Kansas 2025-2026 Regular Session

Kansas Senate Bill SB278 Compare Versions

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

Old	New	Differences
1	1	Session of 2025
2	2	SENATE BILL No. 278
3	3	By Committee on Assessment and Taxation
4	4	2-25
5	5	AN ACT concerning sales taxation; relating to exemptions; providing an
6	6	exemption for certain purchases and sales by care to share cancer
7	7	support group of Bourbon county, Kansas, inc.; amending K.S.A. 2024
8	8	Supp. 79-3606 and repealing the existing section.
9	9	Be it enacted by the Legislature of the State of Kansas:
10	10	Section 1. K.S.A. 2024 Supp. 79-3606 is hereby amended to read as
11	11	follows: 79-3606. The following shall be exempt from the tax imposed by
12	12	this act:
13	13	(a) All sales of motor-vehicle fuel or other articles upon which a sales
14	14	or excise tax has been paid, not subject to refund, under the laws of this
15	15	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
16	16	3301, and amendments thereto, including consumable material for such
17	17	electronic cigarettes, cereal malt beverages and malt products as defined
18	18	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
19	19	malt syrup and malt extract, that is not subject to taxation under the
20	20	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
21	21	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
22	22	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
23	23	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
24	24	thereto, and gross receipts from regulated sports contests taxed pursuant to
25	25	the Kansas professional regulated sports act, and amendments thereto;
26	26	(b) all sales of tangible personal property or service, including the
27	27	renting and leasing of tangible personal property, purchased directly by the
28	28	state of Kansas, a political subdivision thereof, other than a school or
29	29	educational institution, or purchased by a public or private nonprofit
30	30	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
31	31	nonprofit integrated community care organization and used exclusively for
32	32	state, political subdivision, hospital, public hospital authority, nonprofit
33	33	blood, tissue or organ bank or nonprofit integrated community care
34	34	organization purposes, except when: (1) Such state, hospital or public
35	35	hospital authority is engaged or proposes to engage in any business
36	36	specifically taxable under the provisions of this act and such items of
37	37	tangible personal property or service are used or proposed to be used in
38	38	such business; or (2) such political subdivision is engaged or proposes to
39	39	engage in the business of furnishing gas, electricity or heat to others and
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76	76	such items of personal property or service are used or proposed to be used
77	77	in such business;
78	78	(c) all sales of tangible personal property or services, including the
79	79	renting and leasing of tangible personal property, purchased directly by a
80	80	public or private elementary or secondary school or public or private
81	81	nonprofit educational institution and used primarily by such school or
82	82	institution for nonsectarian programs and activities provided or sponsored
83	83	by such school or institution or in the erection, repair or enlargement of
84	84	buildings to be used for such purposes. The exemption herein provided
85	85	shall not apply to erection, construction, repair, enlargement or equipment
86	86	of buildings used primarily for human habitation, except that such
87	87	exemption shall apply to the erection, construction, repair, enlargement or
88	88	equipment of buildings used for human habitation by the cerebral palsy
89	89	research foundation of Kansas located in Wichita, Kansas, multi
90	90	community diversified services, incorporated, located in McPherson,
91	91	Kansas, the Kansas state school for the blind and the Kansas state school
92	92	for the deaf;
93	93	(d) all sales of tangible personal property or services purchased by a
94	94	contractor for the purpose of constructing, equipping, reconstructing,
95	95	maintaining, repairing, enlarging, furnishing or remodeling facilities for
96	96	any public or private nonprofit hospital or public hospital authority, public
97	97	or private elementary or secondary school, a public or private nonprofit
98	98	educational institution, state correctional institution including a privately
99	99	constructed correctional institution contracted for state use and ownership,
100	100	that would be exempt from taxation under the provisions of this act if
101	101	purchased directly by such hospital or public hospital authority, school,
102	102	educational institution or a state correctional institution; and all sales of
103	103	tangible personal property or services purchased by a contractor for the
104	104	purpose of constructing, equipping, reconstructing, maintaining, repairing,
105	105	enlarging, furnishing or remodeling facilities for any political subdivision
106	106	of the state or district described in subsection (s), the total cost of which is
107	107	paid from funds of such political subdivision or district and that would be
108	108	exempt from taxation under the provisions of this act if purchased directly
109	109	by such political subdivision or district. Nothing in this subsection or in
110	110	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
111	111	deemed to exempt the purchase of any construction machinery, equipment
112	112	or tools used in the constructing, equipping, reconstructing, maintaining,
113	113	repairing, enlarging, furnishing or remodeling facilities for any political
114	114	subdivision of the state or any such district. As used in this subsection,
115	115	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
116	116	political subdivision" shall mean general tax revenues, the proceeds of any
117	117	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
118	118	purpose of constructing, equipping, reconstructing, repairing, enlarging,
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162	162	furnishing or remodeling facilities that are to be leased to the donor. When
163	163	any political subdivision of the state, district described in subsection (s),
164	164	public or private nonprofit hospital or public hospital authority, public or
165	165	private elementary or secondary school, public or private nonprofit
166	166	educational institution, state correctional institution including a privately
167	167	constructed correctional institution contracted for state use and ownership
168	168	shall contract for the purpose of constructing, equipping, reconstructing,
169	169	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
170	170	shall obtain from the state and furnish to the contractor an exemption
171	171	certificate for the project involved, and the contractor may purchase
172	172	materials for incorporation in such project. The contractor shall furnish the
173	173	number of such certificate to all suppliers from whom such purchases are
174	174	made, and such suppliers shall execute invoices covering the same bearing
175	175	the number of such certificate. Upon completion of the project the
176	176	contractor shall furnish to the political subdivision, district described in
177	177	subsection (s), hospital or public hospital authority, school, educational
178	178	institution or department of corrections concerned a sworn statement, on a
179	179	form to be provided by the director of taxation, that all purchases so made
180	180	were entitled to exemption under this subsection. As an alternative to the
181	181	foregoing procedure, any such contracting entity may apply to the
182	182	secretary of revenue for agent status for the sole purpose of issuing and
183	183	furnishing project exemption certificates to contractors pursuant to rules
184	184	and regulations adopted by the secretary establishing conditions and
185	185	standards for the granting and maintaining of such status. All invoices
186	186	shall be held by the contractor for a period of five years and shall be
187	187	subject to audit by the director of taxation. If any materials purchased
188	188	under such a certificate are found not to have been incorporated in the
189	189	building or other project or not to have been returned for credit or the sales
190	190	or compensating tax otherwise imposed upon such materials that will not
191	191	be so incorporated in the building or other project reported and paid by
192	192	such contractor to the director of taxation not later than the 20
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194	194	day of the
195	195	month following the close of the month in which it shall be determined
196	196	that such materials will not be used for the purpose for which such
197	197	certificate was issued, the political subdivision, district described in
198	198	subsection (s), hospital or public hospital authority, school, educational
199	199	institution or the contractor contracting with the department of corrections
200	200	for a correctional institution concerned shall be liable for tax on all
201	201	materials purchased for the project, and upon payment thereof it may
202	202	recover the same from the contractor together with reasonable attorney
203	203	fees. Any contractor or any agent, employee or subcontractor thereof, who
204	204	shall use or otherwise dispose of any materials purchased under such a
205	205	certificate for any purpose other than that for which such a certificate is
206	206	issued without the payment of the sales or compensating tax otherwise
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250	250	imposed upon such materials, shall be guilty of a misdemeanor and, upon
251	251	conviction therefor, shall be subject to the penalties provided for in K.S.A.
252	252	79-3615(h), and amendments thereto;
253	253	(e) all sales of tangible personal property or services purchased by a
254	254	contractor for the erection, repair or enlargement of buildings or other
255	255	projects for the government of the United States, its agencies or
256	256	instrumentalities, that would be exempt from taxation if purchased directly
257	257	by the government of the United States, its agencies or instrumentalities.
258	258	When the government of the United States, its agencies or
259	259	instrumentalities shall contract for the erection, repair, or enlargement of
260	260	any building or other project, it shall obtain from the state and furnish to
261	261	the contractor an exemption certificate for the project involved, and the
262	262	contractor may purchase materials for incorporation in such project. The
263	263	contractor shall furnish the number of such certificates to all suppliers
264	264	from whom such purchases are made, and such suppliers shall execute
265	265	invoices covering the same bearing the number of such certificate. Upon
266	266	completion of the project the contractor shall furnish to the government of
267	267	the United States, its agencies or instrumentalities concerned a sworn
268	268	statement, on a form to be provided by the director of taxation, that all
269	269	purchases so made were entitled to exemption under this subsection. As an
270	270	alternative to the foregoing procedure, any such contracting entity may
271	271	apply to the secretary of revenue for agent status for the sole purpose of
272	272	issuing and furnishing project exemption certificates to contractors
273	273	pursuant to rules and regulations adopted by the secretary establishing
274	274	conditions and standards for the granting and maintaining of such status.
275	275	All invoices shall be held by the contractor for a period of five years and
276	276	shall be subject to audit by the director of taxation. Any contractor or any
277	277	agent, employee or subcontractor thereof, who shall use or otherwise
278	278	dispose of any materials purchased under such a certificate for any purpose
279	279	other than that for which such a certificate is issued without the payment
280	280	of the sales or compensating tax otherwise imposed upon such materials,
281	281	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
282	282	subject to the penalties provided for in K.S.A. 79-3615(h), and
283	283	amendments thereto;
284	284	(f) tangible personal property purchased by a railroad or public utility
285	285	for consumption or movement directly and immediately in interstate
286	286	commerce;
287	287	(g) sales of aircraft including remanufactured and modified aircraft
288	288	sold to persons using directly or through an authorized agent such aircraft
289	289	as certified or licensed carriers of persons or property in interstate or
290	290	foreign commerce under authority of the laws of the United States or any
291	291	foreign government or sold to any foreign government or agency or
292	292	instrumentality of such foreign government and all sales of aircraft for use
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336	336	outside of the United States and sales of aircraft repair, modification and
337	337	replacement parts and sales of services employed in the remanufacture,
338	338	modification and repair of aircraft;
339	339	(h) all rentals of nonsectarian textbooks by public or private
340	340	elementary or secondary schools;
341	341	(i) the lease or rental of all films, records, tapes, or any type of sound
342	342	or picture transcriptions used by motion picture exhibitors;
343	343	(j) meals served without charge or food used in the preparation of
344	344	such meals to employees of any restaurant, eating house, dining car, hotel,
345	345	drugstore or other place where meals or drinks are regularly sold to the
346	346	public if such employees' duties are related to the furnishing or sale of
347	347	such meals or drinks;
348	348	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
349	349	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
350	350	delivered in this state to a bona fide resident of another state, which motor
351	351	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
352	352	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
353	353	remain in this state more than 10 days;
354	354	(l) all isolated or occasional sales of tangible personal property,
355	355	services, substances or things, except isolated or occasional sale of motor
356	356	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
357	357	amendments thereto;
358	358	(m) all sales of tangible personal property that become an ingredient
359	359	or component part of tangible personal property or services produced,
360	360	manufactured or compounded for ultimate sale at retail within or without
361	361	the state of Kansas; and any such producer, manufacturer or compounder
362	362	may obtain from the director of taxation and furnish to the supplier an
363	363	exemption certificate number for tangible personal property for use as an
364	364	ingredient or component part of the property or services produced,
365	365	manufactured or compounded;
366	366	(n) all sales of tangible personal property that is consumed in the
367	367	production, manufacture, processing, mining, drilling, refining or
368	368	compounding of tangible personal property, the treating of by-products or
369	369	wastes derived from any such production process, the providing of
370	370	services or the irrigation of crops for ultimate sale at retail within or
371	371	without the state of Kansas; and any purchaser of such property may
372	372	obtain from the director of taxation and furnish to the supplier an
373	373	exemption certificate number for tangible personal property for
374	374	consumption in such production, manufacture, processing, mining,
375	375	drilling, refining, compounding, treating, irrigation and in providing such
376	376	services;
377	377	(o) all sales of animals, fowl and aquatic plants and animals, the
378	378	primary purpose of which is use in agriculture or aquaculture, as defined in
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422	422	K.S.A. 47-1901, and amendments thereto, the production of food for
423	423	human consumption, the production of animal, dairy, poultry or aquatic
424	424	plant and animal products, fiber or fur, or the production of offspring for
425	425	use for any such purpose or purposes;
426	426	(p) all sales of drugs dispensed pursuant to a prescription order by a
427	427	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
428	428	1626, and amendments thereto. As used in this subsection, "drug" means a
429	429	compound, substance or preparation and any component of a compound,
430	430	substance or preparation, other than food and food ingredients, dietary
431	431	supplements or alcoholic beverages, recognized in the official United
432	432	States pharmacopeia, official homeopathic pharmacopoeia of the United
433	433	States or official national formulary, and supplement to any of them,
434	434	intended for use in the diagnosis, cure, mitigation, treatment or prevention
435	435	of disease or intended to affect the structure or any function of the body,
436	436	except that for taxable years commencing after December 31, 2013, this
437	437	subsection shall not apply to any sales of drugs used in the performance or
438	438	induction of an abortion, as defined in K.S.A. 65-6701, and amendments
439	439	thereto;
440	440	(q) all sales of insulin dispensed by a person licensed by the state
441	441	board of pharmacy to a person for treatment of diabetes at the direction of
442	442	a person licensed to practice medicine by the state board of healing arts;
443	443	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
444	444	enteral feeding systems, prosthetic devices and mobility enhancing
445	445	equipment prescribed in writing by a person licensed to practice the
446	446	healing arts, dentistry or optometry, and in addition to such sales, all sales
447	447	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
448	448	and repair and replacement parts therefor, including batteries, by a person
449	449	licensed in the practice of dispensing and fitting hearing aids pursuant to
450	450	the provisions of K.S.A. 74-5808, and amendments thereto. For the
451	451	purposes of this subsection: (1) "Mobility enhancing equipment" means
452	452	equipment including repair and replacement parts to same, but does not
453	453	include durable medical equipment, which is primarily and customarily
454	454	used to provide or increase the ability to move from one place to another
455	455	and which is appropriate for use either in a home or a motor vehicle; is not
456	456	generally used by persons with normal mobility; and does not include any
457	457	motor vehicle or equipment on a motor vehicle normally provided by a
458	458	motor vehicle manufacturer; and (2) "prosthetic device" means a
459	459	replacement, corrective or supportive device including repair and
460	460	replacement parts for same worn on or in the body to artificially replace a
461	461	missing portion of the body, prevent or correct physical deformity or
462	462	malfunction or support a weak or deformed portion of the body;
463	463	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
464	464	all sales of tangible personal property or services purchased directly or
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508	508	indirectly by a groundwater management district organized or operating
509	509	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
510	510	by a rural water district organized or operating under the authority of
511	511	K.S.A. 82a-612, and amendments thereto, or by a water supply district
512	512	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
513	513	3522 et seq. or 19-3545, and amendments thereto, which property or
514	514	services are used in the construction activities, operation or maintenance of
515	515	the district;
516	516	(t) all sales of farm machinery and equipment or aquaculture
517	517	machinery and equipment, repair and replacement parts therefor and
518	518	services performed in the repair and maintenance of such machinery and
519	519	equipment. For the purposes of this subsection the term "farm machinery
520	520	and equipment or aquaculture machinery and equipment" shall include a
521	521	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
522	522	thereto, and is equipped with a bed or cargo box for hauling materials, and
523	523	shall also include machinery and equipment used in the operation of
524	524	Christmas tree farming but shall not include any passenger vehicle, truck,
525	525	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
526	526	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
527	527	machinery and equipment" includes precision farming equipment that is
528	528	portable or is installed or purchased to be installed on farm machinery and
529	529	equipment. "Precision farming equipment" includes the following items
530	530	used only in computer-assisted farming, ranching or aquaculture
531	531	production operations: Soil testing sensors, yield monitors, computers,
532	532	monitors, software, global positioning and mapping systems, guiding
533	533	systems, modems, data communications equipment and any necessary
534	534	mounting hardware, wiring and antennas. Each purchaser of farm
535	535	machinery and equipment or aquaculture machinery and equipment
536	536	exempted herein must certify in writing on the copy of the invoice or sales
537	537	ticket to be retained by the seller that the farm machinery and equipment
538	538	or aquaculture machinery and equipment purchased will be used only in
539	539	farming, ranching or aquaculture production. Farming or ranching shall
540	540	include the operation of a feedlot and farm and ranch work for hire and the
541	541	operation of a nursery;
542	542	(u) all leases or rentals of tangible personal property used as a
543	543	dwelling if such tangible personal property is leased or rented for a period
544	544	of more than 28 consecutive days;
545	545	(v) all sales of tangible personal property to any contractor for use in
546	546	preparing meals for delivery to homebound elderly persons over 60 years
547	547	of age and to homebound disabled persons or to be served at a group-
548	548	sitting at a location outside of the home to otherwise homebound elderly
549	549	persons over 60 years of age and to otherwise homebound disabled
550	550	persons, as all or part of any food service project funded in whole or in
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594	594	part by government or as part of a private nonprofit food service project
595	595	available to all such elderly or disabled persons residing within an area of
596	596	service designated by the private nonprofit organization, and all sales of
597	597	tangible personal property for use in preparing meals for consumption by
598	598	indigent or homeless individuals whether or not such meals are consumed
599	599	at a place designated for such purpose, and all sales of food products by or
600	600	on behalf of any such contractor or organization for any such purpose;
601	601	(w) all sales of natural gas, electricity, heat and water delivered
602	602	through mains, lines or pipes: (1) To residential premises for
603	603	noncommercial use by the occupant of such premises; (2) for agricultural
604	604	use and also, for such use, all sales of propane gas; (3) for use in the
605	605	severing of oil; and (4) to any property which is exempt from property
606	606	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
607	607	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
608	608	and amendments thereto. For all sales of natural gas, electricity and heat
609	609	delivered through mains, lines or pipes pursuant to the provisions of
610	610	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
611	611	on December 31, 2005;
612	612	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
613	613	for the production of heat or lighting for noncommercial use of an
614	614	occupant of residential premises occurring prior to January 1, 2006;
615	615	(y) all sales of materials and services used in the repairing, servicing,
616	616	altering, maintaining, manufacturing, remanufacturing, or modification of
617	617	railroad rolling stock for use in interstate or foreign commerce under
618	618	authority of the laws of the United States;
619	619	(z) all sales of tangible personal property and services purchased
620	620	directly by a port authority or by a contractor therefor as provided by the
621	621	provisions of K.S.A. 12-3418, and amendments thereto;
622	622	(aa) all sales of materials and services applied to equipment that is
623	623	transported into the state from without the state for repair, service,
624	624	alteration, maintenance, remanufacture or modification and that is
625	625	subsequently transported outside the state for use in the transmission of
626	626	liquids or natural gas by means of pipeline in interstate or foreign
627	627	commerce under authority of the laws of the United States;
628	628	(bb) all sales of used mobile homes or manufactured homes. As used
629	629	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
630	630	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
631	631	"sales of used mobile homes or manufactured homes" means sales other
632	632	than the original retail sale thereof;
633	633	(cc) all sales of tangible personal property or services purchased prior
634	634	to January 1, 2012, except as otherwise provided, for the purpose of and in
635	635	conjunction with constructing, reconstructing, enlarging or remodeling a
636	636	business or retail business that meets the requirements established in
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679	679	43 SB 278 9
680	680	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
681	681	machinery and equipment purchased for installation at any such business
682	682	or retail business, and all sales of tangible personal property or services
683	683	purchased on or after January 1, 2012, for the purpose of and in
684	684	conjunction with constructing, reconstructing, enlarging or remodeling a
685	685	business that meets the requirements established in K.S.A. 74-50,115(e),
686	686	and amendments thereto, and the sale and installation of machinery and
687	687	equipment purchased for installation at any such business. When a person
688	688	shall contract for the construction, reconstruction, enlargement or
689	689	remodeling of any such business or retail business, such person shall
690	690	obtain from the state and furnish to the contractor an exemption certificate
691	691	for the project involved, and the contractor may purchase materials,
692	692	machinery and equipment for incorporation in such project. The contractor
693	693	shall furnish the number of such certificates to all suppliers from whom
694	694	such purchases are made, and such suppliers shall execute invoices
695	695	covering the same bearing the number of such certificate. Upon
696	696	completion of the project the contractor shall furnish to the owner of the
697	697	business or retail business a sworn statement, on a form to be provided by
698	698	the director of taxation, that all purchases so made were entitled to
699	699	exemption under this subsection. All invoices shall be held by the
700	700	contractor for a period of five years and shall be subject to audit by the
701	701	director of taxation. Any contractor or any agent, employee or
702	702	subcontractor thereof, who shall use or otherwise dispose of any materials,
703	703	machinery or equipment purchased under such a certificate for any
704	704	purpose other than that for which such a certificate is issued without the
705	705	payment of the sales or compensating tax otherwise imposed thereon, shall
706	706	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
707	707	to the penalties provided for in K.S.A. 79-3615(h), and amendments
708	708	thereto. As used in this subsection, "business" and "retail business" mean
709	709	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
710	710	exemption certificates that have been previously issued under this
711	711	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
712	712	and amendments thereto, but not including K.S.A. 74-50,115(e), and
713	713	amendments thereto, prior to January 1, 2012, and have not expired will be
714	714	effective for the term of the project or two years from the effective date of
715	715	the certificate, whichever occurs earlier. Project exemption certificates that
716	716	are submitted to the department of revenue prior to January 1, 2012, and
717	717	are found to qualify will be issued a project exemption certificate that will
718	718	be effective for a two-year period or for the term of the project, whichever
719	719	occurs earlier;
720	720	(dd) all sales of tangible personal property purchased with food
721	721	stamps issued by the United States department of agriculture;
722	722	(ee) all sales of lottery tickets and shares made as part of a lottery
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766	766	operated by the state of Kansas;
767	767	(ff) on and after July 1, 1988, all sales of new mobile homes or
768	768	manufactured homes to the extent of 40% of the gross receipts, determined
769	769	without regard to any trade-in allowance, received from such sale. As used
770	770	in this subsection, "mobile homes" and "manufactured homes" mean the
771	771	same as defined in K.S.A. 58-4202, and amendments thereto;
772	772	(gg) all sales of tangible personal property purchased in accordance
773	773	with vouchers issued pursuant to the federal special supplemental food
774	774	program for women, infants and children;
775	775	(hh) all sales of medical supplies and equipment, including durable
776	776	medical equipment, purchased directly by a nonprofit skilled nursing home
777	777	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
778	778	and amendments thereto, for the purpose of providing medical services to
779	779	residents thereof. This exemption shall not apply to tangible personal
780	780	property customarily used for human habitation purposes. As used in this
781	781	subsection, "durable medical equipment" means equipment including
782	782	repair and replacement parts for such equipment, that can withstand
783	783	repeated use, is primarily and customarily used to serve a medical purpose,
784	784	generally is not useful to a person in the absence of illness or injury and is
785	785	not worn in or on the body, but does not include mobility enhancing
786	786	equipment as defined in subsection (r), oxygen delivery equipment, kidney
787	787	dialysis equipment or enteral feeding systems;
788	788	(ii) all sales of tangible personal property purchased directly by a
789	789	nonprofit organization for nonsectarian comprehensive multidiscipline
790	790	youth development programs and activities provided or sponsored by such
791	791	organization, and all sales of tangible personal property by or on behalf of
792	792	any such organization. This exemption shall not apply to tangible personal
793	793	property customarily used for human habitation purposes;
794	794	(jj) all sales of tangible personal property or services, including the
795	795	renting and leasing of tangible personal property, purchased directly on
796	796	behalf of a community-based facility for people with intellectual disability
797	797	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
798	798	amendments thereto, and licensed in accordance with the provisions of
799	799	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
800	800	personal property or services purchased by contractors during the time
801	801	period from July, 2003, through June, 2006, for the purpose of
802	802	constructing, equipping, maintaining or furnishing a new facility for a
803	803	community-based facility for people with intellectual disability or mental
804	804	health center located in Riverton, Cherokee County, Kansas, that would
805	805	have been eligible for sales tax exemption pursuant to this subsection if
806	806	purchased directly by such facility or center. This exemption shall not
807	807	apply to tangible personal property customarily used for human habitation
808	808	purposes;
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851	851	43 SB 278 11
852	852	(kk) (1) (A) all sales of machinery and equipment that are used in this
853	853	state as an integral or essential part of an integrated production operation
854	854	by a manufacturing or processing plant or facility;
855	855	(B) all sales of installation, repair and maintenance services
856	856	performed on such machinery and equipment; and
857	857	(C) all sales of repair and replacement parts and accessories
858	858	purchased for such machinery and equipment.
859	859	(2) For purposes of this subsection:
860	860	(A) "Integrated production operation" means an integrated series of
861	861	operations engaged in at a manufacturing or processing plant or facility to
862	862	process, transform or convert tangible personal property by physical,
863	863	chemical or other means into a different form, composition or character
864	864	from that in which it originally existed. Integrated production operations
865	865	shall include: (i) Production line operations, including packaging
866	866	operations; (ii) preproduction operations to handle, store and treat raw
867	867	materials; (iii) post production handling, storage, warehousing and
868	868	distribution operations; and (iv) waste, pollution and environmental
869	869	control operations, if any;
870	870	(B) "production line" means the assemblage of machinery and
871	871	equipment at a manufacturing or processing plant or facility where the
872	872	actual transformation or processing of tangible personal property occurs;
873	873	(C) "manufacturing or processing plant or facility" means a single,
874	874	fixed location owned or controlled by a manufacturing or processing
875	875	business that consists of one or more structures or buildings in a
876	876	contiguous area where integrated production operations are conducted to
877	877	manufacture or process tangible personal property to be ultimately sold at
878	878	retail. Such term shall not include any facility primarily operated for the
879	879	purpose of conveying or assisting in the conveyance of natural gas,
880	880	electricity, oil or water. A business may operate one or more manufacturing
881	881	or processing plants or facilities at different locations to manufacture or
882	882	process a single product of tangible personal property to be ultimately sold
883	883	at retail;
884	884	(D) "manufacturing or processing business" means a business that
885	885	utilizes an integrated production operation to manufacture, process,
886	886	fabricate, finish or assemble items for wholesale and retail distribution as
887	887	part of what is commonly regarded by the general public as an industrial
888	888	manufacturing or processing operation or an agricultural commodity
889	889	processing operation. (i) Industrial manufacturing or processing operations
890	890	include, by way of illustration but not of limitation, the fabrication of
891	891	automobiles, airplanes, machinery or transportation equipment, the
892	892	fabrication of metal, plastic, wood or paper products, electricity power
893	893	generation, water treatment, petroleum refining, chemical production,
894	894	wholesale bottling, newspaper printing, ready mixed concrete production,
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937	937	43 SB 278 12
938	938	and the remanufacturing of used parts for wholesale or retail sale. Such
939	939	processing operations shall include operations at an oil well, gas well,
940	940	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
941	941	sand or gravel that has been extracted from the earth is cleaned, separated,
942	942	crushed, ground, milled, screened, washed or otherwise treated or prepared
943	943	before its transmission to a refinery or before any other wholesale or retail
944	944	distribution. (ii) Agricultural commodity processing operations include, by
945	945	way of illustration but not of limitation, meat packing, poultry slaughtering
946	946	and dressing, processing and packaging farm and dairy products in sealed
947	947	containers for wholesale and retail distribution, feed grinding, grain
948	948	milling, frozen food processing, and grain handling, cleaning, blending,
949	949	fumigation, drying and aeration operations engaged in by grain elevators
950	950	or other grain storage facilities. (iii) Manufacturing or processing
951	951	businesses do not include, by way of illustration but not of limitation,
952	952	nonindustrial businesses whose operations are primarily retail and that
953	953	produce or process tangible personal property as an incidental part of
954	954	conducting the retail business, such as retailers who bake, cook or prepare
955	955	food products in the regular course of their retail trade, grocery stores,
956	956	meat lockers and meat markets that butcher or dress livestock or poultry in
957	957	the regular course of their retail trade, contractors who alter, service, repair
958	958	or improve real property, and retail businesses that clean, service or
959	959	refurbish and repair tangible personal property for its owner;
960	960	(E) "repair and replacement parts and accessories" means all parts
961	961	and accessories for exempt machinery and equipment, including, but not
962	962	limited to, dies, jigs, molds, patterns and safety devices that are attached to
963	963	exempt machinery or that are otherwise used in production, and parts and
964	964	accessories that require periodic replacement such as belts, drill bits,
965	965	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
966	966	other refractory items for exempt kiln equipment used in production
967	967	operations;
968	968	(F) "primary" or "primarily" mean more than 50% of the time.
969	969	(3) For purposes of this subsection, machinery and equipment shall
970	970	be deemed to be used as an integral or essential part of an integrated
971	971	production operation when used to:
972	972	(A) Receive, transport, convey, handle, treat or store raw materials in
973	973	preparation of its placement on the production line;
974	974	(B) transport, convey, handle or store the property undergoing
975	975	manufacturing or processing at any point from the beginning of the
976	976	production line through any warehousing or distribution operation of the
977	977	final product that occurs at the plant or facility;
978	978	(C) act upon, effect, promote or otherwise facilitate a physical change
979	979	to the property undergoing manufacturing or processing;
980	980	(D) guide, control or direct the movement of property undergoing
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1023	1023	43 SB 278 13
1024	1024	manufacturing or processing;
1025	1025	(E) test or measure raw materials, the property undergoing
1026	1026	manufacturing or processing or the finished product, as a necessary part of
1027	1027	the manufacturer's integrated production operations;
1028	1028	(F) plan, manage, control or record the receipt and flow of inventories
1029	1029	of raw materials, consumables and component parts, the flow of the
1030	1030	property undergoing manufacturing or processing and the management of
1031	1031	inventories of the finished product;
1032	1032	(G) produce energy for, lubricate, control the operating of or
1033	1033	otherwise enable the functioning of other production machinery and
1034	1034	equipment and the continuation of production operations;
1035	1035	(H) package the property being manufactured or processed in a
1036	1036	container or wrapping in which such property is normally sold or
1037	1037	transported;
1038	1038	(I) transmit or transport electricity, coke, gas, water, steam or similar
1039	1039	substances used in production operations from the point of generation, if
1040	1040	produced by the manufacturer or processor at the plant site, to that
1041	1041	manufacturer's production operation; or, if purchased or delivered from
1042	1042	off-site, from the point where the substance enters the site of the plant or
1043	1043	facility to that manufacturer's production operations;
1044	1044	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
1045	1045	solvents or other substances that are used in production operations;
1046	1046	(K) provide and control an environment required to maintain certain
1047	1047	levels of air quality, humidity or temperature in special and limited areas
1048	1048	of the plant or facility, where such regulation of temperature or humidity is
1049	1049	part of and essential to the production process;
1050	1050	(L) treat, transport or store waste or other byproducts of production
1051	1051	operations at the plant or facility; or
1052	1052	(M) control pollution at the plant or facility where the pollution is
1053	1053	produced by the manufacturing or processing operation.
1054	1054	(4) The following machinery, equipment and materials shall be
1055	1055	deemed to be exempt even though it may not otherwise qualify as
1056	1056	machinery and equipment used as an integral or essential part of an
1057	1057	integrated production operation: (A) Computers and related peripheral
1058	1058	equipment that are utilized by a manufacturing or processing business for
1059	1059	engineering of the finished product or for research and development or
1060	1060	product design; (B) machinery and equipment that is utilized by a
1061	1061	manufacturing or processing business to manufacture or rebuild tangible
1062	1062	personal property that is used in manufacturing or processing operations,
1063	1063	including tools, dies, molds, forms and other parts of qualifying machinery
1064	1064	and equipment; (C) portable plants for aggregate concrete, bulk cement
1065	1065	and asphalt including cement mixing drums to be attached to a motor
1066	1066	vehicle; (D) industrial fixtures, devices, support facilities and special
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1109	1109	43 SB 278 14
1110	1110	foundations necessary for manufacturing and production operations, and
1111	1111	materials and other tangible personal property sold for the purpose of
1112	1112	fabricating such fixtures, devices, facilities and foundations. An exemption
1113	1113	certificate for such purchases shall be signed by the manufacturer or
1114	1114	processor. If the fabricator purchases such material, the fabricator shall
1115	1115	also sign the exemption certificate; (E) a manufacturing or processing
1116	1116	business' laboratory equipment that is not located at the plant or facility,
1117	1117	but that would otherwise qualify for exemption under subsection (3)(E);
1118	1118	(F) all machinery and equipment used in surface mining activities as
1119	1119	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
1120	1120	from the time a reclamation plan is filed to the acceptance of the
1121	1121	completed final site reclamation.
1122	1122	(5) "Machinery and equipment used as an integral or essential part of
1123	1123	an integrated production operation" shall not include:
1124	1124	(A) Machinery and equipment used for nonproduction purposes,
1125	1125	including, but not limited to, machinery and equipment used for plant
1126	1126	security, fire prevention, first aid, accounting, administration, record
1127	1127	keeping, advertising, marketing, sales or other related activities, plant
1128	1128	cleaning, plant communications and employee work scheduling;
1129	1129	(B) machinery, equipment and tools used primarily in maintaining
1130	1130	and repairing any type of machinery and equipment or the building and
1131	1131	plant;
1132	1132	(C) transportation, transmission and distribution equipment not
1133	1133	primarily used in a production, warehousing or material handling
1134	1134	operation at the plant or facility, including the means of conveyance of
1135	1135	natural gas, electricity, oil or water, and equipment related thereto, located
1136	1136	outside the plant or facility;
1137	1137	(D) office machines and equipment including computers and related
1138	1138	peripheral equipment not used directly and primarily to control or measure
1139	1139	the manufacturing process;
1140	1140	(E) furniture and other furnishings;
1141	1141	(F) buildings, other than exempt machinery and equipment that is
1142	1142	permanently affixed to or becomes a physical part of the building, and any
1143	1143	other part of real estate that is not otherwise exempt;
1144	1144	(G) building fixtures that are not integral to the manufacturing
1145	1145	operation, such as utility systems for heating, ventilation, air conditioning,
1146	1146	communications, plumbing or electrical;
1147	1147	(H) machinery and equipment used for general plant heating, cooling
1148	1148	and lighting;
1149	1149	(I) motor vehicles that are registered for operation on public
1150	1150	highways; or
1151	1151	(J) employee apparel, except safety and protective apparel that is
1152	1152	purchased by an employer and furnished gratuitously to employees who
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1196	1196	are involved in production or research activities.
1197	1197	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
1198	1198	of the machinery and equipment that qualify or do not qualify as an
1199	1199	integral or essential part of an integrated production operation. When
1200	1200	machinery or equipment is used as an integral or essential part of
1201	1201	production operations part of the time and for nonproduction purposes at
1202	1202	other times, the primary use of the machinery or equipment shall
1203	1203	determine whether or not such machinery or equipment qualifies for
1204	1204	exemption.
1205	1205	(7) The secretary of revenue shall adopt rules and regulations
1206	1206	necessary to administer the provisions of this subsection;
1207	1207	(ll) all sales of educational materials purchased for distribution to the
1208	1208	public at no charge by a nonprofit corporation organized for the purpose of
1209	1209	encouraging, fostering and conducting programs for the improvement of
1210	1210	public health, except that for taxable years commencing after December
1211	1211	31, 2013, this subsection shall not apply to any sales of such materials
1212	1212	purchased by a nonprofit corporation which performs any abortion, as
1213	1213	defined in K.S.A. 65-6701, and amendments thereto;
1214	1214	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
1215	1215	herbicides, germicides, pesticides and fungicides; and services, purchased
1216	1216	and used for the purpose of producing plants in order to prevent soil
1217	1217	erosion on land devoted to agricultural use;
1218	1218	(nn) except as otherwise provided in this act, all sales of services
1219	1219	rendered by an advertising agency or licensed broadcast station or any
1220	1220	member, agent or employee thereof;
1221	1221	(oo) all sales of tangible personal property purchased by a community
1222	1222	action group or agency for the exclusive purpose of repairing or
1223	1223	weatherizing housing occupied by low-income individuals;
1224	1224	(pp) all sales of drill bits and explosives actually utilized in the
1225	1225	exploration and production of oil or gas;
1226	1226	(qq) all sales of tangible personal property and services purchased by
1227	1227	a nonprofit museum or historical society or any combination thereof,
1228	1228	including a nonprofit organization that is organized for the purpose of
1229	1229	stimulating public interest in the exploration of space by providing
1230	1230	educational information, exhibits and experiences, that is exempt from
1231	1231	federal income taxation pursuant to section 501(c)(3) of the federal
1232	1232	internal revenue code of 1986;
1233	1233	(rr) all sales of tangible personal property that will admit the
1234	1234	purchaser thereof to any annual event sponsored by a nonprofit
1235	1235	organization that is exempt from federal income taxation pursuant to
1236	1236	section 501(c)(3) of the federal internal revenue code of 1986, except that
1237	1237	for taxable years commencing after December 31, 2013, this subsection
1238	1238	shall not apply to any sales of such tangible personal property purchased
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1281	1281	43 SB 278 16
1282	1282	by a nonprofit organization which performs any abortion, as defined in
1283	1283	K.S.A. 65-6701, and amendments thereto;
1284	1284	(ss) all sales of tangible personal property and services purchased by
1285	1285	a public broadcasting station licensed by the federal communications
1286	1286	commission as a noncommercial educational television or radio station;
1287	1287	(tt) all sales of tangible personal property and services purchased by
1288	1288	or on behalf of a not-for-profit corporation that is exempt from federal
1289	1289	income taxation pursuant to section 501(c)(3) of the federal internal
1290	1290	revenue code of 1986, for the sole purpose of constructing a Kansas
1291	1291	Korean War memorial;
1292	1292	(uu) all sales of tangible personal property and services purchased by
1293	1293	or on behalf of any rural volunteer fire-fighting organization for use
1294	1294	exclusively in the performance of its duties and functions;
1295	1295	(vv) all sales of tangible personal property purchased by any of the
1296	1296	following organizations that are exempt from federal income taxation
1297	1297	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
1298	1298	for the following purposes, and all sales of any such property by or on
1299	1299	behalf of any such organization for any such purpose:
1300	1300	(1) The American heart association, Kansas affiliate, inc. for the
1301	1301	purposes of providing education, training, certification in emergency
1302	1302	cardiac care, research and other related services to reduce disability and
1303	1303	death from cardiovascular diseases and stroke;
1304	1304	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
1305	1305	advocacy for persons with mental illness and to education, research and
1306	1306	support for their families;
1307	1307	(3) the Kansas mental illness awareness council for the purposes of
1308	1308	advocacy for persons who are mentally ill and for education, research and
1309	1309	support for them and their families;
1310	1310	(4) the American diabetes association Kansas affiliate, inc. for the
1311	1311	purpose of eliminating diabetes through medical research, public education
1312	1312	focusing on disease prevention and education, patient education including
1313	1313	information on coping with diabetes, and professional education and
1314	1314	training;
1315	1315	(5) the American lung association of Kansas, inc. for the purpose of
1316	1316	eliminating all lung diseases through medical research, public education
1317	1317	including information on coping with lung diseases, professional education
1318	1318	and training related to lung disease and other related services to reduce the
1319	1319	incidence of disability and death due to lung disease;
1320	1320	(6) the Kansas chapters of the Alzheimer's disease and related
1321	1321	disorders association, inc. for the purpose of providing assistance and
1322	1322	support to persons in Kansas with Alzheimer's disease, and their families
1323	1323	and caregivers;
1324	1324	(7) the Kansas chapters of the Parkinson's disease association for the
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1367	1367	43 SB 278 17
1368	1368	purpose of eliminating Parkinson's disease through medical research and
1369	1369	public and professional education related to such disease;
1370	1370	(8) the national kidney foundation of Kansas and western Missouri
1371	1371	for the purpose of eliminating kidney disease through medical research
1372	1372	and public and private education related to such disease;
1373	1373	(9) the heartstrings community foundation for the purpose of
1374	1374	providing training, employment and activities for adults with
1375	1375	developmental disabilities;
1376	1376	(10) the cystic fibrosis foundation, heart of America chapter, for the
1377	1377	purposes of assuring the development of the means to cure and control
1378	1378	cystic fibrosis and improving the quality of life for those with the disease;
1379	1379	(11) the spina bifida association of Kansas for the purpose of
1380	1380	providing financial, educational and practical aid to families and
1381	1381	individuals with spina bifida. Such aid includes, but is not limited to,
1382	1382	funding for medical devices, counseling and medical educational
1383	1383	opportunities;
1384	1384	(12) the CHWC, Inc., for the purpose of rebuilding urban core
1385	1385	neighborhoods through the construction of new homes, acquiring and
1386	1386	renovating existing homes and other related activities, and promoting
1387	1387	economic development in such neighborhoods;
1388	1388	(13) the cross-lines cooperative council for the purpose of providing
1389	1389	social services to low income individuals and families;
1390	1390	(14) the dreams work, inc., for the purpose of providing young adult
1391	1391	day services to individuals with developmental disabilities and assisting
1392	1392	families in avoiding institutional or nursing home care for a
1393	1393	developmentally disabled member of their family;
1394	1394	(15) the KSDS, Inc., for the purpose of promoting the independence
1395	1395	and inclusion of people with disabilities as fully participating and
1396	1396	contributing members of their communities and society through the
1397	1397	training and providing of guide and service dogs to people with
1398	1398	disabilities, and providing disability education and awareness to the
1399	1399	general public;
1400	1400	(16) the lyme association of greater Kansas City, Inc., for the purpose
1401	1401	of providing support to persons with lyme disease and public education
1402	1402	relating to the prevention, treatment and cure of lyme disease;
1403	1403	(17) the dream factory, inc., for the purpose of granting the dreams of
1404	1404	children with critical and chronic illnesses;
1405	1405	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
1406	1406	students and families with education and resources necessary to enable
1407	1407	each child to develop fine character and musical ability to the fullest
1408	1408	potential;
1409	1409	(19) the international association of lions clubs for the purpose of
1410	1410	creating and fostering a spirit of understanding among all people for
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1453	1453	43 SB 278 18
1454	1454	humanitarian needs by providing voluntary services through community
1455	1455	involvement and international cooperation;
1456	1456	(20) the Johnson county young matrons, inc., for the purpose of
1457	1457	promoting a positive future for members of the community through
1458	1458	volunteerism, financial support and education through the efforts of an all
1459	1459	volunteer organization;
1460	1460	(21) the American cancer society, inc., for the purpose of eliminating
1461	1461	cancer as a major health problem by preventing cancer, saving lives and
1462	1462	diminishing suffering from cancer, through research, education, advocacy
1463	1463	and service;
1464	1464	(22) the community services of Shawnee, inc., for the purpose of
1465	1465	providing food and clothing to those in need;
1466	1466	(23) the angel babies association, for the purpose of providing
1467	1467	assistance, support and items of necessity to teenage mothers and their
1468	1468	babies; and
1469	1469	(24) the Kansas fairgrounds foundation for the purpose of the
1470	1470	preservation, renovation and beautification of the Kansas state fairgrounds;
1471	1471	(ww) all sales of tangible personal property purchased by the habitat
1472	1472	for humanity for the exclusive use of being incorporated within a housing
1473	1473	project constructed by such organization;
1474	1474	(xx) all sales of tangible personal property and services purchased by
1475	1475	a nonprofit zoo that is exempt from federal income taxation pursuant to
1476	1476	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
1477	1477	of such zoo by an entity itself exempt from federal income taxation
1478	1478	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
1479	1479	contracted with to operate such zoo and all sales of tangible personal
1480	1480	property or services purchased by a contractor for the purpose of
1481	1481	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1482	1482	furnishing or remodeling facilities for any nonprofit zoo that would be
1483	1483	exempt from taxation under the provisions of this section if purchased
1484	1484	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
1485	1485	this subsection shall be deemed to exempt the purchase of any construction
1486	1486	machinery, equipment or tools used in the constructing, equipping,
1487	1487	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1488	1488	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
1489	1489	the purpose of constructing, equipping, reconstructing, maintaining,
1490	1490	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
1491	1491	from the state and furnish to the contractor an exemption certificate for the
1492	1492	project involved, and the contractor may purchase materials for
1493	1493	incorporation in such project. The contractor shall furnish the number of
1494	1494	such certificate to all suppliers from whom such purchases are made, and
1495	1495	such suppliers shall execute invoices covering the same bearing the
1496	1496	number of such certificate. Upon completion of the project the contractor
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1539	1539	43 SB 278 19
1540	1540	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
1541	1541	to be provided by the director of taxation, that all purchases so made were
1542	1542	entitled to exemption under this subsection. All invoices shall be held by
1543	1543	the contractor for a period of five years and shall be subject to audit by the
1544	1544	director of taxation. If any materials purchased under such a certificate are
1545	1545	found not to have been incorporated in the building or other project or not
1546	1546	to have been returned for credit or the sales or compensating tax otherwise
1547	1547	imposed upon such materials that will not be so incorporated in the
1548	1548	building or other project reported and paid by such contractor to the
1549	1549	director of taxation not later than the 20
1550	1550	th
1551	1551	day of the month following the
1552	1552	close of the month in which it shall be determined that such materials will
1553	1553	not be used for the purpose for which such certificate was issued, the
1554	1554	nonprofit zoo concerned shall be liable for tax on all materials purchased
1555	1555	for the project, and upon payment thereof it may recover the same from
1556	1556	the contractor together with reasonable attorney fees. Any contractor or
1557	1557	any agent, employee or subcontractor thereof, who shall use or otherwise
1558	1558	dispose of any materials purchased under such a certificate for any purpose
1559	1559	other than that for which such a certificate is issued without the payment
1560	1560	of the sales or compensating tax otherwise imposed upon such materials,
1561	1561	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1562	1562	subject to the penalties provided for in K.S.A. 79-3615(h), and
1563	1563	amendments thereto;
1564	1564	(yy) all sales of tangible personal property and services purchased by
1565	1565	a parent-teacher association or organization, and all sales of tangible
1566	1566	personal property by or on behalf of such association or organization;
1567	1567	(zz) all sales of machinery and equipment purchased by over-the-air,
1568	1568	free access radio or television station that is used directly and primarily for
1569	1569	the purpose of producing a broadcast signal or is such that the failure of
1570	1570	the machinery or equipment to operate would cause broadcasting to cease.
1571	1571	For purposes of this subsection, machinery and equipment shall include,
1572	1572	but not be limited to, that required by rules and regulations of the federal
1573	1573	communications commission, and all sales of electricity which are
1574	1574	essential or necessary for the purpose of producing a broadcast signal or is
1575	1575	such that the failure of the electricity would cause broadcasting to cease;
1576	1576	(aaa) all sales of tangible personal property and services purchased by
1577	1577	a religious organization that is exempt from federal income taxation
1578	1578	pursuant to section 501(c)(3) of the federal internal revenue code, and used
1579	1579	exclusively for religious purposes, and all sales of tangible personal
1580	1580	property or services purchased by a contractor for the purpose of
1581	1581	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
1582	1582	furnishing or remodeling facilities for any such organization that would be
1583	1583	exempt from taxation under the provisions of this section if purchased
1584	1584	directly by such organization. Nothing in this subsection shall be deemed
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1627	1627	43 SB 278 20
1628	1628	to exempt the purchase of any construction machinery, equipment or tools
1629	1629	used in the constructing, equipping, reconstructing, maintaining, repairing,
1630	1630	enlarging, furnishing or remodeling facilities for any such organization.
1631	1631	When any such organization shall contract for the purpose of constructing,
1632	1632	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1633	1633	remodeling facilities, it shall obtain from the state and furnish to the
1634	1634	contractor an exemption certificate for the project involved, and the
1635	1635	contractor may purchase materials for incorporation in such project. The
1636	1636	contractor shall furnish the number of such certificate to all suppliers from
1637	1637	whom such purchases are made, and such suppliers shall execute invoices
1638	1638	covering the same bearing the number of such certificate. Upon
1639	1639	completion of the project the contractor shall furnish to such organization
1640	1640	concerned a sworn statement, on a form to be provided by the director of
1641	1641	taxation, that all purchases so made were entitled to exemption under this
1642	1642	subsection. All invoices shall be held by the contractor for a period of five
1643	1643	years and shall be subject to audit by the director of taxation. If any
1644	1644	materials purchased under such a certificate are found not to have been
1645	1645	incorporated in the building or other project or not to have been returned
1646	1646	for credit or the sales or compensating tax otherwise imposed upon such
1647	1647	materials that will not be so incorporated in the building or other project
1648	1648	reported and paid by such contractor to the director of taxation not later
1649	1649	than the 20
1650	1650	th
1651	1651	day of the month following the close of the month in which it
1652	1652	shall be determined that such materials will not be used for the purpose for
1653	1653	which such certificate was issued, such organization concerned shall be
1654	1654	liable for tax on all materials purchased for the project, and upon payment
1655	1655	thereof it may recover the same from the contractor together with
1656	1656	reasonable attorney fees. Any contractor or any agent, employee or
1657	1657	subcontractor thereof, who shall use or otherwise dispose of any materials
1658	1658	purchased under such a certificate for any purpose other than that for
1659	1659	which such a certificate is issued without the payment of the sales or
1660	1660	compensating tax otherwise imposed upon such materials, shall be guilty
1661	1661	of a misdemeanor and, upon conviction therefor, shall be subject to the
1662	1662	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
1663	1663	Sales tax paid on and after July 1, 1998, but prior to the effective date of
1664	1664	this act upon the gross receipts received from any sale exempted by the
1665	1665	amendatory provisions of this subsection shall be refunded. Each claim for
1666	1666	a sales tax refund shall be verified and submitted to the director of taxation
1667	1667	upon forms furnished by the director and shall be accompanied by any
1668	1668	additional documentation required by the director. The director shall
1669	1669	review each claim and shall refund that amount of sales tax paid as
1670	1670	determined under the provisions of this subsection. All refunds shall be
1671	1671	paid from the sales tax refund fund upon warrants of the director of
1672	1672	accounts and reports pursuant to vouchers approved by the director or the
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1715	1715	43 SB 278 21
1716	1716	director's designee;
1717	1717	(bbb) all sales of food for human consumption by an organization that
1718	1718	is exempt from federal income taxation pursuant to section 501(c)(3) of
1719	1719	the federal internal revenue code of 1986, pursuant to a food distribution
1720	1720	program that offers such food at a price below cost in exchange for the
1721	1721	performance of community service by the purchaser thereof;
1722	1722	(ccc) on and after July 1, 1999, all sales of tangible personal property
1723	1723	and services purchased by a primary care clinic or health center the
1724	1724	primary purpose of which is to provide services to medically underserved
1725	1725	individuals and families, and that is exempt from federal income taxation
1726	1726	pursuant to section 501(c)(3) of the federal internal revenue code, and all
1727	1727	sales of tangible personal property or services purchased by a contractor
1728	1728	for the purpose of constructing, equipping, reconstructing, maintaining,
1729	1729	repairing, enlarging, furnishing or remodeling facilities for any such clinic
1730	1730	or center that would be exempt from taxation under the provisions of this
1731	1731	section if purchased directly by such clinic or center, except that for
1732	1732	taxable years commencing after December 31, 2013, this subsection shall
1733	1733	not apply to any sales of such tangible personal property and services
1734	1734	purchased by a primary care clinic or health center which performs any
1735	1735	abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
1736	1736	in this subsection shall be deemed to exempt the purchase of any
1737	1737	construction machinery, equipment or tools used in the constructing,
1738	1738	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1739	1739	remodeling facilities for any such clinic or center. When any such clinic or
1740	1740	center shall contract for the purpose of constructing, equipping,
1741	1741	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
1742	1742	facilities, it shall obtain from the state and furnish to the contractor an
1743	1743	exemption certificate for the project involved, and the contractor may
1744	1744	purchase materials for incorporation in such project. The contractor shall
1745	1745	furnish the number of such certificate to all suppliers from whom such
1746	1746	purchases are made, and such suppliers shall execute invoices covering the
1747	1747	same bearing the number of such certificate. Upon completion of the
1748	1748	project the contractor shall furnish to such clinic or center concerned a
1749	1749	sworn statement, on a form to be provided by the director of taxation, that
1750	1750	all purchases so made were entitled to exemption under this subsection.
1751	1751	All invoices shall be held by the contractor for a period of five years and
1752	1752	shall be subject to audit by the director of taxation. If any materials
1753	1753	purchased under such a certificate are found not to have been incorporated
1754	1754	in the building or other project or not to have been returned for credit or
1755	1755	the sales or compensating tax otherwise imposed upon such materials that
1756	1756	will not be so incorporated in the building or other project reported and
1757	1757	paid by such contractor to the director of taxation not later than the 20
1758	1758	th
1759	1759	day of the month following the close of the month in which it shall be
1760	1760	1
1761	1761	2
1762	1762	3
1763	1763	4
1764	1764	5
1765	1765	6
1766	1766	7
1767	1767	8
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1769	1769	10
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1786	1786	27
1787	1787	28
1788	1788	29
1789	1789	30
1790	1790	31
1791	1791	32
1792	1792	33
1793	1793	34
1794	1794	35
1795	1795	36
1796	1796	37
1797	1797	38
1798	1798	39
1799	1799	40
1800	1800	41
1801	1801	42
1802	1802	43 SB 278 22
1803	1803	determined that such materials will not be used for the purpose for which
1804	1804	such certificate was issued, such clinic or center concerned shall be liable
1805	1805	for tax on all materials purchased for the project, and upon payment
1806	1806	thereof it may recover the same from the contractor together with
1807	1807	reasonable attorney fees. Any contractor or any agent, employee or
1808	1808	subcontractor thereof, who shall use or otherwise dispose of any materials
1809	1809	purchased under such a certificate for any purpose other than that for
1810	1810	which such a certificate is issued without the payment of the sales or
1811	1811	compensating tax otherwise imposed upon such materials, shall be guilty
1812	1812	of a misdemeanor and, upon conviction therefor, shall be subject to the
1813	1813	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
1814	1814	(ddd) on and after January 1, 1999, and before January 1, 2000, all
1815	1815	sales of materials and services purchased by any class II or III railroad as
1816	1816	classified by the federal surface transportation board for the construction,
1817	1817	renovation, repair or replacement of class II or III railroad track and
1818	1818	facilities used directly in interstate commerce. In the event any such track
1819	1819	or facility for which materials and services were purchased sales tax
1820	1820	exempt is not operational for five years succeeding the allowance of such
1821	1821	exemption, the total amount of sales tax that would have been payable
1822	1822	except for the operation of this subsection shall be recouped in accordance
1823	1823	with rules and regulations adopted for such purpose by the secretary of
1824	1824	revenue;
1825	1825	(eee) on and after January 1, 1999, and before January 1, 2001, all
1826	1826	sales of materials and services purchased for the original construction,
1827	1827	reconstruction, repair or replacement of grain storage facilities, including
1828	1828	railroad sidings providing access thereto;
1829	1829	(fff) all sales of material handling equipment, racking systems and
1830	1830	other related machinery and equipment that is used for the handling,
1831	1831	movement or storage of tangible personal property in a warehouse or
1832	1832	distribution facility in this state; all sales of installation, repair and
1833	1833	maintenance services performed on such machinery and equipment; and
1834	1834	all sales of repair and replacement parts for such machinery and
1835	1835	equipment. For purposes of this subsection, a warehouse or distribution
1836	1836	facility means a single, fixed location that consists of buildings or
1837	1837	structures in a contiguous area where storage or distribution operations are
1838	1838	conducted that are separate and apart from the business' retail operations,
1839	1839	if any, and that do not otherwise qualify for exemption as occurring at a
1840	1840	manufacturing or processing plant or facility. Material handling and
1841	1841	storage equipment shall include aeration, dust control, cleaning, handling
1842	1842	and other such equipment that is used in a public grain warehouse or other
1843	1843	commercial grain storage facility, whether used for grain handling, grain
1844	1844	storage, grain refining or processing, or other grain treatment operation;
1845	1845	(ggg) all sales of tangible personal property and services purchased
1846	1846	1
1847	1847	2
1848	1848	3
1849	1849	4
1850	1850	5
1851	1851	6
1852	1852	7
1853	1853	8
1854	1854	9
1855	1855	10
1856	1856	11
1857	1857	12
1858	1858	13
1859	1859	14
1860	1860	15
1861	1861	16
1862	1862	17
1863	1863	18
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1865	1865	20
1866	1866	21
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1868	1868	23
1869	1869	24
1870	1870	25
1871	1871	26
1872	1872	27
1873	1873	28
1874	1874	29
1875	1875	30
1876	1876	31
1877	1877	32
1878	1878	33
1879	1879	34
1880	1880	35
1881	1881	36
1882	1882	37
1883	1883	38
1884	1884	39
1885	1885	40
1886	1886	41
1887	1887	42
1888	1888	43 SB 278 23
1889	1889	by or on behalf of the Kansas academy of science, which is exempt from
1890	1890	federal income taxation pursuant to section 501(c)(3) of the federal
1891	1891	internal revenue code of 1986, and used solely by such academy for the
1892	1892	preparation, publication and dissemination of education materials;
1893	1893	(hhh) all sales of tangible personal property and services purchased
1894	1894	by or on behalf of all domestic violence shelters that are member agencies
1895	1895	of the Kansas coalition against sexual and domestic violence;
1896	1896	(iii) all sales of personal property and services purchased by an
1897	1897	organization that is exempt from federal income taxation pursuant to
1898	1898	section 501(c)(3) of the federal internal revenue code of 1986, and such
1899	1899	personal property and services are used by any such organization in the
1900	1900	collection, storage and distribution of food products to nonprofit
1901	1901	organizations that distribute such food products to persons pursuant to a
1902	1902	food distribution program on a charitable basis without fee or charge, and
1903	1903	all sales of tangible personal property or services purchased by a
1904	1904	contractor for the purpose of constructing, equipping, reconstructing,
1905	1905	maintaining, repairing, enlarging, furnishing or remodeling facilities used
1906	1906	for the collection and storage of such food products for any such
1907	1907	organization which is exempt from federal income taxation pursuant to
1908	1908	section 501(c)(3) of the federal internal revenue code of 1986, that would
1909	1909	be exempt from taxation under the provisions of this section if purchased
1910	1910	directly by such organization. Nothing in this subsection shall be deemed
1911	1911	to exempt the purchase of any construction machinery, equipment or tools
1912	1912	used in the constructing, equipping, reconstructing, maintaining, repairing,
1913	1913	enlarging, furnishing or remodeling facilities for any such organization.
1914	1914	When any such organization shall contract for the purpose of constructing,
1915	1915	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
1916	1916	remodeling facilities, it shall obtain from the state and furnish to the
1917	1917	contractor an exemption certificate for the project involved, and the
1918	1918	contractor may purchase materials for incorporation in such project. The
1919	1919	contractor shall furnish the number of such certificate to all suppliers from
1920	1920	whom such purchases are made, and such suppliers shall execute invoices
1921	1921	covering the same bearing the number of such certificate. Upon
1922	1922	completion of the project the contractor shall furnish to such organization
1923	1923	concerned a sworn statement, on a form to be provided by the director of
1924	1924	taxation, that all purchases so made were entitled to exemption under this
1925	1925	subsection. All invoices shall be held by the contractor for a period of five
1926	1926	years and shall be subject to audit by the director of taxation. If any
1927	1927	materials purchased under such a certificate are found not to have been
1928	1928	incorporated in such facilities or not to have been returned for credit or the
1929	1929	sales or compensating tax otherwise imposed upon such materials that will
1930	1930	not be so incorporated in such facilities reported and paid by such
1931	1931	contractor to the director of taxation not later than the 20
1932	1932	th
1933	1933	day of the
1934	1934	1
1935	1935	2
1936	1936	3
1937	1937	4
1938	1938	5
1939	1939	6
1940	1940	7
1941	1941	8
1942	1942	9
1943	1943	10
1944	1944	11
1945	1945	12
1946	1946	13
1947	1947	14
1948	1948	15
1949	1949	16
1950	1950	17
1951	1951	18
1952	1952	19
1953	1953	20
1954	1954	21
1955	1955	22
1956	1956	23
1957	1957	24
1958	1958	25
1959	1959	26
1960	1960	27
1961	1961	28
1962	1962	29
1963	1963	30
1964	1964	31
1965	1965	32
1966	1966	33
1967	1967	34
1968	1968	35
1969	1969	36
1970	1970	37
1971	1971	38
1972	1972	39
1973	1973	40
1974	1974	41
1975	1975	42
1976	1976	43 SB 278 24
1977	1977	month following the close of the month in which it shall be determined
1978	1978	that such materials will not be used for the purpose for which such
1979	1979	certificate was issued, such organization concerned shall be liable for tax
1980	1980	on all materials purchased for the project, and upon payment thereof it
1981	1981	may recover the same from the contractor together with reasonable
1982	1982	attorney fees. Any contractor or any agent, employee or subcontractor
1983	1983	thereof, who shall use or otherwise dispose of any materials purchased
1984	1984	under such a certificate for any purpose other than that for which such a
1985	1985	certificate is issued without the payment of the sales or compensating tax
1986	1986	otherwise imposed upon such materials, shall be guilty of a misdemeanor
1987	1987	and, upon conviction therefor, shall be subject to the penalties provided for
1988	1988	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
1989	1989	July 1, 2005, but prior to the effective date of this act upon the gross
1990	1990	receipts received from any sale exempted by the amendatory provisions of
1991	1991	this subsection shall be refunded. Each claim for a sales tax refund shall be
1992	1992	verified and submitted to the director of taxation upon forms furnished by
1993	1993	the director and shall be accompanied by any additional documentation
1994	1994	required by the director. The director shall review each claim and shall
1995	1995	refund that amount of sales tax paid as determined under the provisions of
1996	1996	this subsection. All refunds shall be paid from the sales tax refund fund
1997	1997	upon warrants of the director of accounts and reports pursuant to vouchers
1998	1998	approved by the director or the director's designee;
1999	1999	(jjj) all sales of dietary supplements dispensed pursuant to a
2000	2000	prescription order by a licensed practitioner or a mid-level practitioner as
2001	2001	defined by K.S.A. 65-1626, and amendments thereto. As used in this
2002	2002	subsection, "dietary supplement" means any product, other than tobacco,
2003	2003	intended to supplement the diet that: (1) Contains one or more of the
2004	2004	following dietary ingredients: A vitamin, a mineral, an herb or other
2005	2005	botanical, an amino acid, a dietary substance for use by humans to
2006	2006	supplement the diet by increasing the total dietary intake or a concentrate,
2007	2007	metabolite, constituent, extract or combination of any such ingredient; (2)
2008	2008	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
2009	2009	liquid form, or if not intended for ingestion, in such a form, is not
2010	2010	represented as conventional food and is not represented for use as a sole
2011	2011	item of a meal or of the diet; and (3) is required to be labeled as a dietary
2012	2012	supplement, identifiable by the supplemental facts box found on the label
2013	2013	and as required pursuant to 21 C.F.R. § 101.36;
2014	2014	(lll) all sales of tangible personal property and services purchased by
2015	2015	special olympics Kansas, inc. for the purpose of providing year-round
2016	2016	sports training and athletic competition in a variety of olympic-type sports
2017	2017	for individuals with intellectual disabilities by giving them continuing
2018	2018	opportunities to develop physical fitness, demonstrate courage, experience
2019	2019	joy and participate in a sharing of gifts, skills and friendship with their
2020	2020	1
2021	2021	2
2022	2022	3
2023	2023	4
2024	2024	5
2025	2025	6
2026	2026	7
2027	2027	8
2028	2028	9
2029	2029	10
2030	2030	11
2031	2031	12
2032	2032	13
2033	2033	14
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2036	2036	17
2037	2037	18
2038	2038	19
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2040	2040	21
2041	2041	22
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2046	2046	27
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2049	2049	30
2050	2050	31
2051	2051	32
2052	2052	33
2053	2053	34
2054	2054	35
2055	2055	36
2056	2056	37
2057	2057	38
2058	2058	39
2059	2059	40
2060	2060	41
2061	2061	42
2062	2062	43 SB 278 25
2063	2063	families, other special olympics athletes and the community, and activities
2064	2064	provided or sponsored by such organization, and all sales of tangible
2065	2065	personal property by or on behalf of any such organization;
2066	2066	(mmm) all sales of tangible personal property purchased by or on
2067	2067	behalf of the Marillac center, inc., which is exempt from federal income
2068	2068	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2069	2069	for the purpose of providing psycho-social-biological and special
2070	2070	education services to children, and all sales of any such property by or on
2071	2071	behalf of such organization for such purpose;
2072	2072	(nnn) all sales of tangible personal property and services purchased
2073	2073	by the west Sedgwick county-sunrise rotary club and sunrise charitable
2074	2074	fund for the purpose of constructing a boundless playground which is an
2075	2075	integrated, barrier free and developmentally advantageous play
2076	2076	environment for children of all abilities and disabilities;
2077	2077	(ooo) all sales of tangible personal property by or on behalf of a
2078	2078	public library serving the general public and supported in whole or in part
2079	2079	with tax money or a not-for-profit organization whose purpose is to raise
2080	2080	funds for or provide services or other benefits to any such public library;
2081	2081	(ppp) all sales of tangible personal property and services purchased
2082	2082	by or on behalf of a homeless shelter that is exempt from federal income
2083	2083	taxation pursuant to section 501(c)(3) of the federal income tax code of
2084	2084	1986, and used by any such homeless shelter to provide emergency and
2085	2085	transitional housing for individuals and families experiencing
2086	2086	homelessness, and all sales of any such property by or on behalf of any
2087	2087	such homeless shelter for any such purpose;
2088	2088	(qqq) all sales of tangible personal property and services purchased
2089	2089	by TLC for children and families, inc., hereinafter referred to as TLC,
2090	2090	which is exempt from federal income taxation pursuant to section 501(c)
2091	2091	(3) of the federal internal revenue code of 1986, and such property and
2092	2092	services are used for the purpose of providing emergency shelter and
2093	2093	treatment for abused and neglected children as well as meeting additional
2094	2094	critical needs for children, juveniles and family, and all sales of any such
2095	2095	property by or on behalf of TLC for any such purpose; and all sales of
2096	2096	tangible personal property or services purchased by a contractor for the
2097	2097	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2098	2098	remodeling facilities for the operation of services for TLC for any such
2099	2099	purpose that would be exempt from taxation under the provisions of this
2100	2100	section if purchased directly by TLC. Nothing in this subsection shall be
2101	2101	deemed to exempt the purchase of any construction machinery, equipment
2102	2102	or tools used in the constructing, maintaining, repairing, enlarging,
2103	2103	furnishing or remodeling such facilities for TLC. When TLC contracts for
2104	2104	the purpose of constructing, maintaining, repairing, enlarging, furnishing
2105	2105	or remodeling such facilities, it shall obtain from the state and furnish to
2106	2106	1
2107	2107	2
2108	2108	3
2109	2109	4
2110	2110	5
2111	2111	6
2112	2112	7
2113	2113	8
2114	2114	9
2115	2115	10
2116	2116	11
2117	2117	12
2118	2118	13
2119	2119	14
2120	2120	15
2121	2121	16
2122	2122	17
2123	2123	18
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2125	2125	20
2126	2126	21
2127	2127	22
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2129	2129	24
2130	2130	25
2131	2131	26
2132	2132	27
2133	2133	28
2134	2134	29
2135	2135	30
2136	2136	31
2137	2137	32
2138	2138	33
2139	2139	34
2140	2140	35
2141	2141	36
2142	2142	37
2143	2143	38
2144	2144	39
2145	2145	40
2146	2146	41
2147	2147	42
2148	2148	43 SB 278 26
2149	2149	the contractor an exemption certificate for the project involved, and the
2150	2150	contractor may purchase materials for incorporation in such project. The
2151	2151	contractor shall furnish the number of such certificate to all suppliers from
2152	2152	whom such purchases are made, and such suppliers shall execute invoices
2153	2153	covering the same bearing the number of such certificate. Upon
2154	2154	completion of the project the contractor shall furnish to TLC a sworn
2155	2155	statement, on a form to be provided by the director of taxation, that all
2156	2156	purchases so made were entitled to exemption under this subsection. All
2157	2157	invoices shall be held by the contractor for a period of five years and shall
2158	2158	be subject to audit by the director of taxation. If any materials purchased
2159	2159	under such a certificate are found not to have been incorporated in the
2160	2160	building or other project or not to have been returned for credit or the sales
2161	2161	or compensating tax otherwise imposed upon such materials that will not
2162	2162	be so incorporated in the building or other project reported and paid by
2163	2163	such contractor to the director of taxation not later than the 20
2164	2164	th
2165	2165	day of the
2166	2166	month following the close of the month in which it shall be determined
2167	2167	that such materials will not be used for the purpose for which such
2168	2168	certificate was issued, TLC shall be liable for tax on all materials
2169	2169	purchased for the project, and upon payment thereof it may recover the
2170	2170	same from the contractor together with reasonable attorney fees. Any
2171	2171	contractor or any agent, employee or subcontractor thereof, who shall use
2172	2172	or otherwise dispose of any materials purchased under such a certificate
2173	2173	for any purpose other than that for which such a certificate is issued
2174	2174	without the payment of the sales or compensating tax otherwise imposed
2175	2175	upon such materials, shall be guilty of a misdemeanor and, upon
2176	2176	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2177	2177	79-3615(h), and amendments thereto;
2178	2178	(rrr) all sales of tangible personal property and services purchased by
2179	2179	any county law library maintained pursuant to law and sales of tangible
2180	2180	personal property and services purchased by an organization that would
2181	2181	have been exempt from taxation under the provisions of this subsection if
2182	2182	purchased directly by the county law library for the purpose of providing
2183	2183	legal resources to attorneys, judges, students and the general public, and
2184	2184	all sales of any such property by or on behalf of any such county law
2185	2185	library;
2186	2186	(sss) all sales of tangible personal property and services purchased by
2187	2187	catholic charities or youthville, hereinafter referred to as charitable family
2188	2188	providers, which is exempt from federal income taxation pursuant to
2189	2189	section 501(c)(3) of the federal internal revenue code of 1986, and which
2190	2190	such property and services are used for the purpose of providing
2191	2191	emergency shelter and treatment for abused and neglected children as well
2192	2192	as meeting additional critical needs for children, juveniles and family, and
2193	2193	all sales of any such property by or on behalf of charitable family
2194	2194	1
2195	2195	2
2196	2196	3
2197	2197	4
2198	2198	5
2199	2199	6
2200	2200	7
2201	2201	8
2202	2202	9
2203	2203	10
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2205	2205	12
2206	2206	13
2207	2207	14
2208	2208	15
2209	2209	16
2210	2210	17
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2213	2213	20
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2215	2215	22
2216	2216	23
2217	2217	24
2218	2218	25
2219	2219	26
2220	2220	27
2221	2221	28
2222	2222	29
2223	2223	30
2224	2224	31
2225	2225	32
2226	2226	33
2227	2227	34
2228	2228	35
2229	2229	36
2230	2230	37
2231	2231	38
2232	2232	39
2233	2233	40
2234	2234	41
2235	2235	42
2236	2236	43 SB 278 27
2237	2237	providers for any such purpose; and all sales of tangible personal property
2238	2238	or services purchased by a contractor for the purpose of constructing,
2239	2239	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2240	2240	the operation of services for charitable family providers for any such
2241	2241	purpose which would be exempt from taxation under the provisions of this
2242	2242	section if purchased directly by charitable family providers. Nothing in
2243	2243	this subsection shall be deemed to exempt the purchase of any construction
2244	2244	machinery, equipment or tools used in the constructing, maintaining,
2245	2245	repairing, enlarging, furnishing or remodeling such facilities for charitable
2246	2246	family providers. When charitable family providers contracts for the
2247	2247	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2248	2248	remodeling such facilities, it shall obtain from the state and furnish to the
2249	2249	contractor an exemption certificate for the project involved, and the
2250	2250	contractor may purchase materials for incorporation in such project. The
2251	2251	contractor shall furnish the number of such certificate to all suppliers from
2252	2252	whom such purchases are made, and such suppliers shall execute invoices
2253	2253	covering the same bearing the number of such certificate. Upon
2254	2254	completion of the project the contractor shall furnish to charitable family
2255	2255	providers a sworn statement, on a form to be provided by the director of
2256	2256	taxation, that all purchases so made were entitled to exemption under this
2257	2257	subsection. All invoices shall be held by the contractor for a period of five
2258	2258	years and shall be subject to audit by the director of taxation. If any
2259	2259	materials purchased under such a certificate are found not to have been
2260	2260	incorporated in the building or other project or not to have been returned
2261	2261	for credit or the sales or compensating tax otherwise imposed upon such
2262	2262	materials that will not be so incorporated in the building or other project
2263	2263	reported and paid by such contractor to the director of taxation not later
2264	2264	than the 20
2265	2265	th
2266	2266	day of the month following the close of the month in which it
2267	2267	shall be determined that such materials will not be used for the purpose for
2268	2268	which such certificate was issued, charitable family providers shall be
2269	2269	liable for tax on all materials purchased for the project, and upon payment
2270	2270	thereof it may recover the same from the contractor together with
2271	2271	reasonable attorney fees. Any contractor or any agent, employee or
2272	2272	subcontractor thereof, who shall use or otherwise dispose of any materials
2273	2273	purchased under such a certificate for any purpose other than that for
2274	2274	which such a certificate is issued without the payment of the sales or
2275	2275	compensating tax otherwise imposed upon such materials, shall be guilty
2276	2276	of a misdemeanor and, upon conviction therefor, shall be subject to the
2277	2277	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2278	2278	(ttt) all sales of tangible personal property or services purchased by a
2279	2279	contractor for a project for the purpose of restoring, constructing,
2280	2280	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
2281	2281	remodeling a home or facility owned by a nonprofit museum that has been
2282	2282	1
2283	2283	2
2284	2284	3
2285	2285	4
2286	2286	5
2287	2287	6
2288	2288	7
2289	2289	8
2290	2290	9
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2293	2293	12
2294	2294	13
2295	2295	14
2296	2296	15
2297	2297	16
2298	2298	17
2299	2299	18
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2305	2305	24
2306	2306	25
2307	2307	26
2308	2308	27
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2310	2310	29
2311	2311	30
2312	2312	31
2313	2313	32
2314	2314	33
2315	2315	34
2316	2316	35
2317	2317	36
2318	2318	37
2319	2319	38
2320	2320	39
2321	2321	40
2322	2322	41
2323	2323	42
2324	2324	43 SB 278 28
2325	2325	granted an exemption pursuant to subsection (qq), which such home or
2326	2326	facility is located in a city that has been designated as a qualified
2327	2327	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
2328	2328	amendments thereto, and which such project is related to the purposes of
2329	2329	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
2330	2330	exempt from taxation under the provisions of this section if purchased
2331	2331	directly by such nonprofit museum. Nothing in this subsection shall be
2332	2332	deemed to exempt the purchase of any construction machinery, equipment
2333	2333	or tools used in the restoring, constructing, equipping, reconstructing,
2334	2334	maintaining, repairing, enlarging, furnishing or remodeling a home or
2335	2335	facility for any such nonprofit museum. When any such nonprofit museum
2336	2336	shall contract for the purpose of restoring, constructing, equipping,
2337	2337	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2338	2338	a home or facility, it shall obtain from the state and furnish to the
2339	2339	contractor an exemption certificate for the project involved, and the
2340	2340	contractor may purchase materials for incorporation in such project. The
2341	2341	contractor shall furnish the number of such certificates to all suppliers
2342	2342	from whom such purchases are made, and such suppliers shall execute
2343	2343	invoices covering the same bearing the number of such certificate. Upon
2344	2344	completion of the project, the contractor shall furnish to such nonprofit
2345	2345	museum a sworn statement on a form to be provided by the director of
2346	2346	taxation that all purchases so made were entitled to exemption under this
2347	2347	subsection. All invoices shall be held by the contractor for a period of five
2348	2348	years and shall be subject to audit by the director of taxation. If any
2349	2349	materials purchased under such a certificate are found not to have been
2350	2350	incorporated in the building or other project or not to have been returned
2351	2351	for credit or the sales or compensating tax otherwise imposed upon such
2352	2352	materials that will not be so incorporated in a home or facility or other
2353	2353	project reported and paid by such contractor to the director of taxation not
2354	2354	later than the 20
2355	2355	th
2356	2356	day of the month following the close of the month in
2357	2357	which it shall be determined that such materials will not be used for the
2358	2358	purpose for which such certificate was issued, such nonprofit museum
2359	2359	shall be liable for tax on all materials purchased for the project, and upon
2360	2360	payment thereof it may recover the same from the contractor together with
2361	2361	reasonable attorney fees. Any contractor or any agent, employee or
2362	2362	subcontractor thereof, who shall use or otherwise dispose of any materials
2363	2363	purchased under such a certificate for any purpose other than that for
2364	2364	which such a certificate is issued without the payment of the sales or
2365	2365	compensating tax otherwise imposed upon such materials, shall be guilty
2366	2366	of a misdemeanor and, upon conviction therefor, shall be subject to the
2367	2367	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
2368	2368	(uuu) all sales of tangible personal property and services purchased
2369	2369	by Kansas children's service league, hereinafter referred to as KCSL,
2370	2370	1
2371	2371	2
2372	2372	3
2373	2373	4
2374	2374	5
2375	2375	6
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2378	2378	9
2379	2379	10
2380	2380	11
2381	2381	12
2382	2382	13
2383	2383	14
2384	2384	15
2385	2385	16
2386	2386	17
2387	2387	18
2388	2388	19
2389	2389	20
2390	2390	21
2391	2391	22
2392	2392	23
2393	2393	24
2394	2394	25
2395	2395	26
2396	2396	27
2397	2397	28
2398	2398	29
2399	2399	30
2400	2400	31
2401	2401	32
2402	2402	33
2403	2403	34
2404	2404	35
2405	2405	36
2406	2406	37
2407	2407	38
2408	2408	39
2409	2409	40
2410	2410	41
2411	2411	42
2412	2412	43 SB 278 29
2413	2413	which is exempt from federal income taxation pursuant to section 501(c)
2414	2414	(3) of the federal internal revenue code of 1986, and which such property
2415	2415	and services are used for the purpose of providing for the prevention and
2416	2416	treatment of child abuse and maltreatment as well as meeting additional
2417	2417	critical needs for children, juveniles and family, and all sales of any such
2418	2418	property by or on behalf of KCSL for any such purpose; and all sales of
2419	2419	tangible personal property or services purchased by a contractor for the
2420	2420	purpose of constructing, maintaining, repairing, enlarging, furnishing or
2421	2421	remodeling facilities for the operation of services for KCSL for any such
2422	2422	purpose that would be exempt from taxation under the provisions of this
2423	2423	section if purchased directly by KCSL. Nothing in this subsection shall be
2424	2424	deemed to exempt the purchase of any construction machinery, equipment
2425	2425	or tools used in the constructing, maintaining, repairing, enlarging,
2426	2426	furnishing or remodeling such facilities for KCSL. When KCSL contracts
2427	2427	for the purpose of constructing, maintaining, repairing, enlarging,
2428	2428	furnishing or remodeling such facilities, it shall obtain from the state and
2429	2429	furnish to the contractor an exemption certificate for the project involved,
2430	2430	and the contractor may purchase materials for incorporation in such
2431	2431	project. The contractor shall furnish the number of such certificate to all
2432	2432	suppliers from whom such purchases are made, and such suppliers shall
2433	2433	execute invoices covering the same bearing the number of such certificate.
2434	2434	Upon completion of the project the contractor shall furnish to KCSL a
2435	2435	sworn statement, on a form to be provided by the director of taxation, that
2436	2436	all purchases so made were entitled to exemption under this subsection.
2437	2437	All invoices shall be held by the contractor for a period of five years and
2438	2438	shall be subject to audit by the director of taxation. If any materials
2439	2439	purchased under such a certificate are found not to have been incorporated
2440	2440	in the building or other project or not to have been returned for credit or
2441	2441	the sales or compensating tax otherwise imposed upon such materials that
2442	2442	will not be so incorporated in the building or other project reported and
2443	2443	paid by such contractor to the director of taxation not later than the 20
2444	2444	th
2445	2445	day of the month following the close of the month in which it shall be
2446	2446	determined that such materials will not be used for the purpose for which
2447	2447	such certificate was issued, KCSL shall be liable for tax on all materials
2448	2448	purchased for the project, and upon payment thereof it may recover the
2449	2449	same from the contractor together with reasonable attorney fees. Any
2450	2450	contractor or any agent, employee or subcontractor thereof, who shall use
2451	2451	or otherwise dispose of any materials purchased under such a certificate
2452	2452	for any purpose other than that for which such a certificate is issued
2453	2453	without the payment of the sales or compensating tax otherwise imposed
2454	2454	upon such materials, shall be guilty of a misdemeanor and, upon
2455	2455	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2456	2456	79-3615(h), and amendments thereto;
2457	2457	1
2458	2458	2
2459	2459	3
2460	2460	4
2461	2461	5
2462	2462	6
2463	2463	7
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2495	2495	39
2496	2496	40
2497	2497	41
2498	2498	42
2499	2499	43 SB 278 30
2500	2500	(vvv) all sales of tangible personal property or services, including the
2501	2501	renting and leasing of tangible personal property or services, purchased by
2502	2502	jazz in the woods, inc., a Kansas corporation that is exempt from federal
2503	2503	income taxation pursuant to section 501(c)(3) of the federal internal
2504	2504	revenue code, for the purpose of providing jazz in the woods, an event
2505	2505	benefiting children-in-need and other nonprofit charities assisting such
2506	2506	children, and all sales of any such property by or on behalf of such
2507	2507	organization for such purpose;
2508	2508	(www) all sales of tangible personal property purchased by or on
2509	2509	behalf of the Frontenac education foundation, which is exempt from
2510	2510	federal income taxation pursuant to section 501(c)(3) of the federal
2511	2511	internal revenue code, for the purpose of providing education support for
2512	2512	students, and all sales of any such property by or on behalf of such
2513	2513	organization for such purpose;
2514	2514	(xxx) all sales of personal property and services purchased by the
2515	2515	booth theatre foundation, inc., an organization, which is exempt from
2516	2516	federal income taxation pursuant to section 501(c)(3) of the federal
2517	2517	internal revenue code of 1986, and which such personal property and
2518	2518	services are used by any such organization in the constructing, equipping,
2519	2519	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2520	2520	of the booth theatre, and all sales of tangible personal property or services
2521	2521	purchased by a contractor for the purpose of constructing, equipping,
2522	2522	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2523	2523	the booth theatre for such organization, that would be exempt from
2524	2524	taxation under the provisions of this section if purchased directly by such
2525	2525	organization. Nothing in this subsection shall be deemed to exempt the
2526	2526	purchase of any construction machinery, equipment or tools used in the
2527	2527	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
2528	2528	furnishing or remodeling facilities for any such organization. When any
2529	2529	such organization shall contract for the purpose of constructing, equipping,
2530	2530	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
2531	2531	facilities, it shall obtain from the state and furnish to the contractor an
2532	2532	exemption certificate for the project involved, and the contractor may
2533	2533	purchase materials for incorporation in such project. The contractor shall
2534	2534	furnish the number of such certificate to all suppliers from whom such
2535	2535	purchases are made, and such suppliers shall execute invoices covering the
2536	2536	same bearing the number of such certificate. Upon completion of the
2537	2537	project the contractor shall furnish to such organization concerned a sworn
2538	2538	statement, on a form to be provided by the director of taxation, that all
2539	2539	purchases so made were entitled to exemption under this subsection. All
2540	2540	invoices shall be held by the contractor for a period of five years and shall
2541	2541	be subject to audit by the director of taxation. If any materials purchased
2542	2542	under such a certificate are found not to have been incorporated in such
2543	2543	1
2544	2544	2
2545	2545	3
2546	2546	4
2547	2547	5
2548	2548	6
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2579	2579	37
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2581	2581	39
2582	2582	40
2583	2583	41
2584	2584	42
2585	2585	43 SB 278 31
2586	2586	facilities or not to have been returned for credit or the sales or
2587	2587	compensating tax otherwise imposed upon such materials that will not be
2588	2588	so incorporated in such facilities reported and paid by such contractor to
2589	2589	the director of taxation not later than the 20
2590	2590	th
2591	2591	day of the month following
2592	2592	the close of the month in which it shall be determined that such materials
2593	2593	will not be used for the purpose for which such certificate was issued, such
2594	2594	organization concerned shall be liable for tax on all materials purchased
2595	2595	for the project, and upon payment thereof it may recover the same from
2596	2596	the contractor together with reasonable attorney fees. Any contractor or
2597	2597	any agent, employee or subcontractor thereof, who shall use or otherwise
2598	2598	dispose of any materials purchased under such a certificate for any purpose
2599	2599	other than that for which such a certificate is issued without the payment
2600	2600	of the sales or compensating tax otherwise imposed upon such materials,
2601	2601	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2602	2602	subject to the penalties provided for in K.S.A. 79-3615(h), and
2603	2603	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
2604	2604	to the effective date of this act upon the gross receipts received from any
2605	2605	sale which would have been exempted by the provisions of this subsection
2606	2606	had such sale occurred after the effective date of this act shall be refunded.
2607	2607	Each claim for a sales tax refund shall be verified and submitted to the
2608	2608	director of taxation upon forms furnished by the director and shall be
2609	2609	accompanied by any additional documentation required by the director.
2610	2610	The director shall review each claim and shall refund that amount of sales
2611	2611	tax paid as determined under the provisions of this subsection. All refunds
2612	2612	shall be paid from the sales tax refund fund upon warrants of the director
2613	2613	of accounts and reports pursuant to vouchers approved by the director or
2614	2614	the director's designee;
2615	2615	(yyy) all sales of tangible personal property and services purchased
2616	2616	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
2617	2617	which is exempt from federal income taxation pursuant to section 501(c)
2618	2618	(3) of the federal internal revenue code of 1986, and which such property
2619	2619	and services are used for the purpose of encouraging private philanthropy
2620	2620	to further the vision, values, and goals of TLC for children and families,
2621	2621	inc.; and all sales of such property and services by or on behalf of TLC
2622	2622	charities for any such purpose and all sales of tangible personal property or
2623	2623	services purchased by a contractor for the purpose of constructing,
2624	2624	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2625	2625	the operation of services for TLC charities for any such purpose that would
2626	2626	be exempt from taxation under the provisions of this section if purchased
2627	2627	directly by TLC charities. Nothing in this subsection shall be deemed to
2628	2628	exempt the purchase of any construction machinery, equipment or tools
2629	2629	used in the constructing, maintaining, repairing, enlarging, furnishing or
2630	2630	remodeling such facilities for TLC charities. When TLC charities contracts
2631	2631	1
2632	2632	2
2633	2633	3
2634	2634	4
2635	2635	5
2636	2636	6
2637	2637	7
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2639	2639	9
2640	2640	10
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2642	2642	12
2643	2643	13
2644	2644	14
2645	2645	15
2646	2646	16
2647	2647	17
2648	2648	18
2649	2649	19
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2652	2652	22
2653	2653	23
2654	2654	24
2655	2655	25
2656	2656	26
2657	2657	27
2658	2658	28
2659	2659	29
2660	2660	30
2661	2661	31
2662	2662	32
2663	2663	33
2664	2664	34
2665	2665	35
2666	2666	36
2667	2667	37
2668	2668	38
2669	2669	39
2670	2670	40
2671	2671	41
2672	2672	42
2673	2673	43 SB 278 32
2674	2674	for the purpose of constructing, maintaining, repairing, enlarging,
2675	2675	furnishing or remodeling such facilities, it shall obtain from the state and
2676	2676	furnish to the contractor an exemption certificate for the project involved,
2677	2677	and the contractor may purchase materials for incorporation in such
2678	2678	project. The contractor shall furnish the number of such certificate to all
2679	2679	suppliers from whom such purchases are made, and such suppliers shall
2680	2680	execute invoices covering the same bearing the number of such certificate.
2681	2681	Upon completion of the project the contractor shall furnish to TLC
2682	2682	charities a sworn statement, on a form to be provided by the director of
2683	2683	taxation, that all purchases so made were entitled to exemption under this
2684	2684	subsection. All invoices shall be held by the contractor for a period of five
2685	2685	years and shall be subject to audit by the director of taxation. If any
2686	2686	materials purchased under such a certificate are found not to have been
2687	2687	incorporated in the building or other project or not to have been returned
2688	2688	for credit or the sales or compensating tax otherwise imposed upon such
2689	2689	materials that will not be incorporated into the building or other project
2690	2690	reported and paid by such contractor to the director of taxation not later
2691	2691	than the 20
2692	2692	th
2693	2693	day of the month following the close of the month in which it
2694	2694	shall be determined that such materials will not be used for the purpose for
2695	2695	which such certificate was issued, TLC charities shall be liable for tax on
2696	2696	all materials purchased for the project, and upon payment thereof it may
2697	2697	recover the same from the contractor together with reasonable attorney
2698	2698	fees. Any contractor or any agent, employee or subcontractor thereof, who
2699	2699	shall use or otherwise dispose of any materials purchased under such a
2700	2700	certificate for any purpose other than that for which such a certificate is
2701	2701	issued without the payment of the sales or compensating tax otherwise
2702	2702	imposed upon such materials, shall be guilty of a misdemeanor and, upon
2703	2703	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2704	2704	79-3615(h), and amendments thereto;
2705	2705	(zzz) all sales of tangible personal property purchased by the rotary
2706	2706	club of shawnee foundation, which is exempt from federal income taxation
2707	2707	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2708	2708	as amended, used for the purpose of providing contributions to community
2709	2709	service organizations and scholarships;
2710	2710	(aaaa) all sales of personal property and services purchased by or on
2711	2711	behalf of victory in the valley, inc., which is exempt from federal income
2712	2712	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2713	2713	for the purpose of providing a cancer support group and services for
2714	2714	persons with cancer, and all sales of any such property by or on behalf of
2715	2715	any such organization for any such purpose;
2716	2716	(bbbb) all sales of entry or participation fees, charges or tickets by
2717	2717	Guadalupe health foundation, which is exempt from federal income
2718	2718	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2719	2719	1
2720	2720	2
2721	2721	3
2722	2722	4
2723	2723	5
2724	2724	6
2725	2725	7
2726	2726	8
2727	2727	9
2728	2728	10
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2730	2730	12
2731	2731	13
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2737	2737	19
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2743	2743	25
2744	2744	26
2745	2745	27
2746	2746	28
2747	2747	29
2748	2748	30
2749	2749	31
2750	2750	32
2751	2751	33
2752	2752	34
2753	2753	35
2754	2754	36
2755	2755	37
2756	2756	38
2757	2757	39
2758	2758	40
2759	2759	41
2760	2760	42
2761	2761	43 SB 278 33
2762	2762	for such organization's annual fundraising event which purpose is to
2763	2763	provide health care services for uninsured workers;
2764	2764	(cccc) all sales of tangible personal property or services purchased by
2765	2765	or on behalf of wayside waifs, inc., which is exempt from federal income
2766	2766	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
2767	2767	for the purpose of providing such organization's annual fundraiser, an
2768	2768	event whose purpose is to support the care of homeless and abandoned
2769	2769	animals, animal adoption efforts, education programs for children and
2770	2770	efforts to reduce animal over-population and animal welfare services, and
2771	2771	all sales of any such property, including entry or participation fees or
2772	2772	charges, by or on behalf of such organization for such purpose;
2773	2773	(dddd) all sales of tangible personal property or services purchased
2774	2774	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
2775	2775	of which are exempt from federal income taxation pursuant to section
2776	2776	501(c)(3) of the federal internal revenue code, for the purpose of providing
2777	2777	education, training and employment opportunities for people with
2778	2778	disabilities and other barriers to employment;
2779	2779	(eeee) all sales of tangible personal property or services purchased by
2780	2780	or on behalf of all American beef battalion, inc., which is exempt from
2781	2781	federal income taxation pursuant to section 501(c)(3) of the federal
2782	2782	internal revenue code, for the purpose of educating, promoting and
2783	2783	participating as a contact group through the beef cattle industry in order to
2784	2784	carry out such projects that provide support and morale to members of the
2785	2785	United States armed forces and military services;
2786	2786	(ffff) all sales of tangible personal property and services purchased by
2787	2787	sheltered living, inc., which is exempt from federal income taxation
2788	2788	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2789	2789	and which such property and services are used for the purpose of
2790	2790	providing residential and day services for people with developmental
2791	2791	disabilities or intellectual disability, or both, and all sales of any such
2792	2792	property by or on behalf of sheltered living, inc., for any such purpose; and
2793	2793	all sales of tangible personal property or services purchased by a
2794	2794	contractor for the purpose of rehabilitating, constructing, maintaining,
2795	2795	repairing, enlarging, furnishing or remodeling homes and facilities for
2796	2796	sheltered living, inc., for any such purpose that would be exempt from
2797	2797	taxation under the provisions of this section if purchased directly by
2798	2798	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
2799	2799	the purchase of any construction machinery, equipment or tools used in the
2800	2800	constructing, maintaining, repairing, enlarging, furnishing or remodeling
2801	2801	such homes and facilities for sheltered living, inc. When sheltered living,
2802	2802	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
2803	2803	repairing, enlarging, furnishing or remodeling such homes and facilities, it
2804	2804	shall obtain from the state and furnish to the contractor an exemption
2805	2805	1
2806	2806	2
2807	2807	3
2808	2808	4
2809	2809	5
2810	2810	6
2811	2811	7
2812	2812	8
2813	2813	9
2814	2814	10
2815	2815	11
2816	2816	12
2817	2817	13
2818	2818	14
2819	2819	15
2820	2820	16
2821	2821	17
2822	2822	18
2823	2823	19
2824	2824	20
2825	2825	21
2826	2826	22
2827	2827	23
2828	2828	24
2829	2829	25
2830	2830	26
2831	2831	27
2832	2832	28
2833	2833	29
2834	2834	30
2835	2835	31
2836	2836	32
2837	2837	33
2838	2838	34
2839	2839	35
2840	2840	36
2841	2841	37
2842	2842	38
2843	2843	39
2844	2844	40
2845	2845	41
2846	2846	42
2847	2847	43 SB 278 34
2848	2848	certificate for the project involved, and the contractor may purchase
2849	2849	materials for incorporation in such project. The contractor shall furnish the
2850	2850	number of such certificate to all suppliers from whom such purchases are
2851	2851	made, and such suppliers shall execute invoices covering the same bearing
2852	2852	the number of such certificate. Upon completion of the project the
2853	2853	contractor shall furnish to sheltered living, inc., a sworn statement, on a
2854	2854	form to be provided by the director of taxation, that all purchases so made
2855	2855	were entitled to exemption under this subsection. All invoices shall be held
2856	2856	by the contractor for a period of five years and shall be subject to audit by
2857	2857	the director of taxation. If any materials purchased under such a certificate
2858	2858	are found not to have been incorporated in the building or other project or
2859	2859	not to have been returned for credit or the sales or compensating tax
2860	2860	otherwise imposed upon such materials that will not be so incorporated in
2861	2861	the building or other project reported and paid by such contractor to the
2862	2862	director of taxation not later than the 20
2863	2863	th
2864	2864	day of the month following the
2865	2865	close of the month in which it shall be determined that such materials will
2866	2866	not be used for the purpose for which such certificate was issued, sheltered
2867	2867	living, inc., shall be liable for tax on all materials purchased for the
2868	2868	project, and upon payment thereof it may recover the same from the
2869	2869	contractor together with reasonable attorney fees. Any contractor or any
2870	2870	agent, employee or subcontractor thereof, who shall use or otherwise
2871	2871	dispose of any materials purchased under such a certificate for any purpose
2872	2872	other than that for which such a certificate is issued without the payment
2873	2873	of the sales or compensating tax otherwise imposed upon such materials,
2874	2874	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2875	2875	subject to the penalties provided for in K.S.A. 79-3615(h), and
2876	2876	amendments thereto;
2877	2877	(gggg) all sales of game birds for which the primary purpose is use in
2878	2878	hunting;
2879	2879	(hhhh) all sales of tangible personal property or services purchased
2880	2880	on or after July 1, 2014, for the purpose of and in conjunction with
2881	2881	constructing, reconstructing, enlarging or remodeling a business identified
2882	2882	under the North American industry classification system (NAICS)
2883	2883	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
2884	2884	installation of machinery and equipment purchased for installation at any
2885	2885	such business. The exemption provided in this subsection shall not apply
2886	2886	to projects that have actual total costs less than $50,000. When a person
2887	2887	contracts for the construction, reconstruction, enlargement or remodeling
2888	2888	of any such business, such person shall obtain from the state and furnish to
2889	2889	the contractor an exemption certificate for the project involved, and the
2890	2890	contractor may purchase materials, machinery and equipment for
2891	2891	incorporation in such project. The contractor shall furnish the number of
2892	2892	such certificates to all suppliers from whom such purchases are made, and
2893	2893	1
2894	2894	2
2895	2895	3
2896	2896	4
2897	2897	5
2898	2898	6
2899	2899	7
2900	2900	8
2901	2901	9
2902	2902	10
2903	2903	11
2904	2904	12
2905	2905	13
2906	2906	14
2907	2907	15
2908	2908	16
2909	2909	17
2910	2910	18
2911	2911	19
2912	2912	20
2913	2913	21
2914	2914	22
2915	2915	23
2916	2916	24
2917	2917	25
2918	2918	26
2919	2919	27
2920	2920	28
2921	2921	29
2922	2922	30
2923	2923	31
2924	2924	32
2925	2925	33
2926	2926	34
2927	2927	35
2928	2928	36
2929	2929	37
2930	2930	38
2931	2931	39
2932	2932	40
2933	2933	41
2934	2934	42
2935	2935	43 SB 278 35
2936	2936	such suppliers shall execute invoices covering the same bearing the
2937	2937	number of such certificate. Upon completion of the project, the contractor
2938	2938	shall furnish to the owner of the business a sworn statement, on a form to
2939	2939	be provided by the director of taxation, that all purchases so made were
2940	2940	entitled to exemption under this subsection. All invoices shall be held by
2941	2941	the contractor for a period of five years and shall be subject to audit by the
2942	2942	director of taxation. Any contractor or any agent, employee or
2943	2943	subcontractor of the contractor, who shall use or otherwise dispose of any
2944	2944	materials, machinery or equipment purchased under such a certificate for
2945	2945	any purpose other than that for which such a certificate is issued without
2946	2946	the payment of the sales or compensating tax otherwise imposed thereon,
2947	2947	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2948	2948	subject to the penalties provided for in K.S.A. 79-3615(h), and
2949	2949	amendments thereto;
2950	2950	(iiii) all sales of tangible personal property or services purchased by a
2951	2951	contractor for the purpose of constructing, maintaining, repairing,
2952	2952	enlarging, furnishing or remodeling facilities for the operation of services
2953	2953	for Wichita children's home for any such purpose that would be exempt
2954	2954	from taxation under the provisions of this section if purchased directly by
2955	2955	Wichita children's home. Nothing in this subsection shall be deemed to
2956	2956	exempt the purchase of any construction machinery, equipment or tools
2957	2957	used in the constructing, maintaining, repairing, enlarging, furnishing or
2958	2958	remodeling such facilities for Wichita children's home. When Wichita
2959	2959	children's home contracts for the purpose of constructing, maintaining,
2960	2960	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
2961	2961	from the state and furnish to the contractor an exemption certificate for the
2962	2962	project involved, and the contractor may purchase materials for
2963	2963	incorporation in such project. The contractor shall furnish the number of
2964	2964	such certificate to all suppliers from whom such purchases are made, and
2965	2965	such suppliers shall execute invoices covering the same bearing the
2966	2966	number of such certificate. Upon completion of the project, the contractor
2967	2967	shall furnish to Wichita children's home a sworn statement, on a form to be
2968	2968	provided by the director of taxation, that all purchases so made were
2969	2969	entitled to exemption under this subsection. All invoices shall be held by
2970	2970	the contractor for a period of five years and shall be subject to audit by the
2971	2971	director of taxation. If any materials purchased under such a certificate are
2972	2972	found not to have been incorporated in the building or other project or not
2973	2973	to have been returned for credit or the sales or compensating tax otherwise
2974	2974	imposed upon such materials that will not be so incorporated in the
2975	2975	building or other project reported and paid by such contractor to the
2976	2976	director of taxation not later than the 20
2977	2977	th
2978	2978	day of the month following the
2979	2979	close of the month in which it shall be determined that such materials will
2980	2980	not be used for the purpose for which such certificate was issued, Wichita
2981	2981	1
2982	2982	2
2983	2983	3
2984	2984	4
2985	2985	5
2986	2986	6
2987	2987	7
2988	2988	8
2989	2989	9
2990	2990	10
2991	2991	11
2992	2992	12
2993	2993	13
2994	2994	14
2995	2995	15
2996	2996	16
2997	2997	17
2998	2998	18
2999	2999	19
3000	3000	20
3001	3001	21
3002	3002	22
3003	3003	23
3004	3004	24
3005	3005	25
3006	3006	26
3007	3007	27
3008	3008	28
3009	3009	29
3010	3010	30
3011	3011	31
3012	3012	32
3013	3013	33
3014	3014	34
3015	3015	35
3016	3016	36
3017	3017	37
3018	3018	38
3019	3019	39
3020	3020	40
3021	3021	41
3022	3022	42
3023	3023	43 SB 278 36
3024	3024	children's home shall be liable for the tax on all materials purchased for the
3025	3025	project, and upon payment, it may recover the same from the contractor
3026	3026	together with reasonable attorney fees. Any contractor or any agent,
3027	3027	employee or subcontractor, who shall use or otherwise dispose of any
3028	3028	materials purchased under such a certificate for any purpose other than that
3029	3029	for which such a certificate is issued without the payment of the sales or
3030	3030	compensating tax otherwise imposed upon such materials, shall be guilty
3031	3031	of a misdemeanor and, upon conviction, shall be subject to the penalties
3032	3032	provided for in K.S.A. 79-3615(h), and amendments thereto;
3033	3033	(jjjj) all sales of tangible personal property or services purchased by
3034	3034	or on behalf of the beacon, inc., that is exempt from federal income
3035	3035	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3036	3036	for the purpose of providing those desiring help with food, shelter, clothing
3037	3037	and other necessities of life during times of special need;
3038	3038	(kkkk) all sales of tangible personal property and services purchased
3039	3039	by or on behalf of reaching out from within, inc., which is exempt from
3040	3040	federal income taxation pursuant to section 501(c)(3) of the federal
3041	3041	internal revenue code, for the purpose of sponsoring self-help programs for
3042	3042	incarcerated persons that will enable such incarcerated persons to become
3043	3043	role models for non-violence while in correctional facilities and productive
3044	3044	family members and citizens upon return to the community;
3045	3045	(llll) all sales of tangible personal property and services purchased by
3046	3046	Gove county healthcare endowment foundation, inc., which is exempt
3047	3047	from federal income taxation pursuant to section 501(c)(3) of the federal
3048	3048	internal revenue code of 1986, and which such property and services are
3049	3049	used for the purpose of constructing and equipping an airport in Quinter,
3050	3050	Kansas, and all sales of tangible personal property or services purchased
3051	3051	by a contractor for the purpose of constructing and equipping an airport in
3052	3052	Quinter, Kansas, for such organization, that would be exempt from
3053	3053	taxation under the provisions of this section if purchased directly by such
3054	3054	organization. Nothing in this subsection shall be deemed to exempt the
3055	3055	purchase of any construction machinery, equipment or tools used in the
3056	3056	constructing or equipping of facilities for such organization. When such
3057	3057	organization shall contract for the purpose of constructing or equipping an
3058	3058	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
3059	3059	contractor an exemption certificate for the project involved, and the
3060	3060	contractor may purchase materials for incorporation in such project. The
3061	3061	contractor shall furnish the number of such certificate to all suppliers from
3062	3062	whom such purchases are made, and such suppliers shall execute invoices
3063	3063	covering the same bearing the number of such certificate. Upon
3064	3064	completion of the project, the contractor shall furnish to such organization
3065	3065	concerned a sworn statement, on a form to be provided by the director of
3066	3066	taxation, that all purchases so made were entitled to exemption under this
3067	3067	1
3068	3068	2
3069	3069	3
3070	3070	4
3071	3071	5
3072	3072	6
3073	3073	7
3074	3074	8
3075	3075	9
3076	3076	10
3077	3077	11
3078	3078	12
3079	3079	13
3080	3080	14
3081	3081	15
3082	3082	16
3083	3083	17
3084	3084	18
3085	3085	19
3086	3086	20
3087	3087	21
3088	3088	22
3089	3089	23
3090	3090	24
3091	3091	25
3092	3092	26
3093	3093	27
3094	3094	28
3095	3095	29
3096	3096	30
3097	3097	31
3098	3098	32
3099	3099	33
3100	3100	34
3101	3101	35
3102	3102	36
3103	3103	37
3104	3104	38
3105	3105	39
3106	3106	40
3107	3107	41
3108	3108	42
3109	3109	43 SB 278 37
3110	3110	subsection. All invoices shall be held by the contractor for a period of five
3111	3111	years and shall be subject to audit by the director of taxation. If any
3112	3112	materials purchased under such a certificate are found not to have been
3113	3113	incorporated in such facilities or not to have been returned for credit or the
3114	3114	sales or compensating tax otherwise imposed upon such materials that will
3115	3115	not be so incorporated in such facilities reported and paid by such
3116	3116	contractor to the director of taxation no later than the 20
3117	3117	th
3118	3118	day of the month
3119	3119	following the close of the month in which it shall be determined that such
3120	3120	materials will not be used for the purpose for which such certificate was
3121	3121	issued, such organization concerned shall be liable for tax on all materials
3122	3122	purchased for the project, and upon payment thereof it may recover the
3123	3123	same from the contractor together with reasonable attorney fees. Any
3124	3124	contractor or any agent, employee or subcontractor thereof, who purchased
3125	3125	under such a certificate for any purpose other than that for which such a
3126	3126	certificate is issued without the payment of the sales or compensating tax
3127	3127	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3128	3128	and, upon conviction therefor, shall be subject to the penalties provided for
3129	3129	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
3130	3130	subsection shall expire and have no effect on and after July 1, 2019;
3131	3131	(mmmm) all sales of gold or silver coins; and palladium, platinum,
3132	3132	gold or silver bullion. For the purposes of this subsection, "bullion" means
3133	3133	bars, ingots or commemorative medallions of gold, silver, platinum,
3134	3134	palladium, or a combination thereof, for which the value of the metal
3135	3135	depends on its content and not the form;
3136	3136	(nnnn) all sales of tangible personal property or services purchased
3137	3137	by friends of hospice of Jefferson county, an organization that is exempt
3138	3138	from federal income taxation pursuant to section 501(c)(3) of the federal
3139	3139	internal revenue code of 1986, for the purpose of providing support to the
3140	3140	Jefferson county hospice agency in end-of-life care of Jefferson county
3141	3141	families, friends and neighbors, and all sales of entry or participation fees,
3142	3142	charges or tickets by friends of hospice of Jefferson county for such
3143	3143	organization's fundraising event for such purpose;
3144	3144	(oooo) all sales of tangible personal property or services purchased
3145	3145	for the purpose of and in conjunction with constructing, reconstructing,
3146	3146	enlarging or remodeling a qualified business facility by a qualified firm or
3147	3147	qualified supplier that meets the requirements established in K.S.A. 2024
3148	3148	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
3149	3149	been approved for a project exemption certificate by the secretary of
3150	3150	commerce, and the sale and installation of machinery and equipment
3151	3151	purchased by such qualified firm or qualified supplier for installation at
3152	3152	any such qualified business facility. When a person shall contract for the
3153	3153	construction, reconstruction, enlargement or remodeling of any such
3154	3154	qualified business facility, such person shall obtain from the state and
3155	3155	1
3156	3156	2
3157	3157	3
3158	3158	4
3159	3159	5
3160	3160	6
3161	3161	7
3162	3162	8
3163	3163	9
3164	3164	10
3165	3165	11
3166	3166	12
3167	3167	13
3168	3168	14
3169	3169	15
3170	3170	16
3171	3171	17
3172	3172	18
3173	3173	19
3174	3174	20
3175	3175	21
3176	3176	22
3177	3177	23
3178	3178	24
3179	3179	25
3180	3180	26
3181	3181	27
3182	3182	28
3183	3183	29
3184	3184	30
3185	3185	31
3186	3186	32
3187	3187	33
3188	3188	34
3189	3189	35
3190	3190	36
3191	3191	37
3192	3192	38
3193	3193	39
3194	3194	40
3195	3195	41
3196	3196	42
3197	3197	43 SB 278 38
3198	3198	furnish to the contractor an exemption certificate for the project involved,
3199	3199	and the contractor may purchase materials, machinery and equipment for
3200	3200	incorporation in such project. The contractor shall furnish the number of
3201	3201	such certificates to all suppliers from whom such purchases are made, and
3202	3202	such suppliers shall execute invoices covering the same bearing the
3203	3203	number of such certificate. Upon completion of the project, the contractor
3204	3204	shall furnish to the owner of the qualified firm or qualified supplier a
3205	3205	sworn statement, on a form to be provided by the director of taxation, that
3206	3206	all purchases so made were entitled to exemption under this subsection.
3207	3207	All invoices shall be held by the contractor for a period of five years and
3208	3208	shall be subject to audit by the director of taxation. Any contractor or any
3209	3209	agent, employee or subcontractor thereof who shall use or otherwise
3210	3210	dispose of any materials, machinery or equipment purchased under such a
3211	3211	certificate for any purpose other than that for which such a certificate is
3212	3212	issued without the payment of the sales or compensating tax otherwise
3213	3213	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
3214	3214	therefor, shall be subject to the penalties provided for in K.S.A. 79-
3215	3215	3615(h), and amendments thereto. As used in this subsection, "qualified
3216	3216	business facility," "qualified firm" and "qualified supplier" mean the same
3217	3217	as defined in K.S.A. 2024 Supp. 74-50,311, and amendments thereto;
3218	3218	(pppp) (1) all sales of tangible personal property or services
3219	3219	purchased by a not-for-profit corporation that is designated as an area
3220	3220	agency on aging by the secretary for aging and disabilities services and is
3221	3221	exempt from federal income taxation pursuant to section 501(c)(3) of the
3222	3222	federal internal revenue code for the purpose of coordinating and
3223	3223	providing seniors and those living with disabilities with services that
3224	3224	promote person-centered care, including home-delivered meals,
3225	3225	congregate meal settings, long-term case management, transportation,
3226	3226	information, assistance and other preventative and intervention services to
3227	3227	help service recipients remain in their homes and communities or for the
3228	3228	purpose of constructing, equipping, reconstructing, maintaining, repairing,
3229	3229	enlarging, furnishing or remodeling facilities for such area agency on
3230	3230	aging; and
3231	3231	(2) all sales of tangible personal property or services purchased by a
3232	3232	contractor for the purpose of constructing, equipping, reconstructing,
3233	3233	maintaining, repairing, enlarging, furnishing or remodeling facilities for an
3234	3234	area agency on aging that would be exempt from taxation under the
3235	3235	provisions of this section if purchased directly by such area agency on
3236	3236	aging. Nothing in this paragraph shall be deemed to exempt the purchase
3237	3237	of any construction machinery, equipment or tools used in the
3238	3238	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3239	3239	furnishing or remodeling facilities for an area agency on aging. When an
3240	3240	area agency on aging contracts for the purpose of constructing, equipping,
3241	3241	1
3242	3242	2
3243	3243	3
3244	3244	4
3245	3245	5
3246	3246	6
3247	3247	7
3248	3248	8
3249	3249	9
3250	3250	10
3251	3251	11
3252	3252	12
3253	3253	13
3254	3254	14
3255	3255	15
3256	3256	16
3257	3257	17
3258	3258	18
3259	3259	19
3260	3260	20
3261	3261	21
3262	3262	22
3263	3263	23
3264	3264	24
3265	3265	25
3266	3266	26
3267	3267	27
3268	3268	28
3269	3269	29
3270	3270	30
3271	3271	31
3272	3272	32
3273	3273	33
3274	3274	34
3275	3275	35
3276	3276	36
3277	3277	37
3278	3278	38
3279	3279	39
3280	3280	40
3281	3281	41
3282	3282	42
3283	3283	43 SB 278 39
3284	3284	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3285	3285	facilities, it shall obtain from the state and furnish to the contractor an
3286	3286	exemption certificate for the project involved, and such contractor may
3287	3287	purchase materials for incorporation in such project. The contractor shall
3288	3288	furnish the number of such certificate to all suppliers from whom such
3289	3289	purchases are made, and such suppliers shall execute invoices covering the
3290	3290	same bearing the number of such certificate. Upon completion of the
3291	3291	project, the contractor shall furnish to such area agency on aging a sworn
3292	3292	statement, on a form to be provided by the director of taxation, that all
3293	3293	purchases so made were entitled to exemption under this subsection. All
3294	3294	invoices shall be held by the contractor for a period of five years and shall
3295	3295	be subject to audit by the director of taxation. If any materials purchased
3296	3296	under such a certificate are found not to have been incorporated in the
3297	3297	building or other project or not to have been returned for credit or the sales
3298	3298	or compensating tax otherwise imposed upon such materials that will not
3299	3299	be so incorporated in the building or other project reported and paid by
3300	3300	such contractor to the director of taxation not later than the 20
3301	3301	th
3302	3302	day of the
3303	3303	month following the close of the month in which it shall be determined
3304	3304	that such materials will not be used for the purpose for which such
3305	3305	certificate was issued, the area agency on aging concerned shall be liable
3306	3306	for tax on all materials purchased for the project, and upon payment
3307	3307	thereof, the area agency on aging may recover the same from the
3308	3308	contractor together with reasonable attorney fees. Any contractor or any
3309	3309	agent, employee or subcontractor thereof who shall use or otherwise
3310	3310	dispose of any materials purchased under such a certificate for any purpose
3311	3311	other than that for which such a certificate is issued without the payment
3312	3312	of the sales or compensating tax otherwise imposed upon such materials
3313	3313	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3314	3314	subject to the penalties provided for in K.S.A. 79-3615(h), and
3315	3315	amendments thereto;
3316	3316	(qqqq) all sales of tangible personal property or services purchased
3317	3317	by Kansas suicide prevention HQ, inc., an organization that is exempt
3318	3318	from federal income taxation pursuant to section 501(c)(3) of the federal
3319	3319	internal revenue code of 1986, for the purpose of bringing suicide
3320	3320	prevention training and awareness to communities across the state;
3321	3321	(rrrr) all sales of the services of slaughtering, butchering, custom
3322	3322	cutting, dressing, processing and packaging of an animal for human
3323	3323	consumption when the animal is delivered or furnished by a customer that
3324	3324	owns the animal and such meat or poultry is for use or consumption by
3325	3325	such customer;
3326	3326	(ssss) all sales of tangible personal property or services purchased by
3327	3327	or on behalf of doorstep inc., an organization that is exempt from federal
3328	3328	income taxation pursuant to section 501(c)(3) of the federal internal
3329	3329	1
3330	3330	2
3331	3331	3
3332	3332	4
3333	3333	5
3334	3334	6
3335	3335	7
3336	3336	8
3337	3337	9
3338	3338	10
3339	3339	11
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3372	3372	revenue code of 1986, for the purpose of providing short-term emergency
3373	3373	aid to families and individuals in need, including assistance with food,
3374	3374	clothing, rent, prescription medications, transportation and utilities, and
3375	3375	providing information on services to promote long-term self-sufficiency;
3376	3376	(tttt) on and after January 1, 2024, all sales of tangible personal
3377	3377	property or services purchased by exploration place, inc., an organization
3378	3378	that is exempt from federal income taxation pursuant to section 501(c)(3)
3379	3379	of the federal internal revenue code, and which such property and services
3380	3380	are used for the purpose of constructing, remodeling, furnishing or
3381	3381	equipping a riverfront amphitheater, a destination playscape, an education
3382	3382	center and indoor renovations at exploration place in Wichita, Kansas, all
3383	3383	sales of tangible personal property or services purchased by Kansas
3384	3384	children's discovery center inc. in Topeka, Kansas, and which such
3385	3385	property and services are used for the purpose of constructing, remodeling,
3386	3386	furnishing or equipping projects that include indoor-outdoor classrooms,
3387	3387	an expanded multi-media gallery, a workshop and loading dock and safety
3388	3388	upgrades such as a tornado shelter, lactation room, first aid room and
3389	3389	sensory room and all sales of tangible personal property or services
3390	3390	purchased by a contractor for the purpose of constructing, remodeling,
3391	3391	furnishing or equipping such projects, for such organizations, that would
3392	3392	be exempt from taxation under the provisions of this section if purchased
3393	3393	directly by such organizations. Nothing in this subsection shall be deemed
3394	3394	to exempt the purchase of any construction machinery, equipment or tools
3395	3395	used in the constructing, remodeling, furnishing or equipping of facilities
3396	3396	for such organization. When such organization shall contract for the
3397	3397	purpose of constructing, remodeling, furnishing or equipping such
3398	3398	projects, it shall obtain from the state and furnish to the contractor an
3399	3399	exemption certificate for the project involved, and the contractor may
3400	3400	purchase materials for incorporation in such project. The contractor shall
3401	3401	furnish the number of such certificate to all suppliers from whom such
3402	3402	purchases are made, and such suppliers shall execute invoices covering the
3403	3403	same bearing the number of such certificate. Upon completion of the
3404	3404	project, the contractor shall furnish to such organization a sworn statement,
3405	3405	on a form to be provided by the director of taxation, that all purchases so
3406	3406	made were entitled to exemption under this subsection. All invoices shall
3407	3407	be held by the contractor for a period of five years and shall be subject to
3408	3408	audit by the director of taxation. If any materials purchased under such a
3409	3409	certificate are found not to have been incorporated in such facilities or not
3410	3410	to have been returned for credit or the sales or compensating tax otherwise
3411	3411	imposed upon such materials that will not be so incorporated in such
3412	3412	facilities reported and paid by such contractor to the director of taxation no
3413	3413	later than the 20
3414	3414	th
3415	3415	day of the month following the close of the month in
3416	3416	which it shall be determined that such materials will not be used for the
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3460	3460	purpose for which such certificate was issued, such organization shall be
3461	3461	liable for tax on all materials purchased for the project, and upon payment
3462	3462	thereof may recover the same from the contractor together with reasonable
3463	3463	attorney fees. Any contractor or agent, employee or subcontractor thereof,
3464	3464	who purchased under such a certificate for any purpose other than that for
3465	3465	which such a certificate is issued without the payment of the sales or
3466	3466	compensating tax otherwise imposed upon such materials, shall be guilty
3467	3467	of a misdemeanor and, upon conviction therefor, shall be subject to the
3468	3468	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
3469	3469	Sales tax paid on and after January 1, 2024, but prior to the effective date
3470	3470	of this act, upon the gross receipts received from any sale exempted by the
3471	3471	amendatory provisions of this subsection shall be refunded. Each claim for
3472	3472	a sales tax refund shall be verified and submitted to the director of taxation
3473	3473	upon forms furnished by the director and shall be accompanied by any
3474	3474	additional documentation required by the director. The director shall
3475	3475	review each claim and shall refund that amount of sales tax paid as
3476	3476	determined under the provisions of this subsection. All refunds shall be
3477	3477	paid from the sales tax refund fund upon warrants of the director of
3478	3478	accounts and reports pursuant to vouchers approved by the director or the
3479	3479	director's designee. The provisions of this subsection shall expire and have
3480	3480	no effect on and after December 31, 2030;
3481	3481	(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary
3482	3482	components, appurtenances, accessories or other infrastructure purchased
3483	3483	for use in the provision of communications services; and
3484	3484	(B) all services purchased by a provider in the provision of the
3485	3485	communications service used in the repair, maintenance or installation in
3486	3486	such communications service.
3487	3487	(2) As used in this subsection:
3488	3488	(A) "Communications service" means internet access service,
3489	3489	telecommunications service, video service or any combination thereof.
3490	3490	(B) "Equipment, machinery, software, ancillary components,
3491	3491	appurtenances, accessories or other infrastructure" includes, but is not
3492	3492	limited to:
3493	3493	(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,
3494	3494	amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,
3495	3495	transmitters, circuit cards, insulating and protective materials and cases,
3496	3496	power equipment, backup power equipment, diagnostic equipment, storage
3497	3497	devices, modems, cable modem termination systems and servers;
3498	3498	(ii) other general central office or headend equipment, such as
3499	3499	channel cards, frames and cabinets;
3500	3500	(iii) equipment used in successor technologies, including items used
3501	3501	to monitor, test, maintain, enable or facilitate qualifying equipment,
3502	3502	machinery, software, ancillary components, appurtenances and
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3545	3545	43 SB 278 42
3546	3546	accessories; and
3547	3547	(iv) other infrastructure that is used in whole or in part to provide
3548	3548	communications services, including broadcasting, distributing, sending,
3549	3549	receiving, storing, transmitting, retransmitting, amplifying, switching,
3550	3550	providing connectivity for or routing communications services.
3551	3551	(C) "Internet access service" means the same as internet access as
3552	3552	defined in section 1105 of the internet tax freedom act amendments of
3553	3553	2007, public law 110-108.
3554	3554	(D) "Provider" means a person or entity that sells communications
3555	3555	service, including an affiliate or subsidiary.
3556	3556	(E) "Telecommunications service" means the same as defined in
3557	3557	K.S.A. 79-3602, and amendments thereto.
3558	3558	(F) "Video service" means the same as defined in K.S.A. 12-2022,
3559	3559	and amendments thereto.
3560	3560	(3) The provisions of this subsection shall expire and have no effect
3561	3561	on and after July 1, 2029;
3562	3562	(vvvv) (1) all sales of tangible personal property or services
3563	3563	purchased by a contractor for the purpose of constructing, equipping,
3564	3564	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3565	3565	a building that is operated by, or is intended to be operated by, the Kansas
3566	3566	fairgrounds foundation, a not-for-profit corporation exempt from federal
3567	3567	income taxation pursuant to section 501(c)(3) of the federal internal
3568	3568	revenue code of 1986, and located on the grounds of the Kansas state fair,
3569	3569	and such tangible personal property would be exempt from taxation under
3570	3570	the provisions of this paragraph if purchased directly by such eligible not-
3571	3571	for-profit corporation. Nothing in this subsection shall be deemed to
3572	3572	exempt the purchase of any construction machinery, equipment or tools
3573	3573	used in the constructing, equipping, reconstructing, maintaining, repairing,
3574	3574	enlarging, furnishing or remodeling a building for such eligible not-for-
3575	3575	profit corporation. When such eligible not-for-profit corporation contracts
3576	3576	for the purpose of constructing, equipping, reconstructing, maintaining,
3577	3577	repairing, enlarging, furnishing or remodeling a building, such corporation
3578	3578	shall obtain from the state and furnish to the contractor an exemption
3579	3579	certificate for the project involved, and such contractor may purchase
3580	3580	materials for incorporation in such project. The contractor shall furnish the
3581	3581	number of such certificate to all suppliers from whom such purchases are
3582	3582	made, and such suppliers shall execute invoices covering such purchases
3583	3583	bearing the number of such certificate. Upon completion of the project, the
3584	3584	contractor shall furnish to such eligible not-for-profit corporation a sworn
3585	3585	statement, on a form to be provided by the director of taxation, that all
3586	3586	purchases so made were entitled to exemption under this subsection. All
3587	3587	invoices shall be held by the contractor for a period of five years and shall
3588	3588	be subject to audit by the director of taxation. If any materials purchased
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3631	3631	43 SB 278 43
3632	3632	under such a certificate are found not to have been incorporated in the
3633	3633	building or returned for credit, the contractor shall report and pay the sales
3634	3634	or compensating tax to the director of taxation not later than the 20
3635	3635	th
3636	3636	day of
3637	3637	the month following the close of the month in which it is determined that
3638	3638	such materials will not be used for the purpose for which such certificate
3639	3639	was issued. The eligible not-for-profit corporation concerned shall be
3640	3640	liable for tax on all materials purchased for the project, and upon payment
3641	3641	thereof, the eligible not-for-profit corporation may recover the same from
3642	3642	the contractor together with reasonable attorney fees. Any contractor or
3643	3643	any agent, employee or subcontractor thereof who shall use or otherwise
3644	3644	dispose of any materials purchased under such a certificate for any purpose
3645	3645	other than that for which such a certificate is issued without the payment
3646	3646	of the sales or compensating tax otherwise imposed upon such materials
3647	3647	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3648	3648	subject to the penalties provided for in K.S.A. 79-3615(h), and
3649	3649	amendments thereto.
3650	3650	(2) Sales tax paid on and after May 19, 2023, but prior to the effective
3651	3651	date of this act upon the gross receipts received from any sale which would
3652	3652	have been exempted by the provisions of this subsection had such sale
3653	3653	occurred after the effective date of this act shall be refunded. Each claim
3654	3654	for a sales tax refund shall be verified and submitted to the director of
3655	3655	taxation upon forms furnished by the director and shall be accompanied by
3656	3656	any additional documentation required by the director. The director shall
3657	3657	review each claim and shall refund that amount of sales tax paid as
3658	3658	determined under the provisions of this subsection. All refunds shall be
3659	3659	paid from the sales tax refund fund upon warrants of the director of
3660	3660	accounts and reports pursuant to vouchers approved by the director or the
3661	3661	director's designee; and
3662	3662	(wwww) (1) all sales of tangible personal property or services
3663	3663	purchased by a pregnancy resource center or residential maternity facility.
3664	3664	(2) As used in this subsection, "pregnancy resource center" or
3665	3665	"residential maternity facility" means an organization that is:
3666	3666	(A) Exempt from federal income taxation pursuant to section 501(c)
3667	3667	(3) of the federal internal revenue code of 1986;
3668	3668	(B) a nonprofit organization organized under the laws of this state;
3669	3669	and
3670	3670	(C) a pregnancy resource center or residential maternity facility that:
3671	3671	(i) Maintains a dedicated phone number for clients;
3672	3672	(ii) maintains in this state its primary physical office, clinic or
3673	3673	residential home that is open for clients for a minimum of 20 hours per
3674	3674	week, excluding state holidays;
3675	3675	(iii) offers services, at no cost to the client, for the express purpose of
3676	3676	providing assistance to women in order to carry their pregnancy to term,
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3719	3719	43 SB 278 44
3720	3720	encourage parenting or adoption, prevent abortion and promote healthy
3721	3721	childbirth; and
3722	3722	(iv) utilizes trained healthcare providers, as defined by K.S.A. 2024
3723	3723	Supp. 79-32,316, and amendments thereto, to perform any available
3724	3724	medical procedures; and
3725	3725	(xxxx) on and after July 1, 2024, all sales of tangible personal
3726	3726	property and services purchased by or on behalf of care to share cancer
3727	3727	support group of Bourbon county, Kansas, inc., an organization that is
3728	3728	exempt from federal income taxation pursuant to section 501(c)(3) of the
3729	3729	federal internal revenue code, for the purpose of providing a cancer
3730	3730	support group and services for persons with cancer, and all sales of
3731	3731	tangible personal property and services by or on behalf of such
3732	3732	organization for any such purpose. Sales tax paid on and after July 1,
3733	3733	2024, but prior to the effective date of this act, upon the gross receipts
3734	3734	received from any sales purchased by or on behalf of such organization
3735	3735	exempted by the amendatory provisions of this subsection shall be
3736	3736	refunded. Each claim for a sales tax refund shall be verified and submitted
3737	3737	to the director of taxation upon forms furnished by the director and shall
3738	3738	be accompanied by any additional documentation required by the director.
3739	3739	The director shall review each claim and shall refund the amount of sales
3740	3740	tax paid as determined under the provisions of this subsection. All refunds
3741	3741	shall be paid from the sales tax refund fund upon warrants of the director
3742	3742	of accounts and reports pursuant to vouchers approved by the director or
3743	3743	the director's designee.
3744	3744	Sec. 2. K.S.A. 2024 Supp. 79-3606 is hereby repealed.
3745	3745	Sec. 3. This act shall take effect and be in force from and after its
3746	3746	publication in the statute book.
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