Excluding from sales taxation services for installing or applying tangible personal property for the reconstruction, restoration, remodeling, renovation, repair or replacement of a building or facility.
Impact
The implications for state laws are significant. If enacted, HB2585 will amend K.S.A. 2023 Supp. 79-3603 and repeal existing sections pertaining to the sales tax on these construction-related services. This could lead to increased activities in the construction industry, potentially resulting in greater job creation, more business opportunities, and enhanced infrastructure development as builders and contractors take advantage of the tax exemption. The state could witness a more vibrant construction market, fostering economic growth in the process.
Summary
House Bill 2585 proposes significant changes to the sales tax regulations in the state of Kansas. Specifically, it seeks to exclude services related to the installation and application of tangible personal property involved in the reconstruction, restoration, remodeling, renovation, repair, or replacement of buildings and facilities from sales taxation. This amendment aims at providing clearer tax incentives for construction and renovation projects, which are vital for economic growth within communities. By removing taxes on these services, the bill seeks to lower overall project costs and stimulate activity in the construction sector.
Contention
However, there are potential concerns and points of contention surrounding the enactment of this bill. Opponents may argue that exempting services from sales tax could lead to decreased state revenue, which is essential for funding public services. Critics might also express worries about the long-term financial sustainability of such tax exemptions and its effect on funding critical government programs. The balance between stimulating economic development through tax incentives and maintaining adequate government funding will likely be a point of debate among lawmakers.
Notable_points
Ultimately, the passage of HB2585 hinges on the broader economic strategies employed by the state legislature. It reflects an acknowledgment of the importance of the construction sector in driving local economies and the desire to enable faster and less costly reconstruction efforts. Paying close attention to how this bill develops will be essential for stakeholders in the construction industry, local governments, and taxpayers.
Excluding from sales taxation the service of installing or applying tangible personal property for the reconstruction, restoration, remodeling, renovation, repair or replacement of a building or facility.
Excluding from sales taxation the service of installing or applying tangible personal property for the reconstruction, restoration, remodeling, renovation, repair or replacement of a building or facility.
Substitute for SB 33 by Committee on Assessment and Taxation - Excluding exempt sales of certain custom meat processing services from exemption certificate requirements for sales tax purposes.
Providing sales tax exemptions for certain food and food ingredients and for the construction or repair of buildings used for human habitation by the Kansas state school for the blind and the Kansas state school for the deaf and repealing the state rate reduction for sales of certain food and food ingredients.
Expanding the eligible uses for the 0% state rate for sales tax for certain utilities and the levying of sales tax on such sales by cities and counties and authorizing cities and counties to exempt such sales from such city or county taxes.
Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.
Decreasing the state rate for sales and use taxes for sales of food, food ingredients and prepared food and modifying the percent credited to the state highway fund from revenue collected.
Decreasing the state rate for sales and use taxes for prepared food and increasing the percent credited to the state highway fund from sales and use tax revenue collected.
Reducing the state rate for sales and use taxes for sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.