Session of 2025
SENATE BILL No. 198
By Committee on Public Health and Welfare
2-5
AN ACT concerning abortion; prohibiting abortion procedures, except
when necessary to save the life of the pregnant woman; providing a
private cause of action for civil enforcement of violations of such
prohibition; amending K.S.A. 65-2837, 65-6731, 65-67a01, 76-3308
and 79-32,195 and K.S.A. 2024 Supp. 60-1906, 65-2401, 79-32,182b,
79-32,261 and 79-3606 and repealing the existing sections; also
repealing K.S.A. 65-4a02, 65-4a03, 65-4a04, 65-4a05, 65-4a06, 65-
4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11, 65-4a12, 65-6702, 65-6703,
65-6704, 65-6705, 65-6707, 65-6709, 65-6710, 65-6711, 65-6712, 65-
6714, 65-6715, 65-6721, 65-6722, 65-6724, 65-6725, 65-6726, 65-
6741, 65-6743, 65-6744, 65-6745, 65-6746, 65-6747, 65-6748 and 65-
6749 and K.S.A. 2024 Supp. 65-4a01, 65-6701, 65-6708, 65-6723 and
65-6742.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) It shall be unlawful for any person to knowingly
perform or induce or attempt to perform or induce an abortion except
when necessary to preserve the life of a pregnant woman in a medical
emergency.
(b) It shall not be a violation of this section if a physician provides
medical treatment to a pregnant woman that results in accidental or
unintentional injury to or the death of the unborn child.
(c) Nothing in this section shall be construed to authorize the
performance or induction of an abortion that is otherwise prohibited by
federal or state law.
New Sec. 2. It shall be unlawful for any person to manufacture,
distribute, prescribe, dispense, sell, give or otherwise provide mifepristone,
mifegyne, mifeperex or any other substantially similar generic or
nongeneric abortifacient drug in this state for the purpose of inducing an
abortion in violation of section 1, and amendments thereto.
New Sec. 3. Nothing in section 1 or 2, and amendments thereto, shall
be construed to:
(a) Impose any liability against the woman upon whom an abortion is
performed or induced or attempted to be performed or induced; or
(b) prohibit the administration of misoprostol for the purpose of
treatment of a miscarriage.
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New Sec. 4. (a) Violations of section 1 or 2, and amendments thereto,
shall be enforced exclusively through the private civil enforcement actions
provided under section 5, and amendments thereto. Notwithstanding any
other provision of law, no enforcement of sections 1 and 2, and
amendments thereto, may be taken or threatened by any state agency,
political subdivision, county attorney or district attorney or any officer or
employee thereof against any person.
(b) Nothing in this section shall be construed to:
(1) Render any of the conduct prohibited by sections 1 and 2, and
amendments thereto, or by any other provision of law to be lawful;
(2) limit or affect, in any way, the availability of any relief established
under section 5, and amendments thereto; or
(3) limit the enforceability of any other laws that regulate or prohibit
abortion.
New Sec. 5. (a) Except for the entities and individuals described in
section 4, and amendments thereto, any person may bring a civil action
against any person who:
(1) Violates section 1 or 2, and amendments thereto; or
(2) knowingly engages in conduct that aids or abets a violation of
section 1 or 2, and amendments thereto, including paying for or
reimbursing the costs of an abortion through insurance or otherwise,
regardless of whether the person knew or should have known that the
performance or induction of the abortion would violate section 1, and
amendments thereto.
(b) (1) Except as otherwise provided, if the party bringing a cause of
action pursuant to this section prevails, the court shall award:
(A) Injunctive relief sufficient to prevent the defendant from violating
section 1 or 2, and amendments thereto, or engaging in acts that aid or abet
violations of section 1 or 2, and amendments thereto;
(B) (i) statutory damages in an amount of not less than $10,000 for
each abortion that the defendant performed or induced or attempted to
perform or induce in violation of section 1, and amendments thereto, and
for each abortion performed or induced or attempted to perform or induce
in violation of section 1, and amendments thereto, that the defendant aided
or abetted; and
(ii) statutory damages in an amount of not less than $10,000 for each
violation of section 2, and amendments thereto; and
(C) attorney fees and court costs.
(2) A court shall not award attorney fees or court costs to any
defendant who is the prevailing party in such action.
(c) A court shall not make any award under this section if the
defendant demonstrates that the defendant previously paid statutory
damages in a prior action that was brought for the same violation of
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section 1 or 2, and amendments thereto, or for the same conduct that aided
or abetted a violation of section 1 or 2, and amendments thereto.
(d) No action shall be maintained under this section after six years
from the time the cause of action accrues.
(e) Notwithstanding any other law, the following may not be asserted
as an affirmative defense to any claims in an action brought under this
section:
(1) Ignorance or mistake of law;
(2) a defendant's belief that the provisions of sections 1 through 8,
and amendments thereto, are unconstitutional;
(3) a defendant's reliance on any court decision that has been
overruled on appeal or by a subsequent court, even if such court decision
had not been overruled when the defendant engaged in conduct that
violates section 1 or 2, and amendments thereto;
(4) a defendant's reliance on any state or federal court decision that is
not binding on the court in which the action has been brought;
(5) nonmutual issue preclusion or nonmutual claim preclusion; or
(6) the consent of the pregnant woman to the abortion.
(f) In any action brought pursuant to subsection (a)(2), it is an
affirmative defense that the defendant reasonably believed, after
conducting a reasonable investigation, that the physician performing or
inducing or attempting to perform or induce the abortion had complied or
would comply with section 1, and amendments thereto. The defendant
shall have the burden of proving the affirmative defense under this
subsection by a preponderance of the evidence.
(g) No entity or person described in section 4, and amendments
thereto, shall intervene in any action brought under this section. No entity
or person shall be prohibited from filing an amicus curiae brief in any such
action.
(h) Nothing in this section shall be construed to impose liability on
any speech or conduct protected by the amendment 1 to the constitution of
the United States or by section 11 of the bill of rights of the constitution of
the state of Kansas.
New Sec. 6. Any action brought under section 5, and amendments
thereto, shall be brought in:
(a) The county where all or a substantial part of the events or
omissions giving rise to the claim occurred;
(b) the county of residence for the defendant who is a natural person,
if any, at the time the cause of action accrued;
(c) the county where the principal office in this state of the defendant
that is not a natural person, if any, is located; or
(d) the county of residence for the plaintiff if the plaintiff is a natural
person residing in this state.
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New Sec. 7. As used in sections 1 through 7, and amendments
thereto:
(a) (1) "Abortion" means the use or prescription of any instrument,
medicine, drug or any other substance or device to terminate the
pregnancy of a woman with an intention to cause the premature
termination of the pregnancy knowing that such termination will with
reasonable likelihood cause the death of the unborn child. Such use or
prescription is not an "abortion" if done with the intent to:
(A) Preserve the life or health of the unborn child;
(B) increase the probability of a live birth;
(C) remove a dead unborn child who died as the result of natural
causes in utero, accidental trauma or a criminal assault on the pregnant
woman or the unborn child; or
(D) remove an ectopic pregnancy.
(2) "Abortion" does not include the prescription, dispensing,
administration, sale or use of any method of contraception, including, but
not limited to, any type of emergency contraception intended to be taken
or used immediately subsequent to sexual intercourse.
(b) "Imminent harm" exclusively includes a physical condition and
does not include any mental condition, including, but not limited to, any
claim or diagnosis that the pregnant woman will engage in conduct
intended to result in her own death or some other form of self-harm.
(c) "Medical emergency" means a condition that, in reasonable
medical judgment, necessitates the immediate abortion of a woman's
pregnancy to preserve the life of the pregnant woman because such
woman's life is endangered and subject to imminent harm arising from the
pregnancy by a physical disorder, illness or injury, including a life-
endangering physical condition caused by or arising from the pregnancy
itself.
(d) "Miscarriage" means the nondeliberate and spontaneous expulsion
of a nonviable fetus that has a gestational age of fewer than 20 weeks.
(e) "Unborn child" means a living individual of the species homo
sapiens at any stage of gestation from fertilization to birth.
New Sec. 8. The provisions of sections 1 through 7, and amendments
thereto, are hereby declared severable. If any part or provision of sections
1 through 7, and amendments thereto, is held to be void, invalid or
unconstitutional, such part or provision shall not affect or impair any of the
remaining parts or provisions of sections 1 through 7, and amendments
thereto, and any such remaining provisions shall continue in full force and
effect.
Sec. 9. K.S.A. 2024 Supp. 60-1906 is hereby amended to read as
follows: 60-1906. (a) No civil action may be commenced in any court for a
claim of wrongful life or wrongful birth, and no damages may be
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recovered in any civil action for any physical condition of a minor that
existed at the time of such minor's birth if the damages sought arise out of
a claim that a person's action or omission contributed to such minor's
mother not obtaining an abortion.
(b) Nothing in this section shall be deemed to create any new cause of
action, nor preclude any otherwise proper cause of action based on a claim
that, but for a person's wrongful action or omission, the death or physical
injury of the mother would not have occurred, or the handicap, disease or
disability of an individual prior to birth would have been prevented, cured
or ameliorated in a manner that preserved the health and life of such
individual.
(c) If any provision or clause of this act or application thereof to any
person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications of the act which that can be given effect without
the invalid provision or application, and to this end, the provisions of this
act are declared to be severable.
(d) As used in this section:
(1) "Abortion" has the same meaning as such term is means the same
as defined in K.S.A. 65-6701 section 7, and amendments thereto.
(2) "Claim of wrongful birth" means a cause of action brought by a
parent, legal guardian or other individual legally required to provide for
the support of a minor, which that seeks damages, whether economic or
noneconomic, as a result of a physical condition of such minor that existed
at the time of such minor's birth, and which is based on a claim that a
person's action or omission contributed to such minor's mother not
obtaining an abortion.
(3) "Claim of wrongful life" means a cause of action brought by, or
on behalf of, a minor, which that seeks damages, whether economic or
noneconomic, for such minor as a result of a physical condition of such
minor that existed at the time of such minor's birth, and which is based on
a claim that a person's action or omission contributed to such minor's
mother not obtaining an abortion.
Sec. 10. K.S.A. 2024 Supp. 65-2401 is hereby amended to read as
follows: 65-2401. As used in this act:
(a) "Vital statistics" includes the registration, preparation,
transcription, collection, compilation, and preservation of data pertaining
to birth, adoption, legitimation, death, stillbirth, marriage, divorce,
annulment of marriage, induced termination of pregnancy, and data
incidental thereto.
(b) "Live birth" means the complete expulsion or extraction from its
mother of a human child, irrespective of the duration of pregnancy, which,
that after such expulsion or extraction, breathes or shows any other
evidence of life, such as beating of the heart, pulsation of the umbilical
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cord, or definite movement of voluntary muscles, whether or not the
umbilical cord has been cut or the placenta is attached.
(c) "Gestational age" means the age of the human child as measured
in weeks as determined by either the last date of the mother's menstrual
period, a sonogram conducted prior to the 20
th
week of pregnancy or the
confirmed known date of conception.
(d) "Stillbirth" means any complete expulsion or extraction from its
mother of a human child, the gestational age of which is not less than 20
completed weeks, resulting in other than a live birth, as defined in this
section, and which that is not an induced termination of pregnancy.
(e) "Induced termination of pregnancy" means abortion, as defined in
K.S.A. 65-6701 section 7, and amendments thereto.
(f) "Dead body" means a lifeless human body or such parts of a
human body or the bones thereof from the state of which it reasonably may
be concluded that death recently occurred.
(g) "Person in charge of interment" means any person who places or
causes to be placed a stillborn child or dead body or the ashes, after
cremation, in a grave, vault, urn or other receptacle, or otherwise disposes
thereof.
(h) "Secretary" means the secretary of health and environment.
(i) "Cause of death certifier" means a person licensed to practice
medicine and surgery by the state board of healing arts, a physician
assistant licensed by the state board of healing arts, an advanced practice
registered nurse licensed by the state board of nursing or a district coroner,
deputy coroner or special deputy coroner.
(j) "Employee" means a person who has applied for employment or is
currently employed in the office of vital statistics.
Sec. 11. K.S.A. 65-2837 is hereby amended to read as follows: 65-
2837. As used in K.S.A. 65-2836, and amendments thereto, and in this
section:
(a) "Professional incompetency" means:
(1) One or more instances involving failure to adhere to the
applicable standard of care to a degree that constitutes gross negligence, as
determined by the board.
(2) Repeated instances involving failure to adhere to the applicable
standard of care to a degree that constitutes ordinary negligence, as
determined by the board.
(3) A pattern of practice or other behavior that demonstrates a
manifest incapacity or incompetence to practice the healing arts.
(b) "Unprofessional conduct" means:
(1) Solicitation of professional patronage through the use of
fraudulent or false advertisements, or profiting by the acts of those
representing themselves to be agents of the licensee.
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(2) Representing to a patient that a manifestly incurable disease,
condition or injury can be permanently cured.
(3) Assisting in the care or treatment of a patient without the consent
of the patient, the attending physician or the patient's legal representatives.
(4) The use of any letters, words or terms as an affix, on stationery, in
advertisements or otherwise indicating that such person is entitled to
practice a branch of the healing arts for which such person is not licensed.
(5) Performing, procuring or aiding and abetting in the performance
or procurement of a criminal an abortion, as define in section 7, and
amendments thereto.
(6) Willful betrayal of confidential information.
(7) Advertising professional superiority or the performance of
professional services in a superior manner.
(8) Advertising to guarantee any professional service or to perform
any operation painlessly.
(9) Participating in any action as a staff member of a medical care
facility that is designed to exclude or that results in the exclusion of any
person licensed to practice medicine and surgery from the medical staff of
a nonprofit medical care facility licensed in this state because of the
branch of the healing arts practiced by such person or without just cause.
(10) Failure to effectuate the declaration of a qualified patient as
provided in K.S.A. 65-28,107(a), and amendments thereto.
(11) Prescribing, ordering, dispensing, administering, selling,
supplying or giving any amphetamines or sympathomimetic amines,
except as authorized by K.S.A. 65-2837a, and amendments thereto.
(12) Conduct likely to deceive, defraud or harm the public.
(13) Making a false or misleading statement regarding the licensee's
skill or the efficacy or value of the drug, treatment or remedy prescribed
by the licensee or at the licensee's direction in the treatment of any disease
or other condition of the body or mind.
(14) Aiding or abetting the practice of the healing arts by an
unlicensed, incompetent or impaired person.
(15) Allowing another person or organization to use the licensee's
license to practice the healing arts.
(16) Commission of any act of sexual abuse, misconduct or other
improper sexual contact that exploits the licensee-patient relationship with
a patient or a person responsible for health care healthcare decisions
concerning such patient.
(17) The use of any false, fraudulent or deceptive statement in any
document connected with the practice of the healing arts including the
intentional falsifying or fraudulent altering of a patient or medical care
facility record.
(18) Obtaining any fee by fraud, deceit or misrepresentation.
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(19) Directly or indirectly giving or receiving any fee, commission,
rebate or other compensation for professional services not actually and
personally rendered, other than through the legal functioning of lawful
professional partnerships, corporations, limited liability companies or
associations.
(20) Failure to transfer patient records to another licensee when
requested to do so by the subject patient or by such patient's legally
designated representative.
(21) Performing unnecessary tests, examinations or services that have
no legitimate medical purpose.
(22) Charging an excessive fee for services rendered.
(23) Prescribing, dispensing, administering or distributing a
prescription drug or substance, including a controlled substance, in an
improper or inappropriate manner, or for other than a valid medical
purpose, or not in the course of the licensee's professional practice.
(24) Repeated failure to practice healing arts with that level of care,
skill and treatment that is recognized by a reasonably prudent similar
practitioner as being acceptable under similar conditions and
circumstances.
(25) Failure to keep written medical records that accurately describe
the services rendered to the patient, including patient histories, pertinent
findings, examination results and test results.
(26) Delegating professional responsibilities to a person when the
licensee knows or has reason to know that such person is not qualified by
training, experience or licensure to perform them.
(27) Using experimental forms of therapy without proper informed
patient consent, without conforming to generally accepted criteria or
standard protocols, without keeping detailed legible records or without
having periodic analysis of the study and results reviewed by a committee
or peers.
(28) Prescribing, dispensing, administering or distributing an anabolic
steroid or human growth hormone for other than a valid medical purpose.
Bodybuilding, muscle enhancement or increasing muscle bulk or strength
through the use of an anabolic steroid or human growth hormone by a
person who is in good health is not a valid medical purpose.
(29) Referring a patient to a health care healthcare entity for services
if the licensee has a significant investment interest in the health care
healthcare entity, unless the licensee informs the patient in writing of such
significant investment interest and that the patient may obtain such
services elsewhere.
(30) Failing to properly supervise, direct or delegate acts that
constitute the healing arts to persons who perform professional services
pursuant to such licensee's direction, supervision, order, referral,
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delegation or practice protocols.
(31) Violating K.S.A. 65-6703, and amendments thereto.
(32) Charging, billing or otherwise soliciting payment from any
patient, patient's representative or insurer for anatomic pathology services,
if such services are not personally rendered by the licensee or under such
licensee's direct supervision. As used in this subsection, "anatomic
pathology services" means the gross or microscopic examination of
histologic processing of human organ tissue or the examination of human
cells from fluids, aspirates, washings, brushings or smears, including blood
banking services, and subcellular or molecular pathology services,
performed by or under the supervision of a person licensed to practice
medicine and surgery or a clinical laboratory. Nothing in this subsection
shall be construed to prohibit billing for anatomic pathology services by:
(A) A hospital;
(B) a clinical laboratory when samples are transferred between
clinical laboratories for the provision of anatomic pathology services; or
(C) a physician providing services to a patient pursuant to a medical
retainer agreement in compliance with K.S.A. 65-4978, and amendments
thereto, when the bill to the patient for such services:
(i) Identifies the laboratory or physician that performed the services;
(ii) discloses in writing to the patient the actual amount charged by
the physician or laboratory that performed the service; and
(iii) is consistent with rules and regulations adopted by the board for
appropriate billing standards applicable to such services when furnished
under these agreements.
(33)(32) Engaging in conduct that violates patient trust and exploits
the licensee-patient relationship for personal gain.
(34)(33) Obstructing a board investigation including, but not limited
to, engaging in one or more of the following acts:
(A) Falsifying or concealing a material fact;
(B) knowingly making or causing to be made any false or misleading
statement or writing; or
(C) other acts or conduct likely to deceive or defraud the board.
(c) "False advertisement" means any advertisement that is false,
misleading or deceptive in a material respect. In determining whether any
advertisement is misleading, there shall be taken into account not only
representations made or suggested by statement, word, design, device,
sound or any combination thereof, but also the extent to which the
advertisement fails to reveal facts material in the light of such
representations made.
(d) "Advertisement" means all representations disseminated in any
manner or by any means for the purpose of inducing, or that are likely to
induce, directly or indirectly, the purchase of professional services.
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(e) "Licensee" for purposes of this section and K.S.A. 65-2836, and
amendments thereto, means all persons issued a license, permit or special
permit pursuant to article 28 of chapter 65 of the Kansas Statutes
Annotated, and amendments thereto.
(f) "License" for purposes of this section and K.S.A. 65-2836, and
amendments thereto, means any license, permit or special permit granted
under article 28 of chapter 65 of the Kansas Statutes Annotated, and
amendments thereto.
(g) "Health careHealthcare entity" means any corporation, firm,
partnership or other business entity that provides services for diagnosis or
treatment of human health conditions and that is owned separately from a
referring licensee's principle practice.
(h) "Significant investment interest" means ownership of at least 10%
of the value of the firm, partnership or other business entity that owns or
leases the health care healthcare entity, or ownership of at least 10% of the
shares of stock of the corporation that owns or leases the health care
healthcare entity.
Sec. 12. K.S.A. 65-6731 is hereby amended to read as follows: 65-
6731. As used in K.S.A. 65-6731 through 65-6738, and amendments
thereto:
(a) "Abortion" has the same meaning as such term is means the same
as defined in K.S.A. 65-6701 section 7, and amendments thereto.
(b) "Health benefit plan" means any hospital or medical expense
policy, health, hospital or medical services corporation contract, and a plan
provided by a municipal group-funded pool, or a health maintenance
organization contract offered by any employer or any certificate issued
under any such policy, contract or plan.
(c) "Health careHealthcare entity" means an individual physician or
other health care healthcare professional, a hospital, a provider-sponsored
organization, a health maintenance organization or any other health care
healthcare facility or organization.
(d) "School district" means any public school district organized under
the laws of this state.
(e) "State agency" has the same meaning as such term is means the
same as defined in K.S.A. 75-3701, and amendments thereto.
Sec. 13. K.S.A. 65-67a01 is hereby amended to read as follows: 65-
67a01. As used in this act:
(a) "Abortion" means an abortion as defined by K.S.A. 65-6701 in
section 7, and amendments thereto.
(b) (1) "Consideration" means:
(A) Any payment made or debt incurred;
(B) any gift, honorarium or recognition of value bestowed;
(C) any price, charge or fee which that is waived, forgiven, reduced
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or indefinitely delayed;
(D) any loan or debt which that is canceled or otherwise forgiven; or
(E) the transfer of any item from one person to another or provision
of any service or granting of any opportunity for which a charge is
customarily made, without charge or for a reduced charge.
(2) "Consideration" shall does not mean:
(A) A payment in an amount not to exceed $25 for the cost of
transporting, processing, preserving and storing fetal tissue; or
(B) a payment in an amount not to exceed the actual cost, as
documented by the delivery service, of transporting fetal tissue.
(c) "Delivery service" means a common carrier as defined by K.S.A.
66-105, and amendments thereto, or other person or entity used to
transport fetal tissue.
(d) "Fetal tissue" means any tissue, cells or organs obtained from a
dead human embryo or fetus after an abortion or after a stillbirth.
(e) "Person" means a person as defined by K.S.A. 65-425, and
amendments thereto.
(f) "Stillbirth" means a stillbirth as defined by K.S.A. 65-2401, and
amendments thereto.
Sec. 14. K.S.A. 76-3308 is hereby amended to read as follows: 76-
3308. (a) The authority shall have all the powers necessary to carry out the
purposes and provisions of this act, including, without limitation, the
following powers to:
(1) Have the duties, privileges, immunities, rights, liabilities and
disabilities of a body corporate and a political instrumentality of the state;
(2) have perpetual existence and succession;
(3) adopt, have and use a seal and to alter the same at its pleasure;
(4) sue and be sued in its own name;
(5) make and execute contracts, guarantees or any other instruments
and agreements necessary or convenient for the exercise of its powers and
functions including, without limitation, to make and execute contracts with
hospitals or other health care healthcare businesses to operate and manage
any or all of the hospital facilities or operations and to incur liabilities and
secure the obligations of any entity or individual;
(6) borrow money and to issue bonds evidencing the same and pledge
all or any part of the authority's assets therefor;
(7) purchase, lease, trade, exchange or otherwise acquire, maintain,
hold, improve, mortgage, sell, lease and dispose of personal property,
whether tangible or intangible, and any interest therein; and to purchase,
lease, trade, exchange or otherwise acquire real property or any interest
therein, and to maintain, hold, improve, mortgage, lease and otherwise
transfer such real property, so long as such transactions do not conflict
with the mission of the authority as specified in this act;
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(8) incur or assume indebtedness to, and enter into contracts with the
Kansas development finance authority, which is authorized to borrow
money and provide financing for the authority;
(9) develop policies and procedures generally applicable to the
procurement of goods, services and construction, based upon sound
business practices;
(10) contract for and to accept any gifts, grants and loans of funds,
property, or any other aid in any form from the federal government, the
state, any state agency, or any other source, or any combination thereof,
and to comply with the provisions of the terms and conditions thereof;
(11) acquire space, equipment, services, supplies and insurance
necessary to carry out the purposes of this act;
(12) deposit any moneys of the authority in any banking institution
within or without the state or in any depository authorized to receive such
deposits, one or more persons to act as custodians of the moneys of the
authority, to give surety bonds in such amounts in form and for such
purposes as the board requires;
(13) procure such insurance, participate in such insurance plans or
provide such self insurance or both as it deems necessary or convenient to
carry out the purposes and provisions of this act; the purchase of
insurance, participation in an insurance plan or creation of a self-insurance
fund by the authority shall not be deemed as a waiver or relinquishment of
any sovereign immunity to which the authority or its officers, directors,
employees or agents are otherwise entitled;
(14) appoint, supervise and set the salary and compensation of a
president of the authority who shall be appointed by and serve at the
pleasure of the board;
(15) fix, revise, charge and collect rates, rentals, fees and other
charges for the services or facilities furnished by or on behalf of the
authority, and to establish policies and procedures regarding any such
service rendered for the use, occupancy or operation of any such facility;
such charges and policies and procedures not to be subject to supervision
or regulation by any commission, board, bureau or agency of the state; and
(16) do any and all things necessary or convenient to carry out the
authority's purposes and exercise the powers given in this act.
(b) The authority may create, own in whole or in part, or otherwise
acquire or dispose of any entity organized for a purpose related to or in
support of the mission of the authority.
(c) The authority may participate in joint ventures with individuals,
corporations, governmental bodies or agencies, partnerships, associations,
insurers or other entities to facilitate any activities or programs consistent
with the public purpose and intent of this act.
(d) The authority may create a nonprofit entity or entities for the
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purpose of soliciting, accepting and administering grants, outright gifts and
bequests, endowment gifts and bequests and gifts and bequests in trust of
which entity or entities shall not engage in trust business.
(e) In carrying out any activities authorized by this act, the authority
may provide appropriate assistance, including the making of loans and
providing time of employees, to corporations, partnerships, associations,
joint ventures or other entities, whether or not such corporations,
partnerships, associations, joint ventures or other entities are owned or
controlled in whole or in part, directly or indirectly, by the authority.
(f) Effective with the transfer date, all moneys of the authority shall
be deposited in one or more banks or trust companies in one or more
special accounts. All banks and trust companies are authorized to give
security for such deposits if required by the authority. The moneys in such
accounts shall be paid out on a warrant or other orders of the treasurer of
the authority or any such other person or persons as the authority may
authorize to execute such warrants or orders.
(g) Notwithstanding any provision of law to the contrary, the
authority, effective with the transfer date, may invest the authority's
operating funds in any obligations or securities as authorized by the board.
The board shall adopt written investment guidelines.
(h) The authority is authorized to negotiate contracts with one or
more qualified parties to provide collection services. The selection of a
collection services provider shall be based on responses to a request for
proposals from qualified professional firms and shall be administered in
accordance with policies adopted by the board.
(i) Notwithstanding any provision of law to the contrary, no abortion,
as defined in section 7, and amendments thereto, shall be performed,
except in the event of a medical emergency, in any medical facility,
hospital or clinic owned, leased or operated by the authority, except as
provided in section 1, and amendments thereto. The provisions of this
subsection are not applicable to any member of the physician faculty of the
university of Kansas school of medicine when such abortion is performed
outside the scope of such member's employment on property not owned,
leased or operated by the authority. As used in this subsection, "medical
emergency" means a condition that, in reasonable medical judgment, so
complicates the medical condition of the pregnant woman as to necessitate
the immediate abortion of her pregnancy to avert the death of the woman
or for which a delay necessary to comply with the applicable statutory
requirements will create serious risk of substantial and irreversible
physical impairment of a major bodily function. No condition shall be
deemed a medical emergency if based on a claim or diagnosis that the
woman will engage in conduct which would result in her death or in
substantial and irreversible physical impairment of a major bodily
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function.
Sec. 15. K.S.A. 2024 Supp. 79-32,182b is hereby amended to read as
follows: 79-32,182b. (a) For all taxable years commencing after December
31, 2022, a credit shall be allowed against the tax imposed by the Kansas
income tax act on the Kansas taxable income of a taxpayer for
expenditures in research and development activities conducted within this
state in an amount equal to 10% of the amount by which the amount
expended for such activities in the taxable year of the taxpayer exceeds the
taxpayer's average of the actual expenditures for such purposes made in
such taxable year and the next preceding two taxable years.
(b) In any one taxable year, the amount of such credit allowable for
deduction from the taxpayer's tax liability shall not exceed 25% of the total
amount of such credit plus any applicable carry forward amount. The
amount by which that portion of the credit allowed by subsections (a) and
(b) to be claimed in any one taxable year exceeds the taxpayer's tax
liability in such year may be carried forward until the total amount of the
credit is used.
(c) As used in this section, the term "expenditures in research and
development activities" means expenditures made for such purposes, other
than expenditures of moneys made available to the taxpayer pursuant to
federal or state law, which that are treated as expenses allowable for
deduction under the provisions of the federal internal revenue code of
1986, as amended, except that for taxable years commencing after
December 31, 2013, expenditures in research and development activities
shall not include any expenditures for the performance of any abortion, as
defined in K.S.A. 65-6701 section 7, and amendments thereto.
(d) For tax year 2023 and all tax years thereafter, the income tax
credit allowed pursuant to this section shall be transferable by a taxpayer
without a current tax liability. The tax credit may be transferred to any
person and be claimed by the transferee as a credit against the transferee's
Kansas income tax liability in the tax year when it was transferred. The
credit shall be claimed and may be carried forward by the transferee as
provided and limited by subsection (b). No person shall be entitled to a
refund for the transferred tax credit. Only the full credit may be
transferred, and the credit may only be transferred one time.
Documentation of any credit acquired by transfer shall be provided by the
taxpayer or the transferee in the manner required by the secretary of
revenue.
Sec. 16. K.S.A. 79-32,195 is hereby amended to read as follows: 79-
32,195. As used in this act, the following words and phrases shall have the
meanings ascribed to them herein: (a) "Business firm" means any business
entity authorized to do business in the state of Kansas which that is subject
to the state income tax imposed by the provisions of the Kansas income
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tax act, any individual subject to the state income tax imposed by the
provisions of the Kansas income tax act, any national banking association,
state bank, trust company or savings and loan association paying an annual
tax on its net income pursuant to article 11 of chapter 79 of the Kansas
Statutes Annotated, and amendments thereto, or any insurance company
paying the premium tax and privilege fees imposed pursuant to K.S.A. 40-
252, and amendments thereto;
(b) "Community services" means:
(1) The conduct of activities which that meet a demonstrated
community need and which that are designed to achieve improved
educational and social services for Kansas children and their families, and
which that are coordinated with communities including, but not limited to,
social and human services organizations that address the causes of poverty
through programs and services that assist low income persons in the areas
of employment, food, housing, emergency assistance and health care
healthcare;
(2) crime prevention;
(3) health carehealthcare services; and
(4) youth apprenticeship and technical training.
(c) "Crime prevention" means any nongovernmental activity which
that aids in the prevention of crime.
(d) "Youth apprenticeship and technical training" means conduct of
activities which that are designed to improve the access to and quality of
apprenticeship and technical training which that support an emphasis on
rural construction projects as well as the necessary equipment, facilities
and supportive mentorship for youth apprenticeships and technical
training.
(e) "Community service organization" means any organization
performing community services in Kansas and which that:
(1) Has obtained a ruling from the internal revenue service of the
United States department of the treasury that such organization is exempt
from income taxation under the provisions of section 501(c)(3) of the
federal internal revenue code; or
(2) is incorporated in the state of Kansas or another state as a
nonstock, nonprofit corporation; or
(3) has been designated as a community development corporation by
the United States government under the provisions of title VII of the
economic opportunity act of 1964; or
(4) is chartered by the United States congress.
(f) "Contributions" shall mean and include means and includes the
donation of cash, services or property other than used clothing in an
amount or value of $250 or more. Stocks and bonds contributed shall be
valued at the stock market price on the date of transfer. Services
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contributed shall be valued at the standard billing rate for not-for-profit
clients. Personal property items contributed shall be valued at the lesser of
its fair market value or cost to the donor and may be inclusive of costs
incurred in making the contribution, but shall not include sales tax.
Contributions of real estate are allowable for credit only when title thereto
is in fee simple absolute and is clear of any encumbrances. The amount of
credit allowable shall be based upon the lesser of two current independent
appraisals conducted by state licensed appraisers.
(g) "Health careHealthcare services" shall include, but not be
includes, but is not limited to, the following: Services provided by local
health departments, city, county or district hospitals, city or county nursing
homes, or other residential institutions, preventive health care healthcare
services offered by a community service organization including
immunizations, prenatal care, the postponement of entry into nursing
homes by home health care healthcare services, and community based
services for persons with a disability, mental health services, indigent
health care healthcare, physician or health care healthcare worker
recruitment, health education, emergency medical services, services
provided by rural health clinics, integration of health care healthcare
services, home health services and services provided by rural health
networks, except that for taxable years commencing after December 31,
2013, health care "healthcare services shall" does not include any service
involving the performance of any abortion, as defined in K.S.A. 65-6701
section 7, and amendments thereto.
(h) "Rural community" means any city having a population of fewer
than 15,000 located in a county that is not part of a standard metropolitan
statistical area as defined by the United States department of commerce or
its successor agency. However, any such city located in a county defined
as a standard metropolitan statistical area shall be deemed a "rural
community" if a substantial number of persons in such county derive their
income from agriculture and, in any county where there is only one city
within the county which that has a population of more than 15,000 and
which classifies as a standard metropolitan statistical area, all other cities
in that such county having a population of less than 15,000 shall be
deemed a rural community.
Sec. 17. K.S.A. 2024 Supp. 79-32,261 is hereby amended to read as
follows: 79-32,261. (a) (1) On and after July 1, 2008, Any taxpayer who
contributes in the manner prescribed by this paragraph to a community
college located in Kansas for capital improvements, to a technical college
for deferred maintenance or the purchase of technology or equipment or to
a postsecondary educational institution located in Kansas for deferred
maintenance, shall be allowed a credit against the tax imposed by the
Kansas income tax act, the premium tax or privilege fees imposed
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pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
measured by net income of financial institutions imposed pursuant to
article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
thereto. The tax credit allowed by this paragraph is applicable for the tax
year 2008 for any contributions made on and after July 1, 2008, and for the
tax years 2009, 2010, 2011 and 2012 for any contributions made during
the entire tax year. The amount of the credit allowed by this paragraph
shall not exceed 60% of the total amount contributed during the taxable
year by the taxpayer to a community college or a technical college located
in Kansas for such purposes. The amount of the credit allowed by this
paragraph shall not exceed 50% of the total amount contributed during the
taxable year by the taxpayer to a postsecondary educational institution for
such purposes. If the amount of the credit allowed by this paragraph for a
taxpayer who contributes to a community college or a technical college
exceeds the taxpayer's income tax liability imposed by the Kansas income
tax act, such excess amount shall be refunded to the taxpayer. If the
amount of the tax credit for a taxpayer who contributes to a postsecondary
educational institution exceeds the taxpayer's income tax liability for the
taxable year, the amount which that exceeds the tax liability may be
carried over for deduction from the taxpayer's income tax liability in the
next succeeding taxable year or years until the total amount of the tax
credit has been deducted from tax liability, except that no such tax credit
shall be carried over for deduction after the third taxable year succeeding
the taxable year in which the contribution is made. Prior to the issuance of
any tax credits pursuant to this paragraph, the structure of the process in
which contributions received by a community college, a technical college
or a postsecondary educational institution qualify as tax credits allowed
and issued pursuant to this paragraph shall be developed by a community
college, a technical college and a postsecondary educational institution in
consultation with the secretary of revenue and the foundation or
endowment association of any such community college, technical college
or postsecondary educational institution in a manner that complies with
requirements specified in the federal internal revenue code of 1986, as
amended, so that contributions qualify as charitable contributions
allowable as deductions from federal adjusted gross income.
(2) On and after July 1, 2022, any taxpayer who contributes in the
manner prescribed by this paragraph to a community college or technical
college located in Kansas for capital improvements, deferred maintenance
or the purchase of technology or equipment shall be allowed a credit
against the tax imposed by the Kansas income tax act, the premium tax or
privilege fees imposed pursuant to K.S.A. 40-252, and amendments
thereto, or the privilege tax as measured by net income of financial
institutions imposed pursuant to article 11 of chapter 79 of the Kansas
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Statutes Annotated, and amendments thereto. The tax credit allowed by
this paragraph is applicable for the tax year 2022 for any contributions
made on and after July 1, 2022, and for the tax years 2023, 2024, 2025 and
2026 for any contributions made during the entire tax year. The amount of
the credit allowed by this paragraph shall equal 60% of the total amount
contributed during the taxable year by the taxpayer to a community college
or a technical college located in Kansas for such purposes. Prior to the
issuance of any tax credits pursuant to this paragraph, the structure of the
process in which contributions received by a community college or
technical college qualify as tax credits allowed and issued pursuant to this
paragraph shall be developed by a community college and technical
college in consultation with the secretary of revenue and the foundation or
endowment association of any such community college or technical
college in a manner that complies with requirements specified in the
federal internal revenue code of 1986, as amended, so that contributions
qualify as charitable contributions allowable as deductions from federal
adjusted gross income.
(b) (1) Upon receipt of any contributions to a community college
made pursuant to the provisions of subsection (a)(1), the treasurer of the
community college shall deposit such contributions to the credit of the
capital outlay fund of such community college established as provided by
K.S.A. 71-501a, and amendments thereto. Expenditures from such fund
shall be made for the purposes described in K.S.A. 71-501(a), and
amendments thereto, except that expenditures shall not be made from such
fund for new construction or the acquisition of real property for use as
building sites or for educational programs.
(2) Upon receipt of any contributions to a technical college made
pursuant to the provisions of subsection (a)(1), such contributions shall be
deposited to the credit of a deferred maintenance fund or a technology and
equipment fund established by the technical college which that received
the contribution. Expenditures from such fund shall be made only for the
purpose as provided in subsection (b)(1).
(3) Upon receipt of any such contributions to a postsecondary
educational institution made pursuant to the provisions of subsection (a)
(1), such contributions shall be deposited to the credit of the appropriate
deferred maintenance support fund of the postsecondary educational
institution that received the contribution. Expenditures from such fund
shall be made only for the purposes designated for such fund pursuant to
law.
(4) Upon receipt of any such contributions to a community college or
technical college made pursuant to the provisions of subsection (a)(2), the
treasurer of the community college or technical college shall deposit such
contributions to the credit of the capital outlay fund of such community
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college or technical college established as provided by K.S.A. 71-501a,
and amendments thereto. Expenditures from such fund shall be made for
the purposes designated for such fund pursuant to law.
(c) (1) In no event shall the total amount of credits allowed under
subsection (a)(1) for taxpayers who contribute to any one such community
college or technical college exceed the following amounts: For the tax year
2008, an amount not to exceed $78,125; for the tax year 2009, an amount
not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an
amount not to exceed $208,233.33.
(2) In no event shall the total of credits allowed under subsection (a)
(1) for taxpayers who contribute to postsecondary educational institutions
exceed the following amounts: For the tax year 2008, an amount not to
exceed $5,625,000; for the tax year 2009, an amount not to exceed
$11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to
exceed $15,000,000. Except as otherwise provided, the allocation of such
tax credits for each individual state educational institution shall be
determined by the state board of regents in consultation with the secretary
of revenue and the university foundation or endowment association of
each postsecondary educational institution, and such determination shall
be completed prior to the issuance of any tax credits pursuant to subsection
(a)(1). Not more than 40% of the total of credits allowed under subsection
(a)(1) shall be allocated to any one postsecondary educational institution
unless all such postsecondary educational institutions approve an
allocation to any one such postsecondary educational institution which
that exceeds 40% of the total of such credits allowed under subsection (a)
(1).
(3) For the tax years 2022 through 2026, the amount of such credit
awarded under subsection (a)(2) for each taxpayer shall not exceed
$250,000 per tax year.
(4) In no event shall the total of credits allowed under subsection (a)
(2) for contributions to any one community college or technical college
exceed $500,000 per tax year.
(5) In no event shall the total of credits allowed under subsection (a)
(2) exceed $5,000,000 for each tax year that the credit remains in effect.
(d) As used in this section:
(1) "Community college" means a community college established
under the provisions of the community college act;
(2) "deferred maintenance" means the maintenance, repair,
reconstruction or rehabilitation of a building located at a technical college
or a postsecondary educational institution which that has been deferred,
any utility systems relating to such building, any life-safety upgrades to
such building and any improvements necessary to be made to such
building in order to comply with the requirements of the Americans with
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disabilities act or other federal or state law, except that for taxable years
commencing after December 31, 2013, deferred maintenance shall not
include any maintenance, repair, reconstruction or rehabilitation of any
building in which any abortion, as defined in K.S.A. 65-6701 section 7,
and amendments thereto, is performed;
(3) "postsecondary educational institution" means the university of
Kansas, Kansas state university of agriculture and applied science, Wichita
state university, Emporia state university, Pittsburg state university, Fort
Hays state university and Washburn university of Topeka; and
(4) "technical college" means a technical college as designated
pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-
32,464 and 74-32,465, and amendments thereto, and the institute of
technology at Washburn university.
(e) (1) Any taxpayer not subject to Kansas income, privilege or
premiums tax who contributes to a community college, technical college
or postsecondary educational institution, hereinafter designated the
transferor, may sell, assign, convey or otherwise transfer tax credits
allowed and earned pursuant to this section. The sale price of a tax credit
shall be at least 50% of the full value of the credit. Such credit shall be
deemed to be allowed and earned by any such taxpayer which that is only
disqualified therefrom by reason of not being subject to such Kansas taxes.
The taxpayer acquiring earned credits, hereinafter designated the
transferee, may use the amount of the acquired credits to offset up to 100%
of the taxpayer's income, privilege or premiums tax liability for the taxable
year in which such acquisition was made. Such credits may be sold or
transferred only one time and, if sold or transferred, shall be transferred in
the tax year such credit is earned or the two successive tax years. A
transferred credit shall be claimed in the year purchased. The transferor
shall enter into a written agreement with the transferee establishing the
terms and conditions of the sale or transfer and shall perfect such transfer
by notifying the secretary of revenue in writing within 30 calendar days
following the effective date of the transfer, subject to the review and
approval or denial of such transfer by the secretary of revenue. The
transferor and transferee shall provide any information pertaining to the
sale or transfer as may be required by the secretary of revenue to
administer and carry out the provisions of this section. The amount
received by the transferor of such tax credit shall be taxable as income of
the transferor, and the excess of the value of such credit over the amount
paid by the transferee for such credit shall be taxable as income of the
transferee.
(2) The provisions of this subsection shall not apply to tax credits
earned pursuant to subsection (a)(2).
(f) The secretary of revenue shall submit an annual report to the
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legislature to assist the legislature in the evaluation of the utilization of any
credits claimed pursuant to this act, including information specific as to
each community college, technical college or postsecondary educational
institution. Such report shall be due on or before the first day of the
legislative session following the tax year in which the credits were
claimed.
(g) The secretary of revenue shall adopt rules and regulations
necessary to administer the provisions of this section.
Sec. 18. K.S.A. 2024 Supp. 79-3606 is hereby amended to read as
follows: 79-3606. The following shall be exempt from the tax imposed by
this act:
(a) All sales of motor-vehicle fuel or other articles upon which a sales
or excise tax has been paid, not subject to refund, under the laws of this
state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
3301, and amendments thereto, including consumable material for such
electronic cigarettes, cereal malt beverages and malt products as defined
by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
malt syrup and malt extract, that is not subject to taxation under the
provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
thereto, and gross receipts from regulated sports contests taxed pursuant to
the Kansas professional regulated sports act, and amendments thereto;
(b) all sales of tangible personal property or service, including the
renting and leasing of tangible personal property, purchased directly by the
state of Kansas, a political subdivision thereof, other than a school or
educational institution, or purchased by a public or private nonprofit
hospital, public hospital authority, nonprofit blood, tissue or organ bank or
nonprofit integrated community care organization and used exclusively for
state, political subdivision, hospital, public hospital authority, nonprofit
blood, tissue or organ bank or nonprofit integrated community care
organization purposes, except when: (1) Such state, hospital or public
hospital authority is engaged or proposes to engage in any business
specifically taxable under the provisions of this act and such items of
tangible personal property or service are used or proposed to be used in
such business; or (2) such political subdivision is engaged or proposes to
engage in the business of furnishing gas, electricity or heat to others and
such items of personal property or service are used or proposed to be used
in such business;
(c) all sales of tangible personal property or services, including the
renting and leasing of tangible personal property, purchased directly by a
public or private elementary or secondary school or public or private
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nonprofit educational institution and used primarily by such school or
institution for nonsectarian programs and activities provided or sponsored
by such school or institution or in the erection, repair or enlargement of
buildings to be used for such purposes. The exemption herein provided
shall not apply to erection, construction, repair, enlargement or equipment
of buildings used primarily for human habitation, except that such
exemption shall apply to the erection, construction, repair, enlargement or
equipment of buildings used for human habitation by the cerebral palsy
research foundation of Kansas located in Wichita, Kansas, multi
community diversified services, incorporated, located in McPherson,
Kansas, the Kansas state school for the blind and the Kansas state school
for the deaf;
(d) all sales of tangible personal property or services purchased by a
contractor for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
any public or private nonprofit hospital or public hospital authority, public
or private elementary or secondary school, a public or private nonprofit
educational institution, state correctional institution including a privately
constructed correctional institution contracted for state use and ownership,
that would be exempt from taxation under the provisions of this act if
purchased directly by such hospital or public hospital authority, school,
educational institution or a state correctional institution; and all sales of
tangible personal property or services purchased by a contractor for the
purpose of constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for any political subdivision
of the state or district described in subsection (s), the total cost of which is
paid from funds of such political subdivision or district and that would be
exempt from taxation under the provisions of this act if purchased directly
by such political subdivision or district. Nothing in this subsection or in
the provisions of K.S.A. 12-3418, and amendments thereto, shall be
deemed to exempt the purchase of any construction machinery, equipment
or tools used in the constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for any political
subdivision of the state or any such district. As used in this subsection,
K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
political subdivision" shall mean general tax revenues, the proceeds of any
bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
purpose of constructing, equipping, reconstructing, repairing, enlarging,
furnishing or remodeling facilities that are to be leased to the donor. When
any political subdivision of the state, district described in subsection (s),
public or private nonprofit hospital or public hospital authority, public or
private elementary or secondary school, public or private nonprofit
educational institution, state correctional institution including a privately
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constructed correctional institution contracted for state use and ownership
shall contract for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities, it
shall obtain from the state and furnish to the contractor an exemption
certificate for the project involved, and the contractor may purchase
materials for incorporation in such project. The contractor shall furnish the
number of such certificate to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same bearing
the number of such certificate. Upon completion of the project the
contractor shall furnish to the political subdivision, district described in
subsection (s), hospital or public hospital authority, school, educational
institution or department of corrections concerned a sworn statement, on a
form to be provided by the director of taxation, that all purchases so made
were entitled to exemption under this subsection. As an alternative to the
foregoing procedure, any such contracting entity may apply to the
secretary of revenue for agent status for the sole purpose of issuing and
furnishing project exemption certificates to contractors pursuant to rules
and regulations adopted by the secretary establishing conditions and
standards for the granting and maintaining of such status. All invoices
shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased
under such a certificate are found not to have been incorporated in the
building or other project or not to have been returned for credit or the sales
or compensating tax otherwise imposed upon such materials that will not
be so incorporated in the building or other project reported and paid by
such contractor to the director of taxation not later than the 20
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day of the
month following the close of the month in which it shall be determined
that such materials will not be used for the purpose for which such
certificate was issued, the political subdivision, district described in
subsection (s), hospital or public hospital authority, school, educational
institution or the contractor contracting with the department of corrections
for a correctional institution concerned shall be liable for tax on all
materials purchased for the project, and upon payment thereof it may
recover the same from the contractor together with reasonable attorney
fees. Any contractor or any agent, employee or subcontractor thereof, who
shall use or otherwise dispose of any materials purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in K.S.A.
79-3615(h), and amendments thereto;
(e) all sales of tangible personal property or services purchased by a
contractor for the erection, repair or enlargement of buildings or other
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projects for the government of the United States, its agencies or
instrumentalities, that would be exempt from taxation if purchased directly
by the government of the United States, its agencies or instrumentalities.
When the government of the United States, its agencies or
instrumentalities shall contract for the erection, repair, or enlargement of
any building or other project, it shall obtain from the state and furnish to
the contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificates to all suppliers
from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon
completion of the project the contractor shall furnish to the government of
the United States, its agencies or instrumentalities concerned a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection. As an
alternative to the foregoing procedure, any such contracting entity may
apply to the secretary of revenue for agent status for the sole purpose of
issuing and furnishing project exemption certificates to contractors
pursuant to rules and regulations adopted by the secretary establishing
conditions and standards for the granting and maintaining of such status.
All invoices shall be held by the contractor for a period of five years and
shall be subject to audit by the director of taxation. Any contractor or any
agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials purchased under such a certificate for any purpose
other than that for which such a certificate is issued without the payment
of the sales or compensating tax otherwise imposed upon such materials,
shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto;
(f) tangible personal property purchased by a railroad or public utility
for consumption or movement directly and immediately in interstate
commerce;
(g) sales of aircraft including remanufactured and modified aircraft
sold to persons using directly or through an authorized agent such aircraft
as certified or licensed carriers of persons or property in interstate or
foreign commerce under authority of the laws of the United States or any
foreign government or sold to any foreign government or agency or
instrumentality of such foreign government and all sales of aircraft for use
outside of the United States and sales of aircraft repair, modification and
replacement parts and sales of services employed in the remanufacture,
modification and repair of aircraft;
(h) all rentals of nonsectarian textbooks by public or private
elementary or secondary schools;
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(i) the lease or rental of all films, records, tapes, or any type of sound
or picture transcriptions used by motion picture exhibitors;
(j) meals served without charge or food used in the preparation of
such meals to employees of any restaurant, eating house, dining car, hotel,
drugstore or other place where meals or drinks are regularly sold to the
public if such employees' duties are related to the furnishing or sale of
such meals or drinks;
(k) any motor vehicle, semitrailer or pole trailer, as such terms are
defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
delivered in this state to a bona fide resident of another state, which motor
vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
in this state and which vehicle, semitrailer, pole trailer or aircraft will not
remain in this state more than 10 days;
(l) all isolated or occasional sales of tangible personal property,
services, substances or things, except isolated or occasional sale of motor
vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
amendments thereto;
(m) all sales of tangible personal property that become an ingredient
or component part of tangible personal property or services produced,
manufactured or compounded for ultimate sale at retail within or without
the state of Kansas; and any such producer, manufacturer or compounder
may obtain from the director of taxation and furnish to the supplier an
exemption certificate number for tangible personal property for use as an
ingredient or component part of the property or services produced,
manufactured or compounded;
(n) all sales of tangible personal property that is consumed in the
production, manufacture, processing, mining, drilling, refining or
compounding of tangible personal property, the treating of by-products or
wastes derived from any such production process, the providing of
services or the irrigation of crops for ultimate sale at retail within or
without the state of Kansas; and any purchaser of such property may
obtain from the director of taxation and furnish to the supplier an
exemption certificate number for tangible personal property for
consumption in such production, manufacture, processing, mining,
drilling, refining, compounding, treating, irrigation and in providing such
services;
(o) all sales of animals, fowl and aquatic plants and animals, the
primary purpose of which is use in agriculture or aquaculture, as defined in
K.S.A. 47-1901, and amendments thereto, the production of food for
human consumption, the production of animal, dairy, poultry or aquatic
plant and animal products, fiber or fur, or the production of offspring for
use for any such purpose or purposes;
(p) all sales of drugs dispensed pursuant to a prescription order by a
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licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
1626, and amendments thereto. As used in this subsection, "drug" means a
compound, substance or preparation and any component of a compound,
substance or preparation, other than food and food ingredients, dietary
supplements or alcoholic beverages, recognized in the official United
States pharmacopeia, official homeopathic pharmacopoeia of the United
States or official national formulary, and supplement to any of them,
intended for use in the diagnosis, cure, mitigation, treatment or prevention
of disease or intended to affect the structure or any function of the body,
except that for taxable years commencing after December 31, 2013, this
subsection shall not apply to any sales of drugs used in the performance or
induction of an abortion, as defined in K.S.A. 65-6701 section 7, and
amendments thereto;
(q) all sales of insulin dispensed by a person licensed by the state
board of pharmacy to a person for treatment of diabetes at the direction of
a person licensed to practice medicine by the state board of healing arts;
(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
enteral feeding systems, prosthetic devices and mobility enhancing
equipment prescribed in writing by a person licensed to practice the
healing arts, dentistry or optometry, and in addition to such sales, all sales
of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
and repair and replacement parts therefor, including batteries, by a person
licensed in the practice of dispensing and fitting hearing aids pursuant to
the provisions of K.S.A. 74-5808, and amendments thereto. For the
purposes of this subsection: (1) "Mobility enhancing equipment" means
equipment including repair and replacement parts to same, but does not
include durable medical equipment, which is primarily and customarily
used to provide or increase the ability to move from one place to another
and which is appropriate for use either in a home or a motor vehicle; is not
generally used by persons with normal mobility; and does not include any
motor vehicle or equipment on a motor vehicle normally provided by a
motor vehicle manufacturer; and (2) "prosthetic device" means a
replacement, corrective or supportive device including repair and
replacement parts for same worn on or in the body to artificially replace a
missing portion of the body, prevent or correct physical deformity or
malfunction or support a weak or deformed portion of the body;
(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
all sales of tangible personal property or services purchased directly or
indirectly by a groundwater management district organized or operating
under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
by a rural water district organized or operating under the authority of
K.S.A. 82a-612, and amendments thereto, or by a water supply district
organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
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3522 et seq. or 19-3545, and amendments thereto, which property or
services are used in the construction activities, operation or maintenance of
the district;
(t) all sales of farm machinery and equipment or aquaculture
machinery and equipment, repair and replacement parts therefor and
services performed in the repair and maintenance of such machinery and
equipment. For the purposes of this subsection the term "farm machinery
and equipment or aquaculture machinery and equipment" shall include a
work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
thereto, and is equipped with a bed or cargo box for hauling materials, and
shall also include machinery and equipment used in the operation of
Christmas tree farming but shall not include any passenger vehicle, truck,
truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
machinery and equipment" includes precision farming equipment that is
portable or is installed or purchased to be installed on farm machinery and
equipment. "Precision farming equipment" includes the following items
used only in computer-assisted farming, ranching or aquaculture
production operations: Soil testing sensors, yield monitors, computers,
monitors, software, global positioning and mapping systems, guiding
systems, modems, data communications equipment and any necessary
mounting hardware, wiring and antennas. Each purchaser of farm
machinery and equipment or aquaculture machinery and equipment
exempted herein must certify in writing on the copy of the invoice or sales
ticket to be retained by the seller that the farm machinery and equipment
or aquaculture machinery and equipment purchased will be used only in
farming, ranching or aquaculture production. Farming or ranching shall
include the operation of a feedlot and farm and ranch work for hire and the
operation of a nursery;
(u) all leases or rentals of tangible personal property used as a
dwelling if such tangible personal property is leased or rented for a period
of more than 28 consecutive days;
(v) all sales of tangible personal property to any contractor for use in
preparing meals for delivery to homebound elderly persons over 60 years
of age and to homebound disabled persons or to be served at a group-
sitting at a location outside of the home to otherwise homebound elderly
persons over 60 years of age and to otherwise homebound disabled
persons, as all or part of any food service project funded in whole or in
part by government or as part of a private nonprofit food service project
available to all such elderly or disabled persons residing within an area of
service designated by the private nonprofit organization, and all sales of
tangible personal property for use in preparing meals for consumption by
indigent or homeless individuals whether or not such meals are consumed
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at a place designated for such purpose, and all sales of food products by or
on behalf of any such contractor or organization for any such purpose;
(w) all sales of natural gas, electricity, heat and water delivered
through mains, lines or pipes: (1) To residential premises for
noncommercial use by the occupant of such premises; (2) for agricultural
use and also, for such use, all sales of propane gas; (3) for use in the
severing of oil; and (4) to any property which is exempt from property
taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
and amendments thereto. For all sales of natural gas, electricity and heat
delivered through mains, lines or pipes pursuant to the provisions of
subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
on December 31, 2005;
(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
for the production of heat or lighting for noncommercial use of an
occupant of residential premises occurring prior to January 1, 2006;
(y) all sales of materials and services used in the repairing, servicing,
altering, maintaining, manufacturing, remanufacturing, or modification of
railroad rolling stock for use in interstate or foreign commerce under
authority of the laws of the United States;
(z) all sales of tangible personal property and services purchased
directly by a port authority or by a contractor therefor as provided by the
provisions of K.S.A. 12-3418, and amendments thereto;
(aa) all sales of materials and services applied to equipment that is
transported into the state from without the state for repair, service,
alteration, maintenance, remanufacture or modification and that is
subsequently transported outside the state for use in the transmission of
liquids or natural gas by means of pipeline in interstate or foreign
commerce under authority of the laws of the United States;
(bb) all sales of used mobile homes or manufactured homes. As used
in this subsection: (1) "Mobile homes" and "manufactured homes" mean
the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
"sales of used mobile homes or manufactured homes" means sales other
than the original retail sale thereof;
(cc) all sales of tangible personal property or services purchased prior
to January 1, 2012, except as otherwise provided, for the purpose of and in
conjunction with constructing, reconstructing, enlarging or remodeling a
business or retail business that meets the requirements established in
K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
machinery and equipment purchased for installation at any such business
or retail business, and all sales of tangible personal property or services
purchased on or after January 1, 2012, for the purpose of and in
conjunction with constructing, reconstructing, enlarging or remodeling a
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business that meets the requirements established in K.S.A. 74-50,115(e),
and amendments thereto, and the sale and installation of machinery and
equipment purchased for installation at any such business. When a person
shall contract for the construction, reconstruction, enlargement or
remodeling of any such business or retail business, such person shall
obtain from the state and furnish to the contractor an exemption certificate
for the project involved, and the contractor may purchase materials,
machinery and equipment for incorporation in such project. The contractor
shall furnish the number of such certificates to all suppliers from whom
such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon
completion of the project the contractor shall furnish to the owner of the
business or retail business a sworn statement, on a form to be provided by
the director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the
contractor for a period of five years and shall be subject to audit by the
director of taxation. Any contractor or any agent, employee or
subcontractor thereof, who shall use or otherwise dispose of any materials,
machinery or equipment purchased under such a certificate for any
purpose other than that for which such a certificate is issued without the
payment of the sales or compensating tax otherwise imposed thereon, shall
be guilty of a misdemeanor and, upon conviction therefor, shall be subject
to the penalties provided for in K.S.A. 79-3615(h), and amendments
thereto. As used in this subsection, "business" and "retail business" mean
the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
exemption certificates that have been previously issued under this
subsection by the department of revenue pursuant to K.S.A. 74-50,115,
and amendments thereto, but not including K.S.A. 74-50,115(e), and
amendments thereto, prior to January 1, 2012, and have not expired will be
effective for the term of the project or two years from the effective date of
the certificate, whichever occurs earlier. Project exemption certificates that
are submitted to the department of revenue prior to January 1, 2012, and
are found to qualify will be issued a project exemption certificate that will
be effective for a two-year period or for the term of the project, whichever
occurs earlier;
(dd) all sales of tangible personal property purchased with food
stamps issued by the United States department of agriculture;
(ee) all sales of lottery tickets and shares made as part of a lottery
operated by the state of Kansas;
(ff) on and after July 1, 1988, all sales of new mobile homes or
manufactured homes to the extent of 40% of the gross receipts, determined
without regard to any trade-in allowance, received from such sale. As used
in this subsection, "mobile homes" and "manufactured homes" mean the
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same as defined in K.S.A. 58-4202, and amendments thereto;
(gg) all sales of tangible personal property purchased in accordance
with vouchers issued pursuant to the federal special supplemental food
program for women, infants and children;
(hh) all sales of medical supplies and equipment, including durable
medical equipment, purchased directly by a nonprofit skilled nursing home
or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
and amendments thereto, for the purpose of providing medical services to
residents thereof. This exemption shall not apply to tangible personal
property customarily used for human habitation purposes. As used in this
subsection, "durable medical equipment" means equipment including
repair and replacement parts for such equipment, that can withstand
repeated use, is primarily and customarily used to serve a medical purpose,
generally is not useful to a person in the absence of illness or injury and is
not worn in or on the body, but does not include mobility enhancing
equipment as defined in subsection (r), oxygen delivery equipment, kidney
dialysis equipment or enteral feeding systems;
(ii) all sales of tangible personal property purchased directly by a
nonprofit organization for nonsectarian comprehensive multidiscipline
youth development programs and activities provided or sponsored by such
organization, and all sales of tangible personal property by or on behalf of
any such organization. This exemption shall not apply to tangible personal
property customarily used for human habitation purposes;
(jj) all sales of tangible personal property or services, including the
renting and leasing of tangible personal property, purchased directly on
behalf of a community-based facility for people with intellectual disability
or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
amendments thereto, and licensed in accordance with the provisions of
K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
personal property or services purchased by contractors during the time
period from July, 2003, through June, 2006, for the purpose of
constructing, equipping, maintaining or furnishing a new facility for a
community-based facility for people with intellectual disability or mental
health center located in Riverton, Cherokee County, Kansas, that would
have been eligible for sales tax exemption pursuant to this subsection if
purchased directly by such facility or center. This exemption shall not
apply to tangible personal property customarily used for human habitation
purposes;
(kk) (1) (A) all sales of machinery and equipment that are used in this
state as an integral or essential part of an integrated production operation
by a manufacturing or processing plant or facility;
(B) all sales of installation, repair and maintenance services
performed on such machinery and equipment; and
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(C) all sales of repair and replacement parts and accessories
purchased for such machinery and equipment.
(2) For purposes of this subsection:
(A) "Integrated production operation" means an integrated series of
operations engaged in at a manufacturing or processing plant or facility to
process, transform or convert tangible personal property by physical,
chemical or other means into a different form, composition or character
from that in which it originally existed. Integrated production operations
shall include: (i) Production line operations, including packaging
operations; (ii) preproduction operations to handle, store and treat raw
materials; (iii) post production handling, storage, warehousing and
distribution operations; and (iv) waste, pollution and environmental
control operations, if any;
(B) "production line" means the assemblage of machinery and
equipment at a manufacturing or processing plant or facility where the
actual transformation or processing of tangible personal property occurs;
(C) "manufacturing or processing plant or facility" means a single,
fixed location owned or controlled by a manufacturing or processing
business that consists of one or more structures or buildings in a
contiguous area where integrated production operations are conducted to
manufacture or process tangible personal property to be ultimately sold at
retail. Such term shall not include any facility primarily operated for the
purpose of conveying or assisting in the conveyance of natural gas,
electricity, oil or water. A business may operate one or more manufacturing
or processing plants or facilities at different locations to manufacture or
process a single product of tangible personal property to be ultimately sold
at retail;
(D) "manufacturing or processing business" means a business that
utilizes an integrated production operation to manufacture, process,
fabricate, finish or assemble items for wholesale and retail distribution as
part of what is commonly regarded by the general public as an industrial
manufacturing or processing operation or an agricultural commodity
processing operation. (i) Industrial manufacturing or processing operations
include, by way of illustration but not of limitation, the fabrication of
automobiles, airplanes, machinery or transportation equipment, the
fabrication of metal, plastic, wood or paper products, electricity power
generation, water treatment, petroleum refining, chemical production,
wholesale bottling, newspaper printing, ready mixed concrete production,
and the remanufacturing of used parts for wholesale or retail sale. Such
processing operations shall include operations at an oil well, gas well,
mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
sand or gravel that has been extracted from the earth is cleaned, separated,
crushed, ground, milled, screened, washed or otherwise treated or prepared
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before its transmission to a refinery or before any other wholesale or retail
distribution. (ii) Agricultural commodity processing operations include, by
way of illustration but not of limitation, meat packing, poultry slaughtering
and dressing, processing and packaging farm and dairy products in sealed
containers for wholesale and retail distribution, feed grinding, grain
milling, frozen food processing, and grain handling, cleaning, blending,
fumigation, drying and aeration operations engaged in by grain elevators
or other grain storage facilities. (iii) Manufacturing or processing
businesses do not include, by way of illustration but not of limitation,
nonindustrial businesses whose operations are primarily retail and that
produce or process tangible personal property as an incidental part of
conducting the retail business, such as retailers who bake, cook or prepare
food products in the regular course of their retail trade, grocery stores,
meat lockers and meat markets that butcher or dress livestock or poultry in
the regular course of their retail trade, contractors who alter, service, repair
or improve real property, and retail businesses that clean, service or
refurbish and repair tangible personal property for its owner;
(E) "repair and replacement parts and accessories" means all parts
and accessories for exempt machinery and equipment, including, but not
limited to, dies, jigs, molds, patterns and safety devices that are attached to
exempt machinery or that are otherwise used in production, and parts and
accessories that require periodic replacement such as belts, drill bits,
grinding wheels, grinding balls, cutting bars, saws, refractory brick and
other refractory items for exempt kiln equipment used in production
operations;
(F) "primary" or "primarily" mean more than 50% of the time.
(3) For purposes of this subsection, machinery and equipment shall
be deemed to be used as an integral or essential part of an integrated
production operation when used to:
(A) Receive, transport, convey, handle, treat or store raw materials in
preparation of its placement on the production line;
(B) transport, convey, handle or store the property undergoing
manufacturing or processing at any point from the beginning of the
production line through any warehousing or distribution operation of the
final product that occurs at the plant or facility;
(C) act upon, effect, promote or otherwise facilitate a physical change
to the property undergoing manufacturing or processing;
(D) guide, control or direct the movement of property undergoing
manufacturing or processing;
(E) test or measure raw materials, the property undergoing
manufacturing or processing or the finished product, as a necessary part of
the manufacturer's integrated production operations;
(F) plan, manage, control or record the receipt and flow of inventories
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of raw materials, consumables and component parts, the flow of the
property undergoing manufacturing or processing and the management of
inventories of the finished product;
(G) produce energy for, lubricate, control the operating of or
otherwise enable the functioning of other production machinery and
equipment and the continuation of production operations;
(H) package the property being manufactured or processed in a
container or wrapping in which such property is normally sold or
transported;
(I) transmit or transport electricity, coke, gas, water, steam or similar
substances used in production operations from the point of generation, if
produced by the manufacturer or processor at the plant site, to that
manufacturer's production operation; or, if purchased or delivered from
off-site, from the point where the substance enters the site of the plant or
facility to that manufacturer's production operations;
(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
solvents or other substances that are used in production operations;
(K) provide and control an environment required to maintain certain
levels of air quality, humidity or temperature in special and limited areas
of the plant or facility, where such regulation of temperature or humidity is
part of and essential to the production process;
(L) treat, transport or store waste or other byproducts of production
operations at the plant or facility; or
(M) control pollution at the plant or facility where the pollution is
produced by the manufacturing or processing operation.
(4) The following machinery, equipment and materials shall be
deemed to be exempt even though it may not otherwise qualify as
machinery and equipment used as an integral or essential part of an
integrated production operation: (A) Computers and related peripheral
equipment that are utilized by a manufacturing or processing business for
engineering of the finished product or for research and development or
product design; (B) machinery and equipment that is utilized by a
manufacturing or processing business to manufacture or rebuild tangible
personal property that is used in manufacturing or processing operations,
including tools, dies, molds, forms and other parts of qualifying machinery
and equipment; (C) portable plants for aggregate concrete, bulk cement
and asphalt including cement mixing drums to be attached to a motor
vehicle; (D) industrial fixtures, devices, support facilities and special
foundations necessary for manufacturing and production operations, and
materials and other tangible personal property sold for the purpose of
fabricating such fixtures, devices, facilities and foundations. An exemption
certificate for such purchases shall be signed by the manufacturer or
processor. If the fabricator purchases such material, the fabricator shall
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also sign the exemption certificate; (E) a manufacturing or processing
business' laboratory equipment that is not located at the plant or facility,
but that would otherwise qualify for exemption under subsection (3)(E);
(F) all machinery and equipment used in surface mining activities as
described in K.S.A. 49-601 et seq., and amendments thereto, beginning
from the time a reclamation plan is filed to the acceptance of the
completed final site reclamation.
(5) "Machinery and equipment used as an integral or essential part of
an integrated production operation" shall not include:
(A) Machinery and equipment used for nonproduction purposes,
including, but not limited to, machinery and equipment used for plant
security, fire prevention, first aid, accounting, administration, record
keeping, advertising, marketing, sales or other related activities, plant
cleaning, plant communications and employee work scheduling;
(B) machinery, equipment and tools used primarily in maintaining
and repairing any type of machinery and equipment or the building and
plant;
(C) transportation, transmission and distribution equipment not
primarily used in a production, warehousing or material handling
operation at the plant or facility, including the means of conveyance of
natural gas, electricity, oil or water, and equipment related thereto, located
outside the plant or facility;
(D) office machines and equipment including computers and related
peripheral equipment not used directly and primarily to control or measure
the manufacturing process;
(E) furniture and other furnishings;
(F) buildings, other than exempt machinery and equipment that is
permanently affixed to or becomes a physical part of the building, and any
other part of real estate that is not otherwise exempt;
(G) building fixtures that are not integral to the manufacturing
operation, such as utility systems for heating, ventilation, air conditioning,
communications, plumbing or electrical;
(H) machinery and equipment used for general plant heating, cooling
and lighting;
(I) motor vehicles that are registered for operation on public
highways; or
(J) employee apparel, except safety and protective apparel that is
purchased by an employer and furnished gratuitously to employees who
are involved in production or research activities.
(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
of the machinery and equipment that qualify or do not qualify as an
integral or essential part of an integrated production operation. When
machinery or equipment is used as an integral or essential part of
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production operations part of the time and for nonproduction purposes at
other times, the primary use of the machinery or equipment shall
determine whether or not such machinery or equipment qualifies for
exemption.
(7) The secretary of revenue shall adopt rules and regulations
necessary to administer the provisions of this subsection;
(ll) all sales of educational materials purchased for distribution to the
public at no charge by a nonprofit corporation organized for the purpose of
encouraging, fostering and conducting programs for the improvement of
public health, except that for taxable years commencing after December
31, 2013, this subsection shall not apply to any sales of such materials
purchased by a nonprofit corporation which performs any abortion, as
defined in K.S.A. 65-6701 section 7, and amendments thereto;
(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
herbicides, germicides, pesticides and fungicides; and services, purchased
and used for the purpose of producing plants in order to prevent soil
erosion on land devoted to agricultural use;
(nn) except as otherwise provided in this act, all sales of services
rendered by an advertising agency or licensed broadcast station or any
member, agent or employee thereof;
(oo) all sales of tangible personal property purchased by a community
action group or agency for the exclusive purpose of repairing or
weatherizing housing occupied by low-income individuals;
(pp) all sales of drill bits and explosives actually utilized in the
exploration and production of oil or gas;
(qq) all sales of tangible personal property and services purchased by
a nonprofit museum or historical society or any combination thereof,
including a nonprofit organization that is organized for the purpose of
stimulating public interest in the exploration of space by providing
educational information, exhibits and experiences, that is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986;
(rr) all sales of tangible personal property that will admit the
purchaser thereof to any annual event sponsored by a nonprofit
organization that is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, except that
for taxable years commencing after December 31, 2013, this subsection
shall not apply to any sales of such tangible personal property purchased
by a nonprofit organization which performs any abortion, as defined in
K.S.A. 65-6701 section 7, and amendments thereto;
(ss) all sales of tangible personal property and services purchased by
a public broadcasting station licensed by the federal communications
commission as a noncommercial educational television or radio station;
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(tt) all sales of tangible personal property and services purchased by
or on behalf of a not-for-profit corporation that is exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code of 1986, for the sole purpose of constructing a Kansas
Korean War memorial;
(uu) all sales of tangible personal property and services purchased by
or on behalf of any rural volunteer fire-fighting organization for use
exclusively in the performance of its duties and functions;
(vv) all sales of tangible personal property purchased by any of the
following organizations that are exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
for the following purposes, and all sales of any such property by or on
behalf of any such organization for any such purpose:
(1) The American heart association, Kansas affiliate, inc. for the
purposes of providing education, training, certification in emergency
cardiac care, research and other related services to reduce disability and
death from cardiovascular diseases and stroke;
(2) the Kansas alliance for the mentally ill, inc. for the purpose of
advocacy for persons with mental illness and to education, research and
support for their families;
(3) the Kansas mental illness awareness council for the purposes of
advocacy for persons who are mentally ill and for education, research and
support for them and their families;
(4) the American diabetes association Kansas affiliate, inc. for the
purpose of eliminating diabetes through medical research, public education
focusing on disease prevention and education, patient education including
information on coping with diabetes, and professional education and
training;
(5) the American lung association of Kansas, inc. for the purpose of
eliminating all lung diseases through medical research, public education
including information on coping with lung diseases, professional education
and training related to lung disease and other related services to reduce the
incidence of disability and death due to lung disease;
(6) the Kansas chapters of the Alzheimer's disease and related
disorders association, inc. for the purpose of providing assistance and
support to persons in Kansas with Alzheimer's disease, and their families
and caregivers;
(7) the Kansas chapters of the Parkinson's disease association for the
purpose of eliminating Parkinson's disease through medical research and
public and professional education related to such disease;
(8) the national kidney foundation of Kansas and western Missouri
for the purpose of eliminating kidney disease through medical research
and public and private education related to such disease;
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(9) the heartstrings community foundation for the purpose of
providing training, employment and activities for adults with
developmental disabilities;
(10) the cystic fibrosis foundation, heart of America chapter, for the
purposes of assuring the development of the means to cure and control
cystic fibrosis and improving the quality of life for those with the disease;
(11) the spina bifida association of Kansas for the purpose of
providing financial, educational and practical aid to families and
individuals with spina bifida. Such aid includes, but is not limited to,
funding for medical devices, counseling and medical educational
opportunities;
(12) the CHWC, Inc., for the purpose of rebuilding urban core
neighborhoods through the construction of new homes, acquiring and
renovating existing homes and other related activities, and promoting
economic development in such neighborhoods;
(13) the cross-lines cooperative council for the purpose of providing
social services to low income individuals and families;
(14) the dreams work, inc., for the purpose of providing young adult
day services to individuals with developmental disabilities and assisting
families in avoiding institutional or nursing home care for a
developmentally disabled member of their family;
(15) the KSDS, Inc., for the purpose of promoting the independence
and inclusion of people with disabilities as fully participating and
contributing members of their communities and society through the
training and providing of guide and service dogs to people with
disabilities, and providing disability education and awareness to the
general public;
(16) the lyme association of greater Kansas City, Inc., for the purpose
of providing support to persons with lyme disease and public education
relating to the prevention, treatment and cure of lyme disease;
(17) the dream factory, inc., for the purpose of granting the dreams of
children with critical and chronic illnesses;
(18) the Ottawa Suzuki strings, inc., for the purpose of providing
students and families with education and resources necessary to enable
each child to develop fine character and musical ability to the fullest
potential;
(19) the international association of lions clubs for the purpose of
creating and fostering a spirit of understanding among all people for
humanitarian needs by providing voluntary services through community
involvement and international cooperation;
(20) the Johnson county young matrons, inc., for the purpose of
promoting a positive future for members of the community through
volunteerism, financial support and education through the efforts of an all
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volunteer organization;
(21) the American cancer society, inc., for the purpose of eliminating
cancer as a major health problem by preventing cancer, saving lives and
diminishing suffering from cancer, through research, education, advocacy
and service;
(22) the community services of Shawnee, inc., for the purpose of
providing food and clothing to those in need;
(23) the angel babies association, for the purpose of providing
assistance, support and items of necessity to teenage mothers and their
babies; and
(24) the Kansas fairgrounds foundation for the purpose of the
preservation, renovation and beautification of the Kansas state fairgrounds;
(ww) all sales of tangible personal property purchased by the habitat
for humanity for the exclusive use of being incorporated within a housing
project constructed by such organization;
(xx) all sales of tangible personal property and services purchased by
a nonprofit zoo that is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
of such zoo by an entity itself exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code of 1986
contracted with to operate such zoo and all sales of tangible personal
property or services purchased by a contractor for the purpose of
constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any nonprofit zoo that would be
exempt from taxation under the provisions of this section if purchased
directly by such nonprofit zoo or the entity operating such zoo. Nothing in
this subsection shall be deemed to exempt the purchase of any construction
machinery, equipment or tools used in the constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
the purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities, it shall obtain
from the state and furnish to the contractor an exemption certificate for the
project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number of
such certificate to all suppliers from whom such purchases are made, and
such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project the contractor
shall furnish to the nonprofit zoo concerned a sworn statement, on a form
to be provided by the director of taxation, that all purchases so made were
entitled to exemption under this subsection. All invoices shall be held by
the contractor for a period of five years and shall be subject to audit by the
director of taxation. If any materials purchased under such a certificate are
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found not to have been incorporated in the building or other project or not
to have been returned for credit or the sales or compensating tax otherwise
imposed upon such materials that will not be so incorporated in the
building or other project reported and paid by such contractor to the
director of taxation not later than the 20
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day of the month following the
close of the month in which it shall be determined that such materials will
not be used for the purpose for which such certificate was issued, the
nonprofit zoo concerned shall be liable for tax on all materials purchased
for the project, and upon payment thereof it may recover the same from
the contractor together with reasonable attorney fees. Any contractor or
any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials purchased under such a certificate for any purpose
other than that for which such a certificate is issued without the payment
of the sales or compensating tax otherwise imposed upon such materials,
shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto;
(yy) all sales of tangible personal property and services purchased by
a parent-teacher association or organization, and all sales of tangible
personal property by or on behalf of such association or organization;
(zz) all sales of machinery and equipment purchased by over-the-air,
free access radio or television station that is used directly and primarily for
the purpose of producing a broadcast signal or is such that the failure of
the machinery or equipment to operate would cause broadcasting to cease.
For purposes of this subsection, machinery and equipment shall include,
but not be limited to, that required by rules and regulations of the federal
communications commission, and all sales of electricity which are
essential or necessary for the purpose of producing a broadcast signal or is
such that the failure of the electricity would cause broadcasting to cease;
(aaa) all sales of tangible personal property and services purchased by
a religious organization that is exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code, and used
exclusively for religious purposes, and all sales of tangible personal
property or services purchased by a contractor for the purpose of
constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any such organization that would be
exempt from taxation under the provisions of this section if purchased
directly by such organization. Nothing in this subsection shall be deemed
to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for any such organization.
When any such organization shall contract for the purpose of constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
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remodeling facilities, it shall obtain from the state and furnish to the
contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers from
whom such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon
completion of the project the contractor shall furnish to such organization
concerned a sworn statement, on a form to be provided by the director of
taxation, that all purchases so made were entitled to exemption under this
subsection. All invoices shall be held by the contractor for a period of five
years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been returned
for credit or the sales or compensating tax otherwise imposed upon such
materials that will not be so incorporated in the building or other project
reported and paid by such contractor to the director of taxation not later
than the 20
th
day of the month following the close of the month in which it
shall be determined that such materials will not be used for the purpose for
which such certificate was issued, such organization concerned shall be
liable for tax on all materials purchased for the project, and upon payment
thereof it may recover the same from the contractor together with
reasonable attorney fees. Any contractor or any agent, employee or
subcontractor thereof, who shall use or otherwise dispose of any materials
purchased under such a certificate for any purpose other than that for
which such a certificate is issued without the payment of the sales or
compensating tax otherwise imposed upon such materials, shall be guilty
of a misdemeanor and, upon conviction therefor, shall be subject to the
penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
Sales tax paid on and after July 1, 1998, but prior to the effective date of
this act upon the gross receipts received from any sale exempted by the
amendatory provisions of this subsection shall be refunded. Each claim for
a sales tax refund shall be verified and submitted to the director of taxation
upon forms furnished by the director and shall be accompanied by any
additional documentation required by the director. The director shall
review each claim and shall refund that amount of sales tax paid as
determined under the provisions of this subsection. All refunds shall be
paid from the sales tax refund fund upon warrants of the director of
accounts and reports pursuant to vouchers approved by the director or the
director's designee;
(bbb) all sales of food for human consumption by an organization that
is exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code of 1986, pursuant to a food distribution
program that offers such food at a price below cost in exchange for the
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performance of community service by the purchaser thereof;
(ccc) on and after July 1, 1999, all sales of tangible personal property
and services purchased by a primary care clinic or health center the
primary purpose of which is to provide services to medically underserved
individuals and families, and that is exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code, and all
sales of tangible personal property or services purchased by a contractor
for the purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for any such clinic
or center that would be exempt from taxation under the provisions of this
section if purchased directly by such clinic or center, except that for
taxable years commencing after December 31, 2013, this subsection shall
not apply to any sales of such tangible personal property and services
purchased by a primary care clinic or health center which performs any
abortion, as defined in K.S.A. 65-6701 section 7, and amendments thereto.
Nothing in this subsection shall be deemed to exempt the purchase of any
construction machinery, equipment or tools used in the constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities for any such clinic or center. When any such clinic or
center shall contract for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
facilities, it shall obtain from the state and furnish to the contractor an
exemption certificate for the project involved, and the contractor may
purchase materials for incorporation in such project. The contractor shall
furnish the number of such certificate to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering the
same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to such clinic or center concerned a
sworn statement, on a form to be provided by the director of taxation, that
all purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years and
shall be subject to audit by the director of taxation. If any materials
purchased under such a certificate are found not to have been incorporated
in the building or other project or not to have been returned for credit or
the sales or compensating tax otherwise imposed upon such materials that
will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20
th
day of the month following the close of the month in which it shall be
determined that such materials will not be used for the purpose for which
such certificate was issued, such clinic or center concerned shall be liable
for tax on all materials purchased for the project, and upon payment
thereof it may recover the same from the contractor together with
reasonable attorney fees. Any contractor or any agent, employee or
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subcontractor thereof, who shall use or otherwise dispose of any materials
purchased under such a certificate for any purpose other than that for
which such a certificate is issued without the payment of the sales or
compensating tax otherwise imposed upon such materials, shall be guilty
of a misdemeanor and, upon conviction therefor, shall be subject to the
penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
(ddd) on and after January 1, 1999, and before January 1, 2000, all
sales of materials and services purchased by any class II or III railroad as
classified by the federal surface transportation board for the construction,
renovation, repair or replacement of class II or III railroad track and
facilities used directly in interstate commerce. In the event any such track
or facility for which materials and services were purchased sales tax
exempt is not operational for five years succeeding the allowance of such
exemption, the total amount of sales tax that would have been payable
except for the operation of this subsection shall be recouped in accordance
with rules and regulations adopted for such purpose by the secretary of
revenue;
(eee) on and after January 1, 1999, and before January 1, 2001, all
sales of materials and services purchased for the original construction,
reconstruction, repair or replacement of grain storage facilities, including
railroad sidings providing access thereto;
(fff) all sales of material handling equipment, racking systems and
other related machinery and equipment that is used for the handling,
movement or storage of tangible personal property in a warehouse or
distribution facility in this state; all sales of installation, repair and
maintenance services performed on such machinery and equipment; and
all sales of repair and replacement parts for such machinery and
equipment. For purposes of this subsection, a warehouse or distribution
facility means a single, fixed location that consists of buildings or
structures in a contiguous area where storage or distribution operations are
conducted that are separate and apart from the business' retail operations,
if any, and that do not otherwise qualify for exemption as occurring at a
manufacturing or processing plant or facility. Material handling and
storage equipment shall include aeration, dust control, cleaning, handling
and other such equipment that is used in a public grain warehouse or other
commercial grain storage facility, whether used for grain handling, grain
storage, grain refining or processing, or other grain treatment operation;
(ggg) all sales of tangible personal property and services purchased
by or on behalf of the Kansas academy of science, which is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, and used solely by such academy for the
preparation, publication and dissemination of education materials;
(hhh) all sales of tangible personal property and services purchased
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by or on behalf of all domestic violence shelters that are member agencies
of the Kansas coalition against sexual and domestic violence;
(iii) all sales of personal property and services purchased by an
organization that is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, and such
personal property and services are used by any such organization in the
collection, storage and distribution of food products to nonprofit
organizations that distribute such food products to persons pursuant to a
food distribution program on a charitable basis without fee or charge, and
all sales of tangible personal property or services purchased by a
contractor for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities used
for the collection and storage of such food products for any such
organization which is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, that would
be exempt from taxation under the provisions of this section if purchased
directly by such organization. Nothing in this subsection shall be deemed
to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for any such organization.
When any such organization shall contract for the purpose of constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities, it shall obtain from the state and furnish to the
contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers from
whom such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon
completion of the project the contractor shall furnish to such organization
concerned a sworn statement, on a form to be provided by the director of
taxation, that all purchases so made were entitled to exemption under this
subsection. All invoices shall be held by the contractor for a period of five
years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in such facilities or not to have been returned for credit or the
sales or compensating tax otherwise imposed upon such materials that will
not be so incorporated in such facilities reported and paid by such
contractor to the director of taxation not later than the 20
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day of the
month following the close of the month in which it shall be determined
that such materials will not be used for the purpose for which such
certificate was issued, such organization concerned shall be liable for tax
on all materials purchased for the project, and upon payment thereof it
may recover the same from the contractor together with reasonable
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attorney fees. Any contractor or any agent, employee or subcontractor
thereof, who shall use or otherwise dispose of any materials purchased
under such a certificate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating tax
otherwise imposed upon such materials, shall be guilty of a misdemeanor
and, upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
July 1, 2005, but prior to the effective date of this act upon the gross
receipts received from any sale exempted by the amendatory provisions of
this subsection shall be refunded. Each claim for a sales tax refund shall be
verified and submitted to the director of taxation upon forms furnished by
the director and shall be accompanied by any additional documentation
required by the director. The director shall review each claim and shall
refund that amount of sales tax paid as determined under the provisions of
this subsection. All refunds shall be paid from the sales tax refund fund
upon warrants of the director of accounts and reports pursuant to vouchers
approved by the director or the director's designee;
(jjj) all sales of dietary supplements dispensed pursuant to a
prescription order by a licensed practitioner or a mid-level practitioner as
defined by K.S.A. 65-1626, and amendments thereto. As used in this
subsection, "dietary supplement" means any product, other than tobacco,
intended to supplement the diet that: (1) Contains one or more of the
following dietary ingredients: A vitamin, a mineral, an herb or other
botanical, an amino acid, a dietary substance for use by humans to
supplement the diet by increasing the total dietary intake or a concentrate,
metabolite, constituent, extract or combination of any such ingredient; (2)
is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
liquid form, or if not intended for ingestion, in such a form, is not
represented as conventional food and is not represented for use as a sole
item of a meal or of the diet; and (3) is required to be labeled as a dietary
supplement, identifiable by the supplemental facts box found on the label
and as required pursuant to 21 C.F.R. § 101.36;
(lll) all sales of tangible personal property and services purchased by
special olympics Kansas, inc. for the purpose of providing year-round
sports training and athletic competition in a variety of olympic-type sports
for individuals with intellectual disabilities by giving them continuing
opportunities to develop physical fitness, demonstrate courage, experience
joy and participate in a sharing of gifts, skills and friendship with their
families, other special olympics athletes and the community, and activities
provided or sponsored by such organization, and all sales of tangible
personal property by or on behalf of any such organization;
(mmm) all sales of tangible personal property purchased by or on
behalf of the Marillac center, inc., which is exempt from federal income
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taxation pursuant to section 501(c)(3) of the federal internal revenue code,
for the purpose of providing psycho-social-biological and special
education services to children, and all sales of any such property by or on
behalf of such organization for such purpose;
(nnn) all sales of tangible personal property and services purchased
by the west Sedgwick county-sunrise rotary club and sunrise charitable
fund for the purpose of constructing a boundless playground which is an
integrated, barrier free and developmentally advantageous play
environment for children of all abilities and disabilities;
(ooo) all sales of tangible personal property by or on behalf of a
public library serving the general public and supported in whole or in part
with tax money or a not-for-profit organization whose purpose is to raise
funds for or provide services or other benefits to any such public library;
(ppp) all sales of tangible personal property and services purchased
by or on behalf of a homeless shelter that is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal income tax code of
1986, and used by any such homeless shelter to provide emergency and
transitional housing for individuals and families experiencing
homelessness, and all sales of any such property by or on behalf of any
such homeless shelter for any such purpose;
(qqq) all sales of tangible personal property and services purchased
by TLC for children and families, inc., hereinafter referred to as TLC,
which is exempt from federal income taxation pursuant to section 501(c)
(3) of the federal internal revenue code of 1986, and such property and
services are used for the purpose of providing emergency shelter and
treatment for abused and neglected children as well as meeting additional
critical needs for children, juveniles and family, and all sales of any such
property by or on behalf of TLC for any such purpose; and all sales of
tangible personal property or services purchased by a contractor for the
purpose of constructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities for the operation of services for TLC for any such
purpose that would be exempt from taxation under the provisions of this
section if purchased directly by TLC. Nothing in this subsection shall be
deemed to exempt the purchase of any construction machinery, equipment
or tools used in the constructing, maintaining, repairing, enlarging,
furnishing or remodeling such facilities for TLC. When TLC contracts for
the purpose of constructing, maintaining, repairing, enlarging, furnishing
or remodeling such facilities, it shall obtain from the state and furnish to
the contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers from
whom such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon
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completion of the project the contractor shall furnish to TLC a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection. All
invoices shall be held by the contractor for a period of five years and shall
be subject to audit by the director of taxation. If any materials purchased
under such a certificate are found not to have been incorporated in the
building or other project or not to have been returned for credit or the sales
or compensating tax otherwise imposed upon such materials that will not
be so incorporated in the building or other project reported and paid by
such contractor to the director of taxation not later than the 20
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day of the
month following the close of the month in which it shall be determined
that such materials will not be used for the purpose for which such
certificate was issued, TLC shall be liable for tax on all materials
purchased for the project, and upon payment thereof it may recover the
same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof, who shall use
or otherwise dispose of any materials purchased under such a certificate
for any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise imposed
upon such materials, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in K.S.A.
79-3615(h), and amendments thereto;
(rrr) all sales of tangible personal property and services purchased by
any county law library maintained pursuant to law and sales of tangible
personal property and services purchased by an organization that would
have been exempt from taxation under the provisions of this subsection if
purchased directly by the county law library for the purpose of providing
legal resources to attorneys, judges, students and the general public, and
all sales of any such property by or on behalf of any such county law
library;
(sss) all sales of tangible personal property and services purchased by
catholic charities or youthville, hereinafter referred to as charitable family
providers, which is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, and which
such property and services are used for the purpose of providing
emergency shelter and treatment for abused and neglected children as well
as meeting additional critical needs for children, juveniles and family, and
all sales of any such property by or on behalf of charitable family
providers for any such purpose; and all sales of tangible personal property
or services purchased by a contractor for the purpose of constructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
the operation of services for charitable family providers for any such
purpose which would be exempt from taxation under the provisions of this
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section if purchased directly by charitable family providers. Nothing in
this subsection shall be deemed to exempt the purchase of any construction
machinery, equipment or tools used in the constructing, maintaining,
repairing, enlarging, furnishing or remodeling such facilities for charitable
family providers. When charitable family providers contracts for the
purpose of constructing, maintaining, repairing, enlarging, furnishing or
remodeling such facilities, it shall obtain from the state and furnish to the
contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers from
whom such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon
completion of the project the contractor shall furnish to charitable family
providers a sworn statement, on a form to be provided by the director of
taxation, that all purchases so made were entitled to exemption under this
subsection. All invoices shall be held by the contractor for a period of five
years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been returned
for credit or the sales or compensating tax otherwise imposed upon such
materials that will not be so incorporated in the building or other project
reported and paid by such contractor to the director of taxation not later
than the 20
th
day of the month following the close of the month in which it
shall be determined that such materials will not be used for the purpose for
which such certificate was issued, charitable family providers shall be
liable for tax on all materials purchased for the project, and upon payment
thereof it may recover the same from the contractor together with
reasonable attorney fees. Any contractor or any agent, employee or
subcontractor thereof, who shall use or otherwise dispose of any materials
purchased under such a certificate for any purpose other than that for
which such a certificate is issued without the payment of the sales or
compensating tax otherwise imposed upon such materials, shall be guilty
of a misdemeanor and, upon conviction therefor, shall be subject to the
penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
(ttt) all sales of tangible personal property or services purchased by a
contractor for a project for the purpose of restoring, constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling a home or facility owned by a nonprofit museum that has been
granted an exemption pursuant to subsection (qq), which such home or
facility is located in a city that has been designated as a qualified
hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
amendments thereto, and which such project is related to the purposes of
K.S.A. 75-5071 et seq., and amendments thereto, and that would be
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exempt from taxation under the provisions of this section if purchased
directly by such nonprofit museum. Nothing in this subsection shall be
deemed to exempt the purchase of any construction machinery, equipment
or tools used in the restoring, constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling a home or
facility for any such nonprofit museum. When any such nonprofit museum
shall contract for the purpose of restoring, constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
a home or facility, it shall obtain from the state and furnish to the
contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificates to all suppliers
from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon
completion of the project, the contractor shall furnish to such nonprofit
museum a sworn statement on a form to be provided by the director of
taxation that all purchases so made were entitled to exemption under this
subsection. All invoices shall be held by the contractor for a period of five
years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been returned
for credit or the sales or compensating tax otherwise imposed upon such
materials that will not be so incorporated in a home or facility or other
project reported and paid by such contractor to the director of taxation not
later than the 20
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day of the month following the close of the month in
which it shall be determined that such materials will not be used for the
purpose for which such certificate was issued, such nonprofit museum
shall be liable for tax on all materials purchased for the project, and upon
payment thereof it may recover the same from the contractor together with
reasonable attorney fees. Any contractor or any agent, employee or
subcontractor thereof, who shall use or otherwise dispose of any materials
purchased under such a certificate for any purpose other than that for
which such a certificate is issued without the payment of the sales or
compensating tax otherwise imposed upon such materials, shall be guilty
of a misdemeanor and, upon conviction therefor, shall be subject to the
penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
(uuu) all sales of tangible personal property and services purchased
by Kansas children's service league, hereinafter referred to as KCSL,
which is exempt from federal income taxation pursuant to section 501(c)
(3) of the federal internal revenue code of 1986, and which such property
and services are used for the purpose of providing for the prevention and
treatment of child abuse and maltreatment as well as meeting additional
critical needs for children, juveniles and family, and all sales of any such
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property by or on behalf of KCSL for any such purpose; and all sales of
tangible personal property or services purchased by a contractor for the
purpose of constructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities for the operation of services for KCSL for any such
purpose that would be exempt from taxation under the provisions of this
section if purchased directly by KCSL. Nothing in this subsection shall be
deemed to exempt the purchase of any construction machinery, equipment
or tools used in the constructing, maintaining, repairing, enlarging,
furnishing or remodeling such facilities for KCSL. When KCSL contracts
for the purpose of constructing, maintaining, repairing, enlarging,
furnishing or remodeling such facilities, it shall obtain from the state and
furnish to the contractor an exemption certificate for the project involved,
and the contractor may purchase materials for incorporation in such
project. The contractor shall furnish the number of such certificate to all
suppliers from whom such purchases are made, and such suppliers shall
execute invoices covering the same bearing the number of such certificate.
Upon completion of the project the contractor shall furnish to KCSL a
sworn statement, on a form to be provided by the director of taxation, that
all purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years and
shall be subject to audit by the director of taxation. If any materials
purchased under such a certificate are found not to have been incorporated
in the building or other project or not to have been returned for credit or
the sales or compensating tax otherwise imposed upon such materials that
will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20
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day of the month following the close of the month in which it shall be
determined that such materials will not be used for the purpose for which
such certificate was issued, KCSL shall be liable for tax on all materials
purchased for the project, and upon payment thereof it may recover the
same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof, who shall use
or otherwise dispose of any materials purchased under such a certificate
for any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise imposed
upon such materials, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in K.S.A.
79-3615(h), and amendments thereto;
(vvv) all sales of tangible personal property or services, including the
renting and leasing of tangible personal property or services, purchased by
jazz in the woods, inc., a Kansas corporation that is exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code, for the purpose of providing jazz in the woods, an event
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benefiting children-in-need and other nonprofit charities assisting such
children, and all sales of any such property by or on behalf of such
organization for such purpose;
(www) all sales of tangible personal property purchased by or on
behalf of the Frontenac education foundation, which is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code, for the purpose of providing education support for
students, and all sales of any such property by or on behalf of such
organization for such purpose;
(xxx) all sales of personal property and services purchased by the
booth theatre foundation, inc., an organization, which is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, and which such personal property and
services are used by any such organization in the constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
of the booth theatre, and all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
the booth theatre for such organization, that would be exempt from
taxation under the provisions of this section if purchased directly by such
organization. Nothing in this subsection shall be deemed to exempt the
purchase of any construction machinery, equipment or tools used in the
constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any such organization. When any
such organization shall contract for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
facilities, it shall obtain from the state and furnish to the contractor an
exemption certificate for the project involved, and the contractor may
purchase materials for incorporation in such project. The contractor shall
furnish the number of such certificate to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering the
same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to such organization concerned a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection. All
invoices shall be held by the contractor for a period of five years and shall
be subject to audit by the director of taxation. If any materials purchased
under such a certificate are found not to have been incorporated in such
facilities or not to have been returned for credit or the sales or
compensating tax otherwise imposed upon such materials that will not be
so incorporated in such facilities reported and paid by such contractor to
the director of taxation not later than the 20
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day of the month following
the close of the month in which it shall be determined that such materials
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will not be used for the purpose for which such certificate was issued, such
organization concerned shall be liable for tax on all materials purchased
for the project, and upon payment thereof it may recover the same from
the contractor together with reasonable attorney fees. Any contractor or
any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials purchased under such a certificate for any purpose
other than that for which such a certificate is issued without the payment
of the sales or compensating tax otherwise imposed upon such materials,
shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto. Sales tax paid on and after January 1, 2007, but prior
to the effective date of this act upon the gross receipts received from any
sale which would have been exempted by the provisions of this subsection
had such sale occurred after the effective date of this act shall be refunded.
Each claim for a sales tax refund shall be verified and submitted to the
director of taxation upon forms furnished by the director and shall be
accompanied by any additional documentation required by the director.
The director shall review each claim and shall refund that amount of sales
tax paid as determined under the provisions of this subsection. All refunds
shall be paid from the sales tax refund fund upon warrants of the director
of accounts and reports pursuant to vouchers approved by the director or
the director's designee;
(yyy) all sales of tangible personal property and services purchased
by TLC charities foundation, inc., hereinafter referred to as TLC charities,
which is exempt from federal income taxation pursuant to section 501(c)
(3) of the federal internal revenue code of 1986, and which such property
and services are used for the purpose of encouraging private philanthropy
to further the vision, values, and goals of TLC for children and families,
inc.; and all sales of such property and services by or on behalf of TLC
charities for any such purpose and all sales of tangible personal property or
services purchased by a contractor for the purpose of constructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
the operation of services for TLC charities for any such purpose that would
be exempt from taxation under the provisions of this section if purchased
directly by TLC charities. Nothing in this subsection shall be deemed to
exempt the purchase of any construction machinery, equipment or tools
used in the constructing, maintaining, repairing, enlarging, furnishing or
remodeling such facilities for TLC charities. When TLC charities contracts
for the purpose of constructing, maintaining, repairing, enlarging,
furnishing or remodeling such facilities, it shall obtain from the state and
furnish to the contractor an exemption certificate for the project involved,
and the contractor may purchase materials for incorporation in such
project. The contractor shall furnish the number of such certificate to all
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suppliers from whom such purchases are made, and such suppliers shall
execute invoices covering the same bearing the number of such certificate.
Upon completion of the project the contractor shall furnish to TLC
charities a sworn statement, on a form to be provided by the director of
taxation, that all purchases so made were entitled to exemption under this
subsection. All invoices shall be held by the contractor for a period of five
years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been returned
for credit or the sales or compensating tax otherwise imposed upon such
materials that will not be incorporated into the building or other project
reported and paid by such contractor to the director of taxation not later
than the 20
th
day of the month following the close of the month in which it
shall be determined that such materials will not be used for the purpose for
which such certificate was issued, TLC charities shall be liable for tax on
all materials purchased for the project, and upon payment thereof it may
recover the same from the contractor together with reasonable attorney
fees. Any contractor or any agent, employee or subcontractor thereof, who
shall use or otherwise dispose of any materials purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in K.S.A.
79-3615(h), and amendments thereto;
(zzz) all sales of tangible personal property purchased by the rotary
club of shawnee foundation, which is exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
as amended, used for the purpose of providing contributions to community
service organizations and scholarships;
(aaaa) all sales of personal property and services purchased by or on
behalf of victory in the valley, inc., which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code,
for the purpose of providing a cancer support group and services for
persons with cancer, and all sales of any such property by or on behalf of
any such organization for any such purpose;
(bbbb) all sales of entry or participation fees, charges or tickets by
Guadalupe health foundation, which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code,
for such organization's annual fundraising event which purpose is to
provide health care healthcare services for uninsured workers;
(cccc) all sales of tangible personal property or services purchased by
or on behalf of wayside waifs, inc., which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code,
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for the purpose of providing such organization's annual fundraiser, an
event whose purpose is to support the care of homeless and abandoned
animals, animal adoption efforts, education programs for children and
efforts to reduce animal over-population and animal welfare services, and
all sales of any such property, including entry or participation fees or
charges, by or on behalf of such organization for such purpose;
(dddd) all sales of tangible personal property or services purchased
by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
of which are exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code, for the purpose of providing
education, training and employment opportunities for people with
disabilities and other barriers to employment;
(eeee) all sales of tangible personal property or services purchased by
or on behalf of all American beef battalion, inc., which is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code, for the purpose of educating, promoting and
participating as a contact group through the beef cattle industry in order to
carry out such projects that provide support and morale to members of the
United States armed forces and military services;
(ffff) all sales of tangible personal property and services purchased by
sheltered living, inc., which is exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
and which such property and services are used for the purpose of
providing residential and day services for people with developmental
disabilities or intellectual disability, or both, and all sales of any such
property by or on behalf of sheltered living, inc., for any such purpose; and
all sales of tangible personal property or services purchased by a
contractor for the purpose of rehabilitating, constructing, maintaining,
repairing, enlarging, furnishing or remodeling homes and facilities for
sheltered living, inc., for any such purpose that would be exempt from
taxation under the provisions of this section if purchased directly by
sheltered living, inc. Nothing in this subsection shall be deemed to exempt
the purchase of any construction machinery, equipment or tools used in the
constructing, maintaining, repairing, enlarging, furnishing or remodeling
such homes and facilities for sheltered living, inc. When sheltered living,
inc., contracts for the purpose of rehabilitating, constructing, maintaining,
repairing, enlarging, furnishing or remodeling such homes and facilities, it
shall obtain from the state and furnish to the contractor an exemption
certificate for the project involved, and the contractor may purchase
materials for incorporation in such project. The contractor shall furnish the
number of such certificate to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same bearing
the number of such certificate. Upon completion of the project the
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contractor shall furnish to sheltered living, inc., a sworn statement, on a
form to be provided by the director of taxation, that all purchases so made
were entitled to exemption under this subsection. All invoices shall be held
by the contractor for a period of five years and shall be subject to audit by
the director of taxation. If any materials purchased under such a certificate
are found not to have been incorporated in the building or other project or
not to have been returned for credit or the sales or compensating tax
otherwise imposed upon such materials that will not be so incorporated in
the building or other project reported and paid by such contractor to the
director of taxation not later than the 20
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close of the month in which it shall be determined that such materials will
not be used for the purpose for which such certificate was issued, sheltered
living, inc., shall be liable for tax on all materials purchased for the
project, and upon payment thereof it may recover the same from the
contractor together with reasonable attorney fees. Any contractor or any
agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials purchased under such a certificate for any purpose
other than that for which such a certificate is issued without the payment
of the sales or compensating tax otherwise imposed upon such materials,
shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto;
(gggg) all sales of game birds for which the primary purpose is use in
hunting;
(hhhh) all sales of tangible personal property or services purchased
on or after July 1, 2014, for the purpose of and in conjunction with
constructing, reconstructing, enlarging or remodeling a business identified
under the North American industry classification system (NAICS)
subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
installation of machinery and equipment purchased for installation at any
such business. The exemption provided in this subsection shall not apply
to projects that have actual total costs less than $50,000. When a person
contracts for the construction, reconstruction, enlargement or remodeling
of any such business, such person shall obtain from the state and furnish to
the contractor an exemption certificate for the project involved, and the
contractor may purchase materials, machinery and equipment for
incorporation in such project. The contractor shall furnish the number of
such certificates to all suppliers from whom such purchases are made, and
such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project, the contractor
shall furnish to the owner of the business a sworn statement, on a form to
be provided by the director of taxation, that all purchases so made were
entitled to exemption under this subsection. All invoices shall be held by
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the contractor for a period of five years and shall be subject to audit by the
director of taxation. Any contractor or any agent, employee or
subcontractor of the contractor, who shall use or otherwise dispose of any
materials, machinery or equipment purchased under such a certificate for
any purpose other than that for which such a certificate is issued without
the payment of the sales or compensating tax otherwise imposed thereon,
shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto;
(iiii) all sales of tangible personal property or services purchased by a
contractor for the purpose of constructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for the operation of services
for Wichita children's home for any such purpose that would be exempt
from taxation under the provisions of this section if purchased directly by
Wichita children's home. Nothing in this subsection shall be deemed to
exempt the purchase of any construction machinery, equipment or tools
used in the constructing, maintaining, repairing, enlarging, furnishing or
remodeling such facilities for Wichita children's home. When Wichita
children's home contracts for the purpose of constructing, maintaining,
repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
from the state and furnish to the contractor an exemption certificate for the
project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number of
such certificate to all suppliers from whom such purchases are made, and
such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project, the contractor
shall furnish to Wichita children's home a sworn statement, on a form to be
provided by the director of taxation, that all purchases so made were
entitled to exemption under this subsection. All invoices shall be held by
the contractor for a period of five years and shall be subject to audit by the
director of taxation. If any materials purchased under such a certificate are
found not to have been incorporated in the building or other project or not
to have been returned for credit or the sales or compensating tax otherwise
imposed upon such materials that will not be so incorporated in the
building or other project reported and paid by such contractor to the
director of taxation not later than the 20
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day of the month following the
close of the month in which it shall be determined that such materials will
not be used for the purpose for which such certificate was issued, Wichita
children's home shall be liable for the tax on all materials purchased for the
project, and upon payment, it may recover the same from the contractor
together with reasonable attorney fees. Any contractor or any agent,
employee or subcontractor, who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than that
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for which such a certificate is issued without the payment of the sales or
compensating tax otherwise imposed upon such materials, shall be guilty
of a misdemeanor and, upon conviction, shall be subject to the penalties
provided for in K.S.A. 79-3615(h), and amendments thereto;
(jjjj) all sales of tangible personal property or services purchased by
or on behalf of the beacon, inc., that is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code,
for the purpose of providing those desiring help with food, shelter, clothing
and other necessities of life during times of special need;
(kkkk) all sales of tangible personal property and services purchased
by or on behalf of reaching out from within, inc., which is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code, for the purpose of sponsoring self-help programs for
incarcerated persons that will enable such incarcerated persons to become
role models for non-violence while in correctional facilities and productive
family members and citizens upon return to the community;
(llll) all sales of tangible personal property and services purchased by
Gove county healthcare endowment foundation, inc., which is exempt
from federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, and which such property and services are
used for the purpose of constructing and equipping an airport in Quinter,
Kansas, and all sales of tangible personal property or services purchased
by a contractor for the purpose of constructing and equipping an airport in
Quinter, Kansas, for such organization, that would be exempt from
taxation under the provisions of this section if purchased directly by such
organization. Nothing in this subsection shall be deemed to exempt the
purchase of any construction machinery, equipment or tools used in the
constructing or equipping of facilities for such organization. When such
organization shall contract for the purpose of constructing or equipping an
airport in Quinter, Kansas, it shall obtain from the state and furnish to the
contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers from
whom such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon
completion of the project, the contractor shall furnish to such organization
concerned a sworn statement, on a form to be provided by the director of
taxation, that all purchases so made were entitled to exemption under this
subsection. All invoices shall be held by the contractor for a period of five
years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in such facilities or not to have been returned for credit or the
sales or compensating tax otherwise imposed upon such materials that will
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not be so incorporated in such facilities reported and paid by such
contractor to the director of taxation no later than the 20
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day of the month
following the close of the month in which it shall be determined that such
materials will not be used for the purpose for which such certificate was
issued, such organization concerned shall be liable for tax on all materials
purchased for the project, and upon payment thereof it may recover the
same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof, who purchased
under such a certificate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating tax
otherwise imposed upon such materials, shall be guilty of a misdemeanor
and, upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
subsection shall expire and have no effect on and after July 1, 2019;
(mmmm) all sales of gold or silver coins; and palladium, platinum,
gold or silver bullion. For the purposes of this subsection, "bullion" means
bars, ingots or commemorative medallions of gold, silver, platinum,
palladium, or a combination thereof, for which the value of the metal
depends on its content and not the form;
(nnnn) all sales of tangible personal property or services purchased
by friends of hospice of Jefferson county, an organization that is exempt
from federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, for the purpose of providing support to the
Jefferson county hospice agency in end-of-life care of Jefferson county
families, friends and neighbors, and all sales of entry or participation fees,
charges or tickets by friends of hospice of Jefferson county for such
organization's fundraising event for such purpose;
(oooo) all sales of tangible personal property or services purchased
for the purpose of and in conjunction with constructing, reconstructing,
enlarging or remodeling a qualified business facility by a qualified firm or
qualified supplier that meets the requirements established in K.S.A. 2024
Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
been approved for a project exemption certificate by the secretary of
commerce, and the sale and installation of machinery and equipment
purchased by such qualified firm or qualified supplier for installation at
any such qualified business facility. When a person shall contract for the
construction, reconstruction, enlargement or remodeling of any such
qualified business facility, such person shall obtain from the state and
furnish to the contractor an exemption certificate for the project involved,
and the contractor may purchase materials, machinery and equipment for
incorporation in such project. The contractor shall furnish the number of
such certificates to all suppliers from whom such purchases are made, and
such suppliers shall execute invoices covering the same bearing the
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number of such certificate. Upon completion of the project, the contractor
shall furnish to the owner of the qualified firm or qualified supplier a
sworn statement, on a form to be provided by the director of taxation, that
all purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years and
shall be subject to audit by the director of taxation. Any contractor or any
agent, employee or subcontractor thereof who shall use or otherwise
dispose of any materials, machinery or equipment purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed thereon, shall be guilty of a misdemeanor and, upon conviction
therefor, shall be subject to the penalties provided for in K.S.A. 79-
3615(h), and amendments thereto. As used in this subsection, "qualified
business facility," "qualified firm" and "qualified supplier" mean the same
as defined in K.S.A. 2024 Supp. 74-50,311, and amendments thereto;
(pppp) (1) all sales of tangible personal property or services
purchased by a not-for-profit corporation that is designated as an area
agency on aging by the secretary for aging and disabilities services and is
exempt from federal income taxation pursuant to section 501(c)(3) of the
federal internal revenue code for the purpose of coordinating and
providing seniors and those living with disabilities with services that
promote person-centered care, including home-delivered meals,
congregate meal settings, long-term case management, transportation,
information, assistance and other preventative and intervention services to
help service recipients remain in their homes and communities or for the
purpose of constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for such area agency on
aging; and
(2) all sales of tangible personal property or services purchased by a
contractor for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for an
area agency on aging that would be exempt from taxation under the
provisions of this section if purchased directly by such area agency on
aging. Nothing in this paragraph shall be deemed to exempt the purchase
of any construction machinery, equipment or tools used in the
constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for an area agency on aging. When an
area agency on aging contracts for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
facilities, it shall obtain from the state and furnish to the contractor an
exemption certificate for the project involved, and such contractor may
purchase materials for incorporation in such project. The contractor shall
furnish the number of such certificate to all suppliers from whom such
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purchases are made, and such suppliers shall execute invoices covering the
same bearing the number of such certificate. Upon completion of the
project, the contractor shall furnish to such area agency on aging a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection. All
invoices shall be held by the contractor for a period of five years and shall
be subject to audit by the director of taxation. If any materials purchased
under such a certificate are found not to have been incorporated in the
building or other project or not to have been returned for credit or the sales
or compensating tax otherwise imposed upon such materials that will not
be so incorporated in the building or other project reported and paid by
such contractor to the director of taxation not later than the 20
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day of the
month following the close of the month in which it shall be determined
that such materials will not be used for the purpose for which such
certificate was issued, the area agency on aging concerned shall be liable
for tax on all materials purchased for the project, and upon payment
thereof, the area agency on aging may recover the same from the
contractor together with reasonable attorney fees. Any contractor or any
agent, employee or subcontractor thereof who shall use or otherwise
dispose of any materials purchased under such a certificate for any purpose
other than that for which such a certificate is issued without the payment
of the sales or compensating tax otherwise imposed upon such materials
shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto;
(qqqq) all sales of tangible personal property or services purchased
by Kansas suicide prevention HQ, inc., an organization that is exempt
from federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, for the purpose of bringing suicide
prevention training and awareness to communities across the state;
(rrrr) all sales of the services of slaughtering, butchering, custom
cutting, dressing, processing and packaging of an animal for human
consumption when the animal is delivered or furnished by a customer that
owns the animal and such meat or poultry is for use or consumption by
such customer;
(ssss) all sales of tangible personal property or services purchased by
or on behalf of doorstep inc., an organization that is exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code of 1986, for the purpose of providing short-term emergency
aid to families and individuals in need, including assistance with food,
clothing, rent, prescription medications, transportation and utilities, and
providing information on services to promote long-term self-sufficiency;
(tttt) on and after January 1, 2024, all sales of tangible personal
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property or services purchased by exploration place, inc., an organization
that is exempt from federal income taxation pursuant to section 501(c)(3)
of the federal internal revenue code, and which such property and services
are used for the purpose of constructing, remodeling, furnishing or
equipping a riverfront amphitheater, a destination playscape, an education
center and indoor renovations at exploration place in Wichita, Kansas, all
sales of tangible personal property or services purchased by Kansas
children's discovery center inc. in Topeka, Kansas, and which such
property and services are used for the purpose of constructing, remodeling,
furnishing or equipping projects that include indoor-outdoor classrooms,
an expanded multi-media gallery, a workshop and loading dock and safety
upgrades such as a tornado shelter, lactation room, first aid room and
sensory room and all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, remodeling,
furnishing or equipping such projects, for such organizations, that would
be exempt from taxation under the provisions of this section if purchased
directly by such organizations. Nothing in this subsection shall be deemed
to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, remodeling, furnishing or equipping of facilities
for such organization. When such organization shall contract for the
purpose of constructing, remodeling, furnishing or equipping such
projects, it shall obtain from the state and furnish to the contractor an
exemption certificate for the project involved, and the contractor may
purchase materials for incorporation in such project. The contractor shall
furnish the number of such certificate to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering the
same bearing the number of such certificate. Upon completion of the
project, the contractor shall furnish to such organization a sworn statement,
on a form to be provided by the director of taxation, that all purchases so
made were entitled to exemption under this subsection. All invoices shall
be held by the contractor for a period of five years and shall be subject to
audit by the director of taxation. If any materials purchased under such a
certificate are found not to have been incorporated in such facilities or not
to have been returned for credit or the sales or compensating tax otherwise
imposed upon such materials that will not be so incorporated in such
facilities reported and paid by such contractor to the director of taxation no
later than the 20
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day of the month following the close of the month in
which it shall be determined that such materials will not be used for the
purpose for which such certificate was issued, such organization shall be
liable for tax on all materials purchased for the project, and upon payment
thereof may recover the same from the contractor together with reasonable
attorney fees. Any contractor or agent, employee or subcontractor thereof,
who purchased under such a certificate for any purpose other than that for
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which such a certificate is issued without the payment of the sales or
compensating tax otherwise imposed upon such materials, shall be guilty
of a misdemeanor and, upon conviction therefor, shall be subject to the
penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
Sales tax paid on and after January 1, 2024, but prior to the effective date
of this act, upon the gross receipts received from any sale exempted by the
amendatory provisions of this subsection shall be refunded. Each claim for
a sales tax refund shall be verified and submitted to the director of taxation
upon forms furnished by the director and shall be accompanied by any
additional documentation required by the director. The director shall
review each claim and shall refund that amount of sales tax paid as
determined under the provisions of this subsection. All refunds shall be
paid from the sales tax refund fund upon warrants of the director of
accounts and reports pursuant to vouchers approved by the director or the
director's designee. The provisions of this subsection shall expire and have
no effect on and after December 31, 2030;
(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary
components, appurtenances, accessories or other infrastructure purchased
for use in the provision of communications services; and
(B) all services purchased by a provider in the provision of the
communications service used in the repair, maintenance or installation in
such communications service.
(2) As used in this subsection:
(A) "Communications service" means internet access service,
telecommunications service, video service or any combination thereof.
(B) "Equipment, machinery, software, ancillary components,
appurtenances, accessories or other infrastructure" includes, but is not
limited to:
(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,
amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,
transmitters, circuit cards, insulating and protective materials and cases,
power equipment, backup power equipment, diagnostic equipment, storage
devices, modems, cable modem termination systems and servers;
(ii) other general central office or headend equipment, such as
channel cards, frames and cabinets;
(iii) equipment used in successor technologies, including items used
to monitor, test, maintain, enable or facilitate qualifying equipment,
machinery, software, ancillary components, appurtenances and
accessories; and
(iv) other infrastructure that is used in whole or in part to provide
communications services, including broadcasting, distributing, sending,
receiving, storing, transmitting, retransmitting, amplifying, switching,
providing connectivity for or routing communications services.
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(C) "Internet access service" means the same as internet access as
defined in section 1105 of the internet tax freedom act amendments of
2007, public law 110-108.
(D) "Provider" means a person or entity that sells communications
service, including an affiliate or subsidiary.
(E) "Telecommunications service" means the same as defined in
K.S.A. 79-3602, and amendments thereto.
(F) "Video service" means the same as defined in K.S.A. 12-2022,
and amendments thereto.
(3) The provisions of this subsection shall expire and have no effect
on and after July 1, 2029;
(vvvv) (1) all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
a building that is operated by, or is intended to be operated by, the Kansas
fairgrounds foundation, a not-for-profit corporation exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code of 1986, and located on the grounds of the Kansas state fair,
and such tangible personal property would be exempt from taxation under
the provisions of this paragraph if purchased directly by such eligible not-
for-profit corporation. Nothing in this subsection shall be deemed to
exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling a building for such eligible not-for-
profit corporation. When such eligible not-for-profit corporation contracts
for the purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling a building, such corporation
shall obtain from the state and furnish to the contractor an exemption
certificate for the project involved, and such contractor may purchase
materials for incorporation in such project. The contractor shall furnish the
number of such certificate to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering such purchases
bearing the number of such certificate. Upon completion of the project, the
contractor shall furnish to such eligible not-for-profit corporation a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection. All
invoices shall be held by the contractor for a period of five years and shall
be subject to audit by the director of taxation. If any materials purchased
under such a certificate are found not to have been incorporated in the
building or returned for credit, the contractor shall report and pay the sales
or compensating tax to the director of taxation not later than the 20
th
day of
the month following the close of the month in which it is determined that
such materials will not be used for the purpose for which such certificate
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43 SB 198 63
was issued. The eligible not-for-profit corporation concerned shall be
liable for tax on all materials purchased for the project, and upon payment
thereof, the eligible not-for-profit corporation may recover the same from
the contractor together with reasonable attorney fees. Any contractor or
any agent, employee or subcontractor thereof who shall use or otherwise
dispose of any materials purchased under such a certificate for any purpose
other than that for which such a certificate is issued without the payment
of the sales or compensating tax otherwise imposed upon such materials
shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto.
(2) Sales tax paid on and after May 19, 2023, but prior to the effective
date of this act upon the gross receipts received from any sale which would
have been exempted by the provisions of this subsection had such sale
occurred after the effective date of this act shall be refunded. Each claim
for a sales tax refund shall be verified and submitted to the director of
taxation upon forms furnished by the director and shall be accompanied by
any additional documentation required by the director. The director shall
review each claim and shall refund that amount of sales tax paid as
determined under the provisions of this subsection. All refunds shall be
paid from the sales tax refund fund upon warrants of the director of
accounts and reports pursuant to vouchers approved by the director or the
director's designee; and
(wwww) (1) All sales of tangible personal property or services
purchased by a pregnancy resource center or residential maternity facility.
(2) As used in this subsection, "pregnancy resource center" or
"residential maternity facility" means an organization that is:
(A) Exempt from federal income taxation pursuant to section 501(c)
(3) of the federal internal revenue code of 1986;
(B) a nonprofit organization organized under the laws of this state;
and
(C) a pregnancy resource center or residential maternity facility that:
(i) Maintains a dedicated phone number for clients;
(ii) maintains in this state its primary physical office, clinic or
residential home that is open for clients for a minimum of 20 hours per
week, excluding state holidays;
(iii) offers services, at no cost to the client, for the express purpose of
providing assistance to women in order to carry their pregnancy to term,
encourage parenting or adoption, prevent abortion, as define in section 7,
and amendments thereto, and promote healthy childbirth; and
(iv) utilizes trained healthcare providers, as defined by K.S.A. 2024
Supp. 79-32,316, and amendments thereto, to perform any available
medical procedures.
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43 SB 198 64
Sec. 19. K.S.A. 65-4a02, 65-4a03, 65-4a04, 65-4a05, 65-4a06, 65-
4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11, 65-4a12, 65-2837, 65-6702,
65-6703, 65-6704, 65-6705, 65-6707, 65-6709, 65-6710, 65-6711, 65-
6712, 65-6714, 65-6715, 65-6721, 65-6722, 65-6724, 65-6725, 65-6726,
65-6731, 65-6741, 65-6743, 65-6744, 65-6745, 65-6746, 65-6747, 65-
6748, 65-6749, 65-67a01, 76-3308 and 79-32,195 and K.S.A. 2024 Supp.
60-1906, 65-4a01, 65-2401, 65-6701, 65-6708, 65-6723, 65-6742, 79-
32,182b, 79-32,261 and 79-3606 are hereby repealed.
Sec. 20. This act shall take effect and be in force from and after its
publication in the statute book.
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