KS
Kansas Senate Bill SB98

Kansas 2025-2026 Regular Session

Kansas Senate Bill SB98 Compare Versions

OldNewDifferences
1+Session of 2025
12 SENATE BILL No. 98
2-AN ACT concerning data centers; relating to economic development; providing a sales tax
3-exemption for the construction or remodeling of a qualified data center in Kansas, the
4-purchase of data center equipment, eligible data center costs and certain labor costs to
5-qualified firms that commit to a minimum investment of $250,000,000 and meet new
6-Kansas jobs and other requirements; prohibiting public utilities from authorizing
7-discounted economic development electric rates for customers that construct new or
8-expanded facilities that are data centers; requiring qualified data centers to be
9-reviewed and approved by the Kansas intelligence fusion center prior to awarding
10-public financial assistance or benefits; amending K.S.A. 2024 Supp. 66-101j and 79-
11-3606 and repealing the existing sections.
3+By Senator Shallenburger
4+1-29
5+AN ACT concerning motor vehicles; relating to distinctive license plates;
6+providing for the route 66 association of Kansas distinctive license
7+plate.
128 Be it enacted by the Legislature of the State of Kansas:
13-New Section 1. For purposes of sections 1 through 3, and
14-amendments thereto:
15-(a) "Commencement of construction" means the date that
16-construction, reconstruction, enlargement or remodeling of a qualified
17-data center by a qualified firm commences, as determined in the
18-agreement required by section 2, and amendments thereto.
19-(b) "Commencement of operations" means the date that the
20-qualified firm commences operations at a qualified data center, as
21-determined in the agreement required by section 2, and amendments
22-thereto.
23-(c) "Data center equipment" means equipment or software
24-purchased or leased for the processing, storage, retrieval or
25-communication of data, regardless of whether the property is or is not
26-affixed to or incorporated into real property, including the following:
27-(1) Servers, routers and connections and computer equipment,
28-monitoring and security equipment or systems;
29-(2) equipment used in the operation of the qualified data center,
30-including, but not limited to, backup generators, component parts,
31-installations, refreshments, replacements and upgrades;
32-(3) all equipment necessary to cool and maintain a controlled
33-environment for the operation of the computer servers and other
34-components of the qualified data center, including, but not limited to,
35-chillers, mechanical equipment, refrigerant piping, fuel piping and
36-storage, adiabatic and free cooling systems, cooling towers, water
37-softeners, air handling units, indoor direct exchange units, fans, ducting
38-and filters;
39-(4) all water conservation systems, including facilities or
40-mechanisms that are designed to collect, conserve and reuse water;
41-(5) all computer server equipment, chassis, networking equipment,
42-switches, racks, fiber optic and copper cabling, trays and conduit;
43-(6) all conduit, ducting and fiber optic and copper cabling directly
44-related to connecting one or more distributed qualified data center
45-locations regardless of whether located inside or outside a data center;
46-(7) all software; and
47-(8) other personal property that is essential to the operations of a
48-qualified data center, excluding such property used in the
49-administration of the qualified data center.
50-(d) "Department" means the department of commerce.
51-(e) (1) "Eligible data center costs" means expenditures for the
52-development, acquisition, construction and operation of a qualified data
53-center by a qualified firm, including, but not limited to, costs of land,
54-buildings, site improvements, data center equipment, data center
55-equipment acquisition and permitting, lease payments, site
56-characterization and assessment, engineering and design used directly
57-and exclusively for a qualified data center.
58-(2) "Eligible data center costs" does not include the cost of
59-electricity.
60-(f) "New jobs" means newly created jobs with a qualified firm at a
61-qualified data center or directly associated with a qualified data center SENATE BILL No. 98—page 2
62-filled by Kansas residents and the primary work locations of such jobs
63-are in Kansas.
64-(g) "Qualified data center" means one or more buildings that are
65-constructed, reconstructed, enlarged, remodeled or leased to house a
66-group of networked computer servers in this state to centralize the
67-storage, management and dissemination of data and information
68-pertaining to a particular business, taxonomy or body of knowledge and
69-such buildings are connected to each other by fiber and associated
70-equipment required for operating a fiber transmission network between
71-data center buildings and internet points for the purpose of providing
72-redundancy and resiliency for the data center services provided in each
73-building.
74-(h) "Qualified firm" means a business or an affiliate thereof that is
75-registered with the secretary of state and is engaged in the
76-development, operation or leasing of a qualified data center. "Qualified
77-firm" does not include a telecommunications carrier or local exchange
78-carrier as defined in K.S.A. 66-1,187, and amendments thereto, electing
79-carrier as defined in K.S.A. 66-2005(x), and amendments thereto,
80-wireless services provider as defined in K.S.A. 66-2019, and
81-amendments thereto, or video service provider as defined in K.S.A. 12-
82-2022, and amendments thereto.
83-(i) "Secretary" means the secretary of commerce.
84-New Sec. 2. (a) A qualified firm that makes an investment in
85-eligible data center costs in a qualified data center of at least
86-$250,000,000 in the aggregate by the fifth year of operations and
87-creates and maintains at least 20 new jobs at the qualified data center
88-within two calendar years after the commencement of operations shall
89-receive a sales tax exemption, as provided by K.S.A. 79-3606(xxxx),
90-and amendments thereto, and section 3, and amendments thereto, for:
91-(1) Eligible data center costs of the qualified data center; and
92-(2) labor services to install, apply, repair, service, alter or maintain
93-data center equipment.
94-(b) To be eligible to receive such sales tax exemption, a qualified
95-firm shall:
96-(1) Submit an application to the secretary in the form and manner
97-as required by the secretary;
98-(2) commit to an investment in eligible data center costs of at least
99-$250,000,000 in the qualified data center, to be completed by the fifth
100-year of operations or on such earlier date as specified in the agreement
101-pursuant to paragraph (6);
102-(3) commit to begin construction of the project within 10 years of
103-the date of the agreement with the secretary or on such earlier date as
104-specified in the agreement pursuant to paragraph (6);
105-(4) commit to purchase electricity for 10 years from the public
106-utility that is certified to provide retail electric service in the territory
107-where the qualified data center is located;
108-(5) commit to undertake practices that will conserve, reuse and
109-replace water, including, but not limited to:
110-(A) Using water efficient fixtures and practices;
111-(B) treating, infiltrating and harvesting rainwater;
112-(C) recirculating and recycling water before discharging;
113-(D) partnering with state and local governmental entities and
114-private individuals and entities to use discharged water for irrigation,
115-water conservation or other beneficial purposes;
116-(E) using reclaimed water when possible; and
117-(F) supporting water restoration efforts in local watersheds; and
118-(6) if the application is approved by the secretary, enter into an
119-agreement with the secretary upon such terms and conditions as the
120-secretary may require, including the commitments or conditions SENATE BILL No. 98—page 3
121-required by paragraphs (2) through (5) and subsections (c) and (d)(1)
122-and (2). The agreement shall be entered into before any sales tax
123-exemption may be provided under this act.
124-(c) If it is determined by the secretary that the qualified firm has
125-breached a term or condition of the agreement, the secretary shall
126-provide written notice to the qualified firm as to which terms or
127-conditions were breached and allow the qualified firm 120 days to cure
128-the breached terms or conditions. If the breached terms or conditions
129-have not been cured within such time, the secretary may require the
130-qualified firm to repay all or a part of the amount of the sales tax
131-exemption received, terminate the sales tax exemption or suspend all or
132-a part of the sales tax exemption until the breach is cured.
133-(d) As a condition of receiving the sales tax exemption, a qualified
134-firm shall agree to:
135-(1) Cooperate with audits undertaken by the secretary of revenue
136-as provided by subsection (f); and
137-(2) provide the secretary of commerce information required:
138-(A) For publication in the economic development incentive
139-program information database pursuant to K.S.A. 74-50,226, and
140-amendments thereto;
141-(B) for the secretary's report pursuant to K.S.A. 74-50,320, and
142-amendments thereto; and
143-(C) by the secretary of commerce or the secretary of revenue
144-pursuant to subsection (e)(1).
145-(e) (1) Every five years, the secretary may conduct a review of the
146-activities undertaken by a qualified firm to ensure that the qualified
147-firm remains in good standing with the state, is in compliance with the
148-provisions of this act, any rules and regulations adopted by the
149-secretary with respect to this act and any agreement entered into
150-pursuant to this section and continues to meet the requirements for the
151-sales tax exemption provided under this act. The secretary of commerce
152-shall certify every five years to the secretary of revenue whether the
153-qualified firm meets the criteria for designation as a qualified firm and
154-is eligible for such sales tax exemption. The qualified firm shall
155-provide the secretary of commerce all information reasonably
156-necessary to determine such eligibility. Except as provided by
157-paragraph (2), information obtained under this paragraph shall not be
158-subject to disclosure pursuant to K.S.A. 45-215 et seq., and
159-amendments thereto, unless such information is subject to disclosure
160-pursuant to subsection (d)(1) or (2), but shall, upon request, be made
161-available to the legislative post audit division. The provisions of this
162-paragraph providing for confidentiality of records shall expire on July
163-1, 2030, unless the legislature reviews and acts to continue such
164-provisions pursuant to K.S.A. 45-229, and amendments thereto, prior to
165-July 1, 2030.
166-(2) If, in the judgment of the secretary, any confidential
167-information, trade secret or other information obtained under this
168-section would place the qualified firm at a disadvantage in the
169-marketplace or would significantly interfere with the purposes of this
170-act, if known, shall not be subject to disclosure pursuant to K.S.A. 45-
171-215 et seq., and amendments thereto, but shall, upon request, be made
172-available to the legislative post audit division. The provisions of this
173-paragraph providing for confidentiality of records shall expire on July
174-1, 2030, unless the legislature reviews and acts to continue such
175-provisions pursuant to K.S.A. 45-229, and amendments thereto, prior to
176-July 1, 2030.
177-(f) The books and records that pertain to eligibility for benefits or
178-compliance with the requirements of this act shall be available for
179-inspection by the secretary or the secretary's duly authorized agents or SENATE BILL No. 98—page 4
180-employees during business hours on at least 60 days' prior written
181-notice. The secretary may request the department of revenue to audit
182-the qualified firm, or a third party if applicable, for compliance with the
183-provisions of this act.
184-(g) The secretary of commerce shall certify to the secretary of
185-revenue when the qualified firm has met the conditions to receive a
186-sales tax exemption as provided by sections 3 and 4, and amendments
187-thereto, and shall provide notice when the sales tax exemption is
188-modified, suspended or terminated pursuant to subsection (c).
189-(h) The secretary of commerce or the secretary of revenue may
190-adopt rules and regulations for the implementation of this act.
191-New Sec. 3. (a) On and after July 1, 2025, a qualified firm that
192-meets the requirements of section 2, and amendments thereto, may be
193-eligible for a sales tax exemption as provided by this section and the
194-provisions of K.S.A. 79-3606(xxxx), and amendments thereto.
195-(b) The sales tax exemption shall be valid for 20 years after the
196-date of commencement of operations.
197-(c) No sales tax exemption shall be approved by the secretary of
198-revenue unless the qualified firm has been certified by the secretary of
199-commerce, as provided in section 2, and amendments thereto, as
200-meeting all requirements of this act, the rules and regulations of the
201-secretary, if any, and the agreement executed pursuant to section 2, and
202-amendments thereto.
203-(d) A sales tax exemption shall be revoked, suspended or modified
204-by the secretary of revenue as requested by the secretary of commerce
205-upon notification by the secretary of commerce as provided by section
206-2(c) and (g), and amendments thereto.
207-New Sec. 4. (a) Prior to awarding any public financial assistance
208-or benefits to a qualified data center project, including, but not limited
209-to, the sales tax exemption established pursuant to K.S.A. 79-
210-3606(xxxx), and amendments thereto, and sections 1 through 3, and
211-amendments thereto, the secretary of commerce shall seek and receive
212-approval from the fusion center oversight board established pursuant to
213-K.S.A. 48-3705, and amendments thereto.
214-(b) Upon receipt of an application from the secretary of
215-commerce, the Kansas intelligence fusion center shall evaluate the
216-equipment and associated software of the qualified data center for
217-potential security threats to critical infrastructure and advise the fusion
218-center oversight board of any risks associated with such equipment and
219-associated software.
220-(c) The fusion center oversight board may approve the project,
221-recommend or require changes to protect critical infrastructure or deny
222-such project if the qualified data center, as configured, would pose a
223-threat to the critical infrastructure of the state of Kansas.
224-(d) As used in this section, "qualified data center" means the same
225-as defined in section 1, and amendments thereto.
226-Sec. 5. K.S.A. 2024 Supp. 66-101j is hereby amended to read as
227-follows: 66-101j. (a) Notwithstanding the provisions of K.S.A. 66-101b
228-or 66-109, and amendments thereto, the commission shall authorize an
229-electric public utility to implement economic development rate
230-schedules that provide discounts from otherwise applicable standard
231-rates for electric service for new or expanded facilities of industrial or
232-commercial customers that are not in the business of selling or
233-providing goods or services directly to the general public. To be eligible
234-for such discounts, such customer shall:
235-(1) Have incentives from one or more local, regional, state or
236-federal economic development agencies to locate such new or
237-expanded facilities in the electric public utility's certified service
238-territory; SENATE BILL No. 98—page 5
239-(2) qualify for service under the electric public utility's non-
240-residential and non-lighting rate schedules for such new or expanded
241-facility; and
242-(3) not receive the discount together with service provided by the
243-electric public utility pursuant to any other special contract agreements.
244-(b) The discount authorized by this section shall only be
245-applicable to new facilities or expanded facilities that have:
246-(1) A peak demand that is reasonably projected to be at least 200
247-kilowatts within two years of the date the customer first receives
248-service under the discounted rate and is not the result of shifting
249-existing demand from other facilities of the customer in the electric
250-public utility's certified service territory and:
251-(A) Has an annual load factor that is reasonably projected to equal
252-or exceed the electric public utility's annual system load factor within
253-two years of the date the customer first receives service under the
254-discounted rate; or
255-(B) otherwise warrants a discounted rate based on any of the
256-following factors:
257-(i) The number of new permanent full-time jobs created or the
258-percentage increase in existing permanent full-time jobs created;
259-(ii) the level of capital investment;
260-(iii) additional off-peak usage;
261-(iv) curtailable or interruptible load;
262-(v) new industry or technology; or
263-(vi) competition with existing industrial customers;
264-(2) a peak demand that is reasonably projected to be at least 300
265-kilowatts within two years of the date the customer first receives
266-service under the discounted rate and is not the result of shifting
267-existing demand from other facilities of the customer in the electric
268-public utility's certified service territory and:
269-(A) An annual load factor that is reasonably projected to be at
270-least 55% within two years of the date the customer first receives
271-service under the discounted rate; and
272-(B) the facility shall, once first achieved, maintain the peak
273-demand and load factor for the remaining duration of the discounted
274-rate; or
275-(3) a peak demand that is reasonably projected to be at least 25
276-megawatts within two years of the date the customer first receives
277-service under the discounted rate and is not the result of shifting
278-existing demand from other facilities of the customer in the electric
279-public utility's certified service territory and:
280-(A) An annual load factor that is reasonably projected to be at
281-least 55% within two years of the date the customer first receives
282-service under the discounted rate; and
283-(B) the facility shall, once first achieved, maintain the peak
284-demand and load factor for the remaining duration of the discounted
285-rate.
286-(c) A customer shall not be eligible for the discount authorized by
287-this section for any new or expanded facility that is a qualified data
288-center as defined in section 1, and amendments thereto.
289-(d) The discount authorized by this section shall be determined by
290-reducing otherwise applicable charges associated with the rate schedule
291-applicable to the new or expanded existing facility by a fixed
292-percentage for each year of service under the discount for a period of
293-up to:
294-(1) Five years to facilities that qualify pursuant to subsection (b)
295-(1) or (b)(2); and
296-(2) 10 years to facilities that qualify pursuant to subsection (b)(3).
297-(d)(e) (1) For discounts to facilities that qualify pursuant to SENATE BILL No. 98—page 6
298-subsection (b)(1), the average of the annual discount percentages shall
299-not exceed 20%, except that such discounts may be between 5% to 30%
300-in any year of such five-year period.
301-(2) For discounts to facilities that qualify pursuant to subsection
302-(b)(2), the average of the annual discount percentages shall not exceed
303-40%, except that such discounts may be between 20% and 50% in any
304-year of such five-year period.
305-(3) For discounts to facilities that qualify pursuant to subsection
306-(b)(3), the average of the annual discount percentages shall not exceed:
307-(A) For the first five years of the discount period, 40%, except that
308-such discounts may be between 20% to 50% in any year of such five-
309-year period; and
310-(B) for the final five years of the discount period, 20%, except that
311-such discounts may be between 10% and 30% in any year of such five-
312-year period.
313-(e)(f) (1) Except as provided in paragraph (2), on and after July 1,
314-2024, the difference in revenues generated by applying the discounted
315-rates authorized pursuant to this section and the revenues that would
316-have been generated without such discounts shall not be imputed into
317-the electric public utility's revenue requirement.
318-(2) Any reduction in revenue resulting from any discount provided
319-pursuant to this section that was tracked by the public utility and
320-deferred to a regulatory asset prior to July 1, 2024, shall be recoverable
321-in any general rate proceeding initiated on or after July 1, 2024,
322-through an equal percentage adjustment to the revenue requirement
323-responsibility for all customer classes of the public utility, including the
324-customer classes that include customers qualifying for discounts
325-pursuant to this section.
326-(f)(g) The provisions of this section shall not apply to rates for
327-service provided to customers under contract rates approved by the
328-commission pursuant to K.S.A. 2024 Supp. 66-101i, and amendments
329-thereto, or the commission's general ratemaking authority according to
330-custom and practice of the commission in place prior to the effective
331-date of this section.
332-(g)(h) Starting in January 2023, the commission shall biennially
333-provide a status report to the legislature about any discounts from
334-tariffed rates authorized pursuant to this section. Such report shall
335-include the:
336-(1) Number of entities with such discounts;
337-(2) number of entities with increased load;
338-(3) number of entities with decreased load;
339-(4) aggregate load and change in aggregate load on an annual
340-basis;
341-(5) total subsidy and the subsidy for each individual contract;
342-(6) annual and cumulative rate impact on non-contract rate
343-customers; and
344-(7) estimated economic development impact of entities with
345-discounted rates that occurred as a result of such discounts through an
346-evaluation of the annual: (A) Total employment for such entities; (B)
347-change in employment for such entities; and (C) tax revenue generated
348-by such entities.
349-(h)(i) An electric public utility shall be authorized to only
350-implement discounted rates for facilities that qualify for such
351-discounted rates pursuant to subsection (b)(3) until December 31, 2030,
352-except that, upon application by such public utility, the commission
353-may authorize the public utility to continue to implement such
354-discounted rates for facilities that qualify for such discounted rates
355-pursuant to subsection (b)(3) until December 31, 2036. Any such
356-application shall be filed with the commission on or before December SENATE BILL No. 98—page 7
357-31, 2028. The commission shall issue a determination on an application
358-filed pursuant to this subsection within 240 days of the date that such
359-application is filed. If requested by the public utility, an intervenor in
360-the application docket or commission staff, the commission shall hold a
361-hearing on such application. When considering and making a
362-determination upon such application, the commission may consider
363-factors that the commission deems just and reasonable and condition
364-the commission's determination on any factors that are relevant to the
365-discounted rates for facilities that qualify for such discounted rates
366-pursuant to subsection (b)(3). If the commission denies the public
367-utility's application, such denial shall only act to prohibit the public
368-utility from implementing discounted rates for facilities that qualify for
369-such discounted rates pursuant to subsection (b)(3) after December 31,
370-2030, and shall not otherwise affect or terminate any discounted rates
371-implemented by the public utility pursuant to this section or any
372-regulatory or ratemaking treatment of such discounted rates.
373-(i)(j) For the purposes of this section:
374-(1) "Electric public utility" means the same as defined in K.S.A.
375-66-101a, and amendments thereto, but does not include any such utility
376-that is a cooperative as defined in K.S.A. 66-104d, and amendments
377-thereto, or owned by one or more such cooperatives;
378-(2) "expanded facility" means a separately metered facility of the
379-customer, unless the utility determines that the additional costs of
380-separate metering of such facility would exceed the associated benefits
381-or that it would be difficult or impractical to install or read the meter,
382-that has not received service in the electric utility's certified service
383-territory in the previous 12 months; and
384-(3) "new facility" means a building of the customer that has not
385-received electric service in the electric utility's certified service territory
386-in the previous 12 months.
387-Sec. 6. K.S.A. 2024 Supp. 79-3606 is hereby amended to read as
388-follows: 79-3606. The following shall be exempt from the tax imposed
389-by this act:
390-(a) All sales of motor-vehicle fuel or other articles upon which a
391-sales or excise tax has been paid, not subject to refund, under the laws
392-of this state except cigarettes and electronic cigarettes as defined by
393-K.S.A. 79-3301, and amendments thereto, including consumable
394-material for such electronic cigarettes, cereal malt beverages and malt
395-products as defined by K.S.A. 79-3817, and amendments thereto,
396-including wort, liquid malt, malt syrup and malt extract, that is not
397-subject to taxation under the provisions of K.S.A. 79-41a02, and
398-amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117,
399-and amendments thereto, tires taxed pursuant to K.S.A. 65-3424d, and
400-amendments thereto, drycleaning and laundry services taxed pursuant
401-to K.S.A. 65-34,150, and amendments thereto, and gross receipts from
402-regulated sports contests taxed pursuant to the Kansas professional
403-regulated sports act, and amendments thereto;
404-(b) all sales of tangible personal property or service, including the
405-renting and leasing of tangible personal property, purchased directly by
406-the state of Kansas, a political subdivision thereof, other than a school
407-or educational institution, or purchased by a public or private nonprofit
408-hospital, public hospital authority, nonprofit blood, tissue or organ bank
409-or nonprofit integrated community care organization and used
410-exclusively for state, political subdivision, hospital, public hospital
411-authority, nonprofit blood, tissue or organ bank or nonprofit integrated
412-community care organization purposes, except when: (1) Such state,
413-hospital or public hospital authority is engaged or proposes to engage
414-in any business specifically taxable under the provisions of this act and
415-such items of tangible personal property or service are used or SENATE BILL No. 98—page 8
416-proposed to be used in such business; or (2) such political subdivision
417-is engaged or proposes to engage in the business of furnishing gas,
418-electricity or heat to others and such items of personal property or
419-service are used or proposed to be used in such business;
420-(c) all sales of tangible personal property or services, including the
421-renting and leasing of tangible personal property, purchased directly by
422-a public or private elementary or secondary school or public or private
423-nonprofit educational institution and used primarily by such school or
424-institution for nonsectarian programs and activities provided or
425-sponsored by such school or institution or in the erection, repair or
426-enlargement of buildings to be used for such purposes. The exemption
427-herein provided shall not apply to erection, construction, repair,
428-enlargement or equipment of buildings used primarily for human
429-habitation, except that such exemption shall apply to the erection,
430-construction, repair, enlargement or equipment of buildings used for
431-human habitation by the cerebral palsy research foundation of Kansas
432-located in Wichita, Kansas, multi community diversified services,
433-incorporated, located in McPherson, Kansas, the Kansas state school
434-for the blind and the Kansas state school for the deaf;
435-(d) all sales of tangible personal property or services purchased by
436-a contractor for the purpose of constructing, equipping, reconstructing,
437-maintaining, repairing, enlarging, furnishing or remodeling facilities for
438-any public or private nonprofit hospital or public hospital authority,
439-public or private elementary or secondary school, a public or private
440-nonprofit educational institution, state correctional institution including
441-a privately constructed correctional institution contracted for state use
442-and ownership, that would be exempt from taxation under the
443-provisions of this act if purchased directly by such hospital or public
444-hospital authority, school, educational institution or a state correctional
445-institution; and all sales of tangible personal property or services
446-purchased by a contractor for the purpose of constructing, equipping,
447-reconstructing, maintaining, repairing, enlarging, furnishing or
448-remodeling facilities for any political subdivision of the state or district
449-described in subsection (s), the total cost of which is paid from funds of
450-such political subdivision or district and that would be exempt from
451-taxation under the provisions of this act if purchased directly by such
452-political subdivision or district. Nothing in this subsection or in the
453-provisions of K.S.A. 12-3418, and amendments thereto, shall be
454-deemed to exempt the purchase of any construction machinery,
455-equipment or tools used in the constructing, equipping, reconstructing,
456-maintaining, repairing, enlarging, furnishing or remodeling facilities for
457-any political subdivision of the state or any such district. As used in this
458-subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto,
459-"funds of a political subdivision" shall mean general tax revenues, the
460-proceeds of any bonds and gifts or grants-in-aid. Gifts shall not mean
461-funds used for the purpose of constructing, equipping, reconstructing,
462-repairing, enlarging, furnishing or remodeling facilities that are to be
463-leased to the donor. When any political subdivision of the state, district
464-described in subsection (s), public or private nonprofit hospital or
465-public hospital authority, public or private elementary or secondary
466-school, public or private nonprofit educational institution, state
467-correctional institution including a privately constructed correctional
468-institution contracted for state use and ownership shall contract for the
469-purpose of constructing, equipping, reconstructing, maintaining,
470-repairing, enlarging, furnishing or remodeling facilities, it shall obtain
471-from the state and furnish to the contractor an exemption certificate for
472-the project involved, and the contractor may purchase materials for
473-incorporation in such project. The contractor shall furnish the number
474-of such certificate to all suppliers from whom such purchases are made, SENATE BILL No. 98—page 9
475-and such suppliers shall execute invoices covering the same bearing the
476-number of such certificate. Upon completion of the project the
477-contractor shall furnish to the political subdivision, district described in
478-subsection (s), hospital or public hospital authority, school, educational
479-institution or department of corrections concerned a sworn statement,
480-on a form to be provided by the director of taxation, that all purchases
481-so made were entitled to exemption under this subsection. As an
482-alternative to the foregoing procedure, any such contracting entity may
483-apply to the secretary of revenue for agent status for the sole purpose of
484-issuing and furnishing project exemption certificates to contractors
485-pursuant to rules and regulations adopted by the secretary establishing
486-conditions and standards for the granting and maintaining of such
487-status. All invoices shall be held by the contractor for a period of five
488-years and shall be subject to audit by the director of taxation. If any
489-materials purchased under such a certificate are found not to have been
490-incorporated in the building or other project or not to have been
491-returned for credit or the sales or compensating tax otherwise imposed
492-upon such materials that will not be so incorporated in the building or
493-other project reported and paid by such contractor to the director of
494-taxation not later than the 20
495-th
496- day of the month following the close of
497-the month in which it shall be determined that such materials will not
498-be used for the purpose for which such certificate was issued, the
499-political subdivision, district described in subsection (s), hospital or
500-public hospital authority, school, educational institution or the
501-contractor contracting with the department of corrections for a
502-correctional institution concerned shall be liable for tax on all materials
503-purchased for the project, and upon payment thereof it may recover the
504-same from the contractor together with reasonable attorney fees. Any
505-contractor or any agent, employee or subcontractor thereof, who shall
506-use or otherwise dispose of any materials purchased under such a
507-certificate for any purpose other than that for which such a certificate is
508-issued without the payment of the sales or compensating tax otherwise
509-imposed upon such materials, shall be guilty of a misdemeanor and,
510-upon conviction therefor, shall be subject to the penalties provided for
511-in K.S.A. 79-3615(h), and amendments thereto;
512-(e) all sales of tangible personal property or services purchased by
513-a contractor for the erection, repair or enlargement of buildings or other
514-projects for the government of the United States, its agencies or
515-instrumentalities, that would be exempt from taxation if purchased
516-directly by the government of the United States, its agencies or
517-instrumentalities. When the government of the United States, its
518-agencies or instrumentalities shall contract for the erection, repair, or
519-enlargement of any building or other project, it shall obtain from the
520-state and furnish to the contractor an exemption certificate for the
521-project involved, and the contractor may purchase materials for
522-incorporation in such project. The contractor shall furnish the number
523-of such certificates to all suppliers from whom such purchases are
524-made, and such suppliers shall execute invoices covering the same
525-bearing the number of such certificate. Upon completion of the project
526-the contractor shall furnish to the government of the United States, its
527-agencies or instrumentalities concerned a sworn statement, on a form to
528-be provided by the director of taxation, that all purchases so made were
529-entitled to exemption under this subsection. As an alternative to the
530-foregoing procedure, any such contracting entity may apply to the
531-secretary of revenue for agent status for the sole purpose of issuing and
532-furnishing project exemption certificates to contractors pursuant to
533-rules and regulations adopted by the secretary establishing conditions
534-and standards for the granting and maintaining of such status. All
535-invoices shall be held by the contractor for a period of five years and SENATE BILL No. 98—page 10
536-shall be subject to audit by the director of taxation. Any contractor or
537-any agent, employee or subcontractor thereof, who shall use or
538-otherwise dispose of any materials purchased under such a certificate
539-for any purpose other than that for which such a certificate is issued
540-without the payment of the sales or compensating tax otherwise
541-imposed upon such materials, shall be guilty of a misdemeanor and,
542-upon conviction therefor, shall be subject to the penalties provided for
543-in K.S.A. 79-3615(h), and amendments thereto;
544-(f) tangible personal property purchased by a railroad or public
545-utility for consumption or movement directly and immediately in
546-interstate commerce;
547-(g) sales of aircraft including remanufactured and modified
548-aircraft sold to persons using directly or through an authorized agent
549-such aircraft as certified or licensed carriers of persons or property in
550-interstate or foreign commerce under authority of the laws of the
551-United States or any foreign government or sold to any foreign
552-government or agency or instrumentality of such foreign government
553-and all sales of aircraft for use outside of the United States and sales of
554-aircraft repair, modification and replacement parts and sales of services
555-employed in the remanufacture, modification and repair of aircraft;
556-(h) all rentals of nonsectarian textbooks by public or private
557-elementary or secondary schools;
558-(i) the lease or rental of all films, records, tapes, or any type of
559-sound or picture transcriptions used by motion picture exhibitors;
560-(j) meals served without charge or food used in the preparation of
561-such meals to employees of any restaurant, eating house, dining car,
562-hotel, drugstore or other place where meals or drinks are regularly sold
563-to the public if such employees' duties are related to the furnishing or
564-sale of such meals or drinks;
565-(k) any motor vehicle, semitrailer or pole trailer, as such terms are
566-defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
567-delivered in this state to a bona fide resident of another state, which
568-motor vehicle, semitrailer, pole trailer or aircraft is not to be registered
569-or based in this state and which vehicle, semitrailer, pole trailer or
570-aircraft will not remain in this state more than 10 days;
571-(l) all isolated or occasional sales of tangible personal property,
572-services, substances or things, except isolated or occasional sale of
573-motor vehicles specifically taxed under the provisions of K.S.A. 79-
574-3603(o), and amendments thereto;
575-(m) all sales of tangible personal property that become an
576-ingredient or component part of tangible personal property or services
577-produced, manufactured or compounded for ultimate sale at retail
578-within or without the state of Kansas; and any such producer,
579-manufacturer or compounder may obtain from the director of taxation
580-and furnish to the supplier an exemption certificate number for tangible
581-personal property for use as an ingredient or component part of the
582-property or services produced, manufactured or compounded;
583-(n) all sales of tangible personal property that is consumed in the
584-production, manufacture, processing, mining, drilling, refining or
585-compounding of tangible personal property, the treating of by-products
586-or wastes derived from any such production process, the providing of
587-services or the irrigation of crops for ultimate sale at retail within or
588-without the state of Kansas; and any purchaser of such property may
589-obtain from the director of taxation and furnish to the supplier an
590-exemption certificate number for tangible personal property for
591-consumption in such production, manufacture, processing, mining,
592-drilling, refining, compounding, treating, irrigation and in providing
593-such services;
594-(o) all sales of animals, fowl and aquatic plants and animals, the SENATE BILL No. 98—page 11
595-primary purpose of which is use in agriculture or aquaculture, as
596-defined in K.S.A. 47-1901, and amendments thereto, the production of
597-food for human consumption, the production of animal, dairy, poultry
598-or aquatic plant and animal products, fiber or fur, or the production of
599-offspring for use for any such purpose or purposes;
600-(p) all sales of drugs dispensed pursuant to a prescription order by
601-a licensed practitioner or a mid-level practitioner as defined by K.S.A.
602-65-1626, and amendments thereto. As used in this subsection, "drug"
603-means a compound, substance or preparation and any component of a
604-compound, substance or preparation, other than food and food
605-ingredients, dietary supplements or alcoholic beverages, recognized in
606-the official United States pharmacopeia, official homeopathic
607-pharmacopoeia of the United States or official national formulary, and
608-supplement to any of them, intended for use in the diagnosis, cure,
609-mitigation, treatment or prevention of disease or intended to affect the
610-structure or any function of the body, except that for taxable years
611-commencing after December 31, 2013, this subsection shall not apply
612-to any sales of drugs used in the performance or induction of an
613-abortion, as defined in K.S.A. 65-6701, and amendments thereto;
614-(q) all sales of insulin dispensed by a person licensed by the state
615-board of pharmacy to a person for treatment of diabetes at the direction
616-of a person licensed to practice medicine by the state board of healing
617-arts;
618-(r) all sales of oxygen delivery equipment, kidney dialysis
619-equipment, enteral feeding systems, prosthetic devices and mobility
620-enhancing equipment prescribed in writing by a person licensed to
621-practice the healing arts, dentistry or optometry, and in addition to such
622-sales, all sales of hearing aids, as defined by K.S.A. 74-5807(c), and
623-amendments thereto, and repair and replacement parts therefor,
624-including batteries, by a person licensed in the practice of dispensing
625-and fitting hearing aids pursuant to the provisions of K.S.A. 74-5808,
626-and amendments thereto. For the purposes of this subsection: (1)
627-"Mobility enhancing equipment" means equipment including repair and
628-replacement parts to same, but does not include durable medical
629-equipment, which is primarily and customarily used to provide or
630-increase the ability to move from one place to another and which is
631-appropriate for use either in a home or a motor vehicle; is not generally
632-used by persons with normal mobility; and does not include any motor
633-vehicle or equipment on a motor vehicle normally provided by a motor
634-vehicle manufacturer; and (2) "prosthetic device" means a replacement,
635-corrective or supportive device including repair and replacement parts
636-for same worn on or in the body to artificially replace a missing portion
637-of the body, prevent or correct physical deformity or malfunction or
638-support a weak or deformed portion of the body;
639-(s) except as provided in K.S.A. 82a-2101, and amendments
640-thereto, all sales of tangible personal property or services purchased
641-directly or indirectly by a groundwater management district organized
642-or operating under the authority of K.S.A. 82a-1020 et seq., and
643-amendments thereto, by a rural water district organized or operating
644-under the authority of K.S.A. 82a-612, and amendments thereto, or by a
645-water supply district organized or operating under the authority of
646-K.S.A. 19-3501 et seq., 19-3522 et seq. or 19-3545, and amendments
647-thereto, which property or services are used in the construction
648-activities, operation or maintenance of the district;
649-(t) all sales of farm machinery and equipment or aquaculture
650-machinery and equipment, repair and replacement parts therefor and
651-services performed in the repair and maintenance of such machinery
652-and equipment. For the purposes of this subsection the term "farm
653-machinery and equipment or aquaculture machinery and equipment" SENATE BILL No. 98—page 12
654-shall include a work-site utility vehicle, as defined in K.S.A. 8-126, and
655-amendments thereto, and is equipped with a bed or cargo box for
656-hauling materials, and shall also include machinery and equipment used
657-in the operation of Christmas tree farming but shall not include any
658-passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer,
659-other than a farm trailer, as such terms are defined by K.S.A. 8-126,
660-and amendments thereto. "Farm machinery and equipment" includes
661-precision farming equipment that is portable or is installed or purchased
662-to be installed on farm machinery and equipment. "Precision farming
663-equipment" includes the following items used only in computer-
664-assisted farming, ranching or aquaculture production operations: Soil
665-testing sensors, yield monitors, computers, monitors, software, global
666-positioning and mapping systems, guiding systems, modems, data
667-communications equipment and any necessary mounting hardware,
668-wiring and antennas. Each purchaser of farm machinery and equipment
669-or aquaculture machinery and equipment exempted herein must certify
670-in writing on the copy of the invoice or sales ticket to be retained by the
671-seller that the farm machinery and equipment or aquaculture machinery
672-and equipment purchased will be used only in farming, ranching or
673-aquaculture production. Farming or ranching shall include the operation
674-of a feedlot and farm and ranch work for hire and the operation of a
675-nursery;
676-(u) all leases or rentals of tangible personal property used as a
677-dwelling if such tangible personal property is leased or rented for a
678-period of more than 28 consecutive days;
679-(v) all sales of tangible personal property to any contractor for use
680-in preparing meals for delivery to homebound elderly persons over 60
681-years of age and to homebound disabled persons or to be served at a
682-group-sitting at a location outside of the home to otherwise homebound
683-elderly persons over 60 years of age and to otherwise homebound
684-disabled persons, as all or part of any food service project funded in
685-whole or in part by government or as part of a private nonprofit food
686-service project available to all such elderly or disabled persons residing
687-within an area of service designated by the private nonprofit
688-organization, and all sales of tangible personal property for use in
689-preparing meals for consumption by indigent or homeless individuals
690-whether or not such meals are consumed at a place designated for such
691-purpose, and all sales of food products by or on behalf of any such
692-contractor or organization for any such purpose;
693-(w) all sales of natural gas, electricity, heat and water delivered
694-through mains, lines or pipes: (1) To residential premises for
695-noncommercial use by the occupant of such premises; (2) for
696-agricultural use and also, for such use, all sales of propane gas; (3) for
697-use in the severing of oil; and (4) to any property which is exempt from
698-property taxation pursuant to K.S.A. 79-201b, Second through Sixth.
699-As used in this paragraph, "severing" means the same as defined in
700-K.S.A. 79-4216(k), and amendments thereto. For all sales of natural
701-gas, electricity and heat delivered through mains, lines or pipes
702-pursuant to the provisions of subsection (w)(1) and (w)(2), the
703-provisions of this subsection shall expire on December 31, 2005;
704-(x) all sales of propane gas, LP-gas, coal, wood and other fuel
705-sources for the production of heat or lighting for noncommercial use of
706-an occupant of residential premises occurring prior to January 1, 2006;
707-(y) all sales of materials and services used in the repairing,
708-servicing, altering, maintaining, manufacturing, remanufacturing, or
709-modification of railroad rolling stock for use in interstate or foreign
710-commerce under authority of the laws of the United States;
711-(z) all sales of tangible personal property and services purchased
712-directly by a port authority or by a contractor therefor as provided by SENATE BILL No. 98—page 13
713-the provisions of K.S.A. 12-3418, and amendments thereto;
714-(aa) all sales of materials and services applied to equipment that is
715-transported into the state from without the state for repair, service,
716-alteration, maintenance, remanufacture or modification and that is
717-subsequently transported outside the state for use in the transmission of
718-liquids or natural gas by means of pipeline in interstate or foreign
719-commerce under authority of the laws of the United States;
720-(bb) all sales of used mobile homes or manufactured homes. As
721-used in this subsection: (1) "Mobile homes" and "manufactured homes"
722-mean the same as defined in K.S.A. 58-4202, and amendments thereto;
723-and (2) "sales of used mobile homes or manufactured homes" means
724-sales other than the original retail sale thereof;
725-(cc) all sales of tangible personal property or services purchased
726-prior to January 1, 2012, except as otherwise provided, for the purpose
727-of and in conjunction with constructing, reconstructing, enlarging or
728-remodeling a business or retail business that meets the requirements
729-established in K.S.A. 74-50,115, and amendments thereto, and the sale
730-and installation of machinery and equipment purchased for installation
731-at any such business or retail business, and all sales of tangible personal
732-property or services purchased on or after January 1, 2012, for the
733-purpose of and in conjunction with constructing, reconstructing,
734-enlarging or remodeling a business that meets the requirements
735-established in K.S.A. 74-50,115(e), and amendments thereto, and the
736-sale and installation of machinery and equipment purchased for
737-installation at any such business. When a person shall contract for the
738-construction, reconstruction, enlargement or remodeling of any such
739-business or retail business, such person shall obtain from the state and
740-furnish to the contractor an exemption certificate for the project
741-involved, and the contractor may purchase materials, machinery and
742-equipment for incorporation in such project. The contractor shall
743-furnish the number of such certificates to all suppliers from whom such
744-purchases are made, and such suppliers shall execute invoices covering
745-the same bearing the number of such certificate. Upon completion of
746-the project the contractor shall furnish to the owner of the business or
747-retail business a sworn statement, on a form to be provided by the
748-director of taxation, that all purchases so made were entitled to
749-exemption under this subsection. All invoices shall be held by the
750-contractor for a period of five years and shall be subject to audit by the
751-director of taxation. Any contractor or any agent, employee or
752-subcontractor thereof, who shall use or otherwise dispose of any
753-materials, machinery or equipment purchased under such a certificate
754-for any purpose other than that for which such a certificate is issued
755-without the payment of the sales or compensating tax otherwise
756-imposed thereon, shall be guilty of a misdemeanor and, upon
757-conviction therefor, shall be subject to the penalties provided for in
758-K.S.A. 79-3615(h), and amendments thereto. As used in this
759-subsection, "business" and "retail business" mean the same as defined
760-in K.S.A. 74-50,114, and amendments thereto. Project exemption
761-certificates that have been previously issued under this subsection by
762-the department of revenue pursuant to K.S.A. 74-50,115, and
763-amendments thereto, but not including K.S.A. 74-50,115(e), and
764-amendments thereto, prior to January 1, 2012, and have not expired
765-will be effective for the term of the project or two years from the
766-effective date of the certificate, whichever occurs earlier. Project
767-exemption certificates that are submitted to the department of revenue
768-prior to January 1, 2012, and are found to qualify will be issued a
769-project exemption certificate that will be effective for a two-year period
770-or for the term of the project, whichever occurs earlier;
771-(dd) all sales of tangible personal property purchased with food SENATE BILL No. 98—page 14
772-stamps issued by the United States department of agriculture;
773-(ee) all sales of lottery tickets and shares made as part of a lottery
774-operated by the state of Kansas;
775-(ff) on and after July 1, 1988, all sales of new mobile homes or
776-manufactured homes to the extent of 40% of the gross receipts,
777-determined without regard to any trade-in allowance, received from
778-such sale. As used in this subsection, "mobile homes" and
779-"manufactured homes" mean the same as defined in K.S.A. 58-4202,
780-and amendments thereto;
781-(gg) all sales of tangible personal property purchased in
782-accordance with vouchers issued pursuant to the federal special
783-supplemental food program for women, infants and children;
784-(hh) all sales of medical supplies and equipment, including
785-durable medical equipment, purchased directly by a nonprofit skilled
786-nursing home or nonprofit intermediate nursing care home, as defined
787-by K.S.A. 39-923, and amendments thereto, for the purpose of
788-providing medical services to residents thereof. This exemption shall
789-not apply to tangible personal property customarily used for human
790-habitation purposes. As used in this subsection, "durable medical
791-equipment" means equipment including repair and replacement parts
792-for such equipment, that can withstand repeated use, is primarily and
793-customarily used to serve a medical purpose, generally is not useful to a
794-person in the absence of illness or injury and is not worn in or on the
795-body, but does not include mobility enhancing equipment as defined in
796-subsection (r), oxygen delivery equipment, kidney dialysis equipment
797-or enteral feeding systems;
798-(ii) all sales of tangible personal property purchased directly by a
799-nonprofit organization for nonsectarian comprehensive multidiscipline
800-youth development programs and activities provided or sponsored by
801-such organization, and all sales of tangible personal property by or on
802-behalf of any such organization. This exemption shall not apply to
803-tangible personal property customarily used for human habitation
804-purposes;
805-(jj) all sales of tangible personal property or services, including
806-the renting and leasing of tangible personal property, purchased directly
807-on behalf of a community-based facility for people with intellectual
808-disability or mental health center organized pursuant to K.S.A. 19-4001
809-et seq., and amendments thereto, and licensed in accordance with the
810-provisions of K.S.A. 39-2001 et seq., and amendments thereto, and all
811-sales of tangible personal property or services purchased by contractors
812-during the time period from July, 2003, through June, 2006, for the
813-purpose of constructing, equipping, maintaining or furnishing a new
814-facility for a community-based facility for people with intellectual
815-disability or mental health center located in Riverton, Cherokee County,
816-Kansas, that would have been eligible for sales tax exemption pursuant
817-to this subsection if purchased directly by such facility or center. This
818-exemption shall not apply to tangible personal property customarily
819-used for human habitation purposes;
820-(kk) (1) (A) all sales of machinery and equipment that are used in
821-this state as an integral or essential part of an integrated production
822-operation by a manufacturing or processing plant or facility;
823-(B) all sales of installation, repair and maintenance services
824-performed on such machinery and equipment; and
825-(C) all sales of repair and replacement parts and accessories
826-purchased for such machinery and equipment.
827-(2) For purposes of this subsection:
828-(A) "Integrated production operation" means an integrated series
829-of operations engaged in at a manufacturing or processing plant or
830-facility to process, transform or convert tangible personal property by SENATE BILL No. 98—page 15
831-physical, chemical or other means into a different form, composition or
832-character from that in which it originally existed. Integrated production
833-operations shall include: (i) Production line operations, including
834-packaging operations; (ii) preproduction operations to handle, store and
835-treat raw materials; (iii) post production handling, storage, warehousing
836-and distribution operations; and (iv) waste, pollution and environmental
837-control operations, if any;
838-(B) "production line" means the assemblage of machinery and
839-equipment at a manufacturing or processing plant or facility where the
840-actual transformation or processing of tangible personal property
841-occurs;
842-(C) "manufacturing or processing plant or facility" means a single,
843-fixed location owned or controlled by a manufacturing or processing
844-business that consists of one or more structures or buildings in a
845-contiguous area where integrated production operations are conducted
846-to manufacture or process tangible personal property to be ultimately
847-sold at retail. Such term shall not include any facility primarily
848-operated for the purpose of conveying or assisting in the conveyance of
849-natural gas, electricity, oil or water. A business may operate one or
850-more manufacturing or processing plants or facilities at different
851-locations to manufacture or process a single product of tangible
852-personal property to be ultimately sold at retail;
853-(D) "manufacturing or processing business" means a business that
854-utilizes an integrated production operation to manufacture, process,
855-fabricate, finish or assemble items for wholesale and retail distribution
856-as part of what is commonly regarded by the general public as an
857-industrial manufacturing or processing operation or an agricultural
858-commodity processing operation. (i) Industrial manufacturing or
859-processing operations include, by way of illustration but not of
860-limitation, the fabrication of automobiles, airplanes, machinery or
861-transportation equipment, the fabrication of metal, plastic, wood or
862-paper products, electricity power generation, water treatment,
863-petroleum refining, chemical production, wholesale bottling, newspaper
864-printing, ready mixed concrete production, and the remanufacturing of
865-used parts for wholesale or retail sale. Such processing operations shall
866-include operations at an oil well, gas well, mine or other excavation site
867-where the oil, gas, minerals, coal, clay, stone, sand or gravel that has
868-been extracted from the earth is cleaned, separated, crushed, ground,
869-milled, screened, washed or otherwise treated or prepared before its
870-transmission to a refinery or before any other wholesale or retail
871-distribution. (ii) Agricultural commodity processing operations include,
872-by way of illustration but not of limitation, meat packing, poultry
873-slaughtering and dressing, processing and packaging farm and dairy
874-products in sealed containers for wholesale and retail distribution, feed
875-grinding, grain milling, frozen food processing, and grain handling,
876-cleaning, blending, fumigation, drying and aeration operations engaged
877-in by grain elevators or other grain storage facilities. (iii)
878-Manufacturing or processing businesses do not include, by way of
879-illustration but not of limitation, nonindustrial businesses whose
880-operations are primarily retail and that produce or process tangible
881-personal property as an incidental part of conducting the retail business,
882-such as retailers who bake, cook or prepare food products in the regular
883-course of their retail trade, grocery stores, meat lockers and meat
884-markets that butcher or dress livestock or poultry in the regular course
885-of their retail trade, contractors who alter, service, repair or improve
886-real property, and retail businesses that clean, service or refurbish and
887-repair tangible personal property for its owner;
888-(E) "repair and replacement parts and accessories" means all parts
889-and accessories for exempt machinery and equipment, including, but SENATE BILL No. 98—page 16
890-not limited to, dies, jigs, molds, patterns and safety devices that are
891-attached to exempt machinery or that are otherwise used in production,
892-and parts and accessories that require periodic replacement such as
893-belts, drill bits, grinding wheels, grinding balls, cutting bars, saws,
894-refractory brick and other refractory items for exempt kiln equipment
895-used in production operations;
896-(F) "primary" or "primarily" mean more than 50% of the time.
897-(3) For purposes of this subsection, machinery and equipment
898-shall be deemed to be used as an integral or essential part of an
899-integrated production operation when used to:
900-(A) Receive, transport, convey, handle, treat or store raw materials
901-in preparation of its placement on the production line;
902-(B) transport, convey, handle or store the property undergoing
903-manufacturing or processing at any point from the beginning of the
904-production line through any warehousing or distribution operation of
905-the final product that occurs at the plant or facility;
906-(C) act upon, effect, promote or otherwise facilitate a physical
907-change to the property undergoing manufacturing or processing;
908-(D) guide, control or direct the movement of property undergoing
909-manufacturing or processing;
910-(E) test or measure raw materials, the property undergoing
911-manufacturing or processing or the finished product, as a necessary part
912-of the manufacturer's integrated production operations;
913-(F) plan, manage, control or record the receipt and flow of
914-inventories of raw materials, consumables and component parts, the
915-flow of the property undergoing manufacturing or processing and the
916-management of inventories of the finished product;
917-(G) produce energy for, lubricate, control the operating of or
918-otherwise enable the functioning of other production machinery and
919-equipment and the continuation of production operations;
920-(H) package the property being manufactured or processed in a
921-container or wrapping in which such property is normally sold or
922-transported;
923-(I) transmit or transport electricity, coke, gas, water, steam or
924-similar substances used in production operations from the point of
925-generation, if produced by the manufacturer or processor at the plant
926-site, to that manufacturer's production operation; or, if purchased or
927-delivered from off-site, from the point where the substance enters the
928-site of the plant or facility to that manufacturer's production operations;
929-(J) cool, heat, filter, refine or otherwise treat water, steam, acid,
930-oil, solvents or other substances that are used in production operations;
931-(K) provide and control an environment required to maintain
932-certain levels of air quality, humidity or temperature in special and
933-limited areas of the plant or facility, where such regulation of
934-temperature or humidity is part of and essential to the production
935-process;
936-(L) treat, transport or store waste or other byproducts of
937-production operations at the plant or facility; or
938-(M) control pollution at the plant or facility where the pollution is
939-produced by the manufacturing or processing operation.
940-(4) The following machinery, equipment and materials shall be
941-deemed to be exempt even though it may not otherwise qualify as
942-machinery and equipment used as an integral or essential part of an
943-integrated production operation: (A) Computers and related peripheral
944-equipment that are utilized by a manufacturing or processing business
945-for engineering of the finished product or for research and development
946-or product design; (B) machinery and equipment that is utilized by a
947-manufacturing or processing business to manufacture or rebuild
948-tangible personal property that is used in manufacturing or processing SENATE BILL No. 98—page 17
949-operations, including tools, dies, molds, forms and other parts of
950-qualifying machinery and equipment; (C) portable plants for aggregate
951-concrete, bulk cement and asphalt including cement mixing drums to be
952-attached to a motor vehicle; (D) industrial fixtures, devices, support
953-facilities and special foundations necessary for manufacturing and
954-production operations, and materials and other tangible personal
955-property sold for the purpose of fabricating such fixtures, devices,
956-facilities and foundations. An exemption certificate for such purchases
957-shall be signed by the manufacturer or processor. If the fabricator
958-purchases such material, the fabricator shall also sign the exemption
959-certificate; (E) a manufacturing or processing business' laboratory
960-equipment that is not located at the plant or facility, but that would
961-otherwise qualify for exemption under subsection (3)(E); (F) all
962-machinery and equipment used in surface mining activities as described
963-in K.S.A. 49-601 et seq., and amendments thereto, beginning from the
964-time a reclamation plan is filed to the acceptance of the completed final
965-site reclamation.
966-(5) "Machinery and equipment used as an integral or essential part
967-of an integrated production operation" shall not include:
968-(A) Machinery and equipment used for nonproduction purposes,
969-including, but not limited to, machinery and equipment used for plant
970-security, fire prevention, first aid, accounting, administration, record
971-keeping, advertising, marketing, sales or other related activities, plant
972-cleaning, plant communications and employee work scheduling;
973-(B) machinery, equipment and tools used primarily in maintaining
974-and repairing any type of machinery and equipment or the building and
975-plant;
976-(C) transportation, transmission and distribution equipment not
977-primarily used in a production, warehousing or material handling
978-operation at the plant or facility, including the means of conveyance of
979-natural gas, electricity, oil or water, and equipment related thereto,
980-located outside the plant or facility;
981-(D) office machines and equipment including computers and
982-related peripheral equipment not used directly and primarily to control
983-or measure the manufacturing process;
984-(E) furniture and other furnishings;
985-(F) buildings, other than exempt machinery and equipment that is
986-permanently affixed to or becomes a physical part of the building, and
987-any other part of real estate that is not otherwise exempt;
988-(G) building fixtures that are not integral to the manufacturing
989-operation, such as utility systems for heating, ventilation, air
990-conditioning, communications, plumbing or electrical;
991-(H) machinery and equipment used for general plant heating,
992-cooling and lighting;
993-(I) motor vehicles that are registered for operation on public
994-highways; or
995-(J) employee apparel, except safety and protective apparel that is
996-purchased by an employer and furnished gratuitously to employees
997-who are involved in production or research activities.
998-(6) Paragraphs (3) and (5) shall not be construed as exclusive
999-listings of the machinery and equipment that qualify or do not qualify
1000-as an integral or essential part of an integrated production operation.
1001-When machinery or equipment is used as an integral or essential part of
1002-production operations part of the time and for nonproduction purposes
1003-at other times, the primary use of the machinery or equipment shall
1004-determine whether or not such machinery or equipment qualifies for
1005-exemption.
1006-(7) The secretary of revenue shall adopt rules and regulations
1007-necessary to administer the provisions of this subsection; SENATE BILL No. 98—page 18
1008-(ll) all sales of educational materials purchased for distribution to
1009-the public at no charge by a nonprofit corporation organized for the
1010-purpose of encouraging, fostering and conducting programs for the
1011-improvement of public health, except that for taxable years
1012-commencing after December 31, 2013, this subsection shall not apply
1013-to any sales of such materials purchased by a nonprofit corporation
1014-which performs any abortion, as defined in K.S.A. 65-6701, and
1015-amendments thereto;
1016-(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
1017-herbicides, germicides, pesticides and fungicides; and services,
1018-purchased and used for the purpose of producing plants in order to
1019-prevent soil erosion on land devoted to agricultural use;
1020-(nn) except as otherwise provided in this act, all sales of services
1021-rendered by an advertising agency or licensed broadcast station or any
1022-member, agent or employee thereof;
1023-(oo) all sales of tangible personal property purchased by a
1024-community action group or agency for the exclusive purpose of
1025-repairing or weatherizing housing occupied by low-income individuals;
1026-(pp) all sales of drill bits and explosives actually utilized in the
1027-exploration and production of oil or gas;
1028-(qq) all sales of tangible personal property and services purchased
1029-by a nonprofit museum or historical society or any combination thereof,
1030-including a nonprofit organization that is organized for the purpose of
1031-stimulating public interest in the exploration of space by providing
1032-educational information, exhibits and experiences, that is exempt from
1033-federal income taxation pursuant to section 501(c)(3) of the federal
1034-internal revenue code of 1986;
1035-(rr) all sales of tangible personal property that will admit the
1036-purchaser thereof to any annual event sponsored by a nonprofit
1037-organization that is exempt from federal income taxation pursuant to
1038-section 501(c)(3) of the federal internal revenue code of 1986, except
1039-that for taxable years commencing after December 31, 2013, this
1040-subsection shall not apply to any sales of such tangible personal
1041-property purchased by a nonprofit organization which performs any
1042-abortion, as defined in K.S.A. 65-6701, and amendments thereto;
1043-(ss) all sales of tangible personal property and services purchased
1044-by a public broadcasting station licensed by the federal
1045-communications commission as a noncommercial educational
1046-television or radio station;
1047-(tt) all sales of tangible personal property and services purchased
1048-by or on behalf of a not-for-profit corporation that is exempt from
1049-federal income taxation pursuant to section 501(c)(3) of the federal
1050-internal revenue code of 1986, for the sole purpose of constructing a
1051-Kansas Korean War memorial;
1052-(uu) all sales of tangible personal property and services purchased
1053-by or on behalf of any rural volunteer fire-fighting organization for use
1054-exclusively in the performance of its duties and functions;
1055-(vv) all sales of tangible personal property purchased by any of the
1056-following organizations that are exempt from federal income taxation
1057-pursuant to section 501(c)(3) of the federal internal revenue code of
1058-1986, for the following purposes, and all sales of any such property by
1059-or on behalf of any such organization for any such purpose:
1060-(1) The American heart association, Kansas affiliate, inc. for the
1061-purposes of providing education, training, certification in emergency
1062-cardiac care, research and other related services to reduce disability and
1063-death from cardiovascular diseases and stroke;
1064-(2) the Kansas alliance for the mentally ill, inc. for the purpose of
1065-advocacy for persons with mental illness and to education, research and
1066-support for their families; SENATE BILL No. 98—page 19
1067-(3) the Kansas mental illness awareness council for the purposes
1068-of advocacy for persons who are mentally ill and for education,
1069-research and support for them and their families;
1070-(4) the American diabetes association Kansas affiliate, inc. for the
1071-purpose of eliminating diabetes through medical research, public
1072-education focusing on disease prevention and education, patient
1073-education including information on coping with diabetes, and
1074-professional education and training;
1075-(5) the American lung association of Kansas, inc. for the purpose
1076-of eliminating all lung diseases through medical research, public
1077-education including information on coping with lung diseases,
1078-professional education and training related to lung disease and other
1079-related services to reduce the incidence of disability and death due to
1080-lung disease;
1081-(6) the Kansas chapters of the Alzheimer's disease and related
1082-disorders association, inc. for the purpose of providing assistance and
1083-support to persons in Kansas with Alzheimer's disease, and their
1084-families and caregivers;
1085-(7) the Kansas chapters of the Parkinson's disease association for
1086-the purpose of eliminating Parkinson's disease through medical
1087-research and public and professional education related to such disease;
1088-(8) the national kidney foundation of Kansas and western Missouri
1089-for the purpose of eliminating kidney disease through medical research
1090-and public and private education related to such disease;
1091-(9) the heartstrings community foundation for the purpose of
1092-providing training, employment and activities for adults with
1093-developmental disabilities;
1094-(10) the cystic fibrosis foundation, heart of America chapter, for
1095-the purposes of assuring the development of the means to cure and
1096-control cystic fibrosis and improving the quality of life for those with
1097-the disease;
1098-(11) the spina bifida association of Kansas for the purpose of
1099-providing financial, educational and practical aid to families and
1100-individuals with spina bifida. Such aid includes, but is not limited to,
1101-funding for medical devices, counseling and medical educational
1102-opportunities;
1103-(12) the CHWC, Inc., for the purpose of rebuilding urban core
1104-neighborhoods through the construction of new homes, acquiring and
1105-renovating existing homes and other related activities, and promoting
1106-economic development in such neighborhoods;
1107-(13) the cross-lines cooperative council for the purpose of
1108-providing social services to low income individuals and families;
1109-(14) the dreams work, inc., for the purpose of providing young
1110-adult day services to individuals with developmental disabilities and
1111-assisting families in avoiding institutional or nursing home care for a
1112-developmentally disabled member of their family;
1113-(15) the KSDS, Inc., for the purpose of promoting the
1114-independence and inclusion of people with disabilities as fully
1115-participating and contributing members of their communities and
1116-society through the training and providing of guide and service dogs to
1117-people with disabilities, and providing disability education and
1118-awareness to the general public;
1119-(16) the lyme association of greater Kansas City, Inc., for the
1120-purpose of providing support to persons with lyme disease and public
1121-education relating to the prevention, treatment and cure of lyme
1122-disease;
1123-(17) the dream factory, inc., for the purpose of granting the dreams
1124-of children with critical and chronic illnesses;
1125-(18) the Ottawa Suzuki strings, inc., for the purpose of providing SENATE BILL No. 98—page 20
1126-students and families with education and resources necessary to enable
1127-each child to develop fine character and musical ability to the fullest
1128-potential;
1129-(19) the international association of lions clubs for the purpose of
1130-creating and fostering a spirit of understanding among all people for
1131-humanitarian needs by providing voluntary services through
1132-community involvement and international cooperation;
1133-(20) the Johnson county young matrons, inc., for the purpose of
1134-promoting a positive future for members of the community through
1135-volunteerism, financial support and education through the efforts of an
1136-all volunteer organization;
1137-(21) the American cancer society, inc., for the purpose of
1138-eliminating cancer as a major health problem by preventing cancer,
1139-saving lives and diminishing suffering from cancer, through research,
1140-education, advocacy and service;
1141-(22) the community services of Shawnee, inc., for the purpose of
1142-providing food and clothing to those in need;
1143-(23) the angel babies association, for the purpose of providing
1144-assistance, support and items of necessity to teenage mothers and their
1145-babies; and
1146-(24) the Kansas fairgrounds foundation for the purpose of the
1147-preservation, renovation and beautification of the Kansas state
1148-fairgrounds;
1149-(ww) all sales of tangible personal property purchased by the
1150-habitat for humanity for the exclusive use of being incorporated within
1151-a housing project constructed by such organization;
1152-(xx) all sales of tangible personal property and services purchased
1153-by a nonprofit zoo that is exempt from federal income taxation pursuant
1154-to section 501(c)(3) of the federal internal revenue code of 1986, or on
1155-behalf of such zoo by an entity itself exempt from federal income
1156-taxation pursuant to section 501(c)(3) of the federal internal revenue
1157-code of 1986 contracted with to operate such zoo and all sales of
1158-tangible personal property or services purchased by a contractor for the
1159-purpose of constructing, equipping, reconstructing, maintaining,
1160-repairing, enlarging, furnishing or remodeling facilities for any
1161-nonprofit zoo that would be exempt from taxation under the provisions
1162-of this section if purchased directly by such nonprofit zoo or the entity
1163-operating such zoo. Nothing in this subsection shall be deemed to
1164-exempt the purchase of any construction machinery, equipment or tools
1165-used in the constructing, equipping, reconstructing, maintaining,
1166-repairing, enlarging, furnishing or remodeling facilities for any
1167-nonprofit zoo. When any nonprofit zoo shall contract for the purpose of
1168-constructing, equipping, reconstructing, maintaining, repairing,
1169-enlarging, furnishing or remodeling facilities, it shall obtain from the
1170-state and furnish to the contractor an exemption certificate for the
1171-project involved, and the contractor may purchase materials for
1172-incorporation in such project. The contractor shall furnish the number
1173-of such certificate to all suppliers from whom such purchases are made,
1174-and such suppliers shall execute invoices covering the same bearing the
1175-number of such certificate. Upon completion of the project the
1176-contractor shall furnish to the nonprofit zoo concerned a sworn
1177-statement, on a form to be provided by the director of taxation, that all
1178-purchases so made were entitled to exemption under this subsection.
1179-All invoices shall be held by the contractor for a period of five years
1180-and shall be subject to audit by the director of taxation. If any materials
1181-purchased under such a certificate are found not to have been
1182-incorporated in the building or other project or not to have been
1183-returned for credit or the sales or compensating tax otherwise imposed
1184-upon such materials that will not be so incorporated in the building or SENATE BILL No. 98—page 21
1185-other project reported and paid by such contractor to the director of
1186-taxation not later than the 20
1187-th
1188- day of the month following the close of
1189-the month in which it shall be determined that such materials will not
1190-be used for the purpose for which such certificate was issued, the
1191-nonprofit zoo concerned shall be liable for tax on all materials
1192-purchased for the project, and upon payment thereof it may recover the
1193-same from the contractor together with reasonable attorney fees. Any
1194-contractor or any agent, employee or subcontractor thereof, who shall
1195-use or otherwise dispose of any materials purchased under such a
1196-certificate for any purpose other than that for which such a certificate is
1197-issued without the payment of the sales or compensating tax otherwise
1198-imposed upon such materials, shall be guilty of a misdemeanor and,
1199-upon conviction therefor, shall be subject to the penalties provided for
1200-in K.S.A. 79-3615(h), and amendments thereto;
1201-(yy) all sales of tangible personal property and services purchased
1202-by a parent-teacher association or organization, and all sales of tangible
1203-personal property by or on behalf of such association or organization;
1204-(zz) all sales of machinery and equipment purchased by over-the-
1205-air, free access radio or television station that is used directly and
1206-primarily for the purpose of producing a broadcast signal or is such that
1207-the failure of the machinery or equipment to operate would cause
1208-broadcasting to cease. For purposes of this subsection, machinery and
1209-equipment shall include, but not be limited to, that required by rules
1210-and regulations of the federal communications commission, and all
1211-sales of electricity which are essential or necessary for the purpose of
1212-producing a broadcast signal or is such that the failure of the electricity
1213-would cause broadcasting to cease;
1214-(aaa) all sales of tangible personal property and services purchased
1215-by a religious organization that is exempt from federal income taxation
1216-pursuant to section 501(c)(3) of the federal internal revenue code, and
1217-used exclusively for religious purposes, and all sales of tangible
1218-personal property or services purchased by a contractor for the purpose
1219-of constructing, equipping, reconstructing, maintaining, repairing,
1220-enlarging, furnishing or remodeling facilities for any such organization
1221-that would be exempt from taxation under the provisions of this section
1222-if purchased directly by such organization. Nothing in this subsection
1223-shall be deemed to exempt the purchase of any construction machinery,
1224-equipment or tools used in the constructing, equipping, reconstructing,
1225-maintaining, repairing, enlarging, furnishing or remodeling facilities for
1226-any such organization. When any such organization shall contract for
1227-the purpose of constructing, equipping, reconstructing, maintaining,
1228-repairing, enlarging, furnishing or remodeling facilities, it shall obtain
1229-from the state and furnish to the contractor an exemption certificate for
1230-the project involved, and the contractor may purchase materials for
1231-incorporation in such project. The contractor shall furnish the number
1232-of such certificate to all suppliers from whom such purchases are made,
1233-and such suppliers shall execute invoices covering the same bearing the
1234-number of such certificate. Upon completion of the project the
1235-contractor shall furnish to such organization concerned a sworn
1236-statement, on a form to be provided by the director of taxation, that all
1237-purchases so made were entitled to exemption under this subsection.
1238-All invoices shall be held by the contractor for a period of five years
1239-and shall be subject to audit by the director of taxation. If any materials
1240-purchased under such a certificate are found not to have been
1241-incorporated in the building or other project or not to have been
1242-returned for credit or the sales or compensating tax otherwise imposed
1243-upon such materials that will not be so incorporated in the building or
1244-other project reported and paid by such contractor to the director of
1245-taxation not later than the 20
1246-th
1247- day of the month following the close of SENATE BILL No. 98—page 22
1248-the month in which it shall be determined that such materials will not
1249-be used for the purpose for which such certificate was issued, such
1250-organization concerned shall be liable for tax on all materials purchased
1251-for the project, and upon payment thereof it may recover the same from
1252-the contractor together with reasonable attorney fees. Any contractor or
1253-any agent, employee or subcontractor thereof, who shall use or
1254-otherwise dispose of any materials purchased under such a certificate
1255-for any purpose other than that for which such a certificate is issued
1256-without the payment of the sales or compensating tax otherwise
1257-imposed upon such materials, shall be guilty of a misdemeanor and,
1258-upon conviction therefor, shall be subject to the penalties provided for
1259-in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
1260-after July 1, 1998, but prior to the effective date of this act upon the
1261-gross receipts received from any sale exempted by the amendatory
1262-provisions of this subsection shall be refunded. Each claim for a sales
1263-tax refund shall be verified and submitted to the director of taxation
1264-upon forms furnished by the director and shall be accompanied by any
1265-additional documentation required by the director. The director shall
1266-review each claim and shall refund that amount of sales tax paid as
1267-determined under the provisions of this subsection. All refunds shall be
1268-paid from the sales tax refund fund upon warrants of the director of
1269-accounts and reports pursuant to vouchers approved by the director or
1270-the director's designee;
1271-(bbb) all sales of food for human consumption by an organization
1272-that is exempt from federal income taxation pursuant to section 501(c)
1273-(3) of the federal internal revenue code of 1986, pursuant to a food
1274-distribution program that offers such food at a price below cost in
1275-exchange for the performance of community service by the purchaser
1276-thereof;
1277-(ccc) on and after July 1, 1999, all sales of tangible personal
1278-property and services purchased by a primary care clinic or health
1279-center the primary purpose of which is to provide services to medically
1280-underserved individuals and families, and that is exempt from federal
1281-income taxation pursuant to section 501(c)(3) of the federal internal
1282-revenue code, and all sales of tangible personal property or services
1283-purchased by a contractor for the purpose of constructing, equipping,
1284-reconstructing, maintaining, repairing, enlarging, furnishing or
1285-remodeling facilities for any such clinic or center that would be exempt
1286-from taxation under the provisions of this section if purchased directly
1287-by such clinic or center, except that for taxable years commencing after
1288-December 31, 2013, this subsection shall not apply to any sales of such
1289-tangible personal property and services purchased by a primary care
1290-clinic or health center which performs any abortion, as defined in
1291-K.S.A. 65-6701, and amendments thereto. Nothing in this subsection
1292-shall be deemed to exempt the purchase of any construction machinery,
1293-equipment or tools used in the constructing, equipping, reconstructing,
1294-maintaining, repairing, enlarging, furnishing or remodeling facilities for
1295-any such clinic or center. When any such clinic or center shall contract
1296-for the purpose of constructing, equipping, reconstructing, maintaining,
1297-repairing, enlarging, furnishing or remodeling facilities, it shall obtain
1298-from the state and furnish to the contractor an exemption certificate for
1299-the project involved, and the contractor may purchase materials for
1300-incorporation in such project. The contractor shall furnish the number
1301-of such certificate to all suppliers from whom such purchases are made,
1302-and such suppliers shall execute invoices covering the same bearing the
1303-number of such certificate. Upon completion of the project the
1304-contractor shall furnish to such clinic or center concerned a sworn
1305-statement, on a form to be provided by the director of taxation, that all
1306-purchases so made were entitled to exemption under this subsection. SENATE BILL No. 98—page 23
1307-All invoices shall be held by the contractor for a period of five years
1308-and shall be subject to audit by the director of taxation. If any materials
1309-purchased under such a certificate are found not to have been
1310-incorporated in the building or other project or not to have been
1311-returned for credit or the sales or compensating tax otherwise imposed
1312-upon such materials that will not be so incorporated in the building or
1313-other project reported and paid by such contractor to the director of
1314-taxation not later than the 20
1315-th
1316- day of the month following the close of
1317-the month in which it shall be determined that such materials will not
1318-be used for the purpose for which such certificate was issued, such
1319-clinic or center concerned shall be liable for tax on all materials
1320-purchased for the project, and upon payment thereof it may recover the
1321-same from the contractor together with reasonable attorney fees. Any
1322-contractor or any agent, employee or subcontractor thereof, who shall
1323-use or otherwise dispose of any materials purchased under such a
1324-certificate for any purpose other than that for which such a certificate is
1325-issued without the payment of the sales or compensating tax otherwise
1326-imposed upon such materials, shall be guilty of a misdemeanor and,
1327-upon conviction therefor, shall be subject to the penalties provided for
1328-in K.S.A. 79-3615(h), and amendments thereto;
1329-(ddd) on and after January 1, 1999, and before January 1, 2000, all
1330-sales of materials and services purchased by any class II or III railroad
1331-as classified by the federal surface transportation board for the
1332-construction, renovation, repair or replacement of class II or III railroad
1333-track and facilities used directly in interstate commerce. In the event
1334-any such track or facility for which materials and services were
1335-purchased sales tax exempt is not operational for five years succeeding
1336-the allowance of such exemption, the total amount of sales tax that
1337-would have been payable except for the operation of this subsection
1338-shall be recouped in accordance with rules and regulations adopted for
1339-such purpose by the secretary of revenue;
1340-(eee) on and after January 1, 1999, and before January 1, 2001, all
1341-sales of materials and services purchased for the original construction,
1342-reconstruction, repair or replacement of grain storage facilities,
1343-including railroad sidings providing access thereto;
1344-(fff) all sales of material handling equipment, racking systems and
1345-other related machinery and equipment that is used for the handling,
1346-movement or storage of tangible personal property in a warehouse or
1347-distribution facility in this state; all sales of installation, repair and
1348-maintenance services performed on such machinery and equipment;
1349-and all sales of repair and replacement parts for such machinery and
1350-equipment. For purposes of this subsection, a warehouse or distribution
1351-facility means a single, fixed location that consists of buildings or
1352-structures in a contiguous area where storage or distribution operations
1353-are conducted that are separate and apart from the business' retail
1354-operations, if any, and that do not otherwise qualify for exemption as
1355-occurring at a manufacturing or processing plant or facility. Material
1356-handling and storage equipment shall include aeration, dust control,
1357-cleaning, handling and other such equipment that is used in a public
1358-grain warehouse or other commercial grain storage facility, whether
1359-used for grain handling, grain storage, grain refining or processing, or
1360-other grain treatment operation;
1361-(ggg) all sales of tangible personal property and services
1362-purchased by or on behalf of the Kansas academy of science, which is
1363-exempt from federal income taxation pursuant to section 501(c)(3) of
1364-the federal internal revenue code of 1986, and used solely by such
1365-academy for the preparation, publication and dissemination of
1366-education materials;
1367-(hhh) all sales of tangible personal property and services SENATE BILL No. 98—page 24
1368-purchased by or on behalf of all domestic violence shelters that are
1369-member agencies of the Kansas coalition against sexual and domestic
1370-violence;
1371-(iii) all sales of personal property and services purchased by an
1372-organization that is exempt from federal income taxation pursuant to
1373-section 501(c)(3) of the federal internal revenue code of 1986, and such
1374-personal property and services are used by any such organization in the
1375-collection, storage and distribution of food products to nonprofit
1376-organizations that distribute such food products to persons pursuant to a
1377-food distribution program on a charitable basis without fee or charge,
1378-and all sales of tangible personal property or services purchased by a
1379-contractor for the purpose of constructing, equipping, reconstructing,
1380-maintaining, repairing, enlarging, furnishing or remodeling facilities
1381-used for the collection and storage of such food products for any such
1382-organization which is exempt from federal income taxation pursuant to
1383-section 501(c)(3) of the federal internal revenue code of 1986, that
1384-would be exempt from taxation under the provisions of this section if
1385-purchased directly by such organization. Nothing in this subsection
1386-shall be deemed to exempt the purchase of any construction machinery,
1387-equipment or tools used in the constructing, equipping, reconstructing,
1388-maintaining, repairing, enlarging, furnishing or remodeling facilities for
1389-any such organization. When any such organization shall contract for
1390-the purpose of constructing, equipping, reconstructing, maintaining,
1391-repairing, enlarging, furnishing or remodeling facilities, it shall obtain
1392-from the state and furnish to the contractor an exemption certificate for
1393-the project involved, and the contractor may purchase materials for
1394-incorporation in such project. The contractor shall furnish the number
1395-of such certificate to all suppliers from whom such purchases are made,
1396-and such suppliers shall execute invoices covering the same bearing the
1397-number of such certificate. Upon completion of the project the
1398-contractor shall furnish to such organization concerned a sworn
1399-statement, on a form to be provided by the director of taxation, that all
1400-purchases so made were entitled to exemption under this subsection.
1401-All invoices shall be held by the contractor for a period of five years
1402-and shall be subject to audit by the director of taxation. If any materials
1403-purchased under such a certificate are found not to have been
1404-incorporated in such facilities or not to have been returned for credit or
1405-the sales or compensating tax otherwise imposed upon such materials
1406-that will not be so incorporated in such facilities reported and paid by
1407-such contractor to the director of taxation not later than the 20
1408-th
1409- day of
1410-the month following the close of the month in which it shall be
1411-determined that such materials will not be used for the purpose for
1412-which such certificate was issued, such organization concerned shall be
1413-liable for tax on all materials purchased for the project, and upon
1414-payment thereof it may recover the same from the contractor together
1415-with reasonable attorney fees. Any contractor or any agent, employee
1416-or subcontractor thereof, who shall use or otherwise dispose of any
1417-materials purchased under such a certificate for any purpose other than
1418-that for which such a certificate is issued without the payment of the
1419-sales or compensating tax otherwise imposed upon such materials, shall
1420-be guilty of a misdemeanor and, upon conviction therefor, shall be
1421-subject to the penalties provided for in K.S.A. 79-3615(h), and
1422-amendments thereto. Sales tax paid on and after July 1, 2005, but prior
1423-to the effective date of this act upon the gross receipts received from
1424-any sale exempted by the amendatory provisions of this subsection
1425-shall be refunded. Each claim for a sales tax refund shall be verified
1426-and submitted to the director of taxation upon forms furnished by the
1427-director and shall be accompanied by any additional documentation
1428-required by the director. The director shall review each claim and shall SENATE BILL No. 98—page 25
1429-refund that amount of sales tax paid as determined under the provisions
1430-of this subsection. All refunds shall be paid from the sales tax refund
1431-fund upon warrants of the director of accounts and reports pursuant to
1432-vouchers approved by the director or the director's designee;
1433-(jjj) all sales of dietary supplements dispensed pursuant to a
1434-prescription order by a licensed practitioner or a mid-level practitioner
1435-as defined by K.S.A. 65-1626, and amendments thereto. As used in this
1436-subsection, "dietary supplement" means any product, other than
1437-tobacco, intended to supplement the diet that: (1) Contains one or more
1438-of the following dietary ingredients: A vitamin, a mineral, an herb or
1439-other botanical, an amino acid, a dietary substance for use by humans
1440-to supplement the diet by increasing the total dietary intake or a
1441-concentrate, metabolite, constituent, extract or combination of any such
1442-ingredient; (2) is intended for ingestion in tablet, capsule, powder,
1443-softgel, gelcap or liquid form, or if not intended for ingestion, in such a
1444-form, is not represented as conventional food and is not represented for
1445-use as a sole item of a meal or of the diet; and (3) is required to be
1446-labeled as a dietary supplement, identifiable by the supplemental facts
1447-box found on the label and as required pursuant to 21 C.F.R. § 101.36;
1448-(lll) all sales of tangible personal property and services purchased
1449-by special olympics Kansas, inc. for the purpose of providing year-
1450-round sports training and athletic competition in a variety of olympic-
1451-type sports for individuals with intellectual disabilities by giving them
1452-continuing opportunities to develop physical fitness, demonstrate
1453-courage, experience joy and participate in a sharing of gifts, skills and
1454-friendship with their families, other special olympics athletes and the
1455-community, and activities provided or sponsored by such organization,
1456-and all sales of tangible personal property by or on behalf of any such
1457-organization;
1458-(mmm) all sales of tangible personal property purchased by or on
1459-behalf of the Marillac center, inc., which is exempt from federal income
1460-taxation pursuant to section 501(c)(3) of the federal internal revenue
1461-code, for the purpose of providing psycho-social-biological and special
1462-education services to children, and all sales of any such property by or
1463-on behalf of such organization for such purpose;
1464-(nnn) all sales of tangible personal property and services
1465-purchased by the west Sedgwick county-sunrise rotary club and sunrise
1466-charitable fund for the purpose of constructing a boundless playground
1467-which is an integrated, barrier free and developmentally advantageous
1468-play environment for children of all abilities and disabilities;
1469-(ooo) all sales of tangible personal property by or on behalf of a
1470-public library serving the general public and supported in whole or in
1471-part with tax money or a not-for-profit organization whose purpose is to
1472-raise funds for or provide services or other benefits to any such public
1473-library;
1474-(ppp) all sales of tangible personal property and services
1475-purchased by or on behalf of a homeless shelter that is exempt from
1476-federal income taxation pursuant to section 501(c)(3) of the federal
1477-income tax code of 1986, and used by any such homeless shelter to
1478-provide emergency and transitional housing for individuals and
1479-families experiencing homelessness, and all sales of any such property
1480-by or on behalf of any such homeless shelter for any such purpose;
1481-(qqq) all sales of tangible personal property and services
1482-purchased by TLC for children and families, inc., hereinafter referred to
1483-as TLC, which is exempt from federal income taxation pursuant to
1484-section 501(c)(3) of the federal internal revenue code of 1986, and such
1485-property and services are used for the purpose of providing emergency
1486-shelter and treatment for abused and neglected children as well as
1487-meeting additional critical needs for children, juveniles and family, and SENATE BILL No. 98—page 26
1488-all sales of any such property by or on behalf of TLC for any such
1489-purpose; and all sales of tangible personal property or services
1490-purchased by a contractor for the purpose of constructing, maintaining,
1491-repairing, enlarging, furnishing or remodeling facilities for the
1492-operation of services for TLC for any such purpose that would be
1493-exempt from taxation under the provisions of this section if purchased
1494-directly by TLC. Nothing in this subsection shall be deemed to exempt
1495-the purchase of any construction machinery, equipment or tools used in
1496-the constructing, maintaining, repairing, enlarging, furnishing or
1497-remodeling such facilities for TLC. When TLC contracts for the
1498-purpose of constructing, maintaining, repairing, enlarging, furnishing or
1499-remodeling such facilities, it shall obtain from the state and furnish to
1500-the contractor an exemption certificate for the project involved, and the
1501-contractor may purchase materials for incorporation in such project.
1502-The contractor shall furnish the number of such certificate to all
1503-suppliers from whom such purchases are made, and such suppliers shall
1504-execute invoices covering the same bearing the number of such
1505-certificate. Upon completion of the project the contractor shall furnish
1506-to TLC a sworn statement, on a form to be provided by the director of
1507-taxation, that all purchases so made were entitled to exemption under
1508-this subsection. All invoices shall be held by the contractor for a period
1509-of five years and shall be subject to audit by the director of taxation. If
1510-any materials purchased under such a certificate are found not to have
1511-been incorporated in the building or other project or not to have been
1512-returned for credit or the sales or compensating tax otherwise imposed
1513-upon such materials that will not be so incorporated in the building or
1514-other project reported and paid by such contractor to the director of
1515-taxation not later than the 20
1516-th
1517- day of the month following the close of
1518-the month in which it shall be determined that such materials will not
1519-be used for the purpose for which such certificate was issued, TLC
1520-shall be liable for tax on all materials purchased for the project, and
1521-upon payment thereof it may recover the same from the contractor
1522-together with reasonable attorney fees. Any contractor or any agent,
1523-employee or subcontractor thereof, who shall use or otherwise dispose
1524-of any materials purchased under such a certificate for any purpose
1525-other than that for which such a certificate is issued without the
1526-payment of the sales or compensating tax otherwise imposed upon such
1527-materials, shall be guilty of a misdemeanor and, upon conviction
1528-therefor, shall be subject to the penalties provided for in K.S.A. 79-
1529-3615(h), and amendments thereto;
1530-(rrr) all sales of tangible personal property and services purchased
1531-by any county law library maintained pursuant to law and sales of
1532-tangible personal property and services purchased by an organization
1533-that would have been exempt from taxation under the provisions of this
1534-subsection if purchased directly by the county law library for the
1535-purpose of providing legal resources to attorneys, judges, students and
1536-the general public, and all sales of any such property by or on behalf of
1537-any such county law library;
1538-(sss) all sales of tangible personal property and services purchased
1539-by catholic charities or youthville, hereinafter referred to as charitable
1540-family providers, which is exempt from federal income taxation
1541-pursuant to section 501(c)(3) of the federal internal revenue code of
1542-1986, and which such property and services are used for the purpose of
1543-providing emergency shelter and treatment for abused and neglected
1544-children as well as meeting additional critical needs for children,
1545-juveniles and family, and all sales of any such property by or on behalf
1546-of charitable family providers for any such purpose; and all sales of
1547-tangible personal property or services purchased by a contractor for the
1548-purpose of constructing, maintaining, repairing, enlarging, furnishing or SENATE BILL No. 98—page 27
1549-remodeling facilities for the operation of services for charitable family
1550-providers for any such purpose which would be exempt from taxation
1551-under the provisions of this section if purchased directly by charitable
1552-family providers. Nothing in this subsection shall be deemed to exempt
1553-the purchase of any construction machinery, equipment or tools used in
1554-the constructing, maintaining, repairing, enlarging, furnishing or
1555-remodeling such facilities for charitable family providers. When
1556-charitable family providers contracts for the purpose of constructing,
1557-maintaining, repairing, enlarging, furnishing or remodeling such
1558-facilities, it shall obtain from the state and furnish to the contractor an
1559-exemption certificate for the project involved, and the contractor may
1560-purchase materials for incorporation in such project. The contractor
1561-shall furnish the number of such certificate to all suppliers from whom
1562-such purchases are made, and such suppliers shall execute invoices
1563-covering the same bearing the number of such certificate. Upon
1564-completion of the project the contractor shall furnish to charitable
1565-family providers a sworn statement, on a form to be provided by the
1566-director of taxation, that all purchases so made were entitled to
1567-exemption under this subsection. All invoices shall be held by the
1568-contractor for a period of five years and shall be subject to audit by the
1569-director of taxation. If any materials purchased under such a certificate
1570-are found not to have been incorporated in the building or other project
1571-or not to have been returned for credit or the sales or compensating tax
1572-otherwise imposed upon such materials that will not be so incorporated
1573-in the building or other project reported and paid by such contractor to
1574-the director of taxation not later than the 20
1575-th
1576- day of the month
1577-following the close of the month in which it shall be determined that
1578-such materials will not be used for the purpose for which such
1579-certificate was issued, charitable family providers shall be liable for tax
1580-on all materials purchased for the project, and upon payment thereof it
1581-may recover the same from the contractor together with reasonable
1582-attorney fees. Any contractor or any agent, employee or subcontractor
1583-thereof, who shall use or otherwise dispose of any materials purchased
1584-under such a certificate for any purpose other than that for which such a
1585-certificate is issued without the payment of the sales or compensating
1586-tax otherwise imposed upon such materials, shall be guilty of a
1587-misdemeanor and, upon conviction therefor, shall be subject to the
1588-penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
1589-(ttt) all sales of tangible personal property or services purchased
1590-by a contractor for a project for the purpose of restoring, constructing,
1591-equipping, reconstructing, maintaining, repairing, enlarging, furnishing
1592-or remodeling a home or facility owned by a nonprofit museum that has
1593-been granted an exemption pursuant to subsection (qq), which such
1594-home or facility is located in a city that has been designated as a
1595-qualified hometown pursuant to the provisions of K.S.A. 75-5071 et
1596-seq., and amendments thereto, and which such project is related to the
1597-purposes of K.S.A. 75-5071 et seq., and amendments thereto, and that
1598-would be exempt from taxation under the provisions of this section if
1599-purchased directly by such nonprofit museum. Nothing in this
1600-subsection shall be deemed to exempt the purchase of any construction
1601-machinery, equipment or tools used in the restoring, constructing,
1602-equipping, reconstructing, maintaining, repairing, enlarging, furnishing
1603-or remodeling a home or facility for any such nonprofit museum. When
1604-any such nonprofit museum shall contract for the purpose of restoring,
1605-constructing, equipping, reconstructing, maintaining, repairing,
1606-enlarging, furnishing or remodeling a home or facility, it shall obtain
1607-from the state and furnish to the contractor an exemption certificate for
1608-the project involved, and the contractor may purchase materials for
1609-incorporation in such project. The contractor shall furnish the number SENATE BILL No. 98—page 28
1610-of such certificates to all suppliers from whom such purchases are
1611-made, and such suppliers shall execute invoices covering the same
1612-bearing the number of such certificate. Upon completion of the project,
1613-the contractor shall furnish to such nonprofit museum a sworn
1614-statement on a form to be provided by the director of taxation that all
1615-purchases so made were entitled to exemption under this subsection.
1616-All invoices shall be held by the contractor for a period of five years
1617-and shall be subject to audit by the director of taxation. If any materials
1618-purchased under such a certificate are found not to have been
1619-incorporated in the building or other project or not to have been
1620-returned for credit or the sales or compensating tax otherwise imposed
1621-upon such materials that will not be so incorporated in a home or
1622-facility or other project reported and paid by such contractor to the
1623-director of taxation not later than the 20
1624-th
1625- day of the month following
1626-the close of the month in which it shall be determined that such
1627-materials will not be used for the purpose for which such certificate
1628-was issued, such nonprofit museum shall be liable for tax on all
1629-materials purchased for the project, and upon payment thereof it may
1630-recover the same from the contractor together with reasonable attorney
1631-fees. Any contractor or any agent, employee or subcontractor thereof,
1632-who shall use or otherwise dispose of any materials purchased under
1633-such a certificate for any purpose other than that for which such a
1634-certificate is issued without the payment of the sales or compensating
1635-tax otherwise imposed upon such materials, shall be guilty of a
1636-misdemeanor and, upon conviction therefor, shall be subject to the
1637-penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
1638-(uuu) all sales of tangible personal property and services
1639-purchased by Kansas children's service league, hereinafter referred to
1640-as KCSL, which is exempt from federal income taxation pursuant to
1641-section 501(c)(3) of the federal internal revenue code of 1986, and
1642-which such property and services are used for the purpose of providing
1643-for the prevention and treatment of child abuse and maltreatment as
1644-well as meeting additional critical needs for children, juveniles and
1645-family, and all sales of any such property by or on behalf of KCSL for
1646-any such purpose; and all sales of tangible personal property or services
1647-purchased by a contractor for the purpose of constructing, maintaining,
1648-repairing, enlarging, furnishing or remodeling facilities for the
1649-operation of services for KCSL for any such purpose that would be
1650-exempt from taxation under the provisions of this section if purchased
1651-directly by KCSL. Nothing in this subsection shall be deemed to
1652-exempt the purchase of any construction machinery, equipment or tools
1653-used in the constructing, maintaining, repairing, enlarging, furnishing
1654-or remodeling such facilities for KCSL. When KCSL contracts for the
1655-purpose of constructing, maintaining, repairing, enlarging, furnishing or
1656-remodeling such facilities, it shall obtain from the state and furnish to
1657-the contractor an exemption certificate for the project involved, and the
1658-contractor may purchase materials for incorporation in such project.
1659-The contractor shall furnish the number of such certificate to all
1660-suppliers from whom such purchases are made, and such suppliers shall
1661-execute invoices covering the same bearing the number of such
1662-certificate. Upon completion of the project the contractor shall furnish
1663-to KCSL a sworn statement, on a form to be provided by the director of
1664-taxation, that all purchases so made were entitled to exemption under
1665-this subsection. All invoices shall be held by the contractor for a period
1666-of five years and shall be subject to audit by the director of taxation. If
1667-any materials purchased under such a certificate are found not to have
1668-been incorporated in the building or other project or not to have been
1669-returned for credit or the sales or compensating tax otherwise imposed
1670-upon such materials that will not be so incorporated in the building or SENATE BILL No. 98—page 29
1671-other project reported and paid by such contractor to the director of
1672-taxation not later than the 20
1673-th
1674- day of the month following the close of
1675-the month in which it shall be determined that such materials will not
1676-be used for the purpose for which such certificate was issued, KCSL
1677-shall be liable for tax on all materials purchased for the project, and
1678-upon payment thereof it may recover the same from the contractor
1679-together with reasonable attorney fees. Any contractor or any agent,
1680-employee or subcontractor thereof, who shall use or otherwise dispose
1681-of any materials purchased under such a certificate for any purpose
1682-other than that for which such a certificate is issued without the
1683-payment of the sales or compensating tax otherwise imposed upon such
1684-materials, shall be guilty of a misdemeanor and, upon conviction
1685-therefor, shall be subject to the penalties provided for in K.S.A. 79-
1686-3615(h), and amendments thereto;
1687-(vvv) all sales of tangible personal property or services, including
1688-the renting and leasing of tangible personal property or services,
1689-purchased by jazz in the woods, inc., a Kansas corporation that is
1690-exempt from federal income taxation pursuant to section 501(c)(3) of
1691-the federal internal revenue code, for the purpose of providing jazz in
1692-the woods, an event benefiting children-in-need and other nonprofit
1693-charities assisting such children, and all sales of any such property by
1694-or on behalf of such organization for such purpose;
1695-(www) all sales of tangible personal property purchased by or on
1696-behalf of the Frontenac education foundation, which is exempt from
1697-federal income taxation pursuant to section 501(c)(3) of the federal
1698-internal revenue code, for the purpose of providing education support
1699-for students, and all sales of any such property by or on behalf of such
1700-organization for such purpose;
1701-(xxx) all sales of personal property and services purchased by the
1702-booth theatre foundation, inc., an organization, which is exempt from
1703-federal income taxation pursuant to section 501(c)(3) of the federal
1704-internal revenue code of 1986, and which such personal property and
1705-services are used by any such organization in the constructing,
1706-equipping, reconstructing, maintaining, repairing, enlarging, furnishing
1707-or remodeling of the booth theatre, and all sales of tangible personal
1708-property or services purchased by a contractor for the purpose of
1709-constructing, equipping, reconstructing, maintaining, repairing,
1710-enlarging, furnishing or remodeling the booth theatre for such
1711-organization, that would be exempt from taxation under the provisions
1712-of this section if purchased directly by such organization. Nothing in
1713-this subsection shall be deemed to exempt the purchase of any
1714-construction machinery, equipment or tools used in the constructing,
1715-equipping, reconstructing, maintaining, repairing, enlarging, furnishing
1716-or remodeling facilities for any such organization. When any such
1717-organization shall contract for the purpose of constructing, equipping,
1718-reconstructing, maintaining, repairing, enlarging, furnishing or
1719-remodeling facilities, it shall obtain from the state and furnish to the
1720-contractor an exemption certificate for the project involved, and the
1721-contractor may purchase materials for incorporation in such project.
1722-The contractor shall furnish the number of such certificate to all
1723-suppliers from whom such purchases are made, and such suppliers shall
1724-execute invoices covering the same bearing the number of such
1725-certificate. Upon completion of the project the contractor shall furnish
1726-to such organization concerned a sworn statement, on a form to be
1727-provided by the director of taxation, that all purchases so made were
1728-entitled to exemption under this subsection. All invoices shall be held
1729-by the contractor for a period of five years and shall be subject to audit
1730-by the director of taxation. If any materials purchased under such a
1731-certificate are found not to have been incorporated in such facilities or SENATE BILL No. 98—page 30
1732-not to have been returned for credit or the sales or compensating tax
1733-otherwise imposed upon such materials that will not be so incorporated
1734-in such facilities reported and paid by such contractor to the director of
1735-taxation not later than the 20
1736-th
1737- day of the month following the close of
1738-the month in which it shall be determined that such materials will not
1739-be used for the purpose for which such certificate was issued, such
1740-organization concerned shall be liable for tax on all materials purchased
1741-for the project, and upon payment thereof it may recover the same from
1742-the contractor together with reasonable attorney fees. Any contractor or
1743-any agent, employee or subcontractor thereof, who shall use or
1744-otherwise dispose of any materials purchased under such a certificate
1745-for any purpose other than that for which such a certificate is issued
1746-without the payment of the sales or compensating tax otherwise
1747-imposed upon such materials, shall be guilty of a misdemeanor and,
1748-upon conviction therefor, shall be subject to the penalties provided for
1749-in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
1750-after January 1, 2007, but prior to the effective date of this act upon the
1751-gross receipts received from any sale which would have been exempted
1752-by the provisions of this subsection had such sale occurred after the
1753-effective date of this act shall be refunded. Each claim for a sales tax
1754-refund shall be verified and submitted to the director of taxation upon
1755-forms furnished by the director and shall be accompanied by any
1756-additional documentation required by the director. The director shall
1757-review each claim and shall refund that amount of sales tax paid as
1758-determined under the provisions of this subsection. All refunds shall be
1759-paid from the sales tax refund fund upon warrants of the director of
1760-accounts and reports pursuant to vouchers approved by the director or
1761-the director's designee;
1762-(yyy) all sales of tangible personal property and services
1763-purchased by TLC charities foundation, inc., hereinafter referred to as
1764-TLC charities, which is exempt from federal income taxation pursuant
1765-to section 501(c)(3) of the federal internal revenue code of 1986, and
1766-which such property and services are used for the purpose of
1767-encouraging private philanthropy to further the vision, values, and
1768-goals of TLC for children and families, inc.; and all sales of such
1769-property and services by or on behalf of TLC charities for any such
1770-purpose and all sales of tangible personal property or services
1771-purchased by a contractor for the purpose of constructing, maintaining,
1772-repairing, enlarging, furnishing or remodeling facilities for the
1773-operation of services for TLC charities for any such purpose that would
1774-be exempt from taxation under the provisions of this section if
1775-purchased directly by TLC charities. Nothing in this subsection shall be
1776-deemed to exempt the purchase of any construction machinery,
1777-equipment or tools used in the constructing, maintaining, repairing,
1778-enlarging, furnishing or remodeling such facilities for TLC charities.
1779-When TLC charities contracts for the purpose of constructing,
1780-maintaining, repairing, enlarging, furnishing or remodeling such
1781-facilities, it shall obtain from the state and furnish to the contractor an
1782-exemption certificate for the project involved, and the contractor may
1783-purchase materials for incorporation in such project. The contractor
1784-shall furnish the number of such certificate to all suppliers from whom
1785-such purchases are made, and such suppliers shall execute invoices
1786-covering the same bearing the number of such certificate. Upon
1787-completion of the project the contractor shall furnish to TLC charities a
1788-sworn statement, on a form to be provided by the director of taxation,
1789-that all purchases so made were entitled to exemption under this
1790-subsection. All invoices shall be held by the contractor for a period of
1791-five years and shall be subject to audit by the director of taxation. If any
1792-materials purchased under such a certificate are found not to have been SENATE BILL No. 98—page 31
1793-incorporated in the building or other project or not to have been
1794-returned for credit or the sales or compensating tax otherwise imposed
1795-upon such materials that will not be incorporated into the building or
1796-other project reported and paid by such contractor to the director of
1797-taxation not later than the 20
1798-th
1799- day of the month following the close of
1800-the month in which it shall be determined that such materials will not
1801-be used for the purpose for which such certificate was issued, TLC
1802-charities shall be liable for tax on all materials purchased for the
1803-project, and upon payment thereof it may recover the same from the
1804-contractor together with reasonable attorney fees. Any contractor or any
1805-agent, employee or subcontractor thereof, who shall use or otherwise
1806-dispose of any materials purchased under such a certificate for any
1807-purpose other than that for which such a certificate is issued without the
1808-payment of the sales or compensating tax otherwise imposed upon such
1809-materials, shall be guilty of a misdemeanor and, upon conviction
1810-therefor, shall be subject to the penalties provided for in K.S.A. 79-
1811-3615(h), and amendments thereto;
1812-(zzz) all sales of tangible personal property purchased by the
1813-rotary club of shawnee foundation, which is exempt from federal
1814-income taxation pursuant to section 501(c)(3) of the federal internal
1815-revenue code of 1986, as amended, used for the purpose of providing
1816-contributions to community service organizations and scholarships;
1817-(aaaa) all sales of personal property and services purchased by or
1818-on behalf of victory in the valley, inc., which is exempt from federal
1819-income taxation pursuant to section 501(c)(3) of the federal internal
1820-revenue code, for the purpose of providing a cancer support group and
1821-services for persons with cancer, and all sales of any such property by
1822-or on behalf of any such organization for any such purpose;
1823-(bbbb) all sales of entry or participation fees, charges or tickets by
1824-Guadalupe health foundation, which is exempt from federal income
1825-taxation pursuant to section 501(c)(3) of the federal internal revenue
1826-code, for such organization's annual fundraising event which purpose is
1827-to provide health care services for uninsured workers;
1828-(cccc) all sales of tangible personal property or services purchased
1829-by or on behalf of wayside waifs, inc., which is exempt from federal
1830-income taxation pursuant to section 501(c)(3) of the federal internal
1831-revenue code, for the purpose of providing such organization's annual
1832-fundraiser, an event whose purpose is to support the care of homeless
1833-and abandoned animals, animal adoption efforts, education programs
1834-for children and efforts to reduce animal over-population and animal
1835-welfare services, and all sales of any such property, including entry or
1836-participation fees or charges, by or on behalf of such organization for
1837-such purpose;
1838-(dddd) all sales of tangible personal property or services
1839-purchased by or on behalf of goodwill industries or Easter seals of
1840-Kansas, inc., both of which are exempt from federal income taxation
1841-pursuant to section 501(c)(3) of the federal internal revenue code, for
1842-the purpose of providing education, training and employment
1843-opportunities for people with disabilities and other barriers to
1844-employment;
1845-(eeee) all sales of tangible personal property or services purchased
1846-by or on behalf of all American beef battalion, inc., which is exempt
1847-from federal income taxation pursuant to section 501(c)(3) of the
1848-federal internal revenue code, for the purpose of educating, promoting
1849-and participating as a contact group through the beef cattle industry in
1850-order to carry out such projects that provide support and morale to
1851-members of the United States armed forces and military services;
1852-(ffff) all sales of tangible personal property and services purchased
1853-by sheltered living, inc., which is exempt from federal income taxation SENATE BILL No. 98—page 32
1854-pursuant to section 501(c)(3) of the federal internal revenue code of
1855-1986, and which such property and services are used for the purpose of
1856-providing residential and day services for people with developmental
1857-disabilities or intellectual disability, or both, and all sales of any such
1858-property by or on behalf of sheltered living, inc., for any such purpose;
1859-and all sales of tangible personal property or services purchased by a
1860-contractor for the purpose of rehabilitating, constructing, maintaining,
1861-repairing, enlarging, furnishing or remodeling homes and facilities for
1862-sheltered living, inc., for any such purpose that would be exempt from
1863-taxation under the provisions of this section if purchased directly by
1864-sheltered living, inc. Nothing in this subsection shall be deemed to
1865-exempt the purchase of any construction machinery, equipment or tools
1866-used in the constructing, maintaining, repairing, enlarging, furnishing
1867-or remodeling such homes and facilities for sheltered living, inc. When
1868-sheltered living, inc., contracts for the purpose of rehabilitating,
1869-constructing, maintaining, repairing, enlarging, furnishing or
1870-remodeling such homes and facilities, it shall obtain from the state and
1871-furnish to the contractor an exemption certificate for the project
1872-involved, and the contractor may purchase materials for incorporation
1873-in such project. The contractor shall furnish the number of such
1874-certificate to all suppliers from whom such purchases are made, and
1875-such suppliers shall execute invoices covering the same bearing the
1876-number of such certificate. Upon completion of the project the
1877-contractor shall furnish to sheltered living, inc., a sworn statement, on a
1878-form to be provided by the director of taxation, that all purchases so
1879-made were entitled to exemption under this subsection. All invoices
1880-shall be held by the contractor for a period of five years and shall be
1881-subject to audit by the director of taxation. If any materials purchased
1882-under such a certificate are found not to have been incorporated in the
1883-building or other project or not to have been returned for credit or the
1884-sales or compensating tax otherwise imposed upon such materials that
1885-will not be so incorporated in the building or other project reported and
1886-paid by such contractor to the director of taxation not later than the 20
1887-th
1888-day of the month following the close of the month in which it shall be
1889-determined that such materials will not be used for the purpose for
1890-which such certificate was issued, sheltered living, inc., shall be liable
1891-for tax on all materials purchased for the project, and upon payment
1892-thereof it may recover the same from the contractor together with
1893-reasonable attorney fees. Any contractor or any agent, employee or
1894-subcontractor thereof, who shall use or otherwise dispose of any
1895-materials purchased under such a certificate for any purpose other than
1896-that for which such a certificate is issued without the payment of the
1897-sales or compensating tax otherwise imposed upon such materials, shall
1898-be guilty of a misdemeanor and, upon conviction therefor, shall be
1899-subject to the penalties provided for in K.S.A. 79-3615(h), and
1900-amendments thereto;
1901-(gggg) all sales of game birds for which the primary purpose is
1902-use in hunting;
1903-(hhhh) all sales of tangible personal property or services
1904-purchased on or after July 1, 2014, for the purpose of and in
1905-conjunction with constructing, reconstructing, enlarging or remodeling
1906-a business identified under the North American industry classification
1907-system (NAICS) subsectors 1123, 1124, 112112, 112120 or 112210,
1908-and the sale and installation of machinery and equipment purchased for
1909-installation at any such business. The exemption provided in this
1910-subsection shall not apply to projects that have actual total costs less
1911-than $50,000. When a person contracts for the construction,
1912-reconstruction, enlargement or remodeling of any such business, such
1913-person shall obtain from the state and furnish to the contractor an SENATE BILL No. 98—page 33
1914-exemption certificate for the project involved, and the contractor may
1915-purchase materials, machinery and equipment for incorporation in such
1916-project. The contractor shall furnish the number of such certificates to
1917-all suppliers from whom such purchases are made, and such suppliers
1918-shall execute invoices covering the same bearing the number of such
1919-certificate. Upon completion of the project, the contractor shall furnish
1920-to the owner of the business a sworn statement, on a form to be
1921-provided by the director of taxation, that all purchases so made were
1922-entitled to exemption under this subsection. All invoices shall be held
1923-by the contractor for a period of five years and shall be subject to audit
1924-by the director of taxation. Any contractor or any agent, employee or
1925-subcontractor of the contractor, who shall use or otherwise dispose of
1926-any materials, machinery or equipment purchased under such a
1927-certificate for any purpose other than that for which such a certificate is
1928-issued without the payment of the sales or compensating tax otherwise
1929-imposed thereon, shall be guilty of a misdemeanor and, upon
1930-conviction therefor, shall be subject to the penalties provided for in
1931-K.S.A. 79-3615(h), and amendments thereto;
1932-(iiii) all sales of tangible personal property or services purchased
1933-by a contractor for the purpose of constructing, maintaining, repairing,
1934-enlarging, furnishing or remodeling facilities for the operation of
1935-services for Wichita children's home for any such purpose that would
1936-be exempt from taxation under the provisions of this section if
1937-purchased directly by Wichita children's home. Nothing in this
1938-subsection shall be deemed to exempt the purchase of any construction
1939-machinery, equipment or tools used in the constructing, maintaining,
1940-repairing, enlarging, furnishing or remodeling such facilities for
1941-Wichita children's home. When Wichita children's home contracts for
1942-the purpose of constructing, maintaining, repairing, enlarging,
1943-furnishing or remodeling such facilities, it shall obtain from the state
1944-and furnish to the contractor an exemption certificate for the project
1945-involved, and the contractor may purchase materials for incorporation
1946-in such project. The contractor shall furnish the number of such
1947-certificate to all suppliers from whom such purchases are made, and
1948-such suppliers shall execute invoices covering the same bearing the
1949-number of such certificate. Upon completion of the project, the
1950-contractor shall furnish to Wichita children's home a sworn statement,
1951-on a form to be provided by the director of taxation, that all purchases
1952-so made were entitled to exemption under this subsection. All invoices
1953-shall be held by the contractor for a period of five years and shall be
1954-subject to audit by the director of taxation. If any materials purchased
1955-under such a certificate are found not to have been incorporated in the
1956-building or other project or not to have been returned for credit or the
1957-sales or compensating tax otherwise imposed upon such materials that
1958-will not be so incorporated in the building or other project reported and
1959-paid by such contractor to the director of taxation not later than the 20
1960-th
1961-day of the month following the close of the month in which it shall be
1962-determined that such materials will not be used for the purpose for
1963-which such certificate was issued, Wichita children's home shall be
1964-liable for the tax on all materials purchased for the project, and upon
1965-payment, it may recover the same from the contractor together with
1966-reasonable attorney fees. Any contractor or any agent, employee or
1967-subcontractor, who shall use or otherwise dispose of any materials
1968-purchased under such a certificate for any purpose other than that for
1969-which such a certificate is issued without the payment of the sales or
1970-compensating tax otherwise imposed upon such materials, shall be
1971-guilty of a misdemeanor and, upon conviction, shall be subject to the
1972-penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
1973-(jjjj) all sales of tangible personal property or services purchased SENATE BILL No. 98—page 34
1974-by or on behalf of the beacon, inc., that is exempt from federal income
1975-taxation pursuant to section 501(c)(3) of the federal internal revenue
1976-code, for the purpose of providing those desiring help with food,
1977-shelter, clothing and other necessities of life during times of special
1978-need;
1979-(kkkk) all sales of tangible personal property and services
1980-purchased by or on behalf of reaching out from within, inc., which is
1981-exempt from federal income taxation pursuant to section 501(c)(3) of
1982-the federal internal revenue code, for the purpose of sponsoring self-
1983-help programs for incarcerated persons that will enable such
1984-incarcerated persons to become role models for non-violence while in
1985-correctional facilities and productive family members and citizens upon
1986-return to the community;
1987-(llll) all sales of tangible personal property and services purchased
1988-by Gove county healthcare endowment foundation, inc., which is
1989-exempt from federal income taxation pursuant to section 501(c)(3) of
1990-the federal internal revenue code of 1986, and which such property and
1991-services are used for the purpose of constructing and equipping an
1992-airport in Quinter, Kansas, and all sales of tangible personal property or
1993-services purchased by a contractor for the purpose of constructing and
1994-equipping an airport in Quinter, Kansas, for such organization, that
1995-would be exempt from taxation under the provisions of this section if
1996-purchased directly by such organization. Nothing in this subsection
1997-shall be deemed to exempt the purchase of any construction machinery,
1998-equipment or tools used in the constructing or equipping of facilities for
1999-such organization. When such organization shall contract for the
2000-purpose of constructing or equipping an airport in Quinter, Kansas, it
2001-shall obtain from the state and furnish to the contractor an exemption
2002-certificate for the project involved, and the contractor may purchase
2003-materials for incorporation in such project. The contractor shall furnish
2004-the number of such certificate to all suppliers from whom such
2005-purchases are made, and such suppliers shall execute invoices covering
2006-the same bearing the number of such certificate. Upon completion of
2007-the project, the contractor shall furnish to such organization concerned
2008-a sworn statement, on a form to be provided by the director of taxation,
2009-that all purchases so made were entitled to exemption under this
2010-subsection. All invoices shall be held by the contractor for a period of
2011-five years and shall be subject to audit by the director of taxation. If any
2012-materials purchased under such a certificate are found not to have been
2013-incorporated in such facilities or not to have been returned for credit or
2014-the sales or compensating tax otherwise imposed upon such materials
2015-that will not be so incorporated in such facilities reported and paid by
2016-such contractor to the director of taxation no later than the 20
2017-th
2018-day of
2019-the month following the close of the month in which it shall be
2020-determined that such materials will not be used for the purpose for
2021-which such certificate was issued, such organization concerned shall be
2022-liable for tax on all materials purchased for the project, and upon
2023-payment thereof it may recover the same from the contractor together
2024-with reasonable attorney fees. Any contractor or any agent, employee
2025-or subcontractor thereof, who purchased under such a certificate for
2026-any purpose other than that for which such a certificate is issued
2027-without the payment of the sales or compensating tax otherwise
2028-imposed upon such materials, shall be guilty of a misdemeanor and,
2029-upon conviction therefor, shall be subject to the penalties provided for
2030-in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
2031-subsection shall expire and have no effect on and after July 1, 2019;
2032-(mmmm) all sales of gold or silver coins; and palladium,
2033-platinum, gold or silver bullion. For the purposes of this subsection,
2034-"bullion" means bars, ingots or commemorative medallions of gold, SENATE BILL No. 98—page 35
2035-silver, platinum, palladium, or a combination thereof, for which the
2036-value of the metal depends on its content and not the form;
2037-(nnnn) all sales of tangible personal property or services
2038-purchased by friends of hospice of Jefferson county, an organization
2039-that is exempt from federal income taxation pursuant to section 501(c)
2040-(3) of the federal internal revenue code of 1986, for the purpose of
2041-providing support to the Jefferson county hospice agency in end-of-life
2042-care of Jefferson county families, friends and neighbors, and all sales of
2043-entry or participation fees, charges or tickets by friends of hospice of
2044-Jefferson county for such organization's fundraising event for such
2045-purpose;
2046-(oooo) all sales of tangible personal property or services
2047-purchased for the purpose of and in conjunction with constructing,
2048-reconstructing, enlarging or remodeling a qualified business facility by
2049-a qualified firm or qualified supplier that meets the requirements
2050-established in K.S.A. 2024 Supp. 74-50,312 and 74-50,319, and
2051-amendments thereto, and that has been approved for a project
2052-exemption certificate by the secretary of commerce, and the sale and
2053-installation of machinery and equipment purchased by such qualified
2054-firm or qualified supplier for installation at any such qualified business
2055-facility. When a person shall contract for the construction,
2056-reconstruction, enlargement or remodeling of any such qualified
2057-business facility, such person shall obtain from the state and furnish to
2058-the contractor an exemption certificate for the project involved, and the
2059-contractor may purchase materials, machinery and equipment for
2060-incorporation in such project. The contractor shall furnish the number
2061-of such certificates to all suppliers from whom such purchases are
2062-made, and such suppliers shall execute invoices covering the same
2063-bearing the number of such certificate. Upon completion of the project,
2064-the contractor shall furnish to the owner of the qualified firm or
2065-qualified supplier a sworn statement, on a form to be provided by the
2066-director of taxation, that all purchases so made were entitled to
2067-exemption under this subsection. All invoices shall be held by the
2068-contractor for a period of five years and shall be subject to audit by the
2069-director of taxation. Any contractor or any agent, employee or
2070-subcontractor thereof who shall use or otherwise dispose of any
2071-materials, machinery or equipment purchased under such a certificate
2072-for any purpose other than that for which such a certificate is issued
2073-without the payment of the sales or compensating tax otherwise
2074-imposed thereon, shall be guilty of a misdemeanor and, upon
2075-conviction therefor, shall be subject to the penalties provided for in
2076-K.S.A. 79-3615(h), and amendments thereto. As used in this
2077-subsection, "qualified business facility," "qualified firm" and "qualified
2078-supplier" mean the same as defined in K.S.A. 2024 Supp. 74-50,311,
2079-and amendments thereto;
2080-(pppp) (1) all sales of tangible personal property or services
2081-purchased by a not-for-profit corporation that is designated as an area
2082-agency on aging by the secretary for aging and disabilities services and
2083-is exempt from federal income taxation pursuant to section 501(c)(3) of
2084-the federal internal revenue code for the purpose of coordinating and
2085-providing seniors and those living with disabilities with services that
2086-promote person-centered care, including home-delivered meals,
2087-congregate meal settings, long-term case management, transportation,
2088-information, assistance and other preventative and intervention services
2089-to help service recipients remain in their homes and communities or for
2090-the purpose of constructing, equipping, reconstructing, maintaining,
2091-repairing, enlarging, furnishing or remodeling facilities for such area
2092-agency on aging; and
2093-(2) all sales of tangible personal property or services purchased by SENATE BILL No. 98—page 36
2094-a contractor for the purpose of constructing, equipping, reconstructing,
2095-maintaining, repairing, enlarging, furnishing or remodeling facilities for
2096-an area agency on aging that would be exempt from taxation under the
2097-provisions of this section if purchased directly by such area agency on
2098-aging. Nothing in this paragraph shall be deemed to exempt the
2099-purchase of any construction machinery, equipment or tools used in the
2100-constructing, equipping, reconstructing, maintaining, repairing,
2101-enlarging, furnishing or remodeling facilities for an area agency on
2102-aging. When an area agency on aging contracts for the purpose of
2103-constructing, equipping, reconstructing, maintaining, repairing,
2104-enlarging, furnishing or remodeling facilities, it shall obtain from the
2105-state and furnish to the contractor an exemption certificate for the
2106-project involved, and such contractor may purchase materials for
2107-incorporation in such project. The contractor shall furnish the number
2108-of such certificate to all suppliers from whom such purchases are made,
2109-and such suppliers shall execute invoices covering the same bearing the
2110-number of such certificate. Upon completion of the project, the
2111-contractor shall furnish to such area agency on aging a sworn
2112-statement, on a form to be provided by the director of taxation, that all
2113-purchases so made were entitled to exemption under this subsection.
2114-All invoices shall be held by the contractor for a period of five years
2115-and shall be subject to audit by the director of taxation. If any materials
2116-purchased under such a certificate are found not to have been
2117-incorporated in the building or other project or not to have been
2118-returned for credit or the sales or compensating tax otherwise imposed
2119-upon such materials that will not be so incorporated in the building or
2120-other project reported and paid by such contractor to the director of
2121-taxation not later than the 20
2122-th
2123- day of the month following the close of
2124-the month in which it shall be determined that such materials will not
2125-be used for the purpose for which such certificate was issued, the area
2126-agency on aging concerned shall be liable for tax on all materials
2127-purchased for the project, and upon payment thereof, the area agency
2128-on aging may recover the same from the contractor together with
2129-reasonable attorney fees. Any contractor or any agent, employee or
2130-subcontractor thereof who shall use or otherwise dispose of any
2131-materials purchased under such a certificate for any purpose other than
2132-that for which such a certificate is issued without the payment of the
2133-sales or compensating tax otherwise imposed upon such materials shall
2134-be guilty of a misdemeanor and, upon conviction therefor, shall be
2135-subject to the penalties provided for in K.S.A. 79-3615(h), and
2136-amendments thereto;
2137-(qqqq) all sales of tangible personal property or services
2138-purchased by Kansas suicide prevention HQ, inc., an organization that
2139-is exempt from federal income taxation pursuant to section 501(c)(3) of
2140-the federal internal revenue code of 1986, for the purpose of bringing
2141-suicide prevention training and awareness to communities across the
2142-state;
2143-(rrrr) all sales of the services of slaughtering, butchering, custom
2144-cutting, dressing, processing and packaging of an animal for human
2145-consumption when the animal is delivered or furnished by a customer
2146-that owns the animal and such meat or poultry is for use or
2147-consumption by such customer;
2148-(ssss) all sales of tangible personal property or services purchased
2149-by or on behalf of doorstep inc., an organization that is exempt from
2150-federal income taxation pursuant to section 501(c)(3) of the federal
2151-internal revenue code of 1986, for the purpose of providing short-term
2152-emergency aid to families and individuals in need, including assistance
2153-with food, clothing, rent, prescription medications, transportation and
2154-utilities, and providing information on services to promote long-term SENATE BILL No. 98—page 37
2155-self-sufficiency;
2156-(tttt) on and after January 1, 2024, all sales of tangible personal
2157-property or services purchased by exploration place, inc., an
2158-organization that is exempt from federal income taxation pursuant to
2159-section 501(c)(3) of the federal internal revenue code, and which such
2160-property and services are used for the purpose of constructing,
2161-remodeling, furnishing or equipping a riverfront amphitheater, a
2162-destination playscape, an education center and indoor renovations at
2163-exploration place in Wichita, Kansas, all sales of tangible personal
2164-property or services purchased by Kansas children's discovery center
2165-inc. in Topeka, Kansas, and which such property and services are used
2166-for the purpose of constructing, remodeling, furnishing or equipping
2167-projects that include indoor-outdoor classrooms, an expanded multi-
2168-media gallery, a workshop and loading dock and safety upgrades such
2169-as a tornado shelter, lactation room, first aid room and sensory room
2170-and all sales of tangible personal property or services purchased by a
2171-contractor for the purpose of constructing, remodeling, furnishing or
2172-equipping such projects, for such organizations, that would be exempt
2173-from taxation under the provisions of this section if purchased directly
2174-by such organizations. Nothing in this subsection shall be deemed to
2175-exempt the purchase of any construction machinery, equipment or tools
2176-used in the constructing, remodeling, furnishing or equipping of
2177-facilities for such organization. When such organization shall contract
2178-for the purpose of constructing, remodeling, furnishing or equipping
2179-such projects, it shall obtain from the state and furnish to the contractor
2180-an exemption certificate for the project involved, and the contractor
2181-may purchase materials for incorporation in such project. The
2182-contractor shall furnish the number of such certificate to all suppliers
2183-from whom such purchases are made, and such suppliers shall execute
2184-invoices covering the same bearing the number of such certificate.
2185-Upon completion of the project, the contractor shall furnish to such
2186-organization a sworn statement, on a form to be provided by the
2187-director of taxation, that all purchases so made were entitled to
2188-exemption under this subsection. All invoices shall be held by the
2189-contractor for a period of five years and shall be subject to audit by the
2190-director of taxation. If any materials purchased under such a certificate
2191-are found not to have been incorporated in such facilities or not to have
2192-been returned for credit or the sales or compensating tax otherwise
2193-imposed upon such materials that will not be so incorporated in such
2194-facilities reported and paid by such contractor to the director of taxation
2195-no later than the 20
2196-th
2197- day of the month following the close of the month
2198-in which it shall be determined that such materials will not be used for
2199-the purpose for which such certificate was issued, such organization
2200-shall be liable for tax on all materials purchased for the project, and
2201-upon payment thereof may recover the same from the contractor
2202-together with reasonable attorney fees. Any contractor or agent,
2203-employee or subcontractor thereof, who purchased under such a
2204-certificate for any purpose other than that for which such a certificate is
2205-issued without the payment of the sales or compensating tax otherwise
2206-imposed upon such materials, shall be guilty of a misdemeanor and,
2207-upon conviction therefor, shall be subject to the penalties provided for
2208-in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
2209-after January 1, 2024, but prior to the effective date of this act, upon the
2210-gross receipts received from any sale exempted by the amendatory
2211-provisions of this subsection shall be refunded. Each claim for a sales
2212-tax refund shall be verified and submitted to the director of taxation
2213-upon forms furnished by the director and shall be accompanied by any
2214-additional documentation required by the director. The director shall
2215-review each claim and shall refund that amount of sales tax paid as SENATE BILL No. 98—page 38
2216-determined under the provisions of this subsection. All refunds shall be
2217-paid from the sales tax refund fund upon warrants of the director of
2218-accounts and reports pursuant to vouchers approved by the director or
2219-the director's designee. The provisions of this subsection shall expire
2220-and have no effect on and after December 31, 2030;
2221-(uuuu) (1) (A) all sales of equipment, machinery, software,
2222-ancillary components, appurtenances, accessories or other
2223-infrastructure purchased for use in the provision of communications
2224-services; and
2225-(B) all services purchased by a provider in the provision of the
2226-communications service used in the repair, maintenance or installation
2227-in such communications service.
2228-(2) As used in this subsection:
2229-(A) "Communications service" means internet access service,
2230-telecommunications service, video service or any combination thereof.
2231-(B) "Equipment, machinery, software, ancillary components,
2232-appurtenances, accessories or other infrastructure" includes, but is not
2233-limited to:
2234-(i) Wires, cables, fiber, conduits, antennas, poles, switches,
2235-routers, amplifiers, rectifiers, repeaters, receivers, multiplexers,
2236-duplexers, transmitters, circuit cards, insulating and protective
2237-materials and cases, power equipment, backup power equipment,
2238-diagnostic equipment, storage devices, modems, cable modem
2239-termination systems and servers;
2240-(ii) other general central office or headend equipment, such as
2241-channel cards, frames and cabinets;
2242-(iii) equipment used in successor technologies, including items
2243-used to monitor, test, maintain, enable or facilitate qualifying
2244-equipment, machinery, software, ancillary components, appurtenances
2245-and accessories; and
2246-(iv) other infrastructure that is used in whole or in part to provide
2247-communications services, including broadcasting, distributing, sending,
2248-receiving, storing, transmitting, retransmitting, amplifying, switching,
2249-providing connectivity for or routing communications services.
2250-(C) "Internet access service" means the same as internet access as
2251-defined in section 1105 of the internet tax freedom act amendments of
2252-2007, public law 110-108.
2253-(D) "Provider" means a person or entity that sells communications
2254-service, including an affiliate or subsidiary.
2255-(E) "Telecommunications service" means the same as defined in
2256-K.S.A. 79-3602, and amendments thereto.
2257-(F) "Video service" means the same as defined in K.S.A. 12-2022,
9+Section 1. (a) On and after January 1, 2026, any owner or lessee of
10+one or more passenger vehicles or trucks registered for a gross weight of
11+20,000 pounds or less who is a resident of Kansas, upon compliance with
12+the provisions of this section, may be issued one route 66 association of
13+Kansas license plate for each such passenger vehicle or truck. Such license
14+plate shall be issued for the same time as other license plates upon proper
15+registration and payment of the regular license fee as provided in K.S.A. 8-
16+143, and amendments thereto, and the payment to the county treasurer of
17+the logo use royalty payment.
18+(b) Route 66 association of Kansas, inc., may authorize the use of the
19+organization's logo to be affixed on license plates as provided by this
20+section. Any motor vehicle owner or lessee shall pay an amount of not less
21+than $25 nor more than $100, as determined by route 66 association of
22+Kansas, inc., as a logo use royalty payment for each such license plate to
23+be issued. The logo use royalty payment shall be paid to the county
24+treasurer.
25+(c) Any applicant for a license plate authorized by this section may
26+make application for such license plate not less than 60 days prior to such
27+person's renewal of registration date, on a form prescribed and furnished
28+by the director of vehicles, and any applicant for such license plate shall
29+pay to the county treasurer the logo use royalty payment. Application for
30+registration of a passenger vehicle or truck and issuance of the license
31+plate under this section shall be made by the owner or lessee in a manner
32+prescribed by the director of vehicles upon forms furnished by the director.
33+(d) No registration or license plate issued under this section shall be
34+transferable to any other person.
35+(e) The director of vehicles may transfer a route 66 association of
36+Kansas license plate from a leased vehicle to a purchased vehicle.
37+(f) Renewals of registration under this section shall be made annually,
38+upon payment of the fee prescribed in K.S.A. 8-143, and amendments
39+thereto, and in the manner prescribed in K.S.A. 8-132(b), and amendments
40+1
41+2
42+3
43+4
44+5
45+6
46+7
47+8
48+9
49+10
50+11
51+12
52+13
53+14
54+15
55+16
56+17
57+18
58+19
59+20
60+21
61+22
62+23
63+24
64+25
65+26
66+27
67+28
68+29
69+30
70+31
71+32
72+33
73+34
74+35
75+36 SB 98 2
76+thereto. No renewal of registration shall be made to any applicant until
77+such applicant provides to the county treasurer the annual royalty payment.
78+If such annual royalty payment is not made to the county treasurer, the
79+applicant shall be required to comply with the provisions of K.S.A. 8-143,
80+and amendments thereto, and return the license plate to the county
81+treasurer of such person's residence.
82+(g) Route 66 association of Kansas, inc., with the approval of the
83+director of vehicles, shall design a plate to be issued under the provisions
84+of this section.
85+(h) As a condition of receiving the route 66 association of Kansas
86+license plate and any subsequent registration renewal of such license plate,
87+the applicant shall consent to the division authorizing the division's release
88+of motor vehicle record information, including the applicant's name,
89+address, royalty payment amount, plate number and vehicle type to Route
90+66 association of Kansas, inc., and the state treasurer.
91+(i)  The collection and remittance of annual royalty payments by the
92+county treasurer shall be subject to the provisions of K.S.A. 8-1,141(h),
225893 and amendments thereto.
2259-(3) The provisions of this subsection shall expire and have no
2260-effect on and after July 1, 2029;
2261-(vvvv) (1) all sales of tangible personal property or services
2262-purchased by a contractor for the purpose of constructing, equipping,
2263-reconstructing, maintaining, repairing, enlarging, furnishing or
2264-remodeling a building that is operated by, or is intended to be operated
2265-by, the Kansas fairgrounds foundation, a not-for-profit corporation
2266-exempt from federal income taxation pursuant to section 501(c)(3) of
2267-the federal internal revenue code of 1986, and located on the grounds of
2268-the Kansas state fair, and such tangible personal property would be
2269-exempt from taxation under the provisions of this paragraph if
2270-purchased directly by such eligible not-for-profit corporation. Nothing
2271-in this subsection shall be deemed to exempt the purchase of any
2272-construction machinery, equipment or tools used in the constructing,
2273-equipping, reconstructing, maintaining, repairing, enlarging, furnishing
2274-or remodeling a building for such eligible not-for-profit corporation. SENATE BILL No. 98—page 39
2275-When such eligible not-for-profit corporation contracts for the purpose
2276-of constructing, equipping, reconstructing, maintaining, repairing,
2277-enlarging, furnishing or remodeling a building, such corporation shall
2278-obtain from the state and furnish to the contractor an exemption
2279-certificate for the project involved, and such contractor may purchase
2280-materials for incorporation in such project. The contractor shall furnish
2281-the number of such certificate to all suppliers from whom such
2282-purchases are made, and such suppliers shall execute invoices covering
2283-such purchases bearing the number of such certificate. Upon
2284-completion of the project, the contractor shall furnish to such eligible
2285-not-for-profit corporation a sworn statement, on a form to be provided
2286-by the director of taxation, that all purchases so made were entitled to
2287-exemption under this subsection. All invoices shall be held by the
2288-contractor for a period of five years and shall be subject to audit by the
2289-director of taxation. If any materials purchased under such a certificate
2290-are found not to have been incorporated in the building or returned for
2291-credit, the contractor shall report and pay the sales or compensating tax
2292-to the director of taxation not later than the 20
2293-th
2294- day of the month
2295-following the close of the month in which it is determined that such
2296-materials will not be used for the purpose for which such certificate
2297-was issued. The eligible not-for-profit corporation concerned shall be
2298-liable for tax on all materials purchased for the project, and upon
2299-payment thereof, the eligible not-for-profit corporation may recover the
2300-same from the contractor together with reasonable attorney fees. Any
2301-contractor or any agent, employee or subcontractor thereof who shall
2302-use or otherwise dispose of any materials purchased under such a
2303-certificate for any purpose other than that for which such a certificate is
2304-issued without the payment of the sales or compensating tax otherwise
2305-imposed upon such materials shall be guilty of a misdemeanor and,
2306-upon conviction therefor, shall be subject to the penalties provided for
2307-in K.S.A. 79-3615(h), and amendments thereto.
2308-(2) Sales tax paid on and after May 19, 2023, but prior to the
2309-effective date of this act upon the gross receipts received from any sale
2310-which would have been exempted by the provisions of this subsection
2311-had such sale occurred after the effective date of this act shall be
2312-refunded. Each claim for a sales tax refund shall be verified and
2313-submitted to the director of taxation upon forms furnished by the
2314-director and shall be accompanied by any additional documentation
2315-required by the director. The director shall review each claim and shall
2316-refund that amount of sales tax paid as determined under the provisions
2317-of this subsection. All refunds shall be paid from the sales tax refund
2318-fund upon warrants of the director of accounts and reports pursuant to
2319-vouchers approved by the director or the director's designee; and
2320-(wwww) (1) all sales of tangible personal property or services
2321-purchased by a pregnancy resource center or residential maternity
2322-facility.
2323-(2) As used in this subsection, "pregnancy resource center" or
2324-"residential maternity facility" means an organization that is:
2325-(A) Exempt from federal income taxation pursuant to section
2326-501(c)(3) of the federal internal revenue code of 1986;
2327-(B) a nonprofit organization organized under the laws of this state;
2328-and
2329-(C) a pregnancy resource center or residential maternity facility
2330-that:
2331-(i) Maintains a dedicated phone number for clients;
2332-(ii) maintains in this state its primary physical office, clinic or
2333-residential home that is open for clients for a minimum of 20 hours per
2334-week, excluding state holidays;
2335-(iii) offers services, at no cost to the client, for the express purpose SENATE BILL No. 98—page 40
2336-of providing assistance to women in order to carry their pregnancy to
2337-term, encourage parenting or adoption, prevent abortion and promote
2338-healthy childbirth; and
2339-(iv) utilizes trained healthcare providers, as defined by K.S.A.
2340-2024 Supp. 79-32,316, and amendments thereto, to perform any
2341-available medical procedures.; and
2342-(xxxx) all sales of tangible personal property or services
2343-purchased for the purpose of and in conjunction with constructing,
2344-reconstructing, enlarging or remodeling a qualified data center by a
2345-qualified firm that meets the requirements established in sections 1
2346-through 3, and amendments thereto, and has been approved and
2347-certified for a project exemption certificate by the secretary of
2348-commerce, the sale and installation of machinery and data center
2349-equipment and eligible data center costs purchased by such qualified
2350-firm for such qualified data center and labor services to install, apply,
2351-repair, service, alter or maintain data center equipment of such
2352-qualified firm at such qualified data center. When a person contracts
2353-for the construction, reconstruction, enlargement or remodeling of any
2354-such qualified data center, such person shall obtain from the state and
2355-furnish to the contractor an exemption certificate for the project
2356-involved, and the contractor may purchase materials, machinery and
2357-equipment for incorporation in such project. The contractor shall
2358-furnish the number of such certificates to all suppliers from whom such
2359-purchases are made, and such suppliers shall execute invoices covering
2360-such purchases bearing the number of such certificates. Upon
2361-completion of the project, the contractor shall furnish to the owner of
2362-the qualified firm a sworn statement, on a form to be provided by the
2363-director of taxation, that all purchases so made were entitled to
2364-exemption under this subsection. All invoices shall be held by the
2365-contractor for a period of five years and shall be subject to audit by the
2366-director of taxation. Any contractor or any agent, employee or
2367-subcontractor thereof who shall use or otherwise dispose of any
2368-materials, machinery or equipment purchased under such a certificate
2369-for any purpose other than that for which such a certificate is issued
2370-without the payment of the sales or compensating tax otherwise
2371-imposed thereon shall be guilty of a misdemeanor and, upon conviction
2372-thereof, shall be subject to the penalties provided for in K.S.A. 79-
2373-3615(h), and amendments thereto. As used in this subsection, "data
2374-center equipment," "eligible data center costs," "qualified data center"
2375-and "qualified firm" mean the same as defined in section 1, and
2376-amendments thereto.
2377-Sec. 7. K.S.A. 2024 Supp. 66-101j and 79-3606 are hereby
2378-repealed. SENATE BILL No. 98—page 41
2379-Sec. 8. This act shall take effect and be in force from and after its
94+Sec. 2. This act shall take effect and be in force from and after its
238095 publication in the statute book.
2381-I hereby certify that the above BILL originated in the
2382-SENATE, and passed that body
2383-__________________________
2384-SENATE adopted
2385- Conference Committee Report ________________
2386-_________________________
2387-President of the Senate.
2388-_________________________
2389-Secretary of the Senate.
2390-
2391-Passed the HOUSE
2392- as amended _________________________
2393-HOUSE adopted
2394- Conference Committee Report ________________
2395-_________________________
2396-Speaker of the House.
2397-_________________________
2398-Chief Clerk of the House.
2399-APPROVED _____________________________
2400-_________________________
2401-Governor.
96+1
97+2
98+3
99+4
100+5
101+6
102+7
103+8
104+9
105+10
106+11
107+12
108+13
109+14
110+15
111+16
112+17
113+18
114+19
115+20