3122	3122	subsection. All invoices shall be held by the contractor for a period of five
3123	3123	years and shall be subject to audit by the director of taxation. If any
3124	3124	materials purchased under such a certificate are found not to have been
3125	3125	incorporated in such facilities or not to have been returned for credit or the
3126	3126	sales or compensating tax otherwise imposed upon such materials that will
3127	3127	not be so incorporated in such facilities reported and paid by such
3128	3128	contractor to the director of taxation no later than the 20
3129	3129	th
3130	3130	day of the month
3131	3131	following the close of the month in which it shall be determined that such
3132	3132	materials will not be used for the purpose for which such certificate was
3133	3133	issued, such organization concerned shall be liable for tax on all materials
3134	3134	purchased for the project, and upon payment thereof it may recover the
3135	3135	same from the contractor together with reasonable attorney fees. Any
3136	3136	contractor or any agent, employee or subcontractor thereof, who purchased
3137	3137	under such a certificate for any purpose other than that for which such a
3138	3138	certificate is issued without the payment of the sales or compensating tax
3139	3139	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3140	3140	and, upon conviction therefor, shall be subject to the penalties provided for
3141	3141	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
3142	3142	subsection shall expire and have no effect on and after July 1, 2019;
3143	3143	(mmmm) all sales of gold or silver coins; and palladium, platinum,
3144	3144	gold or silver bullion. For the purposes of this subsection, "bullion" means
3145	3145	bars, ingots or commemorative medallions of gold, silver, platinum,
3146	3146	palladium, or a combination thereof, for which the value of the metal
3147	3147	depends on its content and not the form;
3148	3148	(nnnn) all sales of tangible personal property or services purchased
3149	3149	by friends of hospice of Jefferson county, an organization that is exempt
3150	3150	from federal income taxation pursuant to section 501(c)(3) of the federal
3151	3151	internal revenue code of 1986, for the purpose of providing support to the
3152	3152	Jefferson county hospice agency in end-of-life care of Jefferson county
3153	3153	families, friends and neighbors, and all sales of entry or participation fees,
3154	3154	charges or tickets by friends of hospice of Jefferson county for 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 HB 2081 38
3198	3198	organization's fundraising event for such purpose;
3199	3199	(oooo) all sales of tangible personal property or services purchased
3200	3200	for the purpose of and in conjunction with constructing, reconstructing,
3201	3201	enlarging or remodeling a qualified business facility by a qualified firm or
3202	3202	qualified supplier that meets the requirements established in K.S.A. 2024
3203	3203	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
3204	3204	been approved for a project exemption certificate by the secretary of
3205	3205	commerce, and the sale and installation of machinery and equipment
3206	3206	purchased by such qualified firm or qualified supplier for installation at
3207	3207	any such qualified business facility. When a person shall contract for the
3208	3208	construction, reconstruction, enlargement or remodeling of any such
3209	3209	qualified business facility, such person shall obtain from the state and
3210	3210	furnish to the contractor an exemption certificate for the project involved,
3211	3211	and the contractor may purchase materials, machinery and equipment for
3212	3212	incorporation in such project. The contractor shall furnish the number of
3213	3213	such certificates to all suppliers from whom such purchases are made, and
3214	3214	such suppliers shall execute invoices covering the same bearing the
3215	3215	number of such certificate. Upon completion of the project, the contractor
3216	3216	shall furnish to the owner of the qualified firm or qualified supplier a
3217	3217	sworn statement, on a form to be provided by the director of taxation, that
3218	3218	all purchases so made were entitled to exemption under this subsection.
3219	3219	All invoices shall be held by the contractor for a period of five years and
3220	3220	shall be subject to audit by the director of taxation. Any contractor or any
3221	3221	agent, employee or subcontractor thereof who shall use or otherwise
3222	3222	dispose of any materials, machinery or equipment purchased under such a
3223	3223	certificate for any purpose other than that for which such a certificate is
3224	3224	issued without the payment of the sales or compensating tax otherwise
3225	3225	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
3226	3226	therefor, shall be subject to the penalties provided for in K.S.A. 79-
3227	3227	3615(h), and amendments thereto. As used in this subsection, "qualified
3228	3228	business facility," "qualified firm" and "qualified supplier" mean the same
3229	3229	as defined in K.S.A. 2024 Supp. 74-50,311, and amendments thereto;
3230	3230	(pppp) (1) all sales of tangible personal property or services
3231	3231	purchased by a not-for-profit corporation that is designated as an area
3232	3232	agency on aging by the secretary for aging and disabilities services and is
3233	3233	exempt from federal income taxation pursuant to section 501(c)(3) of the
3234	3234	federal internal revenue code for the purpose of coordinating and
3235	3235	providing seniors and those living with disabilities with services that
3236	3236	promote person-centered care, including home-delivered meals,
3237	3237	congregate meal settings, long-term case management, transportation,
3238	3238	information, assistance and other preventative and intervention services to
3239	3239	help service recipients remain in their homes and communities or for the
3240	3240	purpose of constructing, equipping, reconstructing, maintaining, repairing,
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 HB 2081 39
3284	3284	enlarging, furnishing or remodeling facilities for such area agency on
3285	3285	aging; and
3286	3286	(2) all sales of tangible personal property or services purchased by a
3287	3287	contractor for the purpose of constructing, equipping, reconstructing,
3288	3288	maintaining, repairing, enlarging, furnishing or remodeling facilities for an
3289	3289	area agency on aging that would be exempt from taxation under the
3290	3290	provisions of this section if purchased directly by such area agency on
3291	3291	aging. Nothing in this paragraph shall be deemed to exempt the purchase
3292	3292	of any construction machinery, equipment or tools used in the
3293	3293	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3294	3294	furnishing or remodeling facilities for an area agency on aging. When an
3295	3295	area agency on aging contracts for the purpose of constructing, equipping,
3296	3296	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3297	3297	facilities, it shall obtain from the state and furnish to the contractor an
3298	3298	exemption certificate for the project involved, and such contractor may
3299	3299	purchase materials for incorporation in such project. The contractor shall
3300	3300	furnish the number of such certificate to all suppliers from whom such
3301	3301	purchases are made, and such suppliers shall execute invoices covering the
3302	3302	same bearing the number of such certificate. Upon completion of the
3303	3303	project, the contractor shall furnish to such area agency on aging a sworn
3304	3304	statement, on a form to be provided by the director of taxation, that all
3305	3305	purchases so made were entitled to exemption under this subsection. All
3306	3306	invoices shall be held by the contractor for a period of five years and shall
3307	3307	be subject to audit by the director of taxation. If any materials purchased
3308	3308	under such a certificate are found not to have been incorporated in the
3309	3309	building or other project or not to have been returned for credit or the sales
3310	3310	or compensating tax otherwise imposed upon such materials that will not
3311	3311	be so incorporated in the building or other project reported and paid by
3312	3312	such contractor to the director of taxation not later than the 20
3313	3313	th
3314	3314	day of the
3315	3315	month following the close of the month in which it shall be determined
3316	3316	that such materials will not be used for the purpose for which such
3317	3317	certificate was issued, the area agency on aging concerned shall be liable
3318	3318	for tax on all materials purchased for the project, and upon payment
3319	3319	thereof, the area agency on aging may recover the same from the
3320	3320	contractor together with reasonable attorney fees. Any contractor or any
3321	3321	agent, employee or subcontractor thereof who shall use or otherwise
3322	3322	dispose of any materials purchased under such a certificate for any purpose
3323	3323	other than that for which such a certificate is issued without the payment
3324	3324	of the sales or compensating tax otherwise imposed upon such materials
3325	3325	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3326	3326	subject to the penalties provided for in K.S.A. 79-3615(h), and
3327	3327	amendments thereto;
3328	3328	(qqqq) all sales of tangible personal property or services purchased
3329	3329	1
3330	3330	2
3331	3331	3
3332	3332	4
3333	3333	5
3334	3334	6
3335	3335	7
3336	3336	8
3337	3337	9
3338	3338	10
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3371	3371	43 HB 2081 40
3372	3372	by Kansas suicide prevention HQ, inc., an organization that is exempt
3373	3373	from federal income taxation pursuant to section 501(c)(3) of the federal
3374	3374	internal revenue code of 1986, for the purpose of bringing suicide
3375	3375	prevention training and awareness to communities across the state;
3376	3376	(rrrr) all sales of the services of slaughtering, butchering, custom
3377	3377	cutting, dressing, processing and packaging of an animal for human
3378	3378	consumption when the animal is delivered or furnished by a customer that
3379	3379	owns the animal and such meat or poultry is for use or consumption by
3380	3380	such customer;
3381	3381	(ssss) all sales of tangible personal property or services purchased by
3382	3382	or on behalf of doorstep inc., an organization that is exempt from federal
3383	3383	income taxation pursuant to section 501(c)(3) of the federal internal
3384	3384	revenue code of 1986, for the purpose of providing short-term emergency
3385	3385	aid to families and individuals in need, including assistance with food,
3386	3386	clothing, rent, prescription medications, transportation and utilities, and
3387	3387	providing information on services to promote long-term self-sufficiency;
3388	3388	(tttt) on and after January 1, 2024, all sales of tangible personal
3389	3389	property or services purchased by exploration place, inc., an organization
3390	3390	that is exempt from federal income taxation pursuant to section 501(c)(3)
3391	3391	of the federal internal revenue code, and which such property and services
3392	3392	are used for the purpose of constructing, remodeling, furnishing or
3393	3393	equipping a riverfront amphitheater, a destination playscape, an education
3394	3394	center and indoor renovations at exploration place in Wichita, Kansas, all
3395	3395	sales of tangible personal property or services purchased by Kansas
3396	3396	children's discovery center inc. in Topeka, Kansas, and which such
3397	3397	property and services are used for the purpose of constructing, remodeling,
3398	3398	furnishing or equipping projects that include indoor-outdoor classrooms,
3399	3399	an expanded multi-media gallery, a workshop and loading dock and safety
3400	3400	upgrades such as a tornado shelter, lactation room, first aid room and
3401	3401	sensory room and all sales of tangible personal property or services
3402	3402	purchased by a contractor for the purpose of constructing, remodeling,
3403	3403	furnishing or equipping such projects, for such organizations, that would
3404	3404	be exempt from taxation under the provisions of this section if purchased
3405	3405	directly by such organizations. Nothing in this subsection shall be deemed
3406	3406	to exempt the purchase of any construction machinery, equipment or tools
3407	3407	used in the constructing, remodeling, furnishing or equipping of facilities
3408	3408	for such organization. When such organization shall contract for the
3409	3409	purpose of constructing, remodeling, furnishing or equipping such
3410	3410	projects, it shall obtain from the state and furnish to the contractor an
3411	3411	exemption certificate for the project involved, and the contractor may
3412	3412	purchase materials for incorporation in such project. The contractor shall
3413	3413	furnish the number of such certificate to all suppliers from whom such
3414	3414	purchases are made, and such suppliers shall execute invoices covering the
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3457	3457	43 HB 2081 41
3458	3458	same bearing the number of such certificate. Upon completion of the
3459	3459	project, the contractor shall furnish to such organization a sworn statement,
3460	3460	on a form to be provided by the director of taxation, that all purchases so
3461	3461	made were entitled to exemption under this subsection. All invoices shall
3462	3462	be held by the contractor for a period of five years and shall be subject to
3463	3463	audit by the director of taxation. If any materials purchased under such a
3464	3464	certificate are found not to have been incorporated in such facilities or not
3465	3465	to have been returned for credit or the sales or compensating tax otherwise
3466	3466	imposed upon such materials that will not be so incorporated in such
3467	3467	facilities reported and paid by such contractor to the director of taxation no
3468	3468	later than the 20
3469	3469	th
3470	3470	day of the month following the close of the month in
3471	3471	which it shall be determined that such materials will not be used for the
3472	3472	purpose for which such certificate was issued, such organization shall be
3473	3473	liable for tax on all materials purchased for the project, and upon payment
3474	3474	thereof may recover the same from the contractor together with reasonable
3475	3475	attorney fees. Any contractor or agent, employee or subcontractor thereof,
3476	3476	who purchased under such a certificate for any purpose other than that for
3477	3477	which such a certificate is issued without the payment of the sales or
3478	3478	compensating tax otherwise imposed upon such materials, shall be guilty
3479	3479	of a misdemeanor and, upon conviction therefor, shall be subject to the
3480	3480	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
3481	3481	Sales tax paid on and after January 1, 2024, but prior to the effective date
3482	3482	of this act, upon the gross receipts received from any sale exempted by the
3483	3483	amendatory provisions of this subsection shall be refunded. Each claim for
3484	3484	a sales tax refund shall be verified and submitted to the director of taxation
3485	3485	upon forms furnished by the director and shall be accompanied by any
3486	3486	additional documentation required by the director. The director shall
3487	3487	review each claim and shall refund that amount of sales tax paid as
3488	3488	determined under the provisions of this subsection. All refunds shall be
3489	3489	paid from the sales tax refund fund upon warrants of the director of
3490	3490	accounts and reports pursuant to vouchers approved by the director or the
3491	3491	director's designee. The provisions of this subsection shall expire and have
3492	3492	no effect on and after December 31, 2030;
3493	3493	(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary
3494	3494	components, appurtenances, accessories or other infrastructure purchased
3495	3495	for use in the provision of communications services; and
3496	3496	(B) all services purchased by a provider in the provision of the
3497	3497	communications service used in the repair, maintenance or installation in
3498	3498	such communications service.
3499	3499	(2) As used in this subsection:
3500	3500	(A) "Communications service" means internet access service,
3501	3501	telecommunications service, video service or any combination thereof.
3502	3502	(B) "Equipment, machinery, software, ancillary components,
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3544	3544	42
3545	3545	43 HB 2081 42
3546	3546	appurtenances, accessories or other infrastructure" includes, but is not
3547	3547	limited to:
3548	3548	(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,
3549	3549	amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,
3550	3550	transmitters, circuit cards, insulating and protective materials and cases,
3551	3551	power equipment, backup power equipment, diagnostic equipment, storage
3552	3552	devices, modems, cable modem termination systems and servers;
3553	3553	(ii) other general central office or headend equipment, such as
3554	3554	channel cards, frames and cabinets;
3555	3555	(iii) equipment used in successor technologies, including items used
3556	3556	to monitor, test, maintain, enable or facilitate qualifying equipment,
3557	3557	machinery, software, ancillary components, appurtenances and
3558	3558	accessories; and
3559	3559	(iv) other infrastructure that is used in whole or in part to provide
3560	3560	communications services, including broadcasting, distributing, sending,
3561	3561	receiving, storing, transmitting, retransmitting, amplifying, switching,
3562	3562	providing connectivity for or routing communications services.
3563	3563	(C) "Internet access service" means the same as internet access as
3564	3564	defined in section 1105 of the internet tax freedom act amendments of
3565	3565	2007, public law 110-108.
3566	3566	(D) "Provider" means a person or entity that sells communications
3567	3567	service, including an affiliate or subsidiary.
3568	3568	(E) "Telecommunications service" means the same as defined in
3569	3569	K.S.A. 79-3602, and amendments thereto.
3570	3570	(F) "Video service" means the same as defined in K.S.A. 12-2022,
3571	3571	and amendments thereto.
3572	3572	(3) The provisions of this subsection shall expire and have no effect
3573	3573	on and after July 1, 2029;
3574	3574	(vvvv) (1) all sales of tangible personal property or services
3575	3575	purchased by a contractor for the purpose of constructing, equipping,
3576	3576	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3577	3577	a building that is operated by, or is intended to be operated by, the Kansas
3578	3578	fairgrounds foundation, a not-for-profit corporation exempt from federal
3579	3579	income taxation pursuant to section 501(c)(3) of the federal internal
3580	3580	revenue code of 1986, and located on the grounds of the Kansas state fair,
3581	3581	and such tangible personal property would be exempt from taxation under
3582	3582	the provisions of this paragraph if purchased directly by such eligible not-
3583	3583	for-profit corporation. Nothing in this subsection shall be deemed to
3584	3584	exempt the purchase of any construction machinery, equipment or tools
3585	3585	used in the constructing, equipping, reconstructing, maintaining, repairing,
3586	3586	enlarging, furnishing or remodeling a building for such eligible not-for-
3587	3587	profit corporation. When such eligible not-for-profit corporation contracts
3588	3588	for the purpose of constructing, equipping, reconstructing, maintaining,
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3631	3631	43 HB 2081 43
3632	3632	repairing, enlarging, furnishing or remodeling a building, such corporation
3633	3633	shall obtain from the state and furnish to the contractor an exemption
3634	3634	certificate for the project involved, and such contractor may purchase
3635	3635	materials for incorporation in such project. The contractor shall furnish the
3636	3636	number of such certificate to all suppliers from whom such purchases are
3637	3637	made, and such suppliers shall execute invoices covering such purchases
3638	3638	bearing the number of such certificate. Upon completion of the project, the
3639	3639	contractor shall furnish to such eligible not-for-profit corporation a sworn
3640	3640	statement, on a form to be provided by the director of taxation, that all
3641	3641	purchases so made were entitled to exemption under this subsection. All
3642	3642	invoices shall be held by the contractor for a period of five years and shall
3643	3643	be subject to audit by the director of taxation. If any materials purchased
3644	3644	under such a certificate are found not to have been incorporated in the
3645	3645	building or returned for credit, the contractor shall report and pay the sales
3646	3646	or compensating tax to the director of taxation not later than the 20
3647	3647	th
3648	3648	day of
3649	3649	the month following the close of the month in which it is determined that
3650	3650	such materials will not be used for the purpose for which such certificate
3651	3651	was issued. The eligible not-for-profit corporation concerned shall be
3652	3652	liable for tax on all materials purchased for the project, and upon payment
3653	3653	thereof, the eligible not-for-profit corporation may recover the same from
3654	3654	the contractor together with reasonable attorney fees. Any contractor or
3655	3655	any agent, employee or subcontractor thereof who shall use or otherwise
3656	3656	dispose of any materials purchased under such a certificate for any purpose
3657	3657	other than that for which such a certificate is issued without the payment
3658	3658	of the sales or compensating tax otherwise imposed upon such materials
3659	3659	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3660	3660	subject to the penalties provided for in K.S.A. 79-3615(h), and
3661	3661	amendments thereto.
3662	3662	(2) Sales tax paid on and after May 19, 2023, but prior to the effective
3663	3663	date of this act upon the gross receipts received from any sale which would
3664	3664	have been exempted by the provisions of this subsection had such sale
3665	3665	occurred after the effective date of this act shall be refunded. Each claim
3666	3666	for a sales tax refund shall be verified and submitted to the director of
3667	3667	taxation upon forms furnished by the director and shall be accompanied by
3668	3668	any additional documentation required by the director. The director shall
3669	3669	review each claim and shall refund that amount of sales tax paid as
3670	3670	determined under the provisions of this subsection. All refunds shall be
3671	3671	paid from the sales tax refund fund upon warrants of the director of
3672	3672	accounts and reports pursuant to vouchers approved by the director or the
3673	3673	director's designee; and
3674	3674	(wwww) (1) All sales of tangible personal property or services
3675	3675	purchased by a pregnancy resource center or residential maternity facility.
3676	3676	(2) As used in this subsection, "pregnancy resource center" or
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3719	3719	43 HB 2081 44
3720	3720	"residential maternity facility" means an organization that is:
3721	3721	(A) Exempt from federal income taxation pursuant to section 501(c)
3722	3722	(3) of the federal internal revenue code of 1986;
3723	3723	(B) a nonprofit organization organized under the laws of this state;
3724	3724	and
3725	3725	(C) a pregnancy resource center or residential maternity facility that:
3726	3726	(i) Maintains a dedicated phone number for clients;
3727	3727	(ii) maintains in this state its primary physical office, clinic or
3728	3728	residential home that is open for clients for a minimum of 20 hours per
3729	3729	week, excluding state holidays;
3730	3730	(iii) offers services, at no cost to the client, for the express purpose of
3731	3731	providing assistance to women in order to carry their pregnancy to term,
3732	3732	encourage parenting or adoption, prevent abortion and promote healthy
3733	3733	childbirth; and
3734	3734	(iv) utilizes trained healthcare providers, as defined by K.S.A. 2024
3735	3735	Supp. 79-32,316, and amendments thereto, to perform any available
3736	3736	medical procedures.
3737	3737	Sec. 2. K.S.A. 2024 Supp. 79-3606 is hereby repealed.
3738	3738	Sec. 3. This act shall take effect and be in force from and after its
3739	3739	publication in the statute book.
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