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12  AN ACT relating to sales taxation; authorizing cities located within
13    Labette county to impose a retailers' sales tax; amending K.S.A. 1996
14    Supp. 12-188 and 79-3606 and repealing the existing section
15    sections.
16
17  Be it enacted by the Legislature of the State of Kansas:
18    Section 1.  K.S.A. 1996 Supp. 12-188 is hereby amended to read as
19  follows: 12-188. The following classes of cities are hereby established for
20  the purpose of imposing limitations and prohibitions upon the levying of
21  sales and excise taxes or taxes in the nature of an excise upon sales or
22  transfers of personal or real property or the use thereof, or the rendering
23  or furnishing of services by cities as authorized and provided by article
24  12, section 5, of the constitution of the state of Kansas:
25    Class A cities. All cities in the state of Kansas which have the authority
26  to levy and collect excise taxes or taxes in the nature of an excise upon
27  the sales or transfers of personal or real property or the use thereof, or
28  the rendering or furnishing of services by cities.
29    Class B cities. All cities in the state of Kansas having a population of
30  more than 1,000 but less than 2,000 located in a county having a popu-
31  lation of more than 150,000 but less than 175,000 which has the authority
32  to levy and collect excise taxes or taxes in the nature of an excise upon
33  the sales or transfers of personal or real property or the use thereof, or
34  the rendering or furnishing of services.
35    Class C cities. All cities in the state of Kansas having a population of
36  more than 290,000 located in a county having a population of more than
37  350,000 which has the authority to levy and collect excise taxes or taxes
38  in the nature of an excise upon the sales or transfers of personal or real
39  property or the use thereof, or the rendering or furnishing of services.
40    Class D cities. All cities in the state of Kansas located in Cowley, Ellis,
41  Ellsworth, Labette or Montgomery county or in both Riley and Potta-
42  watomie counties which have the authority to levy and collect excise taxes
43  or taxes in the nature of an excise upon the sales or transfers of personal
SB 184--Am. by H on FA
                                     

 1  or real property or the use thereof, or the rendering or furnishing of
 2  services.
 3    Sec. 2.  K.S.A. 1996 Supp. 79-3606 is hereby amended to read
 4  as follows: 79-3606. The following shall be exempt from the tax
 5  imposed by this act:
 6    (a)  All sales of motor-vehicle fuel or other articles upon which
 7  a sales or excise tax has been paid, not subject to refund, under
 8  the laws of this state except cigarettes as defined by K.S.A. 79-3301
 9  and amendments thereto, cereal malt beverages and malt products
10  as defined by K.S.A. 79-3817 and amendments thereto, including
11  wort, liquid malt, malt syrup and malt extract, which is not subject
12  to taxation under the provisions of K.S.A. 79-41a02 and amend-
13  ments thereto, and motor vehicles as defined by K.S.A. 79-1017
14  and amendments thereto;
15    (b)  all sales of tangible personal property or service, including
16  the renting and leasing of tangible personal property, purchased
17  directly by the state of Kansas, a political subdivision thereof, other
18  than a school or educational institution, or purchased by a public
19  or private nonprofit hospital or nonprofit blood, tissue or organ
20  bank and used exclusively for state, political subdivision, hospital
21  or nonprofit blood, tissue or organ bank purposes, except when:
22    (1) Such state or hospital is engaged or proposes to engage in any
23  business specifically taxable under the provisions of this act and
24  such items of tangible personal property or service are used or
25  proposed to be used in such business, or (2) such political subdi-
26  vision is engaged or proposes to engage in the business of furnish-
27  ing gas, water, electricity or heat to others and such items of per-
28  sonal property or service are used or proposed to be used in such
29  business;
30    (c)  all sales of tangible personal property or services, including
31  the renting and leasing of tangible personal property, purchased
32  directly by a public or private elementary or secondary school or
33  public or private nonprofit educational institution and used pri-
34  marily by such school or institution for nonsectarian programs and
35  activities provided or sponsored by such school or institution or in
36  the erection, repair or enlargement of buildings to be used for
37  such purposes. The exemption herein provided shall not apply to
38  erection, construction, repair, enlargement or equipment of build-
39  ings used primarily for human habitation;
40    (d)  all sales of tangible personal property or services purchased
41  by a contractor for the purpose of constructing, equipping, recon-
42  structing, maintaining, repairing, enlarging, furnishing or remod-
43  eling facilities for any public or private nonprofit hospital, public
SB 184--Am. by H on FA
                                     

 1  or private elementary or secondary school or a public or private
 2  nonprofit educational institution, which would be exempt from tax-
 3  ation under the provisions of this act if purchased directly by such
 4  hospital, school or educational institution; and all sales of tangible
 5  personal property or services purchased by a contractor for the
 6  purpose of constructing, equipping, reconstructing, maintaining,
 7  repairing, enlarging, furnishing or remodeling facilities for any
 8  political subdivision of the state, the total cost of which is paid from
 9  funds of such political subdivision and which would be exempt
10  from taxation under the provisions of this act if purchased directly
11  by such political subdivision. Nothing in this subsection or in the
12  provisions of K.S.A. 12-3418 and amendments thereto, shall be
13  deemed to exempt the purchase of any construction machinery,
14  equipment or tools used in the constructing, equipping, recon-
15  structing, maintaining, repairing, enlarging, furnishing or remod-
16  eling facilities for any political subdivision of the state. As used in
17  this subsection, K.S.A. 12-3418 and 79-3640, and amendments
18  thereto, ``funds of a political subdivision'' shall mean general tax
19  revenues, the proceeds of any bonds and gifts or grants-in-aid.
20  Gifts shall not mean funds used for the purpose of constructing,
21  equipping, reconstructing, repairing, enlarging, furnishing or re-
22  modeling facilities which are to be leased to the donor. When any
23  political subdivision of the state, public or private nonprofit hos-
24  pital, public or private elementary or secondary school or public
25  or private nonprofit educational institution shall contract for the
26  purpose of constructing, equipping, reconstructing, maintaining,
27  repairing, enlarging, furnishing or remodeling facilities, it shall
28  obtain from the state and furnish to the contractor an exemption
29  certificate for the project involved, and the contractor may pur-
30  chase materials for incorporation in such project. The contractor
31  shall furnish the number of such certificate to all suppliers from
32  whom such purchases are made, and such suppliers shall execute
33  invoices covering the same bearing the number of such certificate.
34  Upon completion of the project the contractor shall furnish to the
35  political subdivision, hospital, school or educational institution
36  concerned a sworn statement, on a form to be provided by the
37  director of taxation, that all purchases so made were entitled to
38  exemption under this subsection. All invoices shall be held by the
39  contractor for a period of five years and shall be subject to audit
40  by the director of taxation. If any materials purchased under such
41  a certificate are found not to have been incorporated in the build-
42  ing or other project or not to have been returned for credit or the
43  sales or compensating tax otherwise imposed upon such materials
SB 184--Am. by H on FA
                                     

 1  which will not be so incorporated in the building or other project
 2  reported and paid by such contractor to the director of taxation
 3  not later than the 20th day of the month following the close of the
 4  month in which it shall be determined that such materials will not
 5  be used for the purpose for which such certificate was issued, the
 6  political subdivision, hospital, school or educational institution
 7  concerned shall be liable for tax on all materials purchased for the
 8  project, and upon payment thereof it may recover the same from
 9  the contractor together with reasonable attorney fees. Any con-
10  tractor or any agent, employee or subcontractor thereof, who shall
11  use or otherwise dispose of any materials purchased under such a
12  certificate for any purpose other than that for which such a certif-
13  icate is issued without the payment of the sales or compensating
14  tax otherwise imposed upon such materials, shall be guilty of a
15  misdemeanor and, upon conviction therefor, shall be subject to the
16  penalties provided for in subsection (g) of K.S.A. 79-3615, and
17  amendments thereto;
18    (e)  all sales of tangible personal property or services purchased
19  by a contractor for the erection, repair or enlargement of buildings
20  or other projects for the government of the United States, its agen-
21  cies or instrumentalities, which would be exempt from taxation if
22  purchased directly by the government of the United States, its
23  agencies or instrumentalities. When the government of the United
24  States, its agencies or instrumentalities shall contract for the erec-
25  tion, repair, or enlargement of any building or other project, it
26  shall obtain from the state and furnish to the contractor an ex-
27  emption certificate for the project involved, and the contractor
28  may purchase materials for incorporation in such project. The con-
29  tractor shall furnish the number of such certificates to all suppliers
30  from whom such purchases are made, and such suppliers shall ex-
31  ecute invoices covering the same bearing the number of such cer-
32  tificate. Upon completion of the project the contractor shall fur-
33  nish to the government of the United States, its agencies or
34  instrumentalities concerned a sworn statement, on a form to be
35  provided by the director of taxation, that all purchases so made
36  were entitled to exemption under this subsection. All invoices shall
37  be held by the contractor for a period of five years and shall be
38  subject to audit by the director of taxation. Any contractor or any
39  agent, employee or subcontractor thereof, who shall use or oth-
40  erwise dispose of any materials purchased under such a certificate
41  for any purpose other than that for which such a certificate is is-
42  sued without the payment of the sales or compensating tax oth-
43  erwise imposed upon such materials, shall be guilty of a misde-
SB 184--Am. by H on FA
                                     

 1  meanor and, upon conviction therefor, shall be subject to the
 2  penalties provided for in subsection (g) of K.S.A. 79-3615 and
 3  amendments thereto;
 4    (f)  tangible personal property purchased by a railroad or pub-
 5  lic utility for consumption or movement directly and immediately
 6  in interstate commerce;
 7    (g)  sales of aircraft including remanufactured and modified
 8  aircraft, sales of aircraft repair, modification and replacement
 9  parts and sales of services employed in the remanufacture, modi-
10  fication and repair of aircraft sold to persons using such aircraft
11  and aircraft repair, modification and replacement parts as certi-
12  fied or licensed carriers of persons or property in interstate or
13  foreign commerce under authority of the laws of the United States
14  or any foreign government or sold to any foreign government or
15  agency or instrumentality of such foreign government and all sales
16  of aircraft, aircraft parts, replacement parts and services employed
17  in the remanufacture, modification and repair of aircraft for use
18  outside of the United States;
19    (h)  all rentals of nonsectarian textbooks by public or private
20  elementary or secondary schools;
21    (i)  the lease or rental of all films, records, tapes, or any type of
22  sound or picture transcriptions used by motion picture exhibitors;
23    (j)  meals served without charge or food used in the preparation
24  of such meals to employees of any restaurant, eating house, dining
25  car, hotel, drugstore or other place where meals or drinks are reg-
26  ularly sold to the public if such employees' duties are related to
27  the furnishing or sale of such meals or drinks;
28    (k)  any motor vehicle, semitrailer or pole trailer, as such terms
29  are defined by K.S.A. 8-126 and amendments thereto, or aircraft
30  sold and delivered in this state to a bona fide resident of another
31  state, which motor vehicle, semitrailer, pole trailer or aircraft is
32  not to be registered or based in this state and which vehicle, semi-
33  [chtrailer, pole trailer or aircraft will not remain in this state more
34  than 10 days;
35    (l)  all isolated or occasional sales of tangible personal property,
36  services, substances or things, except isolated or occasional sale of
37  motor vehicles specifically taxed under the provisions of subsec-
38  tion (o) of K.S.A. 79-3603 and amendments thereto;
39    (m)  all sales of tangible personal property which become an
40  ingredient or component part of tangible personal property or
41  services produced, manufactured or compounded for ultimate sale
42  at retail within or without the state of Kansas; and any such pro-
43  ducer, manufacturer or compounder may obtain from the director
SB 184--Am. by H on FA
                                     

 1  of taxation and furnish to the supplier an exemption certificate
 2  number for tangible personal property for use as an ingredient or
 3  component part of the property or services produced, manufac-
 4  tured or compounded;
 5    (n)  all sales of tangible personal property which is consumed
 6  in the production, manufacture, processing, mining, drilling, re-
 7  fining or compounding of tangible personal property, the treating
 8  of by-products or wastes derived from any such production pro-
 9  [chcess, the providing of services or the irrigation of crops for ulti-
10  mate sale at retail within or without the state of Kansas; and any
11  purchaser of such property may obtain from the director of taxa-
12  tion and furnish to the supplier an exemption certificate number
13  for tangible personal property for consumption in such produc-
14  tion, manufacture, processing, mining, drilling, refining, com-
15  pounding, treating, irrigation and in providing such services;
16    (o)  all sales of animals, fowl and aquatic plants and animals, the
17  primary purpose of which is use in agriculture or aquaculture, as
18  defined in K.S.A. 47-1901, and amendments thereto, the produc-
19  tion of food for human consumption, the production of animal,
20  dairy, poultry or aquatic plant and animal products, fiber or fur,
21  or the production of offspring for use for any such purpose or
22  purposes;
23    (p)  all sales of drugs, as defined by K.S.A. 65-1626 and amend-
24  ments thereto, dispensed pursuant to a prescription order, as de-
25  fined by K.S.A. 65-1626 and amendments thereto, by a licensed
26  practitioner;
27    (q)  all sales of insulin dispensed by a person licensed by the
28  state board of pharmacy to a person for treatment of diabetes at
29  the direction of a person licensed to practice medicine by the
30  board of healing arts;
31    (r)  all sales of prosthetic and orthopedic appliances prescribed
32  in writing by a person licensed to practice the healing arts, den-
33  tistry or optometry. For the purposes of this subsection, the term
34  prosthetic and orthopedic appliances means any apparatus, instru-
35  ment, device, or equipment used to replace or substitute for any
36  missing part of the body; used to alleviate the malfunction of any
37  part of the body; or used to assist any disabled person in leading
38  a normal life by facilitating such person's mobility; such term shall
39  include accessories to be attached to motor vehicles, but such term
40  shall not include motor vehicles or personal property which when
41  installed becomes a fixture to real property;
42    (s)  all sales of tangible personal property or services purchased
43  directly by a groundwater management district organized or op-
SB 184--Am. by H on FA
                                     

 1  erating under the authority of K.S.A. 82a-1020 et seq. and amend-
 2  ments thereto, which property or services are used in the opera-
 3  tion or maintenance of the district;
 4    (t)  all sales of farm machinery and equipment or aquaculture
 5  machinery and equipment, repair and replacement parts therefor
 6  and services performed in the repair and maintenance of such ma-
 7  chinery and equipment. For the purposes of this subsection the
 8  term ``farm machinery and equipment or aquaculture machinery
 9  and equipment'' shall include machinery and equipment used in
10  the operation of Christmas tree farming but shall not include any
11  passenger vehicle, truck, truck tractor, trailer, semitrailer or pole
12  trailer, other than a farm trailer [or an all-terrain vehicle], as such
13  terms are defined by K.S.A. 8-126 and amendments thereto. Each
14  purchaser of farm machinery and equipment or aquaculture ma-
15  chinery and equipment exempted herein must certify in writing
16  on the copy of the invoice or sales ticket to be retained by the seller
17  that the farm machinery and equipment or aquaculture machinery
18  and equipment purchased will be used only in farming, ranching
19  or aquaculture production. Farming or ranching shall include the
20  operation of a feedlot and farm and ranch work for hire and the
21  operation of a nursery;
22    (u)  all leases or rentals of tangible personal property used as a
23  dwelling if such tangible personal property is leased or rented for
24  a period of more than 28 consecutive days;
25    (v)  all sales of food products to any contractor for use in pre-
26  paring meals for delivery to homebound elderly persons over 60
27  years of age and to homebound disabled persons or to be served
28  at a group-sitting at a location outside of the home to otherwise
29  homebound elderly persons over 60 years of age and to otherwise
30  homebound disabled persons, as all or part of any food service
31  project funded in whole or in part by government or as part of a
32  private nonprofit food service project available to all such elderly
33  or disabled persons residing within an area of service designated
34  by the private nonprofit organization, and all sales of food prod-
35  ucts for use in preparing meals for consumption by indigent or
36  homeless individuals whether or not such meals are consumed at
37  a place designated for such purpose;
38    (w)  all sales of natural gas, electricity, heat and water delivered
39  through mains, lines or pipes: (1) To residential premises for non-
40  commercial use by the occupant of such premises; (2) for agricul-
41  tural use and also, for such use, all sales of propane gas; (3) for use
42  in the severing of oil; and (4) to any property which is exempt from
43  property taxation pursuant to K.S.A. 79-201b Second through Sixth.
SB 184--Am. by H on FA
                                     

 1    As used in this paragraph, ``severing'' shall have the meaning as-
 2  cribed thereto by subsection (k) of K.S.A. 79-4216, and amend-
 3  ments thereto;
 4    (x)  all sales of propane gas, LP-gas, coal, wood and other fuel
 5  sources for the production of heat or lighting for noncommercial
 6  use of an occupant of residential premises;
 7    (y)  all sales of materials and services used in the repairing,
 8  servicing, altering, maintaining, manufacturing, remanufacturing,
 9  or modification of railroad rolling stock for use in interstate or
10  foreign commerce under authority of the laws of the United States;
11    (z)  all sales of tangible personal property and services pur-
12  chased directly by a port authority or by a contractor therefor as
13  provided by the provisions of K.S.A. 12-3418 and amendments
14  thereto;
15    (aa)  all sales of materials and services applied to equipment
16  which is transported into the state from without the state for re-
17  pair, service, alteration, maintenance, remanufacture or modifi-
18  cation and which is subsequently transported outside the state for
19  use in the transmission of liquids or natural gas by means of pipe-
20  line in interstate or foreign commerce under authority of the laws
21  of the United States;
22    (bb)  all sales of used mobile homes or manufactured homes.
23  As used in this subsection: (1) ``Mobile homes'' and ``manufactured
24  homes'' shall have the meanings ascribed thereto by K.S.A. 58-
25  4202 and amendments thereto; and (2) ``sales of used mobile
26  homes or manufactured homes'' means sales other than the orig-
27  inal retail sale thereof;
28    (cc)  all sales of tangible personal property or services pur-
29  chased for the purpose of and in conjunction with constructing,
30  reconstructing, enlarging or remodeling a business or retail busi-
31  ness which meets the requirements established in K.S.A. 74-50,115
32  and amendments thereto, and the sale and installation of machin-
33  ery and equipment purchased for installation at any such business
34  or retail business. When a person shall contract for the construc-
35  tion, reconstruction, enlargement or remodeling of any such busi-
36  ness or retail business, such person shall obtain from the state and
37  furnish to the contractor an exemption certificate for the project
38  involved, and the contractor may purchase materials, machinery
39  and equipment for incorporation in such project. The contractor
40  shall furnish the number of such certificates to all suppliers from
41  whom such purchases are made, and such suppliers shall execute
42  invoices covering the same bearing the number of such certificate.
43  Upon completion of the project the contractor shall furnish to the
SB 184--Am. by H on FA
                                     

 1  owner of the business or retail business a sworn statement, on a
 2  form to be provided by the director of taxation, that all purchases
 3  so made were entitled to exemption under this subsection. All in-
 4  voices shall be held by the contractor for a period of five years and
 5  shall be subject to audit by the director of taxation. Any contractor
 6  or any agent, employee or subcontractor thereof, who shall use or
 7  otherwise dispose of any materials, machinery or equipment pur-
 8  chased under such a certificate for any purpose other than that for
 9  which such a certificate is issued without the payment of the sales
10  or compensating tax otherwise imposed thereon, shall be guilty of
11  a misdemeanor and, upon conviction therefor, shall be subject to
12  the penalties provided for in subsection (g) of K.S.A. 79-3615 and
13  amendments thereto. As used in this subsection, ``business'' and
14  ``retail business'' have the meanings respectively ascribed thereto
15  by K.S.A. 74-50,114 and amendments thereto;
16    (dd)  all sales of tangible personal property purchased with
17  food stamps issued by the United States department of agriculture;
18    (ee)  all sales of lottery tickets and shares made as part of a
19  lottery operated by the state of Kansas;
20    (ff)  on and after July 1, 1988, all sales of new mobile homes or
21  manufactured homes to the extent of 40% of the gross receipts,
22  determined without regard to any trade-in allowance, received
23  from such sale. As used in this subsection, ``mobile homes'' and
24  ``manufactured homes'' shall have the meanings ascribed thereto
25  by K.S.A. 58-4202 and amendments thereto;
26    (gg)  all sales of tangible personal property purchased in
27  accord[chance with vouchers issued pursuant to the federal special
28  supplemental food program for women, infants and children;
29    (hh)  all sales of medical supplies and equipment purchased di-
30  rectly by a nonprofit skilled nursing home or nonprofit interme-
31  diate nursing care home, as defined by K.S.A. 39-923, and amend-
32  ments thereto, for the purpose of providing medical services to
33  residents thereof. This exemption shall not apply to tangible per-
34  sonal property customarily used for human habitation purposes;
35    (ii)  all sales of tangible personal property purchased directly
36  by a nonprofit organization for nonsectarian comprehensive multi-
37  [chdiscipline youth development programs and activities provided or
38  sponsored by such organization. This exemption shall not apply to
39  tangible personal property customarily used for human habitation
40  purposes;
41    (jj)  all sales of tangible personal property or services, including
42  the renting and leasing of tangible personal property, purchased
43  directly on behalf of a community-based mental retardation facility
SB 184--Am. by H on FA
                                     

 1  or mental health center organized pursuant to K.S.A. 19-4001 et
 2  seq., and amendments thereto, and licensed in accordance with the
 3  provisions of K.S.A. 75-3307b and amendments thereto. This ex-
 4  emption shall not apply to tangible personal property customarily
 5  used for human habitation purposes;
 6    (kk)  on and after January 1, 1989, all sales of machinery and
 7  equipment used directly and primarily for the purposes of manu-
 8  facturing, assembling, processing, finishing, storing, warehousing
 9  or distributing articles of tangible personal property in this state
10  intended for resale by a manufacturing or processing plant or fa-
11  cility or a storage, warehousing or distribution facility:
12    (1)  For purposes of this subsection, machinery and equipment
13  shall be deemed to be used directly and primarily in the manufac-
14  ture, assemblage, processing, finishing, storing, warehousing or
15  distributing of tangible personal property where such machinery
16  and equipment is used during a manufacturing, assembling, pro-
17  [chcessing or finishing, storing, warehousing or distributing opera-
18  tion:
19    (A) To effect a direct and immediate physical change upon the
20  tangible personal property;
21    (B)  to guide or measure a direct and immediate physical
22  change upon such property where such function is an integral and
23  essential part of tuning, verifying or aligning the component parts
24  of such property;
25    (C)  to test or measure such property where such function is an
26  integral part of the production flow or function;
27    (D)  to transport, convey or handle such property during the
28  manufacturing, processing, storing, warehousing or distribution
29  operation at the plant or facility; or
30    (E)  to place such property in the container, package or wrap-
31  ping in which such property is normally sold or transported.
32    (2)  For purposes of this subsection ``machinery and equipment
33  used directly and primarily'' shall include, but not be limited to:
34    (A)  Mechanical machines or major components thereof con-
35  tributing to a manufacturing, assembling or finishing process;
36    (B)  molds and dies that determine the physical characteristics
37  of the finished product or its packaging material;
38    (C)  testing equipment to determine the quality of the finished
39  product;
40    (D)  computers and related peripheral equipment that directly
41  control or measure the manufacturing process or which are util-
42  ized for engineering of the finished product; and
43    (E)  computers and related peripheral equipment utilized for
SB 184--Am. by H on FA
                                     

 1  research and development and product design.
 2    (3)  ``Machinery and equipment used directly and primarily''
 3  shall not include:
 4    (A)  Hand tools;
 5    (B)  machinery, equipment and tools used in maintaining and
 6  repairing any type of machinery and equipment;
 7    (C)  transportation equipment not used in the manufacturing,
 8  assembling, processing, furnishing, storing, warehousing or dis-
 9  tributing process at the plant or facility;
10    (D)  office machines and equipment including computers and
11  related peripheral equipment not directly and primarily used in
12  controlling or measuring the manufacturing process;
13    (E)  furniture and buildings; and
14    (F)  machinery and equipment used in administrative, account-
15  ing, sales or other such activities of the business;
16    (ll)  all sales of educational materials purchased for distribution
17  to the public at no charge by a nonprofit corporation organized
18  for the purpose of encouraging, fostering and conducting pro-
19  grams for the improvement of public health;
20    (mm)  all sales of seeds and tree seedlings; fertilizers, insecti-
21  cides, herbicides, germicides, pesticides and fungicides; and serv-
22  ices, purchased and used for the purpose of producing plants in
23  order to prevent soil erosion on land devoted to agricultural use;
24    (nn)  except as otherwise provided in this act, all sales of serv-
25  ices rendered by an advertising agency or licensed broadcast sta-
26  tion or any member, agent or employee thereof;
27    (oo)  all sales of tangible personal property purchased by a com-
28  munity action group or agency for the exclusive purpose of re-
29  pairing or weatherizing housing occupied by low income individ-
30  uals;
31    (pp)  all sales of drill bits and explosives actually utilized in the
32  exploration and production of oil or gas;
33    (qq)  all sales of tangible personal property and services pur-
34  chased by a nonprofit museum or historical society or any combi-
35  nation thereof, including a nonprofit organization which is organ-
36  ized for the purpose of stimulating public interest in the
37  exploration of space by providing educational information, exhib-
38  its and experiences, which is exempt from federal income taxation
39  pursuant to section 501(c)(3) of the federal internal revenue code
40  of 1986;
41    (rr)  all sales of tangible personal property which will admit the
42  purchaser thereof to any annual event sponsored by a nonprofit
43  organization which is exempt from federal income taxation pur-
SB 184--Am. by H on FA
                                     

 1  suant to section 501(c)(3) of the federal internal revenue code of
 2  1986;
 3    (ss)  all sales of tangible personal property and services pur-
 4  chased by a public broadcasting station licensed by the federal
 5  communications commission as a noncommercial educational tel-
 6  evision or radio station; and
 7    (tt)  all sales of tangible personal property and services pur-
 8  chased by or on behalf of a not-for-profit corporation which is ex-
 9  empt from federal income taxation pursuant to section 501(c)(3)
10  of the federal internal revenue code of 1986, for the sole purpose
11  of constructing a Kansas Korean War memorial; and
12    (uu)  all sales of tangible personal property and services purchased by
13  or on behalf of any rural volunteer fire-fighting organization for use ex-
14  clusively in the performance of its duties and functions.[; and]
15    [(vv) all sales of tangible personal property and services pur-
16  chased by a religious organization which is exempt from federal
17  income taxation pursuant to section 501 (c) (3) of the federal in-
18  ternal revenue code, and used exclusively for religious purposes.]
19    Sec. 2. 3.  K.S.A. 1996 Supp. 12-188 is and 79-3606 are hereby re-
20  pealed.
21    Sec. 3. 4.  This act shall take effect and be in force from and after its
22  publication in the statute book.