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16  AN ACT relating to sales taxation; exempting purchases made by religious
17    organizations therefrom concerning exemptions therefrom; [clas-
18    sifying cities for such purposes;] [defining accommodations bro-
19    ker and imposing such tax on services performed by such bro-
20    ker;] amending K.S.A. [79-3634 and 79-3635 and K.S.A.] 1996
21    Supp. [12-188,] [12-1693 and 12-1697 and K.S.A. 1996 Supp. 12-
22    1692, 12-1696,] 79-3603 and 79-3606 and repealing the existing
23    section sections.
24
25  Be it enacted by the Legislature of the State of Kansas:
26    Section 1.  K.S.A. 1996 Supp. 79-3603 is hereby amended to
27  read as follows: 79-3603. For the privilege of engaging in the busi-
28  ness of selling tangible personal property at retail in this state or
29  rendering or furnishing any of the services taxable under this act,
30  there is hereby levied and there shall be collected and paid a tax
31  at the rate of 4.9% [unless otherwise specifically provided, upon]:
32    (a)  The gross receipts received from the sale of tangible per-
33  sonal property at retail within this state;
34    (b) (1)  the gross receipts from intrastate telephone or tele-
35  graph services and (2) the gross receipts received from the sale of
36  interstate telephone or telegraph services, which (A) originate
37  within this state and terminate outside the state and are billed to
38  a customer's telephone number or account in this state; or (B) orig-
39  inate outside this state and terminate within this state and are
40  billed to a customer's telephone number or account in this state
41  except that the sale of interstate telephone or telegraph service
42  does not include: (A) Any interstate incoming or outgoing wide
43  area telephone service or wide area transmission type service
HB 2107--Am. by HCW
                                     

 1  which entitles the subscriber to make or receive an unlimited num-
 2  ber of communications to or from persons having telephone serv-
 3  ice in a specified area which is outside the state in which the station
 4  provided this service is located; (B) any interstate private com-
 5  munications service to the persons contracting for the receipt of
 6  that service that entitles the purchaser to exclusive or priority use
 7  of a communications channel or group of channels between ex-
 8  changes; (C) any value-added nonvoice service in which computer
 9  processing applications are used to act on the form, content, code
10  or protocol of the information to be transmitted; (D) any telecom-
11  munication service to a provider of telecommunication services
12  which will be used to render telecommunications services, includ-
13  ing carrier access services; or (E) any service or transaction de-
14  fined in this section among entities classified as members of an
15  affiliated group as provided by federal law (U.S.C. Section 1504);
16    (c)  the gross receipts from the sale or furnishing of gas, water,
17  electricity and heat, which sale is not otherwise exempt from tax-
18  ation under the provisions of this act, and whether furnished by
19  municipally or privately owned utilities;
20    (d)  the gross receipts from the sale of meals or drinks furnished
21  at any private club, drinking establishment, catered event, restau-
22  rant, eating house, dining car, hotel, drugstore or other place
23  where meals or drinks are regularly sold to the public;
24    (e)  the gross receipts from the sale of admissions to any place
25  providing amusement, entertainment or recreation services in-
26  cluding admissions to state, county, district and local fairs, but such
27  tax shall not be levied and collected upon the gross receipts re-
28  ceived from sales of admissions to any cultural and historical event
29  which occurs triennially;
30    (f)  the gross receipts from the operation of any coin-operated
31  device dispensing or providing tangible personal property, amuse-
32  ment or other services except laundry services, whether automatic
33  or manually operated;
34    (g)  the gross receipts from the service of renting of rooms by
35  hotels, as defined by K.S.A. 36-501 and amendments thereto[, or
36  by accommodation brokers, as defined by K.S.A. 12-1692, and
37  amendments thereto];
38    (h)  the gross receipts from the service of renting or leasing of
39  tangible personal property except such tax shall not apply to the
40  renting or leasing of machinery, equipment or other personal
41  property owned by a city and purchased from the proceeds of in-
42  dustrial revenue bonds issued prior to July 1, 1973, in accordance
43  with the provisions of K.S.A. 12-1740 through 12-1749, and amend-
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 1  ments thereto, and any city or lessee renting or leasing such ma-
 2  chinery, equipment or other personal property purchased with the
 3  proceeds of such bonds who shall have paid a tax under the pro-
 4  visions of this section upon sales made prior to July 1, 1973, shall
 5  be entitled to a refund from the sales tax refund fund of all taxes
 6  paid thereon;
 7    (i)  the gross receipts from the rendering of dry cleaning, press-
 8  ing, dyeing and laundry services except laundry services rendered
 9  through a coin-operated device whether automatic or manually
10  operated;
11    (j)  the gross receipts from the rendering of the services of
12  washing and washing and waxing of vehicles;
13    (k)  the gross receipts from cable, community antennae and
14  other subscriber radio and television services;
15    (l)  the gross receipts received from the sales of tangible per-
16  sonal property to all contractors, subcontractors or repairmen of
17  materials and supplies for use by them in erecting structures for
18  others, or building on, or otherwise improving, altering, or re-
19  pairing real or personal property of others;
20    (m)  the gross receipts received from fees and charges by public
21  and private clubs, drinking establishments, organizations and busi-
22  nesses for participation in sports, games and other recreational
23  activities, but such tax shall not be levied and collected upon the
24  gross receipts received from: (1) Fees and charges by any political
25  subdivision, by any organization exempt from property taxation pursu-
26  ant to paragraph ninth of K.S.A. 79-201, and amendments thereto, or by
27  any youth recreation organization exclusively providing services to
28  persons 18 years of age or younger which is exempt from federal
29  income taxation pursuant to section 501(c)(3) of the federal inter-
30  nal revenue code of 1986, for participation in sports, games and
31  other recreational activities; and (2) entry fees and charges for
32  participation in a special event or tournament sanctioned by a na-
33  tional sporting association to which spectators are charged an ad-
34  mission which is taxable pursuant to subsection (e);
35    (n)  the gross receipts received from dues charged by public
36  and private clubs, drinking establishments, organizations and busi-
37  nesses, payment of which entitles a member to the use of facilities
38  for recreation or entertainment, but such tax shall not be levied and
39  collected upon the gross receipts received from dues charged by any or-
40  ganization exempt from property taxation pursuant to paragraph ninth
41  of K.S.A. 79-201, and amendments thereto;
42    (o)  the gross receipts received from the isolated or occasional
43  sale of motor vehicles or trailers but not including: (1) The transfer
HB 2107--Am. by HCW
                                     

 1  of motor vehicles or trailers by a person to a corporation solely in
 2  exchange for stock securities in such corporation; or (2) the trans-
 3  fer of motor vehicles or trailers by one corporation to another
 4  when all of the assets of such corporation are transferred to such
 5  other corporation; or (3) the sale of motor vehicles or trailers
 6  which are subject to taxation pursuant to the provisions of K.S.A.
 7  79-5101 et seq., and amendments thereto, by an immediate family
 8  member to another immediate family member. For the purposes
 9  of clause (3), immediate family member means lineal ascendants
10  or descendants, and their spouses. In determining the base for
11  computing the tax on such isolated or occasional sale, the fair mar-
12  ket value of any motor vehicle or trailer traded in by the purchaser
13  to the seller may be deducted from the selling price;
14    (p)  the gross receipts received for the service of installing or
15  applying tangible personal property which when installed or ap-
16  plied is not being held for sale in the regular course of business,
17  and whether or not such tangible personal property when installed
18  or applied remains tangible personal property or becomes a part
19  of real estate, except that no tax shall be imposed upon the service
20  of installing or applying tangible personal property in connection
21  with the original construction of a building or facility or the con-
22  struction, reconstruction, restoration, replacement or repair of a
23  bridge or highway.
24    For the purposes of this subsection:
25    (1)  ``Original construction'' shall mean the first or initial con-
26  struction of a new building or facility. The term ``original construc-
27  tion'' shall include the addition of an entire room or floor to any
28  existing building or facility, the completion of any unfinished por-
29  tion of any existing building or facility and the restoration, recon-
30  struction or replacement of a building or facility damaged or de-
31  stroyed by fire, flood, tornado, lightning, explosion or earthquake,
32  but such term shall not include replacement, remodeling, resto-
33  ration, renovation or reconstruction under any other circum-
34  stances;
35    (2)  ``building'' shall mean only those enclosures within which
36  individuals customarily live or are employed, or which are custom-
37  arily used to house machinery, equipment or other property, and
38  including the land improvements immediately surrounding such
39  building; and
40    (3)  ``facility'' shall mean a mill, plant, refinery, oil or gas well,
41  water well, feedlot or any conveyance, transmission or distribution
42  line of any cooperative, nonprofit, membership corporation or-
43  ganized under or subject to the provisions of K.S.A. 17-4601 et
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 1  seq., and amendments thereto, or of any municipal or quasi-mu-
 2  nicipal corporation, including the land improvements immediately
 3  surrounding such facility;
 4    (q)  the gross receipts received for the service of repairing,
 5  servicing, altering or maintaining tangible personal property, ex-
 6  cept computer software described in subsection (s), which when
 7  such services are rendered is not being held for sale in the regular
 8  course of business, and whether or not any tangible personal prop-
 9  erty is transferred in connection therewith. The tax imposed by
10  this subsection shall be applicable to the services of repairing, serv-
11  icing, altering or maintaining an item of tangible personal prop-
12  erty which has been and is fastened to, connected with or built into
13  real property;
14    (r)  the gross receipts from fees or charges made under service
15  or maintenance agreement contracts for services, charges for the
16  providing of which are taxable under the provisions of subsection
17    (p) or (q);
18    (s)  the gross receipts received from the sale of computer soft-
19  ware, and the sale of the services of modifying, altering, updating
20  or maintaining computer software. As used in this subsection,
21  ``computer software'' means information and directions loaded
22  into a computer which dictate different functions to be performed
23  by the computer. Computer software includes any canned or pre-
24  written program which is held or existing for general or repeated
25  sale, even if the program was originally developed for a single end
26  user as custom computer software. The sale of computer software
27  or services does not include: (1) The initial sale of any custom com-
28  puter program which is originally developed for the exclusive use
29  of a single end user; or (2) those services rendered in the modifi-
30  cation of computer software when the modification is developed
31  exclusively for a single end user only to the extent of the modifi-
32  cation and only to the extent that the actual amount charged for
33  the modification is separately stated on invoices, statements and
34  other billing documents provided to the end user. The services of
35  modification, alteration, updating and maintenance of computer
36  software shall only include the modification, alteration, updating
37  and maintenance of computer software taxable under this subsec-
38  tion whether or not the services are actually provided; and
39    (t)  the gross receipts received for telephone answering serv-
40  ices, including mobile phone services, beeper services and other
41  similar services[; and
42    [(u)  the gross receipts received from sales of food for human
43  consumption which shall be taxed at the rate of 3.9% on and after
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 1  July 1, 1997, but before July 1, 1999, 2.9% on and after July 1,
 2  1999, but before July 1, 2001, 1.9% on and after July 1, 2001, but
 3  before July 1, 2003, .9% on and after July 1, 2003, but before July
 4  1, 2005, and all such sales shall be exempt thereafter. As used in
 5  this subsection, ``food for human consumption'' means only that
 6  food which is eligible for purchase with food stamps issued by the
 7  United States department of agriculture pursuant to regulations
 8  in effect on January 1, 1997, regardless of whether the retailer
 9  from which the food is purchased is participating in the food stamp
10  program. Such phrase shall not include: (1) Meals prepared for
11  immediate consumption on or off the premises of the retailer; or
12    (2) food sold through vending machines].
13    Section 1 2.  K.S.A. 1996 Supp. 79-3606 is hereby amended to read
14  as follows: 79-3606. The following shall be exempt from the tax imposed
15  by this act:
16    (a)  All sales of motor-vehicle fuel or other articles upon which a sales
17  or excise tax has been paid, not subject to refund, under the laws of this
18  state except cigarettes as defined by K.S.A. 79-3301 and amendments
19  thereto, cereal malt beverages and malt products as defined by K.S.A. 79-
20  3817 and amendments thereto, including wort, liquid malt, malt syrup
21  and malt extract, which is not subject to taxation under the provisions of
22  K.S.A. 79-41a02 and amendments thereto, and motor vehicles as defined
23  by K.S.A. 79-1017 and amendments thereto;
24    (b)  all sales of tangible personal property or service, including the
25  renting and leasing of tangible personal property, purchased directly by
26  the state of Kansas, a political subdivision thereof, other than a school or
27  educational institution, or purchased by a public or private nonprofit hos-
28  pital or nonprofit blood, tissue or organ bank and used exclusively for
29  state, political subdivision, hospital or nonprofit blood, tissue or organ
30  bank purposes, except when: (1) Such state or hospital is engaged or
31  proposes to engage in any business specifically taxable under the provi-
32  sions of this act and such items of tangible personal property or service
33  are used or proposed to be used in such business, or (2) such political
34  subdivision is engaged or proposes to engage in the business of furnishing
35  gas, water, electricity or heat to others and such items of personal prop-
36  erty or service are used or proposed to be used in such business;
37    (c)  all sales of tangible personal property or services, including the
38  renting and leasing of tangible personal property, purchased directly by
39  a public or private elementary or secondary school or public or private
40  nonprofit educational institution and used primarily by such school or
41  institution for nonsectarian programs and activities provided or sponsored
42  by such school or institution or in the erection, repair or enlargement of
43  buildings to be used for such purposes. The exemption herein provided
HB 2107--Am. by HCW
                                     

 1  shall not apply to erection, construction, repair, enlargement or equip-
 2  ment of buildings used primarily for human habitation;
 3    (d)  all sales of tangible personal property or services purchased by a
 4  contractor for the purpose of constructing, equipping, reconstructing,
 5  maintaining, repairing, enlarging, furnishing or remodeling facilities for
 6  any public or private nonprofit hospital, public or private elementary or
 7  secondary school or a public or private nonprofit educational institution,
 8  which would be exempt from taxation under the provisions of this act if
 9  purchased directly by such hospital, school or educational institution; and
10  all sales of tangible personal property or services purchased by a contrac-
11  tor for the purpose of constructing, equipping, reconstructing, maintain-
12  ing, repairing, enlarging, furnishing or remodeling facilities for any polit-
13  ical subdivision of the state [or district described in subsection (s)],
14  the total cost of which is paid from funds of such political subdivision [or
15  district] and which would be exempt from taxation under the provisions
16  of this act if purchased directly by such political subdivision [or district].
17  Nothing in this subsection or in the provisions of K.S.A. 12-3418 and
18  amendments thereto, shall be deemed to exempt the purchase of any
19  construction machinery, equipment or tools used in the constructing,
20  equipping, reconstructing, maintaining, repairing, enlarging, furnishing
21  or remodeling facilities for any political subdivision of the state [or any
22  such district]. As used in this subsection, K.S.A. 12-3418 and 79-3640,
23  and amendments thereto, ``funds of a political subdivision'' [or district]
24  shall mean general tax revenues, the proceeds of any bonds and gifts or
25  grants-in-aid. Gifts shall not mean funds used for the purpose of con-
26  structing, equipping, reconstructing, repairing, enlarging, furnishing or
27  remodeling facilities which are to be leased to the donor. When any po-
28  litical subdivision of the state, [district described in subsection (s),]
29  public or private nonprofit hospital, public or private elementary or sec-
30  ondary school or public or private nonprofit educational institution shall
31  contract for the purpose of constructing, equipping, reconstructing, main-
32  taining, repairing, enlarging, furnishing or remodeling facilities, it shall
33  obtain from the state and furnish to the contractor an exemption certifi-
34  cate for the project involved, and the contractor may purchase materials
35  for incorporation in such project. The contractor shall furnish the number
36  of such certificate to all suppliers from whom such purchases are made,
37  and such suppliers shall execute invoices covering the same bearing the
38  number of such certificate. Upon completion of the project the contractor
39  shall furnish to the political subdivision, [district,] hospital, school or
40  educational institution concerned a sworn statement, on a form to be
41  provided by the director of taxation, that all purchases so made were
42  entitled to exemption under this subsection. All invoices shall be held by
43  the contractor for a period of five years and shall be subject to audit by
HB 2107--Am. by HCW
                                     

 1  the director of taxation. If any materials purchased under such a certifi-
 2  cate are found not to have been incorporated in the building or other
 3  project or not to have been returned for credit or the sales or compen-
 4  sating tax otherwise imposed upon such materials which will not be so
 5  incorporated in the building or other project reported and paid by such
 6  contractor to the director of taxation not later than the 20th day of the
 7  month following the close of the month in which it shall be determined
 8  that such materials will not be used for the purpose for which such cer-
 9  tificate was issued, the political subdivision, [district,] hospital, school or
10  educational institution concerned shall be liable for tax on all materials
11  purchased for the project, and upon payment thereof it may recover the
12  same from the contractor together with reasonable attorney fees. Any
13  contractor or any agent, employee or subcontractor thereof, who shall use
14  or otherwise dispose of any materials purchased under such a certificate
15  for any purpose other than that for which such a certificate is issued
16  without the payment of the sales or compensating tax otherwise imposed
17  upon such materials, shall be guilty of a misdemeanor and, upon convic-
18  tion therefor, shall be subject to the penalties provided for in subsection
19    (g) of K.S.A. 79-3615, and amendments thereto;
20    (e)  all sales of tangible personal property or services purchased by a
21  contractor for the erection, repair or enlargement of buildings or other
22  projects for the government of the United States, its agencies or instru-
23  mentalities, which would be exempt from taxation if purchased directly
24  by the government of the United States, its agencies or instrumentalities.
25  When the government of the United States, its agencies or instrumen-
26  talities shall contract for the erection, repair, or enlargement of any build-
27  ing or other project, it shall obtain from the state and furnish to the
28  contractor an exemption certificate for the project involved, and the con-
29  tractor may purchase materials for incorporation in such project. The
30  contractor shall furnish the number of such certificates to all suppliers
31  from whom such purchases are made, and such suppliers shall execute
32  invoices covering the same bearing the number of such certificate. Upon
33  completion of the project the contractor shall furnish to the government
34  of the United States, its agencies or instrumentalities concerned a sworn
35  statement, on a form to be provided by the director of taxation, that all
36  purchases so made were entitled to exemption under this subsection. All
37  invoices shall be held by the contractor for a period of five years and shall
38  be subject to audit by the director of taxation. Any contractor or any agent,
39  employee or subcontractor thereof, who shall use or otherwise dispose of
40  any materials purchased under such a certificate for any purpose other
41  than that for which such a certificate is issued without the payment of
42  the sales or compensating tax otherwise imposed upon such materials,
43  shall be guilty of a misdemeanor and, upon conviction therefor, shall be
HB 2107--Am. by HCW
                                     

 1  subject to the penalties provided for in subsection (g) of K.S.A. 79-3615
 2  and amendments thereto;
 3    (f)  tangible personal property purchased by a railroad or public utility
 4  for consumption or movement directly and immediately in interstate
 5  commerce;
 6    (g)  sales of aircraft including remanufactured and modified aircraft,
 7  sales of aircraft repair, modification and replacement parts and sales of
 8  services employed in the remanufacture, modification and repair of air-
 9  craft sold to persons using such aircraft and aircraft repair, modification
10  and replacement parts as certified or licensed carriers of persons or prop-
11  erty in interstate or foreign commerce under authority of the laws of the
12  United States or any foreign government or sold to any foreign govern-
13  ment or agency or instrumentality of such foreign government and all
14  sales of aircraft, aircraft parts, replacement parts and services employed
15  in the remanufacture, modification and repair of aircraft for use outside
16  of the United States;
17    (h)  all rentals of nonsectarian textbooks by public or private elemen-
18  tary or secondary schools;
19    (i)  the lease or rental of all films, records, tapes, or any type of sound
20  or picture transcriptions used by motion picture exhibitors;
21    (j)  meals served without charge or food used in the preparation of
22  such meals to employees of any restaurant, eating house, dining car, hotel,
23  drugstore or other place where meals or drinks are regularly sold to the
24  public if such employees' duties are related to the furnishing or sale of
25  such meals or drinks;
26    (k)  any motor vehicle, semitrailer or pole trailer, as such terms are
27  defined by K.S.A. 8-126 and amendments thereto, or aircraft sold and
28  delivered in this state to a bona fide resident of another state, which motor
29  vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
30  in this state and which vehicle, semitrailer, pole trailer or aircraft will not
31  remain in this state more than 10 days;
32    (l)  all isolated or occasional sales of tangible personal property, serv-
33  ices, substances or things, except isolated or occasional sale of motor
34  vehicles specifically taxed under the provisions of subsection (o) of K.S.A.
35  79-3603 and amendments thereto;
36    (m)  all sales of tangible personal property which become an ingre-
37  dient or component part of tangible personal property or services pro-
38  duced, manufactured or compounded for ultimate sale at retail within or
39  without the state of Kansas; and any such producer, manufacturer or
40  compounder may obtain from the director of taxation and furnish to the
41  supplier an exemption certificate number for tangible personal property
42  for use as an ingredient or component part of the property or services
43  produced, manufactured or compounded;
HB 2107--Am. by HCW
                                     

 1    (n)  all sales of tangible personal property which is consumed in the
 2  production, manufacture, processing, mining, drilling, refining or com-
 3  pounding of tangible personal property, the treating of by-products or
 4  wastes derived from any such production process, the providing of serv-
 5  ices or the irrigation of crops for ultimate sale at retail within or without
 6  the state of Kansas; and any purchaser of such property may obtain from
 7  the director of taxation and furnish to the supplier an exemption certifi-
 8  cate number for tangible personal property for consumption in such pro-
 9  duction, manufacture, processing, mining, drilling, refining, compound-
10  ing, treating, irrigation and in providing such services;
11    (o)  all sales of animals, fowl and aquatic plants and animals, the pri-
12  mary purpose of which is use in agriculture or aquaculture, as defined in
13  K.S.A. 47-1901, and amendments thereto, the production of food for
14  human consumption, the production of animal, dairy, poultry or aquatic
15  plant and animal products, fiber or fur, or the production of offspring for
16  use for any such purpose or purposes;
17    (p)  all sales of drugs, as defined by K.S.A. 65-1626 and amendments
18  thereto, dispensed pursuant to a prescription order, as defined by K.S.A.
19  65-1626 and amendments thereto, by a licensed practitioner;
20    (q)  all sales of insulin dispensed by a person licensed by the state
21  board of pharmacy to a person for treatment of diabetes at the direction
22  of a person licensed to practice medicine by the board of healing arts;
23    (r)  all sales of prosthetic and orthopedic appliances prescribed in
24  writing by a person licensed to practice the healing arts, dentistry or
25  optometry. For the purposes of this subsection, the term prosthetic and
26  orthopedic appliances means any apparatus, instrument, device, or equip-
27  ment used to replace or substitute for any missing part of the body; used
28  to alleviate the malfunction of any part of the body; or used to assist any
29  disabled person in leading a normal life by facilitating such person's mo-
30  bility; such term shall include accessories [attached or] to be attached
31  to motor vehicles, but such term shall not include motor vehicles or per-
32  sonal property which when installed becomes a fixture to real property;
33    (s)  all sales of tangible personal property or services purchased di-
34  rectly by a groundwater management district organized or operating un-
35  der the authority of K.S.A. 82a-1020 et seq. and amendments thereto, by
36  a rural water district organized or operating under the authority
37  of K.S.A. 82a-612, and amendments thereto, or by a water supply
38  district organized or operating under authority of K.S.A. 19-3501
39  et seq., and amendments thereto, or K.S.A. 19-3522 et seq., and
40  amendments thereto, which property or services are used in the op-
41  eration or maintenance of the district;
42    (t)  all sales of farm machinery and equipment or aquaculture ma-
43  chinery and equipment, repair and replacement parts therefor and serv-
HB 2107--Am. by HCW
                                     

 1  ices performed in the repair and maintenance of such machinery and
 2  equipment. For the purposes of this subsection the term ``farm machinery
 3  and equipment or aquaculture machinery and equipment'' shall include
 4  machinery and equipment used in the operation of Christmas tree farm-
 5  ing but shall not include any passenger vehicle, truck, truck tractor, trailer,
 6  semitrailer or pole trailer, other than a farm trailer, as such terms are
 7  defined by K.S.A. 8-126 and amendments thereto. Each purchaser of
 8  farm machinery and equipment or aquaculture machinery and equipment
 9  exempted herein must certify in writing on the copy of the invoice or
10  sales ticket to be retained by the seller that the farm machinery and
11  equipment or aquaculture machinery and equipment purchased will be
12  used only in farming, ranching or aquaculture production. Farming or
13  ranching shall include the operation of a feedlot and farm and ranch work
14  for hire and the operation of a nursery;
15    (u)  all leases or rentals of tangible personal property used as a dwell-
16  ing if such tangible personal property is leased or rented for a period of
17  more than 28 consecutive days;
18    (v)  all sales of food products to any contractor for use in preparing
19  meals for delivery to homebound elderly persons over 60 years of age and
20  to homebound disabled persons or to be served at a group-sitting at a
21  location outside of the home to otherwise homebound elderly persons
22  over 60 years of age and to otherwise homebound disabled persons, as
23  all or part of any food service project funded in whole or in part by
24  government or as part of a private nonprofit food service project available
25  to all such elderly or disabled persons residing within an area of service
26  designated by the private nonprofit organization, and all sales of food
27  products for use in preparing meals for consumption by indigent or home-
28  less individuals whether or not such meals are consumed at a place des-
29  ignated for such purpose;
30    (w)  all sales of natural gas, electricity, heat and water delivered
31  through mains, lines or pipes: (1) To residential premises for noncom-
32  mercial use by the occupant of such premises; (2) for agricultural use and
33  also, for such use, all sales of propane gas; (3) for use in the severing of
34  oil; and (4) to any property which is exempt from property taxation pur-
35  suant to K.S.A. 79-201b Second through Sixth.  As used in this paragraph,
36  ``severing'' shall have the meaning ascribed thereto by subsection (k) of
37  K.S.A. 79-4216, and amendments thereto;
38    (x)  all sales of propane gas, LP-gas, coal, wood and other fuel sources
39  for the production of heat or lighting for noncommercial use of an oc-
40  cupant of residential premises;
41    (y)  all sales of materials and services used in the repairing, servicing,
42  altering, maintaining, manufacturing, remanufacturing, or modification of
43  railroad rolling stock for use in interstate or foreign commerce under
HB 2107--Am. by HCW
                                     

 1  authority of the laws of the United States;
 2    (z)  all sales of tangible personal property and services purchased di-
 3  rectly by a port authority or by a contractor therefor as provided by the
 4  provisions of K.S.A. 12-3418 and amendments thereto;
 5    (aa)  all sales of materials and services applied to equipment which is
 6  transported into the state from without the state for repair, service, al-
 7  teration, maintenance, remanufacture or modification and which is sub-
 8  sequently transported outside the state for use in the transmission of
 9  liquids or natural gas by means of pipeline in interstate or foreign com-
10  merce under authority of the laws of the United States;
11    (bb)  all sales of used mobile homes or manufactured homes. As used
12  in this subsection: (1) ``Mobile homes'' and ``manufactured homes'' shall
13  have the meanings ascribed thereto by K.S.A. 58-4202 and amendments
14  thereto; and (2) ``sales of used mobile homes or manufactured homes''
15  means sales other than the original retail sale thereof;
16    (cc)  all sales of tangible personal property or services purchased for
17  the purpose of and in conjunction with constructing, reconstructing, en-
18  larging or remodeling a business or retail business which meets the
19  requirements established in K.S.A. 74-50,115 and amendments thereto,
20  and the sale and installation of machinery and equipment purchased for
21  installation at any such business or retail business. When a person shall
22  contract for the construction, reconstruction, enlargement or remodeling
23  of any such business or retail business, such person shall obtain from the
24  state and furnish to the contractor an exemption certificate for the project
25  involved, and the contractor may purchase materials, machinery and
26  equipment for incorporation in such project. The contractor shall furnish
27  the number of such certificates to all suppliers from whom such purchases
28  are made, and such suppliers shall execute invoices covering the same
29  bearing the number of such certificate. Upon completion of the project
30  the contractor shall furnish to the owner of the business or retail business
31  a sworn statement, on a form to be provided by the director of taxation,
32  that all purchases so made were entitled to exemption under this subsec-
33  tion. All invoices shall be held by the contractor for a period of five years
34  and shall be subject to audit by the director of taxation. Any contractor
35  or any agent, employee or subcontractor thereof, who shall use or oth-
36  erwise dispose of any materials, machinery or equipment purchased un-
37  der such a certificate for any purpose other than that for which such a
38  certificate is issued without the payment of the sales or compensating tax
39  otherwise imposed thereon, shall be guilty of a misdemeanor and, upon
40  conviction therefor, shall be subject to the penalties provided for in sub-
41  section (g) of K.S.A. 79-3615 and amendments thereto. As used in this
42  subsection, ``business'' and ``retail business'' have the meanings respec-
43  tively ascribed thereto by K.S.A. 74-50,114 and amendments thereto;
HB 2107--Am. by HCW
                                     

 1    (dd)  all sales of tangible personal property purchased with food
 2  stamps issued by the United States department of agriculture;
 3    (ee)  all sales of lottery tickets and shares made as part of a lottery
 4  operated by the state of Kansas;
 5    (ff)  on and after July 1, 1988, all sales of new mobile homes or man-
 6  ufactured homes to the extent of 40% of the gross receipts, determined
 7  without regard to any trade-in allowance, received from such sale. As used
 8  in this subsection, ``mobile homes'' and ``manufactured homes'' shall have
 9  the meanings ascribed thereto by K.S.A. 58-4202 and amendments
10  thereto;
11    (gg)  all sales of tangible personal property purchased in accordance
12  with vouchers issued pursuant to the federal special supplemental food
13  program for women, infants and children;
14    (hh)  all sales of medical supplies and equipment purchased directly
15  by a nonprofit skilled nursing home or nonprofit intermediate nursing
16  care home, as defined by K.S.A. 39-923, and amendments thereto, for
17  the purpose of providing medical services to residents thereof. This ex-
18  emption shall not apply to tangible personal property customarily used
19  for human habitation purposes;
20    (ii)  all sales of tangible personal property purchased directly by a non-
21  profit organization for nonsectarian comprehensive multidiscipline youth
22  development programs and activities provided or sponsored by such or-
23  ganization[, and all sales of tangible personal property by or on
24  behalf of such organization]. This exemption shall not apply to tangible
25  personal property customarily used for human habitation purposes;
26    (jj)  all sales of tangible personal property or services, including the
27  renting and leasing of tangible personal property, purchased directly on
28  behalf of a community-based mental retardation facility or mental health
29  center organized pursuant to K.S.A. 19-4001 et seq., and amendments
30  thereto, and licensed in accordance with the provisions of K.S.A. 75-
31  3307b and amendments thereto. This exemption shall not apply to tan-
32  gible personal property customarily used for human habitation purposes;
33    (kk)  on and after January 1, 1989, all sales of machinery and equip-
34  ment used directly and primarily for the purposes of manufacturing, as-
35  sembling, processing, finishing, storing, warehousing or distributing ar-
36  ticles of tangible personal property in this state intended for resale by a
37  manufacturing or processing plant or facility or a storage, warehousing or
38  distribution facility:
39    (1)  For purposes of this subsection, machinery and equipment shall
40  be deemed to be used directly and primarily in the manufacture, assem-
41  blage, processing, finishing, storing, warehousing or distributing of tan-
42  gible personal property where such machinery and equipment is used
43  during a manufacturing, assembling, processing or finishing, storing,
HB 2107--Am. by HCW
                                     

 1  warehousing or distributing operation:
 2    (A) To effect a direct and immediate physical change upon the tangible
 3  personal property;
 4    (B)  to guide or measure a direct and immediate physical change upon
 5  such property where such function is an integral and essential part of
 6  tuning, verifying or aligning the component parts of such property;
 7    (C)  to test or measure such property where such function is an in-
 8  tegral part of the production flow or function;
 9    (D)  to transport, convey or handle such property during the manu-
10  facturing, processing, storing, warehousing or distribution operation at
11  the plant or facility; or
12    (E)  to place such property in the container, package or wrapping in
13  which such property is normally sold or transported.
14    (2)  For purposes of this subsection ``machinery and equipment used
15  directly and primarily'' shall include, but not be limited to:
16    (A)  Mechanical machines or major components thereof contributing
17  to a manufacturing, assembling or finishing process;
18    (B)  molds and dies that determine the physical characteristics of the
19  finished product or its packaging material;
20    (C)  testing equipment to determine the quality of the finished prod-
21  uct;
22    (D)  computers and related peripheral equipment that directly control
23  or measure the manufacturing process or which are utilized for engi-
24  neering of the finished product; and
25    (E)  computers and related peripheral equipment utilized for research
26  and development and product design.
27    (3)  ``Machinery and equipment used directly and primarily'' shall not
28  include:
29    (A)  Hand tools;
30    (B)  machinery, equipment and tools used in maintaining and repair-
31  ing any type of machinery and equipment;
32    (C)  transportation equipment not used in the manufacturing, assem-
33  bling, processing, furnishing, storing, warehousing or distributing process
34  at the plant or facility;
35    (D)  office machines and equipment including computers and related
36  peripheral equipment not directly and primarily used in controlling or
37  measuring the manufacturing process;
38    (E)  furniture and buildings; and
39    (F)  machinery and equipment used in administrative, accounting,
40  sales or other such activities of the business;
41    (ll)  all sales of educational materials purchased for distribution to the
42  public at no charge by a nonprofit corporation organized for the purpose
43  of encouraging, fostering and conducting programs for the improvement
HB 2107--Am. by HCW
                                     

 1  of public health;
 2    (mm)  all sales of seeds and tree seedlings; fertilizers, insecticides,
 3  herbicides, germicides, pesticides and fungicides; and services, purchased
 4  and used for the purpose of producing plants in order to prevent soil
 5  erosion on land devoted to agricultural use;
 6    (nn)  except as otherwise provided in this act, all sales of services ren-
 7  dered by an advertising agency or licensed broadcast station or any mem-
 8  ber, agent or employee thereof;
 9    (oo)  all sales of tangible personal property purchased by a community
10  action group or agency for the exclusive purpose of repairing or weath-
11  erizing housing occupied by low income individuals;
12    (pp)  all sales of drill bits and explosives actually utilized in the explo-
13  ration and production of oil or gas;
14    (qq)  all sales of tangible personal property and services purchased by
15  a nonprofit museum or historical society or any combination thereof, in-
16  cluding a nonprofit organization which is organized for the purpose of
17  stimulating public interest in the exploration of space by providing edu-
18  cational information, exhibits and experiences, which is exempt from fed-
19  eral income taxation pursuant to section 501(c)(3) of the federal internal
20  revenue code of 1986;
21    (rr)  all sales of tangible personal property which will admit the pur-
22  chaser thereof to any annual event sponsored by a nonprofit organization
23  which is exempt from federal income taxation pursuant to section
24  501(c)(3) of the federal internal revenue code of 1986;
25    (ss)  all sales of tangible personal property and services purchased by
26  a public broadcasting station licensed by the federal communications
27  commission as a noncommercial educational television or radio station;
28  and
29    (tt)  all sales of tangible personal property and services purchased by
30  or on behalf of a not-for-profit corporation which is exempt from federal
31  income taxation pursuant to section 501(c)(3) of the federal internal rev-
32  enue code of 1986, for the sole purpose of constructing a Kansas Korean
33  War memorial; and
34    (uu)  all sales of tangible personal property and services purchased by
35  a religious organization which is exempt from federal income taxation
36  pursuant to section 501 (c) (3) of the federal internal revenue code, and
37  used exclusively for religious purposes.;
38    (vv)  all sales of tangible personal property purchased by any of
39  the following organizations which are exempt from federal income
40  taxation pursuant to section 501(c)(3) of the federal internal rev-
41  enue code of 1986, for the following purposes, and all sales of any
42  such property by or on behalf of any such organization for any
43  such purpose:
HB 2107--Am. by HCW
                                     

 1    (1)  The American Heart Association, Kansas Affiliate, Inc. for
 2  the purposes of providing education, training, certification in
 3  emergency cardiac care, research and other related services to
 4  reduce disability and death from cardiovascular diseases and
 5  stroke;
 6    (2)  the Kansas Alliance for the Mentally Ill, Inc. for the purpose
 7  of advocacy for persons with mental illness and to education, re-
 8  search and support for their families;
 9    (3)  the Kansas Mental Illness Awareness Council for the pur-
10  poses of advocacy for persons who are mentally ill and to educa-
11  tion, research, and support for them and their families;
12    (4)  the American Diabetes Assoc.-Kansas Affiliate, Inc. for the
13  purpose of eliminating diabetes through medical research, public
14  education focusing on disease prevention and education, patient
15  education including information on coping with diabetes, and pro-
16  fessional education and training; and
17    (5)  the American Lung Association of Kansas, Inc. for the pur-
18  pose of eliminating all lung diseases through medical research,
19  public education including information on coping with lung dis-
20  eases, professional education and training related to lung disease
21  and other related services to reduce the incidence of disability and
22  death due to lung disease; [and]
23    [(6)  the Kansas chapters of the Alzheimer's Disease and Re-
24  lated Disorders Association, Inc. for the purpose of providing as-
25  sistance and support to persons in Kansas with Alzheimer's disease,
26  and their families and caregivers;]
27    (ww)  all sales of tangible personal property purchased by the
28  Habitat for Humanities for the exclusive use of being incorporated
29  within a housing project constructed by such organization;
30    (xx)  all sales of tangible personal property by members of the
31  Girl Scouts of America the purpose of which is to finance their
32  activities and programs;
33    (yy) [(xx)]  all sales of tangible personal property and services
34  purchased by a parent-teacher association or organization, and all
35  sales of tangible personal property by or on behalf of such asso-
36  ciation or organization;
37    (zz) [(yy)]  all sales of food for human consumption by an or-
38  ganization which is exempt from federal income taxation pursuant
39  to section 501(c)(3) of the federal internal revenue code of 1986,
40  pursuant to a food distribution program which offers such food at
41  a price below cost in exchange for the performance of community
42  service by the purchaser thereof;
43    (aaa) [(zz)]  all sales of tangible personal property and services
HB 2107--Am. by HCW
                                     

 1  purchased by or on behalf of any rural volunteer fire-fighting or-
 2  ganization for use exclusively in the performance of its duties and
 3  functions; and
 4    (bbb) [(aaa)]  all sales of machinery and equipment used di-
 5  rectly and primarily for the purpose of producing a broadcast sig-
 6  nal or is such that the failure of the machinery or equipment to
 7  operate would cause broadcasting to cease. For purposes of this
 8  subsection, machinery and equipment shall include, but not be
 9  limited to, that required by rules and regulations of the federal
10  communications commission, and all sales of electricity which are
11  essential or necessary for the purpose of producing a broadcast
12  signal or is such that the failure of the electricity would cause
13  broadcasting to cease[; and
14    [(bbb) all sales of tangible personal property and services pur-
15  chased by or on behalf of the Kansas Academy of Science which is
16  exempt from federal income taxation pursuant to section 501 (c)(3)
17  of the federal internal revenue code of 1986][; and
18    [(ccc)  all sales of tangible personal property and services pur-
19  chased by or on behalf of a not-for-profit corporation which is ex-
20  empt from federal income taxation pursuant to paragraphs (3) and
21  (19) of subsection (c) of section 501 of the federal internal revenue
22  code of 1986, for the sole purpose of making all or any portion of
23  a facility accessible to individuals with a disability. As used in this
24  subsection, ``facility'' and ``accessible to individuals with a disabil-
25  ity'' shall have the meaning ascribed thereto by K.S.A. 79-32,175,
26  and amendments thereto].
27reto    [New Sec. 3.  On and after October 16, 2006, the provisions of
28  K.S.A. 79-3632 through 79-3639, and amendments thereto, shall
29  expire.]
30    [Sec. 4.  K.S.A. 1996 Supp. 12-188 is hereby amended to read
31  as follows: 12-188. The following classes of cities are hereby estab-
32  lished for the purpose of imposing limitations and prohibitions
33  upon the levying of sales and excise taxes or taxes in the nature of
34  an excise upon sales or transfers of personal or real property or
35  the use thereof, or the rendering or furnishing of services by cities
36  as authorized and provided by article 12, section 5, of the consti-
37  tution of the state of Kansas:
38    [Class A cities. All cities in the state of Kansas which have the
39  authority to levy and collect excise taxes or taxes in the nature of
40  an excise upon the sales or transfers of personal or real property
41  or the use thereof, or the rendering or furnishing of services by
42  cities.
43    [Class B cities. All cities in the state of Kansas having a popula-
HB 2107--Am. by HCW
                                     

 1  tion of more than 1,000 but less than 2,000 located in a county
 2  having a population of more than 150,000 but less than 175,000
 3  which has the authority to levy and collect excise taxes or taxes in
 4  the nature of an excise upon the sales or transfers of personal or
 5  real property or the use thereof, or the rendering or furnishing of
 6  services.
 7    [Class C cities. All cities in the state of Kansas having a popula-
 8  tion of more than 290,000 located in a county having a population
 9  of more than 350,000 which has the authority to levy and collect
10  excise taxes or taxes in the nature of an excise upon the sales or
11  transfers of personal or real property or the use thereof, or the
12  rendering or furnishing of services.
13    [Class D cities. All cities in the state of Kansas located in Cowley,
14  Ellis, Ellsworth, Labette or Montgomery county or in both Riley
15  and Pottawatomie counties which have the authority to levy and
16  collect excise taxes or taxes in the nature of an excise upon the
17  sales or transfers of personal or real property or the use thereof,
18  or the rendering or furnishing of services.]
19    [Sec. 5.  K.S.A. 1996 Supp. 12-1692 is hereby amended to read
20  as follows: 12-1692. As used in this act, the following words and
21  phrases shall have the meanings respectively ascribed to them
22  herein:
23    [(a)  ``Person'' means an individual, firm, partnership, corpo-
24  ration, joint venture or other association of persons;
25    [(b)  ``Hotel, motel or tourist court'' means any structure or
26  building which contains rooms furnished for the purposes of pro-
27  viding lodging, which may or may not also provide meals, enter-
28  tainment or various other personal services to transient guests, and
29  which is kept, used, maintained, advertised or held out to the pub-
30  lic as a place where sleeping accommodations are sought for pay
31  or compensation by transient or permanent guests and having
32  more than two bedrooms furnished for the accommodation of such
33  guests;
34    [(c)  ``Transient guest'' means a person who occupies a room in
35  a hotel, motel or tourist court for not more than 28 consecutive
36  days;
37    [(d)  ``Business'' means any person engaged in the business of
38  renting, leasing or letting living quarters, sleeping accommoda-
39  tions, rooms or a part thereof in connection with any motel, hotel
40  or tourist court; and
41    [(e)  ``Convention and tourism promotion'' means: (1) Activities
42  to attract visitors into the community through marketing efforts,
43  including advertising, directed to at least one of the five basic con-
HB 2107--Am. by HCW
                                     

 1  vention and tourism market segments consisting of group tours,
 2  pleasure travelers, association meetings and conventions, trade
 3  shows and corporate meetings and travel; and (2) support of those
 4  activities and organizations which encourage increased lodging fa-
 5  cility occupancy.; and
 6    [(f)  ``Accommodations broker'' means any business which maintains
 7  an inventory of two or more rooms in one or more locations which are
 8  offered for pay to a person or persons for not more than 28 consecutive
 9  days.
10    [Sec. 6.  K.S.A. 12-1693 is hereby amended to read as follows:
11  12-1693. (a) In order to provide revenues to promote tourism and
12  conventions, the governing body of any county having a population
13  of more than 300,000 or the governing body of any city, all or any
14  portion of which is located within such county, is hereby author-
15  ized to levy a transient guest tax at not to exceed the rate of 2%
16  upon the gross receipts derived from or paid directly or through an
17  accommodations broker by transient guests for sleeping accommo-
18  dations in any hotel, motel or tourist court. The percentage of such
19  tax shall be determined by the governing body levying the same
20  and shall be specified in the resolution authorizing the same.
21    [(b)  Any transient guest tax levied pursuant to this section shall
22  be based on the gross rental receipts collected by any business or
23  accommodations broker.
24    [(c)  The taxes levied pursuant to this section shall be paid by
25  the consumer or user to the business and it shall be the duty of
26  each and every business to collect from the consumer or user the
27  full amount of any such tax, or an amount equal as nearly as pos-
28  sible or practicable to the average equivalent thereto. Each busi-
29  ness collecting any of the taxes levied hereunder shall be respon-
30  sible for paying over the same to the state department of revenue
31  in the manner prescribed by K.S.A. 12-1694, and amendments
32  thereto, and the state department of revenue shall administer and
33  enforce the collection of such taxes.
34    [(d)  A transient guest tax authorized by this section shall not
35  be levied until:
36    [(1)  The governing body of such county has either passed, or
37  has received from the governing body of any city within such
38  county, a resolution calling for an election for approval by the
39  qualified electors of a transient guest tax;
40    [(2)  the governing body of the county has notified all of the
41  incorporated cities, all or any portion of which are located within
42  such county, of the intent to call such election. Incorporated cities,
43  all or any portion of which are located within such county, shall
HB 2107--Am. by HCW
                                     

 1  have the option to decline participation in such election within 30
 2  days of the date of such notification. The governing body of the
 3  county shall have the option to decline participation in such elec-
 4  tion within the same 30 day period as provided to incorporated
 5  cities, in which case individual cities may hold separate elections
 6  to submit the proposition to the qualified electors of such city and
 7  such propositions, if approved, would have force only in cities
 8  adopting the tax. If the governing body of the county resolves to
 9  participate in such election, it shall submit such proposition for
10  approval by the qualified electors of the unincorporated portions
11  of such county and all incorporated cities within such county which
12  have not declined participation in the election; and
13    [(3)  the governing body of the county or, if the county declines
14  to hold such election, the governing body of the city, has given
15  notice of its intention to submit any such proposition for approval
16  by the qualified electors in the manner required by K.S.A. 10-120,
17  and amendments thereto, for giving notice of elections for the is-
18  suance of bonds. The notice shall state the time of the election and
19  the rate and effective date of the proposed tax. If a majority of the
20  votes cast and counted on any such proposition are not in favor
21  thereof, such proposition may be resubmitted under the conditions
22  and in the manner provided herein. If a majority of the votes cast
23  and counted on any such proposition are in favor thereof, the gov-
24  erning body of the county or city shall provide by resolution for
25  the levy of such tax. Any repeal of such tax or any reduction or
26  increase in the rate thereof shall be accomplished in the manner
27  provided herein for the adoption and approval of such tax.
28    [(e)  The collection of any county transient guest tax authorized
29  at a primary or general election or a transient guest tax levied by
30  a city authorized at a city primary or general election shall com-
31  mence on the first day of the calendar quarter next following the
32  30th day after the date of the election authorizing the levy of such
33  tax. The collection of any transient guest tax of a county or city
34  approved at any other election shall commence on the first day of
35  the calendar quarter next following the 60th day after the date of
36  the election authorizing the levy of such tax.
37    [Sec. 7.  K.S.A. 1996 Supp. 12-1696 is hereby amended to read
38  as follows: 12-1696. As used in this act, the following words and
39  phrases shall have the meanings respectively ascribed to them
40  herein:
41    [(a)  ``Person'' means an individual, firm, partnership, corpo-
42  ration, joint venture or other association of persons;
43    [(b)  ``Hotel, motel or tourist court'' means any structure or
HB 2107--Am. by HCW
                                     

 1  building which contains rooms furnished for the purposes of pro-
 2  viding lodging, which may or may not also provide meals, enter-
 3  tainment or various other personal services to transient guests, and
 4  which is kept, used, maintained, advertised or held out to the pub-
 5  lic as a place where sleeping accommodations are sought for pay
 6  or compensation by transient or permanent guests and having
 7  more than two bedrooms furnished for the accommodation of such
 8  guests;
 9    [(c)  ``Transient guest'' means a person who occupies a room in
10  a hotel, motel or tourist court for not more than 28 consecutive
11  days;
12    [(d)  ``Business'' means any person engaged in the business of
13  renting, leasing or letting living quarters, sleeping accommoda-
14  tions, rooms or a part thereof in connection with any motel, hotel
15  or tourist court; and
16    [(e)  ``Convention and tourism promotion'' means: (1) Activities
17  to attract visitors into the community through marketing efforts,
18  including advertising, directed to at least one of the five basic con-
19  vention and tourism market segments consisting of group tours,
20  pleasure travelers, association meetings and conventions, trade
21  shows and corporate meetings and travel; and (2) support of those
22  activities and organizations which encourage increased lodging fa-
23  cility occupancy.; and
24    [(f)  ``Accommodations broker'' means any business which maintains
25  an inventory of two or more rooms in one or more locations which are
26  offered for pay to a person or persons for not more than 28 consecutive
27  days.
28    [Sec. 8.  K.S.A. 12-1697 is hereby amended to read as follows:
29  12-1697. (a) In order to provide revenues to promote tourism and
30  conventions, the governing body of any county or the governing
31  body of any city is hereby authorized to levy a transient guest tax
32  at not to exceed the rate of 2% upon the gross receipts derived
33  from or paid directly or through an accommodations broker by tran-
34  sient guests for sleeping accommodations, exclusive of charges for
35  incidental services or facilities, in any hotel, motel or tourist court.
36  The percentage of such tax shall be determined by the board of
37  county commissioners or the city governing body and shall be spec-
38  ified in the resolution or ordinance authorizing the same.
39    [(b)  Any transient guest tax levied pursuant to this section shall
40  be based on the gross rental receipts collected by any business or
41  accommodations broker.
42    [(c)  The taxes levied pursuant to this section shall be paid by
43  the consumer or user to the business and it shall be the duty of
HB 2107--Am. by HCW
                                     

 1  each and every business to collect from the consumer or user the
 2  full amount of any such tax, or an amount equal as nearly as pos-
 3  sible or practicable to the average equivalent thereto. Each busi-
 4  ness collecting any of the taxes levied hereunder shall be respon-
 5  sible for paying over the same to the state department of revenue
 6  in the manner prescribed by K.S.A. 12-1698, and amendments
 7  thereto, and the state department of revenue shall administer and
 8  enforce the collection of such taxes.
 9    [(d)  A transient guest tax authorized by this section shall not
10  be levied until the governing body of such county or city has passed
11  a resolution or ordinance authorizing the same.
12    [(e)  The collection of any county or city transient guest tax au-
13  thorized to be levied pursuant to this section shall commence on
14  the first day of the calendar quarter next following the 30th day
15  after the date of the receipt by the department of revenue of the
16  resolution or ordinance authorizing the levy of such tax.]
17    [Sec. 9.  On and after October 16, 1997, K.S.A. 79-3634 is
18  hereby amended to read as follows: 79-3634. The right to file a
19  claim for a refund under K.S.A. 79-3620 and 79-3632 to 79-3639 shall
20  be personal to the claimant and shall not survive his or her death, but
21  such right et seq. may be exercised on behalf of a claimant by his or
22  her legal guardian, conservator or attorney-in-fact. When a claim-
23  ant dies after having filed a timely claim the amount thereof shall
24  be disbursed to another member of the household as determined
25  by the director of taxation. If the claimant was the only member
26  of his or her household, the claim may be paid to his or her exec-
27  utor or administrator, but if neither is appointed and qualified, the
28  amount of the claim may be paid upon a claim duly made to any
29  heir at law. In the absence of any such claim within two (2) years
30  of the filing of the claim, the amount of the claim shall escheat to
31  the state. When a person who would otherwise be entitled to file a claim
32  under the provisions of this act dies prior to filing such claim, another
33  member of such person's household may file such claim in the name of
34  such decedent, subject to the deadline prescribed by K.S.A. 79-4505, and
35  amendments thereto, and the director shall pay the amount to which the
36  decedent would have been entitled to such person filing the claim. If the
37  decedent was the only member of his or her household, the decedent's
38  executor or administrator may file such claim in the name of the decedent,
39  and the claim shall be paid to said executor or administrator. In the event
40  that neither an executor or administrator is appointed and qualified, such
41  claim may be made by any heir at law and the claim shall be payable to
42  such heir at law. Any of the foregoing provisions shall be applicable in
43  any case where the decedent dies in the calendar year preceding the year
HB 2107--Am. by HCW
                                     

 1  in which a claim may be made under the provisions of this act, if such
 2  decedent was a resident of or domiciled in this state during the entire part
 3  of such year that such decedent was living. Where decedent's death occurs
 4  during the calendar year preceding the year in which a claim may be
 5  made hereunder, the amount of the claim that would have been allowable
 6  if the decedent had been a resident of or domiciled in this state the entire
 7  calendar year of his or her death shall be reduced in a proportionate
 8  amount equal to a fraction of the claim otherwise allowable, the numerator
 9  of which fraction is the number of months in such calendar year following
10  the month of decedent's death and the denominator of which is 12.
11    [Sec. 10.  On and after October 16, 1997, K.S.A. 79-3635 is
12  hereby amended to read as follows: 79-3635. (a) A claimant shall
13  be entitled to a refund of retailers' sales taxes paid upon food dur-
14  ing the calendar year 1986 1997 and each year thereafter in the
15  amount hereinafter provided. For households having a household
16  income of less than $5,000, a refund in the amount of $40 $80 shall
17  be allowed for the head of household and a refund of $30 $60 shall
18  be allowed for each additional member of the household. For
19  households having a household income of at least $5,000 but less
20  than $10,000, a refund in the amount of $30 $60 shall be allowed
21  for the head of household and a refund of $25 $50 shall be allowed
22  for each additional member of the household. For households hav-
23  ing a household income of at least $10,000 but not more than
24  $13,000 $15,000, a refund in the amount of $20 $40 shall be allowed
25  for the head of household and a refund of $15 $30 shall be allowed
26  for each additional member of the household. For households having
27  a household income of at least $15,000 but not more than $20,000, a
28  refund in the amount of $30 shall be allowed for the head of the household
29  and a refund of $20 shall be allowed for each additional member of the
30  household. For households having a household income of at least $20,000
31  but not more than $25,000, a refund in the amount of $20 shall be allowed
32  for the head of household and a refund of $10 shall be allowed for each
33  additional member of the household. All such claims shall be paid from
34  the sales tax refund fund upon warrants of the director of accounts
35  and reports pursuant to vouchers approved by the director of tax-
36  ation or by a person or persons designated by the director, except
37  that no warrant shall be drawn in an amount less than $5.
38    [(b)  A head of household shall make application for refunds for
39  all members of the same household upon a common form provided
40  for the making of joint claims. All claims paid to members of the
41  same household shall be paid as a joint claim by means of a single
42  warrant.
43    [(c)  No claim for a refund of taxes under the provisions of
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 1  K.S.A. 79-3620 and 79-3632 to 79-3639 et seq. shall be paid or allowed
 2  unless such claim is actually filed with and in the possession of the
 3  department of revenue on or before October April 15 of the year
 4  next succeeding the year in which said such taxes were paid. The
 5  director of taxation may: (1) Extend the time for filing any claim
 6  under the provisions of this act when good cause exists therefor;
 7  or (2) accept a claim filed after the deadline for filing in the case
 8  of sickness, absence or disability of the claimant if said claim has
 9  been filed within four (4) years of said deadline.]
10    [New Sec. 11.  (a) Upon application to the director of taxation
11  upon forms devised and provided therefor accompanied by any
12  additional documentation required by the director, a portion of
13  the sales tax paid pursuant to the purchase of a motor vehicle
14  which replaces a motor vehicle sold at an isolated or occasional
15  sale occurring within 45 days prior or subsequent to the date of
16  such purchase shall be refunded. The amount of such refund shall
17  be equal to the gross receipts received from the sale of the re-
18  placed motor vehicle multiplied by the applicable sales tax rate.
19  All refunds shall be paid from the sales tax refund fund upon war-
20  rants of the director of accounts and reports issued pursuant to
21  vouchers approved by the director.
22    [(b)  The provisions of this section shall be deemed to be sup-
23  plemental to the Kansas retailers' sales tax act.]
24    [Sec. 12.  On and after October 16, 1997, K.S.A. 79-3634 and
25  79-3635 are hereby repealed.]
26    Sec. 2 3 [13.].  K.S.A. 1996 Supp. [12-188,] [12-1693 and 12-1697
27  and K.S.A. 1996 Supp. 12-1692, 12-1696,] 79-3606 is 79-3603 and
28  79-3606 are hereby repealed.
29    Sec. 3 4 [14.].  This act shall take effect and be in force from and
30  after its publication in the statute book.