Session of 1998
                   
HOUSE BILL No. 2913
         
By Representative Thimesch
         
2-13
            9             AN ACT relating to sales taxation; exempting certain sales of special mo-
10             tor fuels therefrom; amending K.S.A. 79-3606 and repealing the ex-
11             isting section.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 79-3606 is hereby amended to read as follows:
15       79-3606. The following shall be exempt from the tax imposed by this act:
16           (a) (1) All sales of special fuel, as defined by subsection (s) of 79-
17       3401, and amendments thereto which is exempt from taxation imposed
18       under article 34 of chapter 79 of the Kansas Statutes Annotated, or the
19       tax imposed upon which is subject to refund; and (2) all sales of mo-
20       tor-vehicle fuel not subject to the provisions of paragraph (1) or other
21       articles upon which a sales or excise tax has been paid, not subject to
22       refund, under the laws of this state except cigarettes as defined by K.S.A.
23       79-3301 and amendments thereto, cereal malt beverages and malt prod-
24       ucts as defined by K.S.A. 79-3817 and amendments thereto, including
25       wort, liquid malt, malt syrup and malt extract, which is not subject to
26       taxation under the provisions of K.S.A. 79-41a02 and amendments
27       thereto, and motor vehicles as defined by K.S.A. 79-1017 and amend-
28       ments thereto;
29           (b) all sales of tangible personal property or service, including the
30       renting and leasing of tangible personal property, purchased directly by
31       the state of Kansas, a political subdivision thereof, other than a school or
32       educational institution, or purchased by a public or private nonprofit hos-
33       pital or nonprofit blood, tissue or organ bank and used exclusively for
34       state, political subdivision, hospital or nonprofit blood, tissue or organ
35       bank purposes, except when: (1) Such state or hospital is engaged or
36       proposes to engage in any business specifically taxable under the provi-
37       sions of this act and such items of tangible personal property or service
38       are used or proposed to be used in such business, or (2) such political
39       subdivision is engaged or proposes to engage in the business of furnishing
40       gas, water, electricity or heat to others and such items of personal prop-
41       erty or service are used or proposed to be used in such business;
42           (c) all sales of tangible personal property or services, including the
43       renting and leasing of tangible personal property, purchased directly by

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

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

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  1       purchases so made were entitled to exemption under this subsection. As
  2       an alternative to the foregoing procedure, any such contracting entity may
  3       apply to the secretary of revenue for agent status for the sole purpose of
  4       issuing and furnishing project exemption certificates to contractors pur-
  5       suant to rules and regulations adopted by the secretary establishing con-
  6       ditions and standards for the granting and maintaining of such status. All
  7       invoices shall be held by the contractor for a period of five years and shall
  8       be subject to audit by the director of taxation. Any contractor or any agent,
  9       employee or subcontractor thereof, who shall use or otherwise dispose of
10       any materials purchased under such a certificate for any purpose other
11       than that for which such a certificate is issued without the payment of
12       the sales or compensating tax otherwise imposed upon such materials,
13       shall be guilty of a misdemeanor and, upon conviction therefor, shall be
14       subject to the penalties provided for in subsection (g) of K.S.A. 79-3615
15       and amendments thereto;
16           (f) tangible personal property purchased by a railroad or public utility
17       for consumption or movement directly and immediately in interstate
18       commerce;
19           (g) sales of aircraft including remanufactured and modified aircraft,
20       sales of aircraft repair, modification and replacement parts and sales of
21       services employed in the remanufacture, modification and repair of air-
22       craft sold to persons using such aircraft and aircraft repair, modification
23       and replacement parts as certified or licensed carriers of persons or prop-
24       erty in interstate or foreign commerce under authority of the laws of the
25       United States or any foreign government or sold to any foreign govern-
26       ment or agency or instrumentality of such foreign government and all
27       sales of aircraft, aircraft parts, replacement parts and services employed
28       in the remanufacture, modification and repair of aircraft for use outside
29       of the United States;
30           (h) all rentals of nonsectarian textbooks by public or private elemen-
31       tary or secondary schools;
32           (i) the lease or rental of all films, records, tapes, or any type of sound
33       or picture transcriptions used by motion picture exhibitors;
34           (j) meals served without charge or food used in the preparation of
35       such meals to employees of any restaurant, eating house, dining car, hotel,
36       drugstore or other place where meals or drinks are regularly sold to the
37       public if such employees' duties are related to the furnishing or sale of
38       such meals or drinks;
39           (k) any motor vehicle, semitrailer or pole trailer, as such terms are
40       defined by K.S.A. 8-126 and amendments thereto, or aircraft sold and
41       delivered in this state to a bona fide resident of another state, which motor
42       vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
43       in this state and which vehicle, semitrailer, pole trailer or aircraft will not

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  1       remain in this state more than 10 days;
  2           (l) all isolated or occasional sales of tangible personal property, serv-
  3       ices, substances or things, except isolated or occasional sale of motor
  4       vehicles specifically taxed under the provisions of subsection (o) of K.S.A.
  5       79-3603 and amendments thereto;
  6           (m) all sales of tangible personal property which become an ingre-
  7       dient or component part of tangible personal property or services pro-
  8       duced, manufactured or compounded for ultimate sale at retail within or
  9       without the state of Kansas; and any such producer, manufacturer or
10       compounder may obtain from the director of taxation and furnish to the
11       supplier an exemption certificate number for tangible personal property
12       for use as an ingredient or component part of the property or services
13       produced, manufactured or compounded;
14           (n) all sales of tangible personal property which is consumed in the
15       production, manufacture, processing, mining, drilling, refining or com-
16       pounding of tangible personal property, the treating of by-products or
17       wastes derived from any such production process, the providing of serv-
18       ices or the irrigation of crops for ultimate sale at retail within or without
19       the state of Kansas; and any purchaser of such property may obtain from
20       the director of taxation and furnish to the supplier an exemption certifi-
21       cate number for tangible personal property for consumption in such pro-
22       duction, manufacture, processing, mining, drilling, refining, compound-
23       ing, treating, irrigation and in providing such services;
24           (o) all sales of animals, fowl and aquatic plants and animals, the pri-
25       mary purpose of which is use in agriculture or aquaculture, as defined in
26       K.S.A. 47-1901, and amendments thereto, the production of food for
27       human consumption, the production of animal, dairy, poultry or aquatic
28       plant and animal products, fiber or fur, or the production of offspring for
29       use for any such purpose or purposes;
30           (p) all sales of drugs, as defined by K.S.A. 65-1626 and amendments
31       thereto, dispensed pursuant to a prescription order, as defined by K.S.A.
32       65-1626 and amendments thereto, by a licensed practitioner;
33           (q) all sales of insulin dispensed by a person licensed by the state
34       board of pharmacy to a person for treatment of diabetes at the direction
35       of a person licensed to practice medicine by the board of healing arts;
36           (r) all sales of prosthetic and orthopedic appliances prescribed in
37       writing by a person licensed to practice the healing arts, dentistry or
38       optometry. For the purposes of this subsection, the term prosthetic and
39       orthopedic appliances means any apparatus, instrument, device, or equip-
40       ment used to replace or substitute for any missing part of the body; used
41       to alleviate the malfunction of any part of the body; or used to assist any
42       disabled person in leading a normal life by facilitating such person's mo-
43       bility; such term shall include accessories attached or to be attached to

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  1       motor vehicles, but such term shall not include motor vehicles or personal
  2       property which when installed becomes a fixture to real property;
  3           (s) all sales of tangible personal property or services purchased di-
  4       rectly by a groundwater management district organized or operating un-
  5       der the authority of K.S.A. 82a-1020 et seq. and amendments thereto,
  6       which property or services are used in the operation or maintenance of
  7       the district;
  8           (t) all sales of farm machinery and equipment or aquaculture ma-
  9       chinery and equipment, repair and replacement parts therefor and serv-
10       ices performed in the repair and maintenance of such machinery and
11       equipment. For the purposes of this subsection the term ``farm machinery
12       and equipment or aquaculture machinery and equipment'' shall include
13       machinery and equipment used in the operation of Christmas tree farm-
14       ing but shall not include any passenger vehicle, truck, truck tractor, trailer,
15       semitrailer or pole trailer, other than a farm trailer, as such terms are
16       defined by K.S.A. 8-126 and amendments thereto. Each purchaser of
17       farm machinery and equipment or aquaculture machinery and equipment
18       exempted herein must certify in writing on the copy of the invoice or
19       sales ticket to be retained by the seller that the farm machinery and
20       equipment or aquaculture machinery and equipment purchased will be
21       used only in farming, ranching or aquaculture production. Farming or
22       ranching shall include the operation of a feedlot and farm and ranch work
23       for hire and the operation of a nursery;
24           (u) all leases or rentals of tangible personal property used as a dwell-
25       ing if such tangible personal property is leased or rented for a period of
26       more than 28 consecutive days;
27           (v) all sales of food products to any contractor for use in preparing
28       meals for delivery to homebound elderly persons over 60 years of age and
29       to homebound disabled persons or to be served at a group-sitting at a
30       location outside of the home to otherwise homebound elderly persons
31       over 60 years of age and to otherwise homebound disabled persons, as
32       all or part of any food service project funded in whole or in part by
33       government or as part of a private nonprofit food service project available
34       to all such elderly or disabled persons residing within an area of service
35       designated by the private nonprofit organization, and all sales of food
36       products for use in preparing meals for consumption by indigent or home-
37       less individuals whether or not such meals are consumed at a place des-
38       ignated for such purpose;
39           (w) all sales of natural gas, electricity, heat and water delivered
40       through mains, lines or pipes: (1) To residential premises for noncom-
41       mercial use by the occupant of such premises; (2) for agricultural use and
42       also, for such use, all sales of propane gas; (3) for use in the severing of
43       oil; and (4) to any property which is exempt from property taxation pur-

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  1       suant to K.S.A. 79-201b Second through Sixth. As used in this paragraph,
  2       ``severing'' shall have the meaning ascribed thereto by subsection (k) of
  3       K.S.A. 79-4216, and amendments thereto;
  4           (x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
  5       for the production of heat or lighting for noncommercial use of an oc-
  6       cupant of residential premises;
  7           (y) all sales of materials and services used in the repairing, servicing,
  8       altering, maintaining, manufacturing, remanufacturing, or modification of
  9       railroad rolling stock for use in interstate or foreign commerce under
10       authority of the laws of the United States;
11           (z) all sales of tangible personal property and services purchased di-
12       rectly by a port authority or by a contractor therefor as provided by the
13       provisions of K.S.A. 12-3418 and amendments thereto;
14           (aa) all sales of materials and services applied to equipment which is
15       transported into the state from without the state for repair, service, al-
16       teration, maintenance, remanufacture or modification and which is sub-
17       sequently transported outside the state for use in the transmission of
18       liquids or natural gas by means of pipeline in interstate or foreign com-
19       merce under authority of the laws of the United States;
20           (bb) all sales of used mobile homes or manufactured homes. As used
21       in this subsection: (1) ``Mobile homes'' and ``manufactured homes'' shall
22       have the meanings ascribed thereto by K.S.A. 58-4202 and amendments
23       thereto; and (2) ``sales of used mobile homes or manufactured homes''
24       means sales other than the original retail sale thereof;
25           (cc) all sales of tangible personal property or services purchased for
26       the purpose of and in conjunction with constructing, reconstructing, en-
27       larging or remodeling a business or retail business which meets the
28       requirements established in K.S.A. 74-50,115 and amendments thereto,
29       and the sale and installation of machinery and equipment purchased for
30       installation at any such business or retail business. When a person shall
31       contract for the construction, reconstruction, enlargement or remodeling
32       of any such business or retail business, such person shall obtain from the
33       state and furnish to the contractor an exemption certificate for the project
34       involved, and the contractor may purchase materials, machinery and
35       equipment for incorporation in such project. The contractor shall furnish
36       the number of such certificates to all suppliers from whom such purchases
37       are made, and such suppliers shall execute invoices covering the same
38       bearing the number of such certificate. Upon completion of the project
39       the contractor shall furnish to the owner of the business or retail business
40       a sworn statement, on a form to be provided by the director of taxation,
41       that all purchases so made were entitled to exemption under this subsec-
42       tion. All invoices shall be held by the contractor for a period of five years
43       and shall be subject to audit by the director of taxation. Any contractor

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  1       or any agent, employee or subcontractor thereof, who shall use or oth-
  2       erwise dispose of any materials, machinery or equipment purchased un-
  3       der such a certificate for any purpose other than that for which such a
  4       certificate is issued without the payment of the sales or compensating tax
  5       otherwise imposed thereon, shall be guilty of a misdemeanor and, upon
  6       conviction therefor, shall be subject to the penalties provided for in sub-
  7       section (g) of K.S.A. 79-3615 and amendments thereto. As used in this
  8       subsection, ``business'' and ``retail business'' have the meanings respec-
  9       tively ascribed thereto by K.S.A. 74-50,114 and amendments thereto;
10           (dd) all sales of tangible personal property purchased with food
11       stamps issued by the United States department of agriculture;
12           (ee) all sales of lottery tickets and shares made as part of a lottery
13       operated by the state of Kansas;
14           (ff) on and after July 1, 1988, all sales of new mobile homes or man-
15       ufactured homes to the extent of 40% of the gross receipts, determined
16       without regard to any trade-in allowance, received from such sale. As used
17       in this subsection, ``mobile homes'' and ``manufactured homes'' shall have
18       the meanings ascribed thereto by K.S.A. 58-4202 and amendments
19       thereto;
20           (gg) all sales of tangible personal property purchased in accordance
21       with vouchers issued pursuant to the federal special supplemental food
22       program for women, infants and children;
23           (hh) all sales of medical supplies and equipment purchased directly
24       by a nonprofit skilled nursing home or nonprofit intermediate nursing
25       care home, as defined by K.S.A. 39-923, and amendments thereto, for
26       the purpose of providing medical services to residents thereof. This ex-
27       emption shall not apply to tangible personal property customarily used
28       for human habitation purposes;
29           (ii) all sales of tangible personal property purchased directly by a non-
30       profit organization for nonsectarian comprehensive multidiscipline youth
31       development programs and activities provided or sponsored by such or-
32       ganization. This exemption shall not apply to tangible personal property
33       customarily used for human habitation purposes;
34           (jj) all sales of tangible personal property or services, including the
35       renting and leasing of tangible personal property, purchased directly on
36       behalf of a community-based mental retardation facility or mental health
37       center organized pursuant to K.S.A. 19-4001 et seq., and amendments
38       thereto, and licensed in accordance with the provisions of K.S.A. 75-
39       3307b and amendments thereto. This exemption shall not apply to tan-
40       gible personal property customarily used for human habitation purposes;
41           (kk) on and after January 1, 1989, all sales of machinery and equip-
42       ment used directly and primarily for the purposes of manufacturing, as-
43       sembling, processing, finishing, storing, warehousing or distributing ar-

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  1       ticles of tangible personal property in this state intended for resale by a
  2       manufacturing or processing plant or facility or a storage, warehousing or
  3       distribution facility:
  4           (1) For purposes of this subsection, machinery and equipment shall
  5       be deemed to be used directly and primarily in the manufacture, assem-
  6       blage, processing, finishing, storing, warehousing or distributing of tan-
  7       gible personal property where such machinery and equipment is used
  8       during a manufacturing, assembling, processing or finishing, storing,
  9       warehousing or distributing operation:
10           (A) To effect a direct and immediate physical change upon the tangible
11       personal property;
12           (B) to guide or measure a direct and immediate physical change upon
13       such property where such function is an integral and essential part of
14       tuning, verifying or aligning the component parts of such property;
15           (C) to test or measure such property where such function is an in-
16       tegral part of the production flow or function;
17           (D) to transport, convey or handle such property during the manu-
18       facturing, processing, storing, warehousing or distribution operation at
19       the plant or facility; or
20           (E) to place such property in the container, package or wrapping in
21       which such property is normally sold or transported.
22           (2) For purposes of this subsection ``machinery and equipment used
23       directly and primarily'' shall include, but not be limited to:
24           (A) Mechanical machines or major components thereof contributing
25       to a manufacturing, assembling or finishing process;
26           (B) molds and dies that determine the physical characteristics of the
27       finished product or its packaging material;
28           (C) testing equipment to determine the quality of the finished prod-
29       uct;
30           (D) computers and related peripheral equipment that directly control
31       or measure the manufacturing process or which are utilized for engi-
32       neering of the finished product; and
33           (E) computers and related peripheral equipment utilized for research
34       and development and product design.
35           (3) ``Machinery and equipment used directly and primarily'' shall not
36       include:
37           (A) Hand tools;
38           (B) machinery, equipment and tools used in maintaining and repair-
39       ing any type of machinery and equipment;
40           (C) transportation equipment not used in the manufacturing, assem-
41       bling, processing, furnishing, storing, warehousing or distributing process
42       at the plant or facility;
43           (D) office machines and equipment including computers and related

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  1       peripheral equipment not directly and primarily used in controlling or
  2       measuring the manufacturing process;
  3           (E) furniture and buildings; and
  4           (F) machinery and equipment used in administrative, accounting,
  5       sales or other such activities of the business;
  6           (ll) all sales of educational materials purchased for distribution to the
  7       public at no charge by a nonprofit corporation organized for the purpose
  8       of encouraging, fostering and conducting programs for the improvement
  9       of public health;
10           (mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
11       herbicides, germicides, pesticides and fungicides; and services, purchased
12       and used for the purpose of producing plants in order to prevent soil
13       erosion on land devoted to agricultural use;
14           (nn) except as otherwise provided in this act, all sales of services ren-
15       dered by an advertising agency or licensed broadcast station or any mem-
16       ber, agent or employee thereof;
17           (oo) all sales of tangible personal property purchased by a community
18       action group or agency for the exclusive purpose of repairing or weath-
19       erizing housing occupied by low income individuals;
20           (pp) all sales of drill bits and explosives actually utilized in the explo-
21       ration and production of oil or gas;
22           (qq) all sales of tangible personal property and services purchased by
23       a nonprofit museum or historical society or any combination thereof, in-
24       cluding a nonprofit organization which is organized for the purpose of
25       stimulating public interest in the exploration of space by providing edu-
26       cational information, exhibits and experiences, which is exempt from fed-
27       eral income taxation pursuant to section 501(c)(3) of the federal internal
28       revenue code of 1986;
29           (rr) all sales of tangible personal property which will admit the pur-
30       chaser thereof to any annual event sponsored by a nonprofit organization
31       which is exempt from federal income taxation pursuant to section
32       501(c)(3) of the federal internal revenue code of 1986;
33           (ss) all sales of tangible personal property and services purchased by
34       a public broadcasting station licensed by the federal communications
35       commission as a noncommercial educational television or radio station;
36           (tt) all sales of tangible personal property and services purchased by
37       or on behalf of a not-for-profit corporation which is exempt from federal
38       income taxation pursuant to section 501(c)(3) of the federal internal rev-
39       enue code of 1986, for the sole purpose of constructing a Kansas Korean
40       War memorial;
41           (uu) all sales of tangible personal property and services purchased by
42       or on behalf of any rural volunteer fire-fighting organization for use ex-
43       clusively in the performance of its duties and functions;

HB 2913

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  1           (vv) all sales of tangible personal property purchased by any of the
  2       following organizations which are exempt from federal income taxation
  3       pursuant to section 501 (c)(3) of the federal internal revenue code of
  4       1986, for the following purposes, and all sales of any such property by or
  5       on behalf of any such organization for any such purpose:
  6           (1) The American Heart Association, Kansas Affiliate, Inc. for the
  7       purposes of providing education, training, certification in emergency car-
  8       diac care, research and other related services to reduce disability and
  9       death from cardiovascular diseases and stroke;
10           (2) the Kansas Alliance for the Mentally Ill, Inc. for the purpose of
11       advocacy for persons with mental illness and to education, research and
12       support for their families;
13           (3) the Kansas Mental Illness Awareness Council for the purposes of
14       advocacy for persons who are mentally ill and to education, research and
15       support for them and their families;
16           (4) the American Diabetes Association Kansas Affiliate, Inc. for the
17       purpose of eliminating diabetes through medical research, public edu-
18       cation focusing on disease prevention and education, patient education
19       including information on coping with diabetes, and professional education
20       and training;
21           (5) the American Lung Association of Kansas, Inc. for the purpose of
22       eliminating all lung diseases through medical research, public education
23       including information on coping with lung diseases, professional educa-
24       tion and training related to lung disease and other related services to
25       reduce the incidence of disability and death due to lung disease;
26           (6) the Kansas chapters of the Alzheimer's Disease and Related Dis-
27       orders Association, Inc. for the purpose of providing assistance and sup-
28       port to persons in Kansas with Alzheimer's disease, and their families and
29       caregivers; and
30           (ww) all sales of tangible personal property purchased by the Habitat
31       for Humanities for the exclusive use of being incorporated within a hous-
32       ing project constructed by such organization.
33           Sec. 2. K.S.A. 79-3606 is hereby repealed.
34           Sec. 3. This act shall take effect and be in force from and after its
35       publication in the statute book.
36      
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