Kansas 2025-2026 Regular Session

Kansas House Bill HB2197 Compare Versions

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11 Session of 2025
22 HOUSE BILL No. 2197
33 By Committee on Taxation
44 Requested by Representative A. Smith on behalf of Representative Reavis
55 1-31
66 AN ACT concerning sales taxation; relating to exemptions; providing for a
77 sales tax exemption for purchases made by sleep in heavenly peace,
88 inc.; amending K.S.A. 2024 Supp. 79-3606 and repealing the existing
99 section.
1010 Be it enacted by the Legislature of the State of Kansas:
1111 Section 1. K.S.A. 2024 Supp. 79-3606 is hereby amended to read as
1212 follows: 79-3606. The following shall be exempt from the tax imposed by
1313 this act:
1414 (a) All sales of motor-vehicle fuel or other articles upon which a sales
1515 or excise tax has been paid, not subject to refund, under the laws of this
1616 state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
1717 3301, and amendments thereto, including consumable material for such
1818 electronic cigarettes, cereal malt beverages and malt products as defined
1919 by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
2020 malt syrup and malt extract, that is not subject to taxation under the
2121 provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
2222 taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
2323 pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
2424 laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
2525 thereto, and gross receipts from regulated sports contests taxed pursuant to
2626 the Kansas professional regulated sports act, and amendments thereto;
2727 (b) all sales of tangible personal property or service, including the
2828 renting and leasing of tangible personal property, purchased directly by the
2929 state of Kansas, a political subdivision thereof, other than a school or
3030 educational institution, or purchased by a public or private nonprofit
3131 hospital, public hospital authority, nonprofit blood, tissue or organ bank or
3232 nonprofit integrated community care organization and used exclusively for
3333 state, political subdivision, hospital, public hospital authority, nonprofit
3434 blood, tissue or organ bank or nonprofit integrated community care
3535 organization purposes, except when: (1) Such state, hospital or public
3636 hospital authority is engaged or proposes to engage in any business
3737 specifically taxable under the provisions of this act and such items of
3838 tangible personal property or service are used or proposed to be used in
3939 such business; or (2) such political subdivision is engaged or proposes to
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7575 engage in the business of furnishing gas, electricity or heat to others and
7676 such items of personal property or service are used or proposed to be used
7777 in such business;
7878 (c) all sales of tangible personal property or services, including the
7979 renting and leasing of tangible personal property, purchased directly by a
8080 public or private elementary or secondary school or public or private
8181 nonprofit educational institution and used primarily by such school or
8282 institution for nonsectarian programs and activities provided or sponsored
8383 by such school or institution or in the erection, repair or enlargement of
8484 buildings to be used for such purposes. The exemption herein provided
8585 shall not apply to erection, construction, repair, enlargement or equipment
8686 of buildings used primarily for human habitation, except that such
8787 exemption shall apply to the erection, construction, repair, enlargement or
8888 equipment of buildings used for human habitation by the cerebral palsy
8989 research foundation of Kansas located in Wichita, Kansas, multi
9090 community diversified services, incorporated, located in McPherson,
9191 Kansas, the Kansas state school for the blind and the Kansas state school
9292 for the deaf;
9393 (d) all sales of tangible personal property or services purchased by a
9494 contractor for the purpose of constructing, equipping, reconstructing,
9595 maintaining, repairing, enlarging, furnishing or remodeling facilities for
9696 any public or private nonprofit hospital or public hospital authority, public
9797 or private elementary or secondary school, a public or private nonprofit
9898 educational institution, state correctional institution including a privately
9999 constructed correctional institution contracted for state use and ownership,
100100 that would be exempt from taxation under the provisions of this act if
101101 purchased directly by such hospital or public hospital authority, school,
102102 educational institution or a state correctional institution; and all sales of
103103 tangible personal property or services purchased by a contractor for the
104104 purpose of constructing, equipping, reconstructing, maintaining, repairing,
105105 enlarging, furnishing or remodeling facilities for any political subdivision
106106 of the state or district described in subsection (s), the total cost of which is
107107 paid from funds of such political subdivision or district and that would be
108108 exempt from taxation under the provisions of this act if purchased directly
109109 by such political subdivision or district. Nothing in this subsection or in
110110 the provisions of K.S.A. 12-3418, and amendments thereto, shall be
111111 deemed to exempt the purchase of any construction machinery, equipment
112112 or tools used in the constructing, equipping, reconstructing, maintaining,
113113 repairing, enlarging, furnishing or remodeling facilities for any political
114114 subdivision of the state or any such district. As used in this subsection,
115115 K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
116116 political subdivision" shall mean general tax revenues, the proceeds of any
117117 bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
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161161 purpose of constructing, equipping, reconstructing, repairing, enlarging,
162162 furnishing or remodeling facilities that are to be leased to the donor. When
163163 any political subdivision of the state, district described in subsection (s),
164164 public or private nonprofit hospital or public hospital authority, public or
165165 private elementary or secondary school, public or private nonprofit
166166 educational institution, state correctional institution including a privately
167167 constructed correctional institution contracted for state use and ownership
168168 shall contract for the purpose of constructing, equipping, reconstructing,
169169 maintaining, repairing, enlarging, furnishing or remodeling facilities, it
170170 shall obtain from the state and furnish to the contractor an exemption
171171 certificate for the project involved, and the contractor may purchase
172172 materials for incorporation in such project. The contractor shall furnish the
173173 number of such certificate to all suppliers from whom such purchases are
174174 made, and such suppliers shall execute invoices covering the same bearing
175175 the number of such certificate. Upon completion of the project the
176176 contractor shall furnish to the political subdivision, district described in
177177 subsection (s), hospital or public hospital authority, school, educational
178178 institution or department of corrections concerned a sworn statement, on a
179179 form to be provided by the director of taxation, that all purchases so made
180180 were entitled to exemption under this subsection. As an alternative to the
181181 foregoing procedure, any such contracting entity may apply to the
182182 secretary of revenue for agent status for the sole purpose of issuing and
183183 furnishing project exemption certificates to contractors pursuant to rules
184184 and regulations adopted by the secretary establishing conditions and
185185 standards for the granting and maintaining of such status. All invoices
186186 shall be held by the contractor for a period of five years and shall be
187187 subject to audit by the director of taxation. If any materials purchased
188188 under such a certificate are found not to have been incorporated in the
189189 building or other project or not to have been returned for credit or the sales
190190 or compensating tax otherwise imposed upon such materials that will not
191191 be so incorporated in the building or other project reported and paid by
192192 such contractor to the director of taxation not later than the 20
193193 th
194194 day of the
195195 month following the close of the month in which it shall be determined
196196 that such materials will not be used for the purpose for which such
197197 certificate was issued, the political subdivision, district described in
198198 subsection (s), hospital or public hospital authority, school, educational
199199 institution or the contractor contracting with the department of corrections
200200 for a correctional institution concerned shall be liable for tax on all
201201 materials purchased for the project, and upon payment thereof it may
202202 recover the same from the contractor together with reasonable attorney
203203 fees. Any contractor or any agent, employee or subcontractor thereof, who
204204 shall use or otherwise dispose of any materials purchased under such a
205205 certificate for any purpose other than that for which such a certificate is
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249249 issued without the payment of the sales or compensating tax otherwise
250250 imposed upon such materials, shall be guilty of a misdemeanor and, upon
251251 conviction therefor, shall be subject to the penalties provided for in K.S.A.
252252 79-3615(h), and amendments thereto;
253253 (e) all sales of tangible personal property or services purchased by a
254254 contractor for the erection, repair or enlargement of buildings or other
255255 projects for the government of the United States, its agencies or
256256 instrumentalities, that would be exempt from taxation if purchased directly
257257 by the government of the United States, its agencies or instrumentalities.
258258 When the government of the United States, its agencies or
259259 instrumentalities shall contract for the erection, repair, or enlargement of
260260 any building or other project, it shall obtain from the state and furnish to
261261 the contractor an exemption certificate for the project involved, and the
262262 contractor may purchase materials for incorporation in such project. The
263263 contractor shall furnish the number of such certificates to all suppliers
264264 from whom such purchases are made, and such suppliers shall execute
265265 invoices covering the same bearing the number of such certificate. Upon
266266 completion of the project the contractor shall furnish to the government of
267267 the United States, its agencies or instrumentalities concerned a sworn
268268 statement, on a form to be provided by the director of taxation, that all
269269 purchases so made were entitled to exemption under this subsection. As an
270270 alternative to the foregoing procedure, any such contracting entity may
271271 apply to the secretary of revenue for agent status for the sole purpose of
272272 issuing and furnishing project exemption certificates to contractors
273273 pursuant to rules and regulations adopted by the secretary establishing
274274 conditions and standards for the granting and maintaining of such status.
275275 All invoices shall be held by the contractor for a period of five years and
276276 shall be subject to audit by the director of taxation. Any contractor or any
277277 agent, employee or subcontractor thereof, who shall use or otherwise
278278 dispose of any materials purchased under such a certificate for any purpose
279279 other than that for which such a certificate is issued without the payment
280280 of the sales or compensating tax otherwise imposed upon such materials,
281281 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
282282 subject to the penalties provided for in K.S.A. 79-3615(h), and
283283 amendments thereto;
284284 (f) tangible personal property purchased by a railroad or public utility
285285 for consumption or movement directly and immediately in interstate
286286 commerce;
287287 (g) sales of aircraft including remanufactured and modified aircraft
288288 sold to persons using directly or through an authorized agent such aircraft
289289 as certified or licensed carriers of persons or property in interstate or
290290 foreign commerce under authority of the laws of the United States or any
291291 foreign government or sold to any foreign government or agency or
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335335 instrumentality of such foreign government and all sales of aircraft for use
336336 outside of the United States and sales of aircraft repair, modification and
337337 replacement parts and sales of services employed in the remanufacture,
338338 modification and repair of aircraft;
339339 (h) all rentals of nonsectarian textbooks by public or private
340340 elementary or secondary schools;
341341 (i) the lease or rental of all films, records, tapes, or any type of sound
342342 or picture transcriptions used by motion picture exhibitors;
343343 (j) meals served without charge or food used in the preparation of
344344 such meals to employees of any restaurant, eating house, dining car, hotel,
345345 drugstore or other place where meals or drinks are regularly sold to the
346346 public if such employees' duties are related to the furnishing or sale of
347347 such meals or drinks;
348348 (k) any motor vehicle, semitrailer or pole trailer, as such terms are
349349 defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
350350 delivered in this state to a bona fide resident of another state, which motor
351351 vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
352352 in this state and which vehicle, semitrailer, pole trailer or aircraft will not
353353 remain in this state more than 10 days;
354354 (l) all isolated or occasional sales of tangible personal property,
355355 services, substances or things, except isolated or occasional sale of motor
356356 vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
357357 amendments thereto;
358358 (m) all sales of tangible personal property that become an ingredient
359359 or component part of tangible personal property or services produced,
360360 manufactured or compounded for ultimate sale at retail within or without
361361 the state of Kansas; and any such producer, manufacturer or compounder
362362 may obtain from the director of taxation and furnish to the supplier an
363363 exemption certificate number for tangible personal property for use as an
364364 ingredient or component part of the property or services produced,
365365 manufactured or compounded;
366366 (n) all sales of tangible personal property that is consumed in the
367367 production, manufacture, processing, mining, drilling, refining or
368368 compounding of tangible personal property, the treating of by-products or
369369 wastes derived from any such production process, the providing of
370370 services or the irrigation of crops for ultimate sale at retail within or
371371 without the state of Kansas; and any purchaser of such property may
372372 obtain from the director of taxation and furnish to the supplier an
373373 exemption certificate number for tangible personal property for
374374 consumption in such production, manufacture, processing, mining,
375375 drilling, refining, compounding, treating, irrigation and in providing such
376376 services;
377377 (o) all sales of animals, fowl and aquatic plants and animals, the
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421421 primary purpose of which is use in agriculture or aquaculture, as defined in
422422 K.S.A. 47-1901, and amendments thereto, the production of food for
423423 human consumption, the production of animal, dairy, poultry or aquatic
424424 plant and animal products, fiber or fur, or the production of offspring for
425425 use for any such purpose or purposes;
426426 (p) all sales of drugs dispensed pursuant to a prescription order by a
427427 licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
428428 1626, and amendments thereto. As used in this subsection, "drug" means a
429429 compound, substance or preparation and any component of a compound,
430430 substance or preparation, other than food and food ingredients, dietary
431431 supplements or alcoholic beverages, recognized in the official United
432432 States pharmacopeia, official homeopathic pharmacopoeia of the United
433433 States or official national formulary, and supplement to any of them,
434434 intended for use in the diagnosis, cure, mitigation, treatment or prevention
435435 of disease or intended to affect the structure or any function of the body,
436436 except that for taxable years commencing after December 31, 2013, this
437437 subsection shall not apply to any sales of drugs used in the performance or
438438 induction of an abortion, as defined in K.S.A. 65-6701, and amendments
439439 thereto;
440440 (q) all sales of insulin dispensed by a person licensed by the state
441441 board of pharmacy to a person for treatment of diabetes at the direction of
442442 a person licensed to practice medicine by the state board of healing arts;
443443 (r) all sales of oxygen delivery equipment, kidney dialysis equipment,
444444 enteral feeding systems, prosthetic devices and mobility enhancing
445445 equipment prescribed in writing by a person licensed to practice the
446446 healing arts, dentistry or optometry, and in addition to such sales, all sales
447447 of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
448448 and repair and replacement parts therefor, including batteries, by a person
449449 licensed in the practice of dispensing and fitting hearing aids pursuant to
450450 the provisions of K.S.A. 74-5808, and amendments thereto. For the
451451 purposes of this subsection: (1) "Mobility enhancing equipment" means
452452 equipment including repair and replacement parts to same, but does not
453453 include durable medical equipment, which is primarily and customarily
454454 used to provide or increase the ability to move from one place to another
455455 and which is appropriate for use either in a home or a motor vehicle; is not
456456 generally used by persons with normal mobility; and does not include any
457457 motor vehicle or equipment on a motor vehicle normally provided by a
458458 motor vehicle manufacturer; and (2) "prosthetic device" means a
459459 replacement, corrective or supportive device including repair and
460460 replacement parts for same worn on or in the body to artificially replace a
461461 missing portion of the body, prevent or correct physical deformity or
462462 malfunction or support a weak or deformed portion of the body;
463463 (s) except as provided in K.S.A. 82a-2101, and amendments thereto,
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507507 all sales of tangible personal property or services purchased directly or
508508 indirectly by a groundwater management district organized or operating
509509 under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
510510 by a rural water district organized or operating under the authority of
511511 K.S.A. 82a-612, and amendments thereto, or by a water supply district
512512 organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
513513 3522 et seq. or 19-3545, and amendments thereto, which property or
514514 services are used in the construction activities, operation or maintenance of
515515 the district;
516516 (t) all sales of farm machinery and equipment or aquaculture
517517 machinery and equipment, repair and replacement parts therefor and
518518 services performed in the repair and maintenance of such machinery and
519519 equipment. For the purposes of this subsection the term "farm machinery
520520 and equipment or aquaculture machinery and equipment" shall include a
521521 work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
522522 thereto, and is equipped with a bed or cargo box for hauling materials, and
523523 shall also include machinery and equipment used in the operation of
524524 Christmas tree farming but shall not include any passenger vehicle, truck,
525525 truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
526526 such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
527527 machinery and equipment" includes precision farming equipment that is
528528 portable or is installed or purchased to be installed on farm machinery and
529529 equipment. "Precision farming equipment" includes the following items
530530 used only in computer-assisted farming, ranching or aquaculture
531531 production operations: Soil testing sensors, yield monitors, computers,
532532 monitors, software, global positioning and mapping systems, guiding
533533 systems, modems, data communications equipment and any necessary
534534 mounting hardware, wiring and antennas. Each purchaser of farm
535535 machinery and equipment or aquaculture machinery and equipment
536536 exempted herein must certify in writing on the copy of the invoice or sales
537537 ticket to be retained by the seller that the farm machinery and equipment
538538 or aquaculture machinery and equipment purchased will be used only in
539539 farming, ranching or aquaculture production. Farming or ranching shall
540540 include the operation of a feedlot and farm and ranch work for hire and the
541541 operation of a nursery;
542542 (u) all leases or rentals of tangible personal property used as a
543543 dwelling if such tangible personal property is leased or rented for a period
544544 of more than 28 consecutive days;
545545 (v) all sales of tangible personal property to any contractor for use in
546546 preparing meals for delivery to homebound elderly persons over 60 years
547547 of age and to homebound disabled persons or to be served at a group-
548548 sitting at a location outside of the home to otherwise homebound elderly
549549 persons over 60 years of age and to otherwise homebound disabled
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593593 persons, as all or part of any food service project funded in whole or in
594594 part by government or as part of a private nonprofit food service project
595595 available to all such elderly or disabled persons residing within an area of
596596 service designated by the private nonprofit organization, and all sales of
597597 tangible personal property for use in preparing meals for consumption by
598598 indigent or homeless individuals whether or not such meals are consumed
599599 at a place designated for such purpose, and all sales of food products by or
600600 on behalf of any such contractor or organization for any such purpose;
601601 (w) all sales of natural gas, electricity, heat and water delivered
602602 through mains, lines or pipes: (1) To residential premises for
603603 noncommercial use by the occupant of such premises; (2) for agricultural
604604 use and also, for such use, all sales of propane gas; (3) for use in the
605605 severing of oil; and (4) to any property which is exempt from property
606606 taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
607607 paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
608608 and amendments thereto. For all sales of natural gas, electricity and heat
609609 delivered through mains, lines or pipes pursuant to the provisions of
610610 subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
611611 on December 31, 2005;
612612 (x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
613613 for the production of heat or lighting for noncommercial use of an
614614 occupant of residential premises occurring prior to January 1, 2006;
615615 (y) all sales of materials and services used in the repairing, servicing,
616616 altering, maintaining, manufacturing, remanufacturing, or modification of
617617 railroad rolling stock for use in interstate or foreign commerce under
618618 authority of the laws of the United States;
619619 (z) all sales of tangible personal property and services purchased
620620 directly by a port authority or by a contractor therefor as provided by the
621621 provisions of K.S.A. 12-3418, and amendments thereto;
622622 (aa) all sales of materials and services applied to equipment that is
623623 transported into the state from without the state for repair, service,
624624 alteration, maintenance, remanufacture or modification and that is
625625 subsequently transported outside the state for use in the transmission of
626626 liquids or natural gas by means of pipeline in interstate or foreign
627627 commerce under authority of the laws of the United States;
628628 (bb) all sales of used mobile homes or manufactured homes. As used
629629 in this subsection: (1) "Mobile homes" and "manufactured homes" mean
630630 the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
631631 "sales of used mobile homes or manufactured homes" means sales other
632632 than the original retail sale thereof;
633633 (cc) all sales of tangible personal property or services purchased prior
634634 to January 1, 2012, except as otherwise provided, for the purpose of and in
635635 conjunction with constructing, reconstructing, enlarging or remodeling a
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679679 business or retail business that meets the requirements established in
680680 K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
681681 machinery and equipment purchased for installation at any such business
682682 or retail business, and all sales of tangible personal property or services
683683 purchased on or after January 1, 2012, for the purpose of and in
684684 conjunction with constructing, reconstructing, enlarging or remodeling a
685685 business that meets the requirements established in K.S.A. 74-50,115(e),
686686 and amendments thereto, and the sale and installation of machinery and
687687 equipment purchased for installation at any such business. When a person
688688 shall contract for the construction, reconstruction, enlargement or
689689 remodeling of any such business or retail business, such person shall
690690 obtain from the state and furnish to the contractor an exemption certificate
691691 for the project involved, and the contractor may purchase materials,
692692 machinery and equipment for incorporation in such project. The contractor
693693 shall furnish the number of such certificates to all suppliers from whom
694694 such purchases are made, and such suppliers shall execute invoices
695695 covering the same bearing the number of such certificate. Upon
696696 completion of the project the contractor shall furnish to the owner of the
697697 business or retail business a sworn statement, on a form to be provided by
698698 the director of taxation, that all purchases so made were entitled to
699699 exemption under this subsection. All invoices shall be held by the
700700 contractor for a period of five years and shall be subject to audit by the
701701 director of taxation. Any contractor or any agent, employee or
702702 subcontractor thereof, who shall use or otherwise dispose of any materials,
703703 machinery or equipment purchased under such a certificate for any
704704 purpose other than that for which such a certificate is issued without the
705705 payment of the sales or compensating tax otherwise imposed thereon, shall
706706 be guilty of a misdemeanor and, upon conviction therefor, shall be subject
707707 to the penalties provided for in K.S.A. 79-3615(h), and amendments
708708 thereto. As used in this subsection, "business" and "retail business" mean
709709 the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
710710 exemption certificates that have been previously issued under this
711711 subsection by the department of revenue pursuant to K.S.A. 74-50,115,
712712 and amendments thereto, but not including K.S.A. 74-50,115(e), and
713713 amendments thereto, prior to January 1, 2012, and have not expired will be
714714 effective for the term of the project or two years from the effective date of
715715 the certificate, whichever occurs earlier. Project exemption certificates that
716716 are submitted to the department of revenue prior to January 1, 2012, and
717717 are found to qualify will be issued a project exemption certificate that will
718718 be effective for a two-year period or for the term of the project, whichever
719719 occurs earlier;
720720 (dd) all sales of tangible personal property purchased with food
721721 stamps issued by the United States department of agriculture;
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765765 (ee) all sales of lottery tickets and shares made as part of a lottery
766766 operated by the state of Kansas;
767767 (ff) on and after July 1, 1988, all sales of new mobile homes or
768768 manufactured homes to the extent of 40% of the gross receipts, determined
769769 without regard to any trade-in allowance, received from such sale. As used
770770 in this subsection, "mobile homes" and "manufactured homes" mean the
771771 same as defined in K.S.A. 58-4202, and amendments thereto;
772772 (gg) all sales of tangible personal property purchased in accordance
773773 with vouchers issued pursuant to the federal special supplemental food
774774 program for women, infants and children;
775775 (hh) all sales of medical supplies and equipment, including durable
776776 medical equipment, purchased directly by a nonprofit skilled nursing home
777777 or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
778778 and amendments thereto, for the purpose of providing medical services to
779779 residents thereof. This exemption shall not apply to tangible personal
780780 property customarily used for human habitation purposes. As used in this
781781 subsection, "durable medical equipment" means equipment including
782782 repair and replacement parts for such equipment, that can withstand
783783 repeated use, is primarily and customarily used to serve a medical purpose,
784784 generally is not useful to a person in the absence of illness or injury and is
785785 not worn in or on the body, but does not include mobility enhancing
786786 equipment as defined in subsection (r), oxygen delivery equipment, kidney
787787 dialysis equipment or enteral feeding systems;
788788 (ii) all sales of tangible personal property purchased directly by a
789789 nonprofit organization for nonsectarian comprehensive multidiscipline
790790 youth development programs and activities provided or sponsored by such
791791 organization, and all sales of tangible personal property by or on behalf of
792792 any such organization. This exemption shall not apply to tangible personal
793793 property customarily used for human habitation purposes;
794794 (jj) all sales of tangible personal property or services, including the
795795 renting and leasing of tangible personal property, purchased directly on
796796 behalf of a community-based facility for people with intellectual disability
797797 or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
798798 amendments thereto, and licensed in accordance with the provisions of
799799 K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
800800 personal property or services purchased by contractors during the time
801801 period from July, 2003, through June, 2006, for the purpose of
802802 constructing, equipping, maintaining or furnishing a new facility for a
803803 community-based facility for people with intellectual disability or mental
804804 health center located in Riverton, Cherokee County, Kansas, that would
805805 have been eligible for sales tax exemption pursuant to this subsection if
806806 purchased directly by such facility or center. This exemption shall not
807807 apply to tangible personal property customarily used for human habitation
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851851 purposes;
852852 (kk) (1) (A) all sales of machinery and equipment that are used in this
853853 state as an integral or essential part of an integrated production operation
854854 by a manufacturing or processing plant or facility;
855855 (B) all sales of installation, repair and maintenance services
856856 performed on such machinery and equipment; and
857857 (C) all sales of repair and replacement parts and accessories
858858 purchased for such machinery and equipment.
859859 (2) For purposes of this subsection:
860860 (A) "Integrated production operation" means an integrated series of
861861 operations engaged in at a manufacturing or processing plant or facility to
862862 process, transform or convert tangible personal property by physical,
863863 chemical or other means into a different form, composition or character
864864 from that in which it originally existed. Integrated production operations
865865 shall include: (i) Production line operations, including packaging
866866 operations; (ii) preproduction operations to handle, store and treat raw
867867 materials; (iii) post production handling, storage, warehousing and
868868 distribution operations; and (iv) waste, pollution and environmental
869869 control operations, if any;
870870 (B) "production line" means the assemblage of machinery and
871871 equipment at a manufacturing or processing plant or facility where the
872872 actual transformation or processing of tangible personal property occurs;
873873 (C) "manufacturing or processing plant or facility" means a single,
874874 fixed location owned or controlled by a manufacturing or processing
875875 business that consists of one or more structures or buildings in a
876876 contiguous area where integrated production operations are conducted to
877877 manufacture or process tangible personal property to be ultimately sold at
878878 retail. Such term shall not include any facility primarily operated for the
879879 purpose of conveying or assisting in the conveyance of natural gas,
880880 electricity, oil or water. A business may operate one or more manufacturing
881881 or processing plants or facilities at different locations to manufacture or
882882 process a single product of tangible personal property to be ultimately sold
883883 at retail;
884884 (D) "manufacturing or processing business" means a business that
885885 utilizes an integrated production operation to manufacture, process,
886886 fabricate, finish or assemble items for wholesale and retail distribution as
887887 part of what is commonly regarded by the general public as an industrial
888888 manufacturing or processing operation or an agricultural commodity
889889 processing operation. (i) Industrial manufacturing or processing operations
890890 include, by way of illustration but not of limitation, the fabrication of
891891 automobiles, airplanes, machinery or transportation equipment, the
892892 fabrication of metal, plastic, wood or paper products, electricity power
893893 generation, water treatment, petroleum refining, chemical production,
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937937 wholesale bottling, newspaper printing, ready mixed concrete production,
938938 and the remanufacturing of used parts for wholesale or retail sale. Such
939939 processing operations shall include operations at an oil well, gas well,
940940 mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
941941 sand or gravel that has been extracted from the earth is cleaned, separated,
942942 crushed, ground, milled, screened, washed or otherwise treated or prepared
943943 before its transmission to a refinery or before any other wholesale or retail
944944 distribution. (ii) Agricultural commodity processing operations include, by
945945 way of illustration but not of limitation, meat packing, poultry slaughtering
946946 and dressing, processing and packaging farm and dairy products in sealed
947947 containers for wholesale and retail distribution, feed grinding, grain
948948 milling, frozen food processing, and grain handling, cleaning, blending,
949949 fumigation, drying and aeration operations engaged in by grain elevators
950950 or other grain storage facilities. (iii) Manufacturing or processing
951951 businesses do not include, by way of illustration but not of limitation,
952952 nonindustrial businesses whose operations are primarily retail and that
953953 produce or process tangible personal property as an incidental part of
954954 conducting the retail business, such as retailers who bake, cook or prepare
955955 food products in the regular course of their retail trade, grocery stores,
956956 meat lockers and meat markets that butcher or dress livestock or poultry in
957957 the regular course of their retail trade, contractors who alter, service, repair
958958 or improve real property, and retail businesses that clean, service or
959959 refurbish and repair tangible personal property for its owner;
960960 (E) "repair and replacement parts and accessories" means all parts
961961 and accessories for exempt machinery and equipment, including, but not
962962 limited to, dies, jigs, molds, patterns and safety devices that are attached to
963963 exempt machinery or that are otherwise used in production, and parts and
964964 accessories that require periodic replacement such as belts, drill bits,
965965 grinding wheels, grinding balls, cutting bars, saws, refractory brick and
966966 other refractory items for exempt kiln equipment used in production
967967 operations;
968968 (F) "primary" or "primarily" mean more than 50% of the time.
969969 (3) For purposes of this subsection, machinery and equipment shall
970970 be deemed to be used as an integral or essential part of an integrated
971971 production operation when used to:
972972 (A) Receive, transport, convey, handle, treat or store raw materials in
973973 preparation of its placement on the production line;
974974 (B) transport, convey, handle or store the property undergoing
975975 manufacturing or processing at any point from the beginning of the
976976 production line through any warehousing or distribution operation of the
977977 final product that occurs at the plant or facility;
978978 (C) act upon, effect, promote or otherwise facilitate a physical change
979979 to the property undergoing manufacturing or processing;
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10231023 (D) guide, control or direct the movement of property undergoing
10241024 manufacturing or processing;
10251025 (E) test or measure raw materials, the property undergoing
10261026 manufacturing or processing or the finished product, as a necessary part of
10271027 the manufacturer's integrated production operations;
10281028 (F) plan, manage, control or record the receipt and flow of inventories
10291029 of raw materials, consumables and component parts, the flow of the
10301030 property undergoing manufacturing or processing and the management of
10311031 inventories of the finished product;
10321032 (G) produce energy for, lubricate, control the operating of or
10331033 otherwise enable the functioning of other production machinery and
10341034 equipment and the continuation of production operations;
10351035 (H) package the property being manufactured or processed in a
10361036 container or wrapping in which such property is normally sold or
10371037 transported;
10381038 (I) transmit or transport electricity, coke, gas, water, steam or similar
10391039 substances used in production operations from the point of generation, if
10401040 produced by the manufacturer or processor at the plant site, to that
10411041 manufacturer's production operation; or, if purchased or delivered from
10421042 off-site, from the point where the substance enters the site of the plant or
10431043 facility to that manufacturer's production operations;
10441044 (J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
10451045 solvents or other substances that are used in production operations;
10461046 (K) provide and control an environment required to maintain certain
10471047 levels of air quality, humidity or temperature in special and limited areas
10481048 of the plant or facility, where such regulation of temperature or humidity is
10491049 part of and essential to the production process;
10501050 (L) treat, transport or store waste or other byproducts of production
10511051 operations at the plant or facility; or
10521052 (M) control pollution at the plant or facility where the pollution is
10531053 produced by the manufacturing or processing operation.
10541054 (4) The following machinery, equipment and materials shall be
10551055 deemed to be exempt even though it may not otherwise qualify as
10561056 machinery and equipment used as an integral or essential part of an
10571057 integrated production operation: (A) Computers and related peripheral
10581058 equipment that are utilized by a manufacturing or processing business for
10591059 engineering of the finished product or for research and development or
10601060 product design; (B) machinery and equipment that is utilized by a
10611061 manufacturing or processing business to manufacture or rebuild tangible
10621062 personal property that is used in manufacturing or processing operations,
10631063 including tools, dies, molds, forms and other parts of qualifying machinery
10641064 and equipment; (C) portable plants for aggregate concrete, bulk cement
10651065 and asphalt including cement mixing drums to be attached to a motor
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11091109 vehicle; (D) industrial fixtures, devices, support facilities and special
11101110 foundations necessary for manufacturing and production operations, and
11111111 materials and other tangible personal property sold for the purpose of
11121112 fabricating such fixtures, devices, facilities and foundations. An exemption
11131113 certificate for such purchases shall be signed by the manufacturer or
11141114 processor. If the fabricator purchases such material, the fabricator shall
11151115 also sign the exemption certificate; (E) a manufacturing or processing
11161116 business' laboratory equipment that is not located at the plant or facility,
11171117 but that would otherwise qualify for exemption under subsection (3)(E);
11181118 (F) all machinery and equipment used in surface mining activities as
11191119 described in K.S.A. 49-601 et seq., and amendments thereto, beginning
11201120 from the time a reclamation plan is filed to the acceptance of the
11211121 completed final site reclamation.
11221122 (5) "Machinery and equipment used as an integral or essential part of
11231123 an integrated production operation" shall not include:
11241124 (A) Machinery and equipment used for nonproduction purposes,
11251125 including, but not limited to, machinery and equipment used for plant
11261126 security, fire prevention, first aid, accounting, administration, record
11271127 keeping, advertising, marketing, sales or other related activities, plant
11281128 cleaning, plant communications and employee work scheduling;
11291129 (B) machinery, equipment and tools used primarily in maintaining
11301130 and repairing any type of machinery and equipment or the building and
11311131 plant;
11321132 (C) transportation, transmission and distribution equipment not
11331133 primarily used in a production, warehousing or material handling
11341134 operation at the plant or facility, including the means of conveyance of
11351135 natural gas, electricity, oil or water, and equipment related thereto, located
11361136 outside the plant or facility;
11371137 (D) office machines and equipment including computers and related
11381138 peripheral equipment not used directly and primarily to control or measure
11391139 the manufacturing process;
11401140 (E) furniture and other furnishings;
11411141 (F) buildings, other than exempt machinery and equipment that is
11421142 permanently affixed to or becomes a physical part of the building, and any
11431143 other part of real estate that is not otherwise exempt;
11441144 (G) building fixtures that are not integral to the manufacturing
11451145 operation, such as utility systems for heating, ventilation, air conditioning,
11461146 communications, plumbing or electrical;
11471147 (H) machinery and equipment used for general plant heating, cooling
11481148 and lighting;
11491149 (I) motor vehicles that are registered for operation on public
11501150 highways; or
11511151 (J) employee apparel, except safety and protective apparel that is
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11951195 purchased by an employer and furnished gratuitously to employees who
11961196 are involved in production or research activities.
11971197 (6) Paragraphs (3) and (5) shall not be construed as exclusive listings
11981198 of the machinery and equipment that qualify or do not qualify as an
11991199 integral or essential part of an integrated production operation. When
12001200 machinery or equipment is used as an integral or essential part of
12011201 production operations part of the time and for nonproduction purposes at
12021202 other times, the primary use of the machinery or equipment shall
12031203 determine whether or not such machinery or equipment qualifies for
12041204 exemption.
12051205 (7) The secretary of revenue shall adopt rules and regulations
12061206 necessary to administer the provisions of this subsection;
12071207 (ll) all sales of educational materials purchased for distribution to the
12081208 public at no charge by a nonprofit corporation organized for the purpose of
12091209 encouraging, fostering and conducting programs for the improvement of
12101210 public health, except that for taxable years commencing after December
12111211 31, 2013, this subsection shall not apply to any sales of such materials
12121212 purchased by a nonprofit corporation which performs any abortion, as
12131213 defined in K.S.A. 65-6701, and amendments thereto;
12141214 (mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
12151215 herbicides, germicides, pesticides and fungicides; and services, purchased
12161216 and used for the purpose of producing plants in order to prevent soil
12171217 erosion on land devoted to agricultural use;
12181218 (nn) except as otherwise provided in this act, all sales of services
12191219 rendered by an advertising agency or licensed broadcast station or any
12201220 member, agent or employee thereof;
12211221 (oo) all sales of tangible personal property purchased by a community
12221222 action group or agency for the exclusive purpose of repairing or
12231223 weatherizing housing occupied by low-income individuals;
12241224 (pp) all sales of drill bits and explosives actually utilized in the
12251225 exploration and production of oil or gas;
12261226 (qq) all sales of tangible personal property and services purchased by
12271227 a nonprofit museum or historical society or any combination thereof,
12281228 including a nonprofit organization that is organized for the purpose of
12291229 stimulating public interest in the exploration of space by providing
12301230 educational information, exhibits and experiences, that is exempt from
12311231 federal income taxation pursuant to section 501(c)(3) of the federal
12321232 internal revenue code of 1986;
12331233 (rr) all sales of tangible personal property that will admit the
12341234 purchaser thereof to any annual event sponsored by a nonprofit
12351235 organization that is exempt from federal income taxation pursuant to
12361236 section 501(c)(3) of the federal internal revenue code of 1986, except that
12371237 for taxable years commencing after December 31, 2013, this subsection
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12811281 shall not apply to any sales of such tangible personal property purchased
12821282 by a nonprofit organization which performs any abortion, as defined in
12831283 K.S.A. 65-6701, and amendments thereto;
12841284 (ss) all sales of tangible personal property and services purchased by
12851285 a public broadcasting station licensed by the federal communications
12861286 commission as a noncommercial educational television or radio station;
12871287 (tt) all sales of tangible personal property and services purchased by
12881288 or on behalf of a not-for-profit corporation that is exempt from federal
12891289 income taxation pursuant to section 501(c)(3) of the federal internal
12901290 revenue code of 1986, for the sole purpose of constructing a Kansas
12911291 Korean War memorial;
12921292 (uu) all sales of tangible personal property and services purchased by
12931293 or on behalf of any rural volunteer fire-fighting organization for use
12941294 exclusively in the performance of its duties and functions;
12951295 (vv) all sales of tangible personal property purchased by any of the
12961296 following organizations that are exempt from federal income taxation
12971297 pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
12981298 for the following purposes, and all sales of any such property by or on
12991299 behalf of any such organization for any such purpose:
13001300 (1) The American heart association, Kansas affiliate, inc. for the
13011301 purposes of providing education, training, certification in emergency
13021302 cardiac care, research and other related services to reduce disability and
13031303 death from cardiovascular diseases and stroke;
13041304 (2) the Kansas alliance for the mentally ill, inc. for the purpose of
13051305 advocacy for persons with mental illness and to education, research and
13061306 support for their families;
13071307 (3) the Kansas mental illness awareness council for the purposes of
13081308 advocacy for persons who are mentally ill and for education, research and
13091309 support for them and their families;
13101310 (4) the American diabetes association Kansas affiliate, inc. for the
13111311 purpose of eliminating diabetes through medical research, public education
13121312 focusing on disease prevention and education, patient education including
13131313 information on coping with diabetes, and professional education and
13141314 training;
13151315 (5) the American lung association of Kansas, inc. for the purpose of
13161316 eliminating all lung diseases through medical research, public education
13171317 including information on coping with lung diseases, professional education
13181318 and training related to lung disease and other related services to reduce the
13191319 incidence of disability and death due to lung disease;
13201320 (6) the Kansas chapters of the Alzheimer's disease and related
13211321 disorders association, inc. for the purpose of providing assistance and
13221322 support to persons in Kansas with Alzheimer's disease, and their families
13231323 and caregivers;
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13671367 (7) the Kansas chapters of the Parkinson's disease association for the
13681368 purpose of eliminating Parkinson's disease through medical research and
13691369 public and professional education related to such disease;
13701370 (8) the national kidney foundation of Kansas and western Missouri
13711371 for the purpose of eliminating kidney disease through medical research
13721372 and public and private education related to such disease;
13731373 (9) the heartstrings community foundation for the purpose of
13741374 providing training, employment and activities for adults with
13751375 developmental disabilities;
13761376 (10) the cystic fibrosis foundation, heart of America chapter, for the
13771377 purposes of assuring the development of the means to cure and control
13781378 cystic fibrosis and improving the quality of life for those with the disease;
13791379 (11) the spina bifida association of Kansas for the purpose of
13801380 providing financial, educational and practical aid to families and
13811381 individuals with spina bifida. Such aid includes, but is not limited to,
13821382 funding for medical devices, counseling and medical educational
13831383 opportunities;
13841384 (12) the CHWC, Inc., for the purpose of rebuilding urban core
13851385 neighborhoods through the construction of new homes, acquiring and
13861386 renovating existing homes and other related activities, and promoting
13871387 economic development in such neighborhoods;
13881388 (13) the cross-lines cooperative council for the purpose of providing
13891389 social services to low income individuals and families;
13901390 (14) the dreams work, inc., for the purpose of providing young adult
13911391 day services to individuals with developmental disabilities and assisting
13921392 families in avoiding institutional or nursing home care for a
13931393 developmentally disabled member of their family;
13941394 (15) the KSDS, Inc., for the purpose of promoting the independence
13951395 and inclusion of people with disabilities as fully participating and
13961396 contributing members of their communities and society through the
13971397 training and providing of guide and service dogs to people with
13981398 disabilities, and providing disability education and awareness to the
13991399 general public;
14001400 (16) the lyme association of greater Kansas City, Inc., for the purpose
14011401 of providing support to persons with lyme disease and public education
14021402 relating to the prevention, treatment and cure of lyme disease;
14031403 (17) the dream factory, inc., for the purpose of granting the dreams of
14041404 children with critical and chronic illnesses;
14051405 (18) the Ottawa Suzuki strings, inc., for the purpose of providing
14061406 students and families with education and resources necessary to enable
14071407 each child to develop fine character and musical ability to the fullest
14081408 potential;
14091409 (19) the international association of lions clubs for the purpose of
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14531453 creating and fostering a spirit of understanding among all people for
14541454 humanitarian needs by providing voluntary services through community
14551455 involvement and international cooperation;
14561456 (20) the Johnson county young matrons, inc., for the purpose of
14571457 promoting a positive future for members of the community through
14581458 volunteerism, financial support and education through the efforts of an all
14591459 volunteer organization;
14601460 (21) the American cancer society, inc., for the purpose of eliminating
14611461 cancer as a major health problem by preventing cancer, saving lives and
14621462 diminishing suffering from cancer, through research, education, advocacy
14631463 and service;
14641464 (22) the community services of Shawnee, inc., for the purpose of
14651465 providing food and clothing to those in need;
14661466 (23) the angel babies association, for the purpose of providing
14671467 assistance, support and items of necessity to teenage mothers and their
14681468 babies; and
14691469 (24) the Kansas fairgrounds foundation for the purpose of the
14701470 preservation, renovation and beautification of the Kansas state fairgrounds;
14711471 (ww) all sales of tangible personal property purchased by the habitat
14721472 for humanity for the exclusive use of being incorporated within a housing
14731473 project constructed by such organization;
14741474 (xx) all sales of tangible personal property and services purchased by
14751475 a nonprofit zoo that is exempt from federal income taxation pursuant to
14761476 section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
14771477 of such zoo by an entity itself exempt from federal income taxation
14781478 pursuant to section 501(c)(3) of the federal internal revenue code of 1986
14791479 contracted with to operate such zoo and all sales of tangible personal
14801480 property or services purchased by a contractor for the purpose of
14811481 constructing, equipping, reconstructing, maintaining, repairing, enlarging,
14821482 furnishing or remodeling facilities for any nonprofit zoo that would be
14831483 exempt from taxation under the provisions of this section if purchased
14841484 directly by such nonprofit zoo or the entity operating such zoo. Nothing in
14851485 this subsection shall be deemed to exempt the purchase of any construction
14861486 machinery, equipment or tools used in the constructing, equipping,
14871487 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
14881488 facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
14891489 the purpose of constructing, equipping, reconstructing, maintaining,
14901490 repairing, enlarging, furnishing or remodeling facilities, it shall obtain
14911491 from the state and furnish to the contractor an exemption certificate for the
14921492 project involved, and the contractor may purchase materials for
14931493 incorporation in such project. The contractor shall furnish the number of
14941494 such certificate to all suppliers from whom such purchases are made, and
14951495 such suppliers shall execute invoices covering the same bearing the
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15391539 number of such certificate. Upon completion of the project the contractor
15401540 shall furnish to the nonprofit zoo concerned a sworn statement, on a form
15411541 to be provided by the director of taxation, that all purchases so made were
15421542 entitled to exemption under this subsection. All invoices shall be held by
15431543 the contractor for a period of five years and shall be subject to audit by the
15441544 director of taxation. If any materials purchased under such a certificate are
15451545 found not to have been incorporated in the building or other project or not
15461546 to have been returned for credit or the sales or compensating tax otherwise
15471547 imposed upon such materials that will not be so incorporated in the
15481548 building or other project reported and paid by such contractor to the
15491549 director of taxation not later than the 20
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15511551 day of the month following the
15521552 close of the month in which it shall be determined that such materials will
15531553 not be used for the purpose for which such certificate was issued, the
15541554 nonprofit zoo concerned shall be liable for tax on all materials purchased
15551555 for the project, and upon payment thereof it may recover the same from
15561556 the contractor together with reasonable attorney fees. Any contractor or
15571557 any agent, employee or subcontractor thereof, who shall use or otherwise
15581558 dispose of any materials purchased under such a certificate for any purpose
15591559 other than that for which such a certificate is issued without the payment
15601560 of the sales or compensating tax otherwise imposed upon such materials,
15611561 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
15621562 subject to the penalties provided for in K.S.A. 79-3615(h), and
15631563 amendments thereto;
15641564 (yy) all sales of tangible personal property and services purchased by
15651565 a parent-teacher association or organization, and all sales of tangible
15661566 personal property by or on behalf of such association or organization;
15671567 (zz) all sales of machinery and equipment purchased by over-the-air,
15681568 free access radio or television station that is used directly and primarily for
15691569 the purpose of producing a broadcast signal or is such that the failure of
15701570 the machinery or equipment to operate would cause broadcasting to cease.
15711571 For purposes of this subsection, machinery and equipment shall include,
15721572 but not be limited to, that required by rules and regulations of the federal
15731573 communications commission, and all sales of electricity which are
15741574 essential or necessary for the purpose of producing a broadcast signal or is
15751575 such that the failure of the electricity would cause broadcasting to cease;
15761576 (aaa) all sales of tangible personal property and services purchased by
15771577 a religious organization that is exempt from federal income taxation
15781578 pursuant to section 501(c)(3) of the federal internal revenue code, and used
15791579 exclusively for religious purposes, and all sales of tangible personal
15801580 property or services purchased by a contractor for the purpose of
15811581 constructing, equipping, reconstructing, maintaining, repairing, enlarging,
15821582 furnishing or remodeling facilities for any such organization that would be
15831583 exempt from taxation under the provisions of this section if purchased
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16271627 directly by such organization. Nothing in this subsection shall be deemed
16281628 to exempt the purchase of any construction machinery, equipment or tools
16291629 used in the constructing, equipping, reconstructing, maintaining, repairing,
16301630 enlarging, furnishing or remodeling facilities for any such organization.
16311631 When any such organization shall contract for the purpose of constructing,
16321632 equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
16331633 remodeling facilities, it shall obtain from the state and furnish to the
16341634 contractor an exemption certificate for the project involved, and the
16351635 contractor may purchase materials for incorporation in such project. The
16361636 contractor shall furnish the number of such certificate to all suppliers from
16371637 whom such purchases are made, and such suppliers shall execute invoices
16381638 covering the same bearing the number of such certificate. Upon
16391639 completion of the project the contractor shall furnish to such organization
16401640 concerned a sworn statement, on a form to be provided by the director of
16411641 taxation, that all purchases so made were entitled to exemption under this
16421642 subsection. All invoices shall be held by the contractor for a period of five
16431643 years and shall be subject to audit by the director of taxation. If any
16441644 materials purchased under such a certificate are found not to have been
16451645 incorporated in the building or other project or not to have been returned
16461646 for credit or the sales or compensating tax otherwise imposed upon such
16471647 materials that will not be so incorporated in the building or other project
16481648 reported and paid by such contractor to the director of taxation not later
16491649 than the 20
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16511651 day of the month following the close of the month in which it
16521652 shall be determined that such materials will not be used for the purpose for
16531653 which such certificate was issued, such organization concerned shall be
16541654 liable for tax on all materials purchased for the project, and upon payment
16551655 thereof it may recover the same from the contractor together with
16561656 reasonable attorney fees. Any contractor or any agent, employee or
16571657 subcontractor thereof, who shall use or otherwise dispose of any materials
16581658 purchased under such a certificate for any purpose other than that for
16591659 which such a certificate is issued without the payment of the sales or
16601660 compensating tax otherwise imposed upon such materials, shall be guilty
16611661 of a misdemeanor and, upon conviction therefor, shall be subject to the
16621662 penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
16631663 Sales tax paid on and after July 1, 1998, but prior to the effective date of
16641664 this act upon the gross receipts received from any sale exempted by the
16651665 amendatory provisions of this subsection shall be refunded. Each claim for
16661666 a sales tax refund shall be verified and submitted to the director of taxation
16671667 upon forms furnished by the director and shall be accompanied by any
16681668 additional documentation required by the director. The director shall
16691669 review each claim and shall refund that amount of sales tax paid as
16701670 determined under the provisions of this subsection. All refunds shall be
16711671 paid from the sales tax refund fund upon warrants of the director of
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17151715 accounts and reports pursuant to vouchers approved by the director or the
17161716 director's designee;
17171717 (bbb) all sales of food for human consumption by an organization that
17181718 is exempt from federal income taxation pursuant to section 501(c)(3) of
17191719 the federal internal revenue code of 1986, pursuant to a food distribution
17201720 program that offers such food at a price below cost in exchange for the
17211721 performance of community service by the purchaser thereof;
17221722 (ccc) on and after July 1, 1999, all sales of tangible personal property
17231723 and services purchased by a primary care clinic or health center the
17241724 primary purpose of which is to provide services to medically underserved
17251725 individuals and families, and that is exempt from federal income taxation
17261726 pursuant to section 501(c)(3) of the federal internal revenue code, and all
17271727 sales of tangible personal property or services purchased by a contractor
17281728 for the purpose of constructing, equipping, reconstructing, maintaining,
17291729 repairing, enlarging, furnishing or remodeling facilities for any such clinic
17301730 or center that would be exempt from taxation under the provisions of this
17311731 section if purchased directly by such clinic or center, except that for
17321732 taxable years commencing after December 31, 2013, this subsection shall
17331733 not apply to any sales of such tangible personal property and services
17341734 purchased by a primary care clinic or health center which performs any
17351735 abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
17361736 in this subsection shall be deemed to exempt the purchase of any
17371737 construction machinery, equipment or tools used in the constructing,
17381738 equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
17391739 remodeling facilities for any such clinic or center. When any such clinic or
17401740 center shall contract for the purpose of constructing, equipping,
17411741 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
17421742 facilities, it shall obtain from the state and furnish to the contractor an
17431743 exemption certificate for the project involved, and the contractor may
17441744 purchase materials for incorporation in such project. The contractor shall
17451745 furnish the number of such certificate to all suppliers from whom such
17461746 purchases are made, and such suppliers shall execute invoices covering the
17471747 same bearing the number of such certificate. Upon completion of the
17481748 project the contractor shall furnish to such clinic or center concerned a
17491749 sworn statement, on a form to be provided by the director of taxation, that
17501750 all purchases so made were entitled to exemption under this subsection.
17511751 All invoices shall be held by the contractor for a period of five years and
17521752 shall be subject to audit by the director of taxation. If any materials
17531753 purchased under such a certificate are found not to have been incorporated
17541754 in the building or other project or not to have been returned for credit or
17551755 the sales or compensating tax otherwise imposed upon such materials that
17561756 will not be so incorporated in the building or other project reported and
17571757 paid by such contractor to the director of taxation not later than the 20
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18021802 day of the month following the close of the month in which it shall be
18031803 determined that such materials will not be used for the purpose for which
18041804 such certificate was issued, such clinic or center concerned shall be liable
18051805 for tax on all materials purchased for the project, and upon payment
18061806 thereof it may recover the same from the contractor together with
18071807 reasonable attorney fees. Any contractor or any agent, employee or
18081808 subcontractor thereof, who shall use or otherwise dispose of any materials
18091809 purchased under such a certificate for any purpose other than that for
18101810 which such a certificate is issued without the payment of the sales or
18111811 compensating tax otherwise imposed upon such materials, shall be guilty
18121812 of a misdemeanor and, upon conviction therefor, shall be subject to the
18131813 penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
18141814 (ddd) on and after January 1, 1999, and before January 1, 2000, all
18151815 sales of materials and services purchased by any class II or III railroad as
18161816 classified by the federal surface transportation board for the construction,
18171817 renovation, repair or replacement of class II or III railroad track and
18181818 facilities used directly in interstate commerce. In the event any such track
18191819 or facility for which materials and services were purchased sales tax
18201820 exempt is not operational for five years succeeding the allowance of such
18211821 exemption, the total amount of sales tax that would have been payable
18221822 except for the operation of this subsection shall be recouped in accordance
18231823 with rules and regulations adopted for such purpose by the secretary of
18241824 revenue;
18251825 (eee) on and after January 1, 1999, and before January 1, 2001, all
18261826 sales of materials and services purchased for the original construction,
18271827 reconstruction, repair or replacement of grain storage facilities, including
18281828 railroad sidings providing access thereto;
18291829 (fff) all sales of material handling equipment, racking systems and
18301830 other related machinery and equipment that is used for the handling,
18311831 movement or storage of tangible personal property in a warehouse or
18321832 distribution facility in this state; all sales of installation, repair and
18331833 maintenance services performed on such machinery and equipment; and
18341834 all sales of repair and replacement parts for such machinery and
18351835 equipment. For purposes of this subsection, a warehouse or distribution
18361836 facility means a single, fixed location that consists of buildings or
18371837 structures in a contiguous area where storage or distribution operations are
18381838 conducted that are separate and apart from the business' retail operations,
18391839 if any, and that do not otherwise qualify for exemption as occurring at a
18401840 manufacturing or processing plant or facility. Material handling and
18411841 storage equipment shall include aeration, dust control, cleaning, handling
18421842 and other such equipment that is used in a public grain warehouse or other
18431843 commercial grain storage facility, whether used for grain handling, grain
18441844 storage, grain refining or processing, or other grain treatment operation;
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18881888 (ggg) all sales of tangible personal property and services purchased
18891889 by or on behalf of the Kansas academy of science, which is exempt from
18901890 federal income taxation pursuant to section 501(c)(3) of the federal
18911891 internal revenue code of 1986, and used solely by such academy for the
18921892 preparation, publication and dissemination of education materials;
18931893 (hhh) all sales of tangible personal property and services purchased
18941894 by or on behalf of all domestic violence shelters that are member agencies
18951895 of the Kansas coalition against sexual and domestic violence;
18961896 (iii) all sales of personal property and services purchased by an
18971897 organization that is exempt from federal income taxation pursuant to
18981898 section 501(c)(3) of the federal internal revenue code of 1986, and such
18991899 personal property and services are used by any such organization in the
19001900 collection, storage and distribution of food products to nonprofit
19011901 organizations that distribute such food products to persons pursuant to a
19021902 food distribution program on a charitable basis without fee or charge, and
19031903 all sales of tangible personal property or services purchased by a
19041904 contractor for the purpose of constructing, equipping, reconstructing,
19051905 maintaining, repairing, enlarging, furnishing or remodeling facilities used
19061906 for the collection and storage of such food products for any such
19071907 organization which is exempt from federal income taxation pursuant to
19081908 section 501(c)(3) of the federal internal revenue code of 1986, that would
19091909 be exempt from taxation under the provisions of this section if purchased
19101910 directly by such organization. Nothing in this subsection shall be deemed
19111911 to exempt the purchase of any construction machinery, equipment or tools
19121912 used in the constructing, equipping, reconstructing, maintaining, repairing,
19131913 enlarging, furnishing or remodeling facilities for any such organization.
19141914 When any such organization shall contract for the purpose of constructing,
19151915 equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
19161916 remodeling facilities, it shall obtain from the state and furnish to the
19171917 contractor an exemption certificate for the project involved, and the
19181918 contractor may purchase materials for incorporation in such project. The
19191919 contractor shall furnish the number of such certificate to all suppliers from
19201920 whom such purchases are made, and such suppliers shall execute invoices
19211921 covering the same bearing the number of such certificate. Upon
19221922 completion of the project the contractor shall furnish to such organization
19231923 concerned a sworn statement, on a form to be provided by the director of
19241924 taxation, that all purchases so made were entitled to exemption under this
19251925 subsection. All invoices shall be held by the contractor for a period of five
19261926 years and shall be subject to audit by the director of taxation. If any
19271927 materials purchased under such a certificate are found not to have been
19281928 incorporated in such facilities or not to have been returned for credit or the
19291929 sales or compensating tax otherwise imposed upon such materials that will
19301930 not be so incorporated in such facilities reported and paid by such
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19741974 contractor to the director of taxation not later than the 20
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19771977 month following the close of the month in which it shall be determined
19781978 that such materials will not be used for the purpose for which such
19791979 certificate was issued, such organization concerned shall be liable for tax
19801980 on all materials purchased for the project, and upon payment thereof it
19811981 may recover the same from the contractor together with reasonable
19821982 attorney fees. Any contractor or any agent, employee or subcontractor
19831983 thereof, who shall use or otherwise dispose of any materials purchased
19841984 under such a certificate for any purpose other than that for which such a
19851985 certificate is issued without the payment of the sales or compensating tax
19861986 otherwise imposed upon such materials, shall be guilty of a misdemeanor
19871987 and, upon conviction therefor, shall be subject to the penalties provided for
19881988 in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
19891989 July 1, 2005, but prior to the effective date of this act upon the gross
19901990 receipts received from any sale exempted by the amendatory provisions of
19911991 this subsection shall be refunded. Each claim for a sales tax refund shall be
19921992 verified and submitted to the director of taxation upon forms furnished by
19931993 the director and shall be accompanied by any additional documentation
19941994 required by the director. The director shall review each claim and shall
19951995 refund that amount of sales tax paid as determined under the provisions of
19961996 this subsection. All refunds shall be paid from the sales tax refund fund
19971997 upon warrants of the director of accounts and reports pursuant to vouchers
19981998 approved by the director or the director's designee;
19991999 (jjj) all sales of dietary supplements dispensed pursuant to a
20002000 prescription order by a licensed practitioner or a mid-level practitioner as
20012001 defined by K.S.A. 65-1626, and amendments thereto. As used in this
20022002 subsection, "dietary supplement" means any product, other than tobacco,
20032003 intended to supplement the diet that: (1) Contains one or more of the
20042004 following dietary ingredients: A vitamin, a mineral, an herb or other
20052005 botanical, an amino acid, a dietary substance for use by humans to
20062006 supplement the diet by increasing the total dietary intake or a concentrate,
20072007 metabolite, constituent, extract or combination of any such ingredient; (2)
20082008 is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
20092009 liquid form, or if not intended for ingestion, in such a form, is not
20102010 represented as conventional food and is not represented for use as a sole
20112011 item of a meal or of the diet; and (3) is required to be labeled as a dietary
20122012 supplement, identifiable by the supplemental facts box found on the label
20132013 and as required pursuant to 21 C.F.R. § 101.36;
20142014 (lll) all sales of tangible personal property and services purchased by
20152015 special olympics Kansas, inc. for the purpose of providing year-round
20162016 sports training and athletic competition in a variety of olympic-type sports
20172017 for individuals with intellectual disabilities by giving them continuing
20182018 opportunities to develop physical fitness, demonstrate courage, experience
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20622062 joy and participate in a sharing of gifts, skills and friendship with their
20632063 families, other special olympics athletes and the community, and activities
20642064 provided or sponsored by such organization, and all sales of tangible
20652065 personal property by or on behalf of any such organization;
20662066 (mmm) all sales of tangible personal property purchased by or on
20672067 behalf of the Marillac center, inc., which is exempt from federal income
20682068 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
20692069 for the purpose of providing psycho-social-biological and special
20702070 education services to children, and all sales of any such property by or on
20712071 behalf of such organization for such purpose;
20722072 (nnn) all sales of tangible personal property and services purchased
20732073 by the west Sedgwick county-sunrise rotary club and sunrise charitable
20742074 fund for the purpose of constructing a boundless playground which is an
20752075 integrated, barrier free and developmentally advantageous play
20762076 environment for children of all abilities and disabilities;
20772077 (ooo) all sales of tangible personal property by or on behalf of a
20782078 public library serving the general public and supported in whole or in part
20792079 with tax money or a not-for-profit organization whose purpose is to raise
20802080 funds for or provide services or other benefits to any such public library;
20812081 (ppp) all sales of tangible personal property and services purchased
20822082 by or on behalf of a homeless shelter that is exempt from federal income
20832083 taxation pursuant to section 501(c)(3) of the federal income tax code of
20842084 1986, and used by any such homeless shelter to provide emergency and
20852085 transitional housing for individuals and families experiencing
20862086 homelessness, and all sales of any such property by or on behalf of any
20872087 such homeless shelter for any such purpose;
20882088 (qqq) all sales of tangible personal property and services purchased
20892089 by TLC for children and families, inc., hereinafter referred to as TLC,
20902090 which is exempt from federal income taxation pursuant to section 501(c)
20912091 (3) of the federal internal revenue code of 1986, and such property and
20922092 services are used for the purpose of providing emergency shelter and
20932093 treatment for abused and neglected children as well as meeting additional
20942094 critical needs for children, juveniles and family, and all sales of any such
20952095 property by or on behalf of TLC for any such purpose; and all sales of
20962096 tangible personal property or services purchased by a contractor for the
20972097 purpose of constructing, maintaining, repairing, enlarging, furnishing or
20982098 remodeling facilities for the operation of services for TLC for any such
20992099 purpose that would be exempt from taxation under the provisions of this
21002100 section if purchased directly by TLC. Nothing in this subsection shall be
21012101 deemed to exempt the purchase of any construction machinery, equipment
21022102 or tools used in the constructing, maintaining, repairing, enlarging,
21032103 furnishing or remodeling such facilities for TLC. When TLC contracts for
21042104 the purpose of constructing, maintaining, repairing, enlarging, furnishing
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21482148 or remodeling such facilities, it shall obtain from the state and furnish to
21492149 the contractor an exemption certificate for the project involved, and the
21502150 contractor may purchase materials for incorporation in such project. The
21512151 contractor shall furnish the number of such certificate to all suppliers from
21522152 whom such purchases are made, and such suppliers shall execute invoices
21532153 covering the same bearing the number of such certificate. Upon
21542154 completion of the project the contractor shall furnish to TLC a sworn
21552155 statement, on a form to be provided by the director of taxation, that all
21562156 purchases so made were entitled to exemption under this subsection. All
21572157 invoices shall be held by the contractor for a period of five years and shall
21582158 be subject to audit by the director of taxation. If any materials purchased
21592159 under such a certificate are found not to have been incorporated in the
21602160 building or other project or not to have been returned for credit or the sales
21612161 or compensating tax otherwise imposed upon such materials that will not
21622162 be so incorporated in the building or other project reported and paid by
21632163 such contractor to the director of taxation not later than the 20
21642164 th
21652165 day of the
21662166 month following the close of the month in which it shall be determined
21672167 that such materials will not be used for the purpose for which such
21682168 certificate was issued, TLC shall be liable for tax on all materials
21692169 purchased for the project, and upon payment thereof it may recover the
21702170 same from the contractor together with reasonable attorney fees. Any
21712171 contractor or any agent, employee or subcontractor thereof, who shall use
21722172 or otherwise dispose of any materials purchased under such a certificate
21732173 for any purpose other than that for which such a certificate is issued
21742174 without the payment of the sales or compensating tax otherwise imposed
21752175 upon such materials, shall be guilty of a misdemeanor and, upon
21762176 conviction therefor, shall be subject to the penalties provided for in K.S.A.
21772177 79-3615(h), and amendments thereto;
21782178 (rrr) all sales of tangible personal property and services purchased by
21792179 any county law library maintained pursuant to law and sales of tangible
21802180 personal property and services purchased by an organization that would
21812181 have been exempt from taxation under the provisions of this subsection if
21822182 purchased directly by the county law library for the purpose of providing
21832183 legal resources to attorneys, judges, students and the general public, and
21842184 all sales of any such property by or on behalf of any such county law
21852185 library;
21862186 (sss) all sales of tangible personal property and services purchased by
21872187 catholic charities or youthville, hereinafter referred to as charitable family
21882188 providers, which is exempt from federal income taxation pursuant to
21892189 section 501(c)(3) of the federal internal revenue code of 1986, and which
21902190 such property and services are used for the purpose of providing
21912191 emergency shelter and treatment for abused and neglected children as well
21922192 as meeting additional critical needs for children, juveniles and family, and
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22362236 all sales of any such property by or on behalf of charitable family
22372237 providers for any such purpose; and all sales of tangible personal property
22382238 or services purchased by a contractor for the purpose of constructing,
22392239 maintaining, repairing, enlarging, furnishing or remodeling facilities for
22402240 the operation of services for charitable family providers for any such
22412241 purpose which would be exempt from taxation under the provisions of this
22422242 section if purchased directly by charitable family providers. Nothing in
22432243 this subsection shall be deemed to exempt the purchase of any construction
22442244 machinery, equipment or tools used in the constructing, maintaining,
22452245 repairing, enlarging, furnishing or remodeling such facilities for charitable
22462246 family providers. When charitable family providers contracts for the
22472247 purpose of constructing, maintaining, repairing, enlarging, furnishing or
22482248 remodeling such facilities, it shall obtain from the state and furnish to the
22492249 contractor an exemption certificate for the project involved, and the
22502250 contractor may purchase materials for incorporation in such project. The
22512251 contractor shall furnish the number of such certificate to all suppliers from
22522252 whom such purchases are made, and such suppliers shall execute invoices
22532253 covering the same bearing the number of such certificate. Upon
22542254 completion of the project the contractor shall furnish to charitable family
22552255 providers a sworn statement, on a form to be provided by the director of
22562256 taxation, that all purchases so made were entitled to exemption under this
22572257 subsection. All invoices shall be held by the contractor for a period of five
22582258 years and shall be subject to audit by the director of taxation. If any
22592259 materials purchased under such a certificate are found not to have been
22602260 incorporated in the building or other project or not to have been returned
22612261 for credit or the sales or compensating tax otherwise imposed upon such
22622262 materials that will not be so incorporated in the building or other project
22632263 reported and paid by such contractor to the director of taxation not later
22642264 than the 20
22652265 th
22662266 day of the month following the close of the month in which it
22672267 shall be determined that such materials will not be used for the purpose for
22682268 which such certificate was issued, charitable family providers shall be
22692269 liable for tax on all materials purchased for the project, and upon payment
22702270 thereof it may recover the same from the contractor together with
22712271 reasonable attorney fees. Any contractor or any agent, employee or
22722272 subcontractor thereof, who shall use or otherwise dispose of any materials
22732273 purchased under such a certificate for any purpose other than that for
22742274 which such a certificate is issued without the payment of the sales or
22752275 compensating tax otherwise imposed upon such materials, shall be guilty
22762276 of a misdemeanor and, upon conviction therefor, shall be subject to the
22772277 penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
22782278 (ttt) all sales of tangible personal property or services purchased by a
22792279 contractor for a project for the purpose of restoring, constructing,
22802280 equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
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23242324 remodeling a home or facility owned by a nonprofit museum that has been
23252325 granted an exemption pursuant to subsection (qq), which such home or
23262326 facility is located in a city that has been designated as a qualified
23272327 hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
23282328 amendments thereto, and which such project is related to the purposes of
23292329 K.S.A. 75-5071 et seq., and amendments thereto, and that would be
23302330 exempt from taxation under the provisions of this section if purchased
23312331 directly by such nonprofit museum. Nothing in this subsection shall be
23322332 deemed to exempt the purchase of any construction machinery, equipment
23332333 or tools used in the restoring, constructing, equipping, reconstructing,
23342334 maintaining, repairing, enlarging, furnishing or remodeling a home or
23352335 facility for any such nonprofit museum. When any such nonprofit museum
23362336 shall contract for the purpose of restoring, constructing, equipping,
23372337 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
23382338 a home or facility, it shall obtain from the state and furnish to the
23392339 contractor an exemption certificate for the project involved, and the
23402340 contractor may purchase materials for incorporation in such project. The
23412341 contractor shall furnish the number of such certificates to all suppliers
23422342 from whom such purchases are made, and such suppliers shall execute
23432343 invoices covering the same bearing the number of such certificate. Upon
23442344 completion of the project, the contractor shall furnish to such nonprofit
23452345 museum a sworn statement on a form to be provided by the director of
23462346 taxation that all purchases so made were entitled to exemption under this
23472347 subsection. All invoices shall be held by the contractor for a period of five
23482348 years and shall be subject to audit by the director of taxation. If any
23492349 materials purchased under such a certificate are found not to have been
23502350 incorporated in the building or other project or not to have been returned
23512351 for credit or the sales or compensating tax otherwise imposed upon such
23522352 materials that will not be so incorporated in a home or facility or other
23532353 project reported and paid by such contractor to the director of taxation not
23542354 later than the 20
23552355 th
23562356 day of the month following the close of the month in
23572357 which it shall be determined that such materials will not be used for the
23582358 purpose for which such certificate was issued, such nonprofit museum
23592359 shall be liable for tax on all materials purchased for the project, and upon
23602360 payment thereof it may recover the same from the contractor together with
23612361 reasonable attorney fees. Any contractor or any agent, employee or
23622362 subcontractor thereof, who shall use or otherwise dispose of any materials
23632363 purchased under such a certificate for any purpose other than that for
23642364 which such a certificate is issued without the payment of the sales or
23652365 compensating tax otherwise imposed upon such materials, shall be guilty
23662366 of a misdemeanor and, upon conviction therefor, shall be subject to the
23672367 penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
23682368 (uuu) all sales of tangible personal property and services purchased
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24122412 by Kansas children's service league, hereinafter referred to as KCSL,
24132413 which is exempt from federal income taxation pursuant to section 501(c)
24142414 (3) of the federal internal revenue code of 1986, and which such property
24152415 and services are used for the purpose of providing for the prevention and
24162416 treatment of child abuse and maltreatment as well as meeting additional
24172417 critical needs for children, juveniles and family, and all sales of any such
24182418 property by or on behalf of KCSL for any such purpose; and all sales of
24192419 tangible personal property or services purchased by a contractor for the
24202420 purpose of constructing, maintaining, repairing, enlarging, furnishing or
24212421 remodeling facilities for the operation of services for KCSL for any such
24222422 purpose that would be exempt from taxation under the provisions of this
24232423 section if purchased directly by KCSL. Nothing in this subsection shall be
24242424 deemed to exempt the purchase of any construction machinery, equipment
24252425 or tools used in the constructing, maintaining, repairing, enlarging,
24262426 furnishing or remodeling such facilities for KCSL. When KCSL contracts
24272427 for the purpose of constructing, maintaining, repairing, enlarging,
24282428 furnishing or remodeling such facilities, it shall obtain from the state and
24292429 furnish to the contractor an exemption certificate for the project involved,
24302430 and the contractor may purchase materials for incorporation in such
24312431 project. The contractor shall furnish the number of such certificate to all
24322432 suppliers from whom such purchases are made, and such suppliers shall
24332433 execute invoices covering the same bearing the number of such certificate.
24342434 Upon completion of the project the contractor shall furnish to KCSL a
24352435 sworn statement, on a form to be provided by the director of taxation, that
24362436 all purchases so made were entitled to exemption under this subsection.
24372437 All invoices shall be held by the contractor for a period of five years and
24382438 shall be subject to audit by the director of taxation. If any materials
24392439 purchased under such a certificate are found not to have been incorporated
24402440 in the building or other project or not to have been returned for credit or
24412441 the sales or compensating tax otherwise imposed upon such materials that
24422442 will not be so incorporated in the building or other project reported and
24432443 paid by such contractor to the director of taxation not later than the 20
24442444 th
24452445 day of the month following the close of the month in which it shall be
24462446 determined that such materials will not be used for the purpose for which
24472447 such certificate was issued, KCSL shall be liable for tax on all materials
24482448 purchased for the project, and upon payment thereof it may recover the
24492449 same from the contractor together with reasonable attorney fees. Any
24502450 contractor or any agent, employee or subcontractor thereof, who shall use
24512451 or otherwise dispose of any materials purchased under such a certificate
24522452 for any purpose other than that for which such a certificate is issued
24532453 without the payment of the sales or compensating tax otherwise imposed
24542454 upon such materials, shall be guilty of a misdemeanor and, upon
24552455 conviction therefor, shall be subject to the penalties provided for in K.S.A.
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24992499 79-3615(h), and amendments thereto;
25002500 (vvv) all sales of tangible personal property or services, including the
25012501 renting and leasing of tangible personal property or services, purchased by
25022502 jazz in the woods, inc., a Kansas corporation that is exempt from federal
25032503 income taxation pursuant to section 501(c)(3) of the federal internal
25042504 revenue code, for the purpose of providing jazz in the woods, an event
25052505 benefiting children-in-need and other nonprofit charities assisting such
25062506 children, and all sales of any such property by or on behalf of such
25072507 organization for such purpose;
25082508 (www) all sales of tangible personal property purchased by or on
25092509 behalf of the Frontenac education foundation, which is exempt from
25102510 federal income taxation pursuant to section 501(c)(3) of the federal
25112511 internal revenue code, for the purpose of providing education support for
25122512 students, and all sales of any such property by or on behalf of such
25132513 organization for such purpose;
25142514 (xxx) all sales of personal property and services purchased by the
25152515 booth theatre foundation, inc., an organization, which is exempt from
25162516 federal income taxation pursuant to section 501(c)(3) of the federal
25172517 internal revenue code of 1986, and which such personal property and
25182518 services are used by any such organization in the constructing, equipping,
25192519 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
25202520 of the booth theatre, and all sales of tangible personal property or services
25212521 purchased by a contractor for the purpose of constructing, equipping,
25222522 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
25232523 the booth theatre for such organization, that would be exempt from
25242524 taxation under the provisions of this section if purchased directly by such
25252525 organization. Nothing in this subsection shall be deemed to exempt the
25262526 purchase of any construction machinery, equipment or tools used in the
25272527 constructing, equipping, reconstructing, maintaining, repairing, enlarging,
25282528 furnishing or remodeling facilities for any such organization. When any
25292529 such organization shall contract for the purpose of constructing, equipping,
25302530 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
25312531 facilities, it shall obtain from the state and furnish to the contractor an
25322532 exemption certificate for the project involved, and the contractor may
25332533 purchase materials for incorporation in such project. The contractor shall
25342534 furnish the number of such certificate to all suppliers from whom such
25352535 purchases are made, and such suppliers shall execute invoices covering the
25362536 same bearing the number of such certificate. Upon completion of the
25372537 project the contractor shall furnish to such organization concerned a sworn
25382538 statement, on a form to be provided by the director of taxation, that all
25392539 purchases so made were entitled to exemption under this subsection. All
25402540 invoices shall be held by the contractor for a period of five years and shall
25412541 be subject to audit by the director of taxation. If any materials purchased
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25852585 under such a certificate are found not to have been incorporated in such
25862586 facilities or not to have been returned for credit or the sales or
25872587 compensating tax otherwise imposed upon such materials that will not be
25882588 so incorporated in such facilities reported and paid by such contractor to
25892589 the director of taxation not later than the 20
25902590 th
25912591 day of the month following
25922592 the close of the month in which it shall be determined that such materials
25932593 will not be used for the purpose for which such certificate was issued, such
25942594 organization concerned shall be liable for tax on all materials purchased
25952595 for the project, and upon payment thereof it may recover the same from
25962596 the contractor together with reasonable attorney fees. Any contractor or
25972597 any agent, employee or subcontractor thereof, who shall use or otherwise
25982598 dispose of any materials purchased under such a certificate for any purpose
25992599 other than that for which such a certificate is issued without the payment
26002600 of the sales or compensating tax otherwise imposed upon such materials,
26012601 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
26022602 subject to the penalties provided for in K.S.A. 79-3615(h), and
26032603 amendments thereto. Sales tax paid on and after January 1, 2007, but prior
26042604 to the effective date of this act upon the gross receipts received from any
26052605 sale which would have been exempted by the provisions of this subsection
26062606 had such sale occurred after the effective date of this act shall be refunded.
26072607 Each claim for a sales tax refund shall be verified and submitted to the
26082608 director of taxation upon forms furnished by the director and shall be
26092609 accompanied by any additional documentation required by the director.
26102610 The director shall review each claim and shall refund that amount of sales
26112611 tax paid as determined under the provisions of this subsection. All refunds
26122612 shall be paid from the sales tax refund fund upon warrants of the director
26132613 of accounts and reports pursuant to vouchers approved by the director or
26142614 the director's designee;
26152615 (yyy) all sales of tangible personal property and services purchased
26162616 by TLC charities foundation, inc., hereinafter referred to as TLC charities,
26172617 which is exempt from federal income taxation pursuant to section 501(c)
26182618 (3) of the federal internal revenue code of 1986, and which such property
26192619 and services are used for the purpose of encouraging private philanthropy
26202620 to further the vision, values, and goals of TLC for children and families,
26212621 inc.; and all sales of such property and services by or on behalf of TLC
26222622 charities for any such purpose and all sales of tangible personal property or
26232623 services purchased by a contractor for the purpose of constructing,
26242624 maintaining, repairing, enlarging, furnishing or remodeling facilities for
26252625 the operation of services for TLC charities for any such purpose that would
26262626 be exempt from taxation under the provisions of this section if purchased
26272627 directly by TLC charities. Nothing in this subsection shall be deemed to
26282628 exempt the purchase of any construction machinery, equipment or tools
26292629 used in the constructing, maintaining, repairing, enlarging, furnishing or
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26732673 remodeling such facilities for TLC charities. When TLC charities contracts
26742674 for the purpose of constructing, maintaining, repairing, enlarging,
26752675 furnishing or remodeling such facilities, it shall obtain from the state and
26762676 furnish to the contractor an exemption certificate for the project involved,
26772677 and the contractor may purchase materials for incorporation in such
26782678 project. The contractor shall furnish the number of such certificate to all
26792679 suppliers from whom such purchases are made, and such suppliers shall
26802680 execute invoices covering the same bearing the number of such certificate.
26812681 Upon completion of the project the contractor shall furnish to TLC
26822682 charities a sworn statement, on a form to be provided by the director of
26832683 taxation, that all purchases so made were entitled to exemption under this
26842684 subsection. All invoices shall be held by the contractor for a period of five
26852685 years and shall be subject to audit by the director of taxation. If any
26862686 materials purchased under such a certificate are found not to have been
26872687 incorporated in the building or other project or not to have been returned
26882688 for credit or the sales or compensating tax otherwise imposed upon such
26892689 materials that will not be incorporated into the building or other project
26902690 reported and paid by such contractor to the director of taxation not later
26912691 than the 20
26922692 th
26932693 day of the month following the close of the month in which it
26942694 shall be determined that such materials will not be used for the purpose for
26952695 which such certificate was issued, TLC charities shall be liable for tax on
26962696 all materials purchased for the project, and upon payment thereof it may
26972697 recover the same from the contractor together with reasonable attorney
26982698 fees. Any contractor or any agent, employee or subcontractor thereof, who
26992699 shall use or otherwise dispose of any materials purchased under such a
27002700 certificate for any purpose other than that for which such a certificate is
27012701 issued without the payment of the sales or compensating tax otherwise
27022702 imposed upon such materials, shall be guilty of a misdemeanor and, upon
27032703 conviction therefor, shall be subject to the penalties provided for in K.S.A.
27042704 79-3615(h), and amendments thereto;
27052705 (zzz) all sales of tangible personal property purchased by the rotary
27062706 club of shawnee foundation, which is exempt from federal income taxation
27072707 pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
27082708 as amended, used for the purpose of providing contributions to community
27092709 service organizations and scholarships;
27102710 (aaaa) all sales of personal property and services purchased by or on
27112711 behalf of victory in the valley, inc., which is exempt from federal income
27122712 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
27132713 for the purpose of providing a cancer support group and services for
27142714 persons with cancer, and all sales of any such property by or on behalf of
27152715 any such organization for any such purpose;
27162716 (bbbb) all sales of entry or participation fees, charges or tickets by
27172717 Guadalupe health foundation, which is exempt from federal income
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27612761 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
27622762 for such organization's annual fundraising event which purpose is to
27632763 provide health care services for uninsured workers;
27642764 (cccc) all sales of tangible personal property or services purchased by
27652765 or on behalf of wayside waifs, inc., which is exempt from federal income
27662766 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
27672767 for the purpose of providing such organization's annual fundraiser, an
27682768 event whose purpose is to support the care of homeless and abandoned
27692769 animals, animal adoption efforts, education programs for children and
27702770 efforts to reduce animal over-population and animal welfare services, and
27712771 all sales of any such property, including entry or participation fees or
27722772 charges, by or on behalf of such organization for such purpose;
27732773 (dddd) all sales of tangible personal property or services purchased
27742774 by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
27752775 of which are exempt from federal income taxation pursuant to section
27762776 501(c)(3) of the federal internal revenue code, for the purpose of providing
27772777 education, training and employment opportunities for people with
27782778 disabilities and other barriers to employment;
27792779 (eeee) all sales of tangible personal property or services purchased by
27802780 or on behalf of all American beef battalion, inc., which is exempt from
27812781 federal income taxation pursuant to section 501(c)(3) of the federal
27822782 internal revenue code, for the purpose of educating, promoting and
27832783 participating as a contact group through the beef cattle industry in order to
27842784 carry out such projects that provide support and morale to members of the
27852785 United States armed forces and military services;
27862786 (ffff) all sales of tangible personal property and services purchased by
27872787 sheltered living, inc., which is exempt from federal income taxation
27882788 pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
27892789 and which such property and services are used for the purpose of
27902790 providing residential and day services for people with developmental
27912791 disabilities or intellectual disability, or both, and all sales of any such
27922792 property by or on behalf of sheltered living, inc., for any such purpose; and
27932793 all sales of tangible personal property or services purchased by a
27942794 contractor for the purpose of rehabilitating, constructing, maintaining,
27952795 repairing, enlarging, furnishing or remodeling homes and facilities for
27962796 sheltered living, inc., for any such purpose that would be exempt from
27972797 taxation under the provisions of this section if purchased directly by
27982798 sheltered living, inc. Nothing in this subsection shall be deemed to exempt
27992799 the purchase of any construction machinery, equipment or tools used in the
28002800 constructing, maintaining, repairing, enlarging, furnishing or remodeling
28012801 such homes and facilities for sheltered living, inc. When sheltered living,
28022802 inc., contracts for the purpose of rehabilitating, constructing, maintaining,
28032803 repairing, enlarging, furnishing or remodeling such homes and facilities, it
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28472847 shall obtain from the state and furnish to the contractor an exemption
28482848 certificate for the project involved, and the contractor may purchase
28492849 materials for incorporation in such project. The contractor shall furnish the
28502850 number of such certificate to all suppliers from whom such purchases are
28512851 made, and such suppliers shall execute invoices covering the same bearing
28522852 the number of such certificate. Upon completion of the project the
28532853 contractor shall furnish to sheltered living, inc., a sworn statement, on a
28542854 form to be provided by the director of taxation, that all purchases so made
28552855 were entitled to exemption under this subsection. All invoices shall be held
28562856 by the contractor for a period of five years and shall be subject to audit by
28572857 the director of taxation. If any materials purchased under such a certificate
28582858 are found not to have been incorporated in the building or other project or
28592859 not to have been returned for credit or the sales or compensating tax
28602860 otherwise imposed upon such materials that will not be so incorporated in
28612861 the building or other project reported and paid by such contractor to the
28622862 director of taxation not later than the 20
28632863 th
28642864 day of the month following the
28652865 close of the month in which it shall be determined that such materials will
28662866 not be used for the purpose for which such certificate was issued, sheltered
28672867 living, inc., shall be liable for tax on all materials purchased for the
28682868 project, and upon payment thereof it may recover the same from the
28692869 contractor together with reasonable attorney fees. Any contractor or any
28702870 agent, employee or subcontractor thereof, who shall use or otherwise
28712871 dispose of any materials purchased under such a certificate for any purpose
28722872 other than that for which such a certificate is issued without the payment
28732873 of the sales or compensating tax otherwise imposed upon such materials,
28742874 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
28752875 subject to the penalties provided for in K.S.A. 79-3615(h), and
28762876 amendments thereto;
28772877 (gggg) all sales of game birds for which the primary purpose is use in
28782878 hunting;
28792879 (hhhh) all sales of tangible personal property or services purchased
28802880 on or after July 1, 2014, for the purpose of and in conjunction with
28812881 constructing, reconstructing, enlarging or remodeling a business identified
28822882 under the North American industry classification system (NAICS)
28832883 subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
28842884 installation of machinery and equipment purchased for installation at any
28852885 such business. The exemption provided in this subsection shall not apply
28862886 to projects that have actual total costs less than $50,000. When a person
28872887 contracts for the construction, reconstruction, enlargement or remodeling
28882888 of any such business, such person shall obtain from the state and furnish to
28892889 the contractor an exemption certificate for the project involved, and the
28902890 contractor may purchase materials, machinery and equipment for
28912891 incorporation in such project. The contractor shall furnish the number of
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29352935 such certificates to all suppliers from whom such purchases are made, and
29362936 such suppliers shall execute invoices covering the same bearing the
29372937 number of such certificate. Upon completion of the project, the contractor
29382938 shall furnish to the owner of the business a sworn statement, on a form to
29392939 be provided by the director of taxation, that all purchases so made were
29402940 entitled to exemption under this subsection. All invoices shall be held by
29412941 the contractor for a period of five years and shall be subject to audit by the
29422942 director of taxation. Any contractor or any agent, employee or
29432943 subcontractor of the contractor, who shall use or otherwise dispose of any
29442944 materials, machinery or equipment purchased under such a certificate for
29452945 any purpose other than that for which such a certificate is issued without
29462946 the payment of the sales or compensating tax otherwise imposed thereon,
29472947 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
29482948 subject to the penalties provided for in K.S.A. 79-3615(h), and
29492949 amendments thereto;
29502950 (iiii) all sales of tangible personal property or services purchased by a
29512951 contractor for the purpose of constructing, maintaining, repairing,
29522952 enlarging, furnishing or remodeling facilities for the operation of services
29532953 for Wichita children's home for any such purpose that would be exempt
29542954 from taxation under the provisions of this section if purchased directly by
29552955 Wichita children's home. Nothing in this subsection shall be deemed to
29562956 exempt the purchase of any construction machinery, equipment or tools
29572957 used in the constructing, maintaining, repairing, enlarging, furnishing or
29582958 remodeling such facilities for Wichita children's home. When Wichita
29592959 children's home contracts for the purpose of constructing, maintaining,
29602960 repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
29612961 from the state and furnish to the contractor an exemption certificate for the
29622962 project involved, and the contractor may purchase materials for
29632963 incorporation in such project. The contractor shall furnish the number of
29642964 such certificate to all suppliers from whom such purchases are made, and
29652965 such suppliers shall execute invoices covering the same bearing the
29662966 number of such certificate. Upon completion of the project, the contractor
29672967 shall furnish to Wichita children's home a sworn statement, on a form to be
29682968 provided by the director of taxation, that all purchases so made were
29692969 entitled to exemption under this subsection. All invoices shall be held by
29702970 the contractor for a period of five years and shall be subject to audit by the
29712971 director of taxation. If any materials purchased under such a certificate are
29722972 found not to have been incorporated in the building or other project or not
29732973 to have been returned for credit or the sales or compensating tax otherwise
29742974 imposed upon such materials that will not be so incorporated in the
29752975 building or other project reported and paid by such contractor to the
29762976 director of taxation not later than the 20
29772977 th
29782978 day of the month following the
29792979 close of the month in which it shall be determined that such materials will
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30233023 not be used for the purpose for which such certificate was issued, Wichita
30243024 children's home shall be liable for the tax on all materials purchased for the
30253025 project, and upon payment, it may recover the same from the contractor
30263026 together with reasonable attorney fees. Any contractor or any agent,
30273027 employee or subcontractor, who shall use or otherwise dispose of any
30283028 materials purchased under such a certificate for any purpose other than that
30293029 for which such a certificate is issued without the payment of the sales or
30303030 compensating tax otherwise imposed upon such materials, shall be guilty
30313031 of a misdemeanor and, upon conviction, shall be subject to the penalties
30323032 provided for in K.S.A. 79-3615(h), and amendments thereto;
30333033 (jjjj) all sales of tangible personal property or services purchased by
30343034 or on behalf of the beacon, inc., that is exempt from federal income
30353035 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
30363036 for the purpose of providing those desiring help with food, shelter, clothing
30373037 and other necessities of life during times of special need;
30383038 (kkkk) all sales of tangible personal property and services purchased
30393039 by or on behalf of reaching out from within, inc., which is exempt from
30403040 federal income taxation pursuant to section 501(c)(3) of the federal
30413041 internal revenue code, for the purpose of sponsoring self-help programs for
30423042 incarcerated persons that will enable such incarcerated persons to become
30433043 role models for non-violence while in correctional facilities and productive
30443044 family members and citizens upon return to the community;
30453045 (llll) all sales of tangible personal property and services purchased by
30463046 Gove county healthcare endowment foundation, inc., which is exempt
30473047 from federal income taxation pursuant to section 501(c)(3) of the federal
30483048 internal revenue code of 1986, and which such property and services are
30493049 used for the purpose of constructing and equipping an airport in Quinter,
30503050 Kansas, and all sales of tangible personal property or services purchased
30513051 by a contractor for the purpose of constructing and equipping an airport in
30523052 Quinter, Kansas, for such organization, that would be exempt from
30533053 taxation under the provisions of this section if purchased directly by such
30543054 organization. Nothing in this subsection shall be deemed to exempt the
30553055 purchase of any construction machinery, equipment or tools used in the
30563056 constructing or equipping of facilities for such organization. When such
30573057 organization shall contract for the purpose of constructing or equipping an
30583058 airport in Quinter, Kansas, it shall obtain from the state and furnish to the
30593059 contractor an exemption certificate for the project involved, and the
30603060 contractor may purchase materials for incorporation in such project. The
30613061 contractor shall furnish the number of such certificate to all suppliers from
30623062 whom such purchases are made, and such suppliers shall execute invoices
30633063 covering the same bearing the number of such certificate. Upon
30643064 completion of the project, the contractor shall furnish to such organization
30653065 concerned a sworn statement, on a form to be provided by the director of
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31093109 taxation, that all purchases so made were entitled to exemption under this
31103110 subsection. All invoices shall be held by the contractor for a period of five
31113111 years and shall be subject to audit by the director of taxation. If any
31123112 materials purchased under such a certificate are found not to have been
31133113 incorporated in such facilities or not to have been returned for credit or the
31143114 sales or compensating tax otherwise imposed upon such materials that will
31153115 not be so incorporated in such facilities reported and paid by such
31163116 contractor to the director of taxation no later than the 20
31173117 th
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31193119 following the close of the month in which it shall be determined that such
31203120 materials will not be used for the purpose for which such certificate was
31213121 issued, such organization concerned shall be liable for tax on all materials
31223122 purchased for the project, and upon payment thereof it may recover the
31233123 same from the contractor together with reasonable attorney fees. Any
31243124 contractor or any agent, employee or subcontractor thereof, who purchased
31253125 under such a certificate for any purpose other than that for which such a
31263126 certificate is issued without the payment of the sales or compensating tax
31273127 otherwise imposed upon such materials, shall be guilty of a misdemeanor
31283128 and, upon conviction therefor, shall be subject to the penalties provided for
31293129 in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
31303130 subsection shall expire and have no effect on and after July 1, 2019;
31313131 (mmmm) all sales of gold or silver coins; and palladium, platinum,
31323132 gold or silver bullion. For the purposes of this subsection, "bullion" means
31333133 bars, ingots or commemorative medallions of gold, silver, platinum,
31343134 palladium, or a combination thereof, for which the value of the metal
31353135 depends on its content and not the form;
31363136 (nnnn) all sales of tangible personal property or services purchased
31373137 by friends of hospice of Jefferson county, an organization that is exempt
31383138 from federal income taxation pursuant to section 501(c)(3) of the federal
31393139 internal revenue code of 1986, for the purpose of providing support to the
31403140 Jefferson county hospice agency in end-of-life care of Jefferson county
31413141 families, friends and neighbors, and all sales of entry or participation fees,
31423142 charges or tickets by friends of hospice of Jefferson county for such
31433143 organization's fundraising event for such purpose;
31443144 (oooo) all sales of tangible personal property or services purchased
31453145 for the purpose of and in conjunction with constructing, reconstructing,
31463146 enlarging or remodeling a qualified business facility by a qualified firm or
31473147 qualified supplier that meets the requirements established in K.S.A. 2024
31483148 Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
31493149 been approved for a project exemption certificate by the secretary of
31503150 commerce, and the sale and installation of machinery and equipment
31513151 purchased by such qualified firm or qualified supplier for installation at
31523152 any such qualified business facility. When a person shall contract for the
31533153 construction, reconstruction, enlargement or remodeling of any such
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31973197 qualified business facility, such person shall obtain from the state and
31983198 furnish to the contractor an exemption certificate for the project involved,
31993199 and the contractor may purchase materials, machinery and equipment for
32003200 incorporation in such project. The contractor shall furnish the number of
32013201 such certificates to all suppliers from whom such purchases are made, and
32023202 such suppliers shall execute invoices covering the same bearing the
32033203 number of such certificate. Upon completion of the project, the contractor
32043204 shall furnish to the owner of the qualified firm or qualified supplier a
32053205 sworn statement, on a form to be provided by the director of taxation, that
32063206 all purchases so made were entitled to exemption under this subsection.
32073207 All invoices shall be held by the contractor for a period of five years and
32083208 shall be subject to audit by the director of taxation. Any contractor or any
32093209 agent, employee or subcontractor thereof who shall use or otherwise
32103210 dispose of any materials, machinery or equipment purchased under such a
32113211 certificate for any purpose other than that for which such a certificate is
32123212 issued without the payment of the sales or compensating tax otherwise
32133213 imposed thereon, shall be guilty of a misdemeanor and, upon conviction
32143214 therefor, shall be subject to the penalties provided for in K.S.A. 79-
32153215 3615(h), and amendments thereto. As used in this subsection, "qualified
32163216 business facility," "qualified firm" and "qualified supplier" mean the same
32173217 as defined in K.S.A. 2024 Supp. 74-50,311, and amendments thereto;
32183218 (pppp) (1) all sales of tangible personal property or services
32193219 purchased by a not-for-profit corporation that is designated as an area
32203220 agency on aging by the secretary for aging and disabilities services and is
32213221 exempt from federal income taxation pursuant to section 501(c)(3) of the
32223222 federal internal revenue code for the purpose of coordinating and
32233223 providing seniors and those living with disabilities with services that
32243224 promote person-centered care, including home-delivered meals,
32253225 congregate meal settings, long-term case management, transportation,
32263226 information, assistance and other preventative and intervention services to
32273227 help service recipients remain in their homes and communities or for the
32283228 purpose of constructing, equipping, reconstructing, maintaining, repairing,
32293229 enlarging, furnishing or remodeling facilities for such area agency on
32303230 aging; and
32313231 (2) all sales of tangible personal property or services purchased by a
32323232 contractor for the purpose of constructing, equipping, reconstructing,
32333233 maintaining, repairing, enlarging, furnishing or remodeling facilities for an
32343234 area agency on aging that would be exempt from taxation under the
32353235 provisions of this section if purchased directly by such area agency on
32363236 aging. Nothing in this paragraph shall be deemed to exempt the purchase
32373237 of any construction machinery, equipment or tools used in the
32383238 constructing, equipping, reconstructing, maintaining, repairing, enlarging,
32393239 furnishing or remodeling facilities for an area agency on aging. When an
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32833283 area agency on aging contracts for the purpose of constructing, equipping,
32843284 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
32853285 facilities, it shall obtain from the state and furnish to the contractor an
32863286 exemption certificate for the project involved, and such contractor may
32873287 purchase materials for incorporation in such project. The contractor shall
32883288 furnish the number of such certificate to all suppliers from whom such
32893289 purchases are made, and such suppliers shall execute invoices covering the
32903290 same bearing the number of such certificate. Upon completion of the
32913291 project, the contractor shall furnish to such area agency on aging a sworn
32923292 statement, on a form to be provided by the director of taxation, that all
32933293 purchases so made were entitled to exemption under this subsection. All
32943294 invoices shall be held by the contractor for a period of five years and shall
32953295 be subject to audit by the director of taxation. If any materials purchased
32963296 under such a certificate are found not to have been incorporated in the
32973297 building or other project or not to have been returned for credit or the sales
32983298 or compensating tax otherwise imposed upon such materials that will not
32993299 be so incorporated in the building or other project reported and paid by
33003300 such contractor to the director of taxation not later than the 20
33013301 th
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33033303 month following the close of the month in which it shall be determined
33043304 that such materials will not be used for the purpose for which such
33053305 certificate was issued, the area agency on aging concerned shall be liable
33063306 for tax on all materials purchased for the project, and upon payment
33073307 thereof, the area agency on aging may recover the same from the
33083308 contractor together with reasonable attorney fees. Any contractor or any
33093309 agent, employee or subcontractor thereof who shall use or otherwise
33103310 dispose of any materials purchased under such a certificate for any purpose
33113311 other than that for which such a certificate is issued without the payment
33123312 of the sales or compensating tax otherwise imposed upon such materials
33133313 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
33143314 subject to the penalties provided for in K.S.A. 79-3615(h), and
33153315 amendments thereto;
33163316 (qqqq) all sales of tangible personal property or services purchased
33173317 by Kansas suicide prevention HQ, inc., an organization that is exempt
33183318 from federal income taxation pursuant to section 501(c)(3) of the federal
33193319 internal revenue code of 1986, for the purpose of bringing suicide
33203320 prevention training and awareness to communities across the state;
33213321 (rrrr) all sales of the services of slaughtering, butchering, custom
33223322 cutting, dressing, processing and packaging of an animal for human
33233323 consumption when the animal is delivered or furnished by a customer that
33243324 owns the animal and such meat or poultry is for use or consumption by
33253325 such customer;
33263326 (ssss) all sales of tangible personal property or services purchased by
33273327 or on behalf of doorstep inc., an organization that is exempt from federal
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33713371 income taxation pursuant to section 501(c)(3) of the federal internal
33723372 revenue code of 1986, for the purpose of providing short-term emergency
33733373 aid to families and individuals in need, including assistance with food,
33743374 clothing, rent, prescription medications, transportation and utilities, and
33753375 providing information on services to promote long-term self-sufficiency;
33763376 (tttt) on and after January 1, 2024, all sales of tangible personal
33773377 property or services purchased by exploration place, inc., an organization
33783378 that is exempt from federal income taxation pursuant to section 501(c)(3)
33793379 of the federal internal revenue code, and which such property and services
33803380 are used for the purpose of constructing, remodeling, furnishing or
33813381 equipping a riverfront amphitheater, a destination playscape, an education
33823382 center and indoor renovations at exploration place in Wichita, Kansas, all
33833383 sales of tangible personal property or services purchased by Kansas
33843384 children's discovery center inc. in Topeka, Kansas, and which such
33853385 property and services are used for the purpose of constructing, remodeling,
33863386 furnishing or equipping projects that include indoor-outdoor classrooms,
33873387 an expanded multi-media gallery, a workshop and loading dock and safety
33883388 upgrades such as a tornado shelter, lactation room, first aid room and
33893389 sensory room and all sales of tangible personal property or services
33903390 purchased by a contractor for the purpose of constructing, remodeling,
33913391 furnishing or equipping such projects, for such organizations, that would
33923392 be exempt from taxation under the provisions of this section if purchased
33933393 directly by such organizations. Nothing in this subsection shall be deemed
33943394 to exempt the purchase of any construction machinery, equipment or tools
33953395 used in the constructing, remodeling, furnishing or equipping of facilities
33963396 for such organization. When such organization shall contract for the
33973397 purpose of constructing, remodeling, furnishing or equipping such
33983398 projects, it shall obtain from the state and furnish to the contractor an
33993399 exemption certificate for the project involved, and the contractor may
34003400 purchase materials for incorporation in such project. The contractor shall
34013401 furnish the number of such certificate to all suppliers from whom such
34023402 purchases are made, and such suppliers shall execute invoices covering the
34033403 same bearing the number of such certificate. Upon completion of the
34043404 project, the contractor shall furnish to such organization a sworn statement,
34053405 on a form to be provided by the director of taxation, that all purchases so
34063406 made were entitled to exemption under this subsection. All invoices shall
34073407 be held by the contractor for a period of five years and shall be subject to
34083408 audit by the director of taxation. If any materials purchased under such a
34093409 certificate are found not to have been incorporated in such facilities or not
34103410 to have been returned for credit or the sales or compensating tax otherwise
34113411 imposed upon such materials that will not be so incorporated in such
34123412 facilities reported and paid by such contractor to the director of taxation no
34133413 later than the 20
34143414 th
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34593459 which it shall be determined that such materials will not be used for the
34603460 purpose for which such certificate was issued, such organization shall be
34613461 liable for tax on all materials purchased for the project, and upon payment
34623462 thereof may recover the same from the contractor together with reasonable
34633463 attorney fees. Any contractor or agent, employee or subcontractor thereof,
34643464 who purchased under such a certificate for any purpose other than that for
34653465 which such a certificate is issued without the payment of the sales or
34663466 compensating tax otherwise imposed upon such materials, shall be guilty
34673467 of a misdemeanor and, upon conviction therefor, shall be subject to the
34683468 penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
34693469 Sales tax paid on and after January 1, 2024, but prior to the effective date
34703470 of this act, upon the gross receipts received from any sale exempted by the
34713471 amendatory provisions of this subsection shall be refunded. Each claim for
34723472 a sales tax refund shall be verified and submitted to the director of taxation
34733473 upon forms furnished by the director and shall be accompanied by any
34743474 additional documentation required by the director. The director shall
34753475 review each claim and shall refund that amount of sales tax paid as
34763476 determined under the provisions of this subsection. All refunds shall be
34773477 paid from the sales tax refund fund upon warrants of the director of
34783478 accounts and reports pursuant to vouchers approved by the director or the
34793479 director's designee. The provisions of this subsection shall expire and have
34803480 no effect on and after December 31, 2030;
34813481 (uuuu) (1) (A) all sales of equipment, machinery, software, ancillary
34823482 components, appurtenances, accessories or other infrastructure purchased
34833483 for use in the provision of communications services; and
34843484 (B) all services purchased by a provider in the provision of the
34853485 communications service used in the repair, maintenance or installation in
34863486 such communications service.
34873487 (2) As used in this subsection:
34883488 (A) "Communications service" means internet access service,
34893489 telecommunications service, video service or any combination thereof.
34903490 (B) "Equipment, machinery, software, ancillary components,
34913491 appurtenances, accessories or other infrastructure" includes, but is not
34923492 limited to:
34933493 (i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,
34943494 amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,
34953495 transmitters, circuit cards, insulating and protective materials and cases,
34963496 power equipment, backup power equipment, diagnostic equipment, storage
34973497 devices, modems, cable modem termination systems and servers;
34983498 (ii) other general central office or headend equipment, such as
34993499 channel cards, frames and cabinets;
35003500 (iii) equipment used in successor technologies, including items used
35013501 to monitor, test, maintain, enable or facilitate qualifying equipment,
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35453545 machinery, software, ancillary components, appurtenances and
35463546 accessories; and
35473547 (iv) other infrastructure that is used in whole or in part to provide
35483548 communications services, including broadcasting, distributing, sending,
35493549 receiving, storing, transmitting, retransmitting, amplifying, switching,
35503550 providing connectivity for or routing communications services.
35513551 (C) "Internet access service" means the same as internet access as
35523552 defined in section 1105 of the internet tax freedom act amendments of
35533553 2007, public law 110-108.
35543554 (D) "Provider" means a person or entity that sells communications
35553555 service, including an affiliate or subsidiary.
35563556 (E) "Telecommunications service" means the same as defined in
35573557 K.S.A. 79-3602, and amendments thereto.
35583558 (F) "Video service" means the same as defined in K.S.A. 12-2022,
35593559 and amendments thereto.
35603560 (3) The provisions of this subsection shall expire and have no effect
35613561 on and after July 1, 2029;
35623562 (vvvv) (1) all sales of tangible personal property or services
35633563 purchased by a contractor for the purpose of constructing, equipping,
35643564 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
35653565 a building that is operated by, or is intended to be operated by, the Kansas
35663566 fairgrounds foundation, a not-for-profit corporation exempt from federal
35673567 income taxation pursuant to section 501(c)(3) of the federal internal
35683568 revenue code of 1986, and located on the grounds of the Kansas state fair,
35693569 and such tangible personal property would be exempt from taxation under
35703570 the provisions of this paragraph if purchased directly by such eligible not-
35713571 for-profit corporation. Nothing in this subsection shall be deemed to
35723572 exempt the purchase of any construction machinery, equipment or tools
35733573 used in the constructing, equipping, reconstructing, maintaining, repairing,
35743574 enlarging, furnishing or remodeling a building for such eligible not-for-
35753575 profit corporation. When such eligible not-for-profit corporation contracts
35763576 for the purpose of constructing, equipping, reconstructing, maintaining,
35773577 repairing, enlarging, furnishing or remodeling a building, such corporation
35783578 shall obtain from the state and furnish to the contractor an exemption
35793579 certificate for the project involved, and such contractor may purchase
35803580 materials for incorporation in such project. The contractor shall furnish the
35813581 number of such certificate to all suppliers from whom such purchases are
35823582 made, and such suppliers shall execute invoices covering such purchases
35833583 bearing the number of such certificate. Upon completion of the project, the
35843584 contractor shall furnish to such eligible not-for-profit corporation a sworn
35853585 statement, on a form to be provided by the director of taxation, that all
35863586 purchases so made were entitled to exemption under this subsection. All
35873587 invoices shall be held by the contractor for a period of five years and shall
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36313631 be subject to audit by the director of taxation. If any materials purchased
36323632 under such a certificate are found not to have been incorporated in the
36333633 building or returned for credit, the contractor shall report and pay the sales
36343634 or compensating tax to the director of taxation not later than the 20
36353635 th
36363636 day of
36373637 the month following the close of the month in which it is determined that
36383638 such materials will not be used for the purpose for which such certificate
36393639 was issued. The eligible not-for-profit corporation concerned shall be
36403640 liable for tax on all materials purchased for the project, and upon payment
36413641 thereof, the eligible not-for-profit corporation may recover the same from
36423642 the contractor together with reasonable attorney fees. Any contractor or
36433643 any agent, employee or subcontractor thereof who shall use or otherwise
36443644 dispose of any materials purchased under such a certificate for any purpose
36453645 other than that for which such a certificate is issued without the payment
36463646 of the sales or compensating tax otherwise imposed upon such materials
36473647 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
36483648 subject to the penalties provided for in K.S.A. 79-3615(h), and
36493649 amendments thereto.
36503650 (2) Sales tax paid on and after May 19, 2023, but prior to the effective
36513651 date of this act upon the gross receipts received from any sale which would
36523652 have been exempted by the provisions of this subsection had such sale
36533653 occurred after the effective date of this act shall be refunded. Each claim
36543654 for a sales tax refund shall be verified and submitted to the director of
36553655 taxation upon forms furnished by the director and shall be accompanied by
36563656 any additional documentation required by the director. The director shall
36573657 review each claim and shall refund that amount of sales tax paid as
36583658 determined under the provisions of this subsection. All refunds shall be
36593659 paid from the sales tax refund fund upon warrants of the director of
36603660 accounts and reports pursuant to vouchers approved by the director or the
36613661 director's designee; and
36623662 (wwww) (1) all sales of tangible personal property or services
36633663 purchased by a pregnancy resource center or residential maternity facility.
36643664 (2) As used in this subsection, "pregnancy resource center" or
36653665 "residential maternity facility" means an organization that is:
36663666 (A) Exempt from federal income taxation pursuant to section 501(c)
36673667 (3) of the federal internal revenue code of 1986;
36683668 (B) a nonprofit organization organized under the laws of this state;
36693669 and
36703670 (C) a pregnancy resource center or residential maternity facility that:
36713671 (i) Maintains a dedicated phone number for clients;
36723672 (ii) maintains in this state its primary physical office, clinic or
36733673 residential home that is open for clients for a minimum of 20 hours per
36743674 week, excluding state holidays;
36753675 (iii) offers services, at no cost to the client, for the express purpose of
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37193719 providing assistance to women in order to carry their pregnancy to term,
37203720 encourage parenting or adoption, prevent abortion and promote healthy
37213721 childbirth; and
37223722 (iv) utilizes trained healthcare providers, as defined by K.S.A. 2024
37233723 Supp. 79-32,316, and amendments thereto, to perform any available
37243724 medical procedures; and
37253725 (xxxx) all sales of tangible personal property purchased by sleep in
37263726 heavenly peace, inc., an organization that is exempt from federal income
37273727 taxation pursuant to section 501(c)(3) of the federal internal revenue code
37283728 of 1986, for the purpose of building and providing handmade, fully
37293729 furnished beds to children who are sleeping on floors or other places other
37303730 than beds.
37313731 Sec. 2. K.S.A. 2024 Supp. 79-3606 is hereby repealed.
37323732 Sec. 3. This act shall take effect and be in force from and after its
37333733 publication in the statute book.
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