Session of 1998
                   
SENATE BILL No. 499
         
By Senator Pugh
         
1-23
            9             AN ACT relating to sales taxation; authorizing Atchison county to impose
10             a sales tax for jail construction purposes; amending K.S.A. 1997 Supp.
11             12-187 and 12-189 and repealing the existing sections.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 1997 Supp. 12-187 is hereby amended to read as
15       follows: 12-187. (a) (1) No city shall impose a retailers' sales tax under
16       the provisions of this act without the governing body of such city having
17       first submitted such proposition to and having received the approval of a
18       majority of the electors of the city voting thereon at an election called
19       and held therefor. The governing body of any city may submit the ques-
20       tion of imposing a retailers' sales tax and the governing body shall be
21       required to submit the question upon submission of a petition signed by
22       electors of such city equal in number to not less than 10% of the electors
23       of such city.
24           (2) The governing body of any city located in any county which does
25       not impose a countywide retailers' sales tax pursuant to paragraph (5) of
26       subsection (b) may submit the question of imposing a retailers' sales tax
27       at the rate of .25%, .5%, .75% or 1% and pledging the revenue received
28       therefrom for the purpose of financing the provision of health care serv-
29       ices, as enumerated in the question, to the electors at an election called
30       and held thereon. The tax imposed pursuant to this paragraph shall be
31       deemed to be in addition to the rate limitations prescribed in K.S.A.
32       12-189, and amendments thereto. As used in this paragraph, health care
33       services shall include but not be limited to the following: Local health
34       departments, city, county or district hospitals, city or county nursing
35       homes, preventive health care services including immunizations, prenatal
36       care and the postponement of entry into nursing homes by home health
37       care services, mental health services, indigent health care, physician or
38       health care worker recruitment, health education, emergency medical
39       services, rural health clinics, integration of health care services, home
40       health services and rural health networks.
41           (b) (1) The board of county commissioners of any county may submit
42       the question of imposing a countywide retailers' sales tax to the electors
43       at an election called and held thereon, and any such board shall be re-

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  1       quired to submit the question upon submission of a petition signed by
  2       electors of such county equal in number to not less than 10% of the
  3       electors of such county who voted at the last preceding general election
  4       for the office of secretary of state, or upon receiving resolutions request-
  5       ing such an election passed by not less than 2/3 of the membership of the
  6       governing body of each of one or more cities within such county which
  7       contains a population of not less than 25% of the entire population of the
  8       county, or upon receiving resolutions requesting such an election passed
  9       by 2/3 of the membership of the governing body of each of one or more
10       taxing subdivisions within such county which levy not less than 25% of
11       the property taxes levied by all taxing subdivisions within the county.
12           (2) The board of county commissioners of Atchison, Barton, Butler,
13       Cowley, Cherokee, Crawford, Jefferson, Lyon, Montgomery, Ottawa, Ri-
14       ley, Saline, Seward and Wyandotte counties may submit the question of
15       imposing a countywide retailers' sales tax and pledging the revenue re-
16       ceived therefrom for the purpose of financing the construction or re-
17       modeling of a courthouse, jail, law enforcement center facility or other
18       county administrative facility, to the electors at an election called and
19       held thereon. The tax imposed pursuant to this paragraph shall expire
20       when sales tax sufficient to pay all of the costs incurred in the financing
21       of such facility has been collected by retailers as determined by the sec-
22       retary of revenue. Nothing in this paragraph shall be construed to allow
23       the rate of tax imposed by Butler, Cowley, Lyon, Montgomery or Riley
24       county pursuant to this paragraph to exceed or be imposed at any rate
25       other than the rates prescribed in K.S.A. 12-189, and amendments
26       thereto.
27           (3) (A) Except as otherwise provided in this paragraph, the result of
28       the election held on November 8, 1988, on the question submitted by
29       the board of county commissioners of Jackson county for the purpose of
30       increasing its countywide retailers' sales tax by 1% is hereby declared
31       valid, and the revenue received therefrom by the county shall be ex-
32       pended solely for the purpose of financing the Banner Creek reservoir
33       project. The tax imposed pursuant to this paragraph shall take effect on
34       the effective date of this act and shall expire not later than five years after
35       such date.
36           (B) The result of the election held on November 8, 1994, on the
37       question submitted by the board of county commissioners of Ottawa
38       county for the purpose of increasing its countywide retailers' sales tax by
39       1% is hereby declared valid, and the revenue received therefrom by the
40       county shall be expended solely for the purpose of financing the erection,
41       construction and furnishing of a law enforcement center and jail facility.
42           (4) The board of county commissioners of Finney and Ford counties
43       may submit the question of imposing a countywide retailers' sales tax at

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  1       the rate of .25% and pledging the revenue received therefrom for the
  2       purpose of financing all or any portion of the cost to be paid by Finney
  3       or Ford county for construction of highway projects identified as system
  4       enhancements under the provisions of paragraph (5) of subsection (b) of
  5       K.S.A. 68-2314, and amendments thereto, to the electors at an election
  6       called and held thereon. Such election shall be called and held in the
  7       manner provided by the general bond law. The tax imposed pursuant to
  8       this paragraph shall expire upon the payment of all costs authorized pur-
  9       suant to this paragraph in the financing of such highway projects. Nothing
10       in this paragraph shall be construed to allow the rate of tax imposed by
11       Finney or Ford county pursuant to this paragraph to exceed the maximum
12       rate prescribed in K.S.A. 12-189, and amendments thereto. If any funds
13       remain upon the payment of all costs authorized pursuant to this para-
14       graph in the financing of such highway projects in Finney county, the
15       state treasurer shall remit such funds to the treasurer of Finney county
16       and upon receipt of such moneys shall be deposited to the credit of the
17       county road and bridge fund. If any funds remain upon the payment of
18       all costs authorized pursuant to this paragraph in the financing of such
19       highway projects in Ford county, the state treasurer shall remit such funds
20       to the treasurer of Ford county and upon receipt of such moneys shall
21       be deposited to the credit of the county road and bridge fund.
22           (5) The board of county commissioners of any county may submit the
23       question of imposing a retailers' sales tax at the rate of .25%, .5%, .75%
24       or 1% and pledging the revenue received therefrom for the purpose of
25       financing the provision of health care services, as enumerated in the ques-
26       tion, to the electors at an election called and held thereon. Whenever any
27       county imposes a tax pursuant to this paragraph, any tax imposed pursuant
28       to paragraph (2) of subsection (a) by any city located in such county shall
29       expire upon the effective date of the imposition of the countywide tax,
30       and thereafter the state treasurer shall remit to each such city that portion
31       of the countywide tax revenue collected by retailers within such city as
32       certified by the director of taxation. The tax imposed pursuant to this
33       paragraph shall be deemed to be in addition to the rate limitations pre-
34       scribed in K.S.A. 12-189, and amendments thereto. As used in this par-
35       agraph, health care services shall include but not be limited to the follow-
36       ing: Local health departments, city or county hospitals, city or county
37       nursing homes, preventive health care services including immunizations,
38       prenatal care and the postponement of entry into nursing homes by home
39       care services, mental health services, indigent health care, physician or
40       health care worker recruitment, health education, emergency medical
41       services, rural health clinics, integration of health care services, home
42       health services and rural health networks.
43           (6) The board of county commissioners of Allen county may submit

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  1       the question of imposing a countywide retailers' sales tax at the rate of
  2       .5% and pledging the revenue received therefrom for the purpose of
  3       financing the costs of operation and construction of a solid waste disposal
  4       area or the modification of an existing landfill to comply with federal
  5       regulations to the electors at an election called and held thereon. The tax
  6       imposed pursuant to this paragraph shall expire upon the payment of all
  7       costs incurred in the financing of the project undertaken. Nothing in this
  8       paragraph shall be construed to allow the rate of tax imposed by Allen
  9       county pursuant to this paragraph to exceed or be imposed at any rate
10       other than the rates prescribed in K.S.A. 12-189 and amendments
11       thereto.
12           (7) The board of county commissioners of Dickinson county may sub-
13       mit the question of imposing a countywide retailers' sales tax at the rate
14       of .25% and pledging the revenue received therefrom for the purpose of
15       financing the costs of renovating a building owned by the county to be
16       used for community purposes to the electors at an election called and
17       held thereon. The tax imposed pursuant to this paragraph shall expire
18       after three years from the date such tax is first collected.
19           (c) The boards of county commissioners of any two or more contig-
20       uous counties, upon adoption of a joint resolution by such boards, may
21       submit the question of imposing a retailers' sales tax within such counties
22       to the electors of such counties at an election called and held thereon
23       and such boards of any two or more contiguous counties shall be required
24       to submit such question upon submission of a petition in each of such
25       counties, signed by a number of electors of each of such counties where
26       submitted equal in number to not less than 10% of the electors of each
27       of such counties who voted at the last preceding general election for the
28       office of secretary of state, or upon receiving resolutions requesting such
29       an election passed by not less than 2/3 of the membership of the governing
30       body of each of one or more cities within each of such counties which
31       contains a population of not less than 25% of the entire population of
32       each of such counties, or upon receiving resolutions requesting such an
33       election passed by 2/3 of the membership of the governing body of each
34       of one or more taxing subdivisions within each of such counties which
35       levy not less than 25% of the property taxes levied by all taxing subdivi-
36       sions within each of such counties.
37           (d) Any city retailers' sales tax in the amount of .5% being levied by
38       a city on July 1, 1990, shall continue in effect until repealed in the manner
39       provided herein for the adoption and approval of such tax or until re-
40       pealed by the adoption of an ordinance so providing. In addition to any
41       city retailers' sales tax being levied by a city on July 1, 1990, any such city
42       may adopt an additional city retailers' sales tax in the amount of .25% or
43       .5%, provided that such additional tax is adopted and approved in the

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  1       manner provided for the adoption and approval of a city retailers' sales
  2       tax. Any countywide retailers' sales tax in the amount of .5% or 1% in
  3       effect on July 1, 1990, shall continue in effect until repealed in the manner
  4       provided herein for the adoption and approval of such tax.
  5           (e) A class B city shall have the same power to levy and collect a city
  6       retailers' sales tax that a class A city is authorized to levy and collect and
  7       in addition, in 1990, 1991 or 1992, the governing body of any class B city
  8       may submit the question of imposing an additional city retailers' sales tax
  9       in an amount not to exceed 1% and pledging the revenue received there-
10       from for flood control projects to the electors at an election called and
11       held thereon. Any additional sales tax imposed pursuant to this paragraph
12       shall expire upon the payment of all costs incurred in financing such flood
13       control projects.
14           (f) A class D city shall have the same power to levy and collect a city
15       retailers' sales tax that a class A city is authorized to levy and collect and
16       in addition, the governing body of any class D city may submit the ques-
17       tion of imposing an additional city retailers' sales tax in the amount of
18       .25%, .5% or .75% and pledging the revenue received therefrom for ec-
19       onomic development initiatives, strategic planning initiatives or for public
20       infrastructure projects including buildings to the electors at an election
21       called and held thereon. Any additional sales tax imposed pursuant to this
22       paragraph shall expire no later than five years from the date of imposition
23       thereof.
24           (g) Any city or county proposing to adopt a retailers' sales tax shall
25       give notice of its intention to submit such proposition for approval by the
26       electors in the manner required by K.S.A. 10-120, and amendments
27       thereto. The notices shall state the time of the election and the rate and
28       effective date of the proposed tax. If a majority of the electors voting
29       thereon at such election fail to approve the proposition, such proposition
30       may be resubmitted under the conditions and in the manner provided in
31       this act for submission of the proposition. If a majority of the electors
32       voting thereon at such election shall approve the levying of such tax, the
33       governing body of any such city or county shall provide by ordinance or
34       resolution, as the case may be, for the levy of the tax. Any repeal of such
35       tax or any reduction or increase in the rate thereof, within the limits
36       prescribed by K.S.A. 12-189, and amendments thereto, shall be accom-
37       plished in the manner provided herein for the adoption and approval of
38       such tax except that the repeal of any such city retailers' sales tax may be
39       accomplished by the adoption of an ordinance so providing.
40           (h) The sufficiency of the number of signers of any petition filed
41       under this section shall be determined by the county election officer.
42       Every election held under this act shall be conducted by the county elec-
43       tion officer.

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  1           (i) The governing body of the city or county proposing to levy any
  2       retailers' sales tax shall specify the purpose or purposes for which the
  3       revenue would be used, and a statement generally describing such pur-
  4       pose or purposes shall be included as a part of the ballot proposition.
  5           Sec. 2. K.S.A. 1997 Supp. 12-189 is hereby amended to read as fol-
  6       lows: 12-189. Except as otherwise provided by paragraph (2) of subsection
  7       (a) of K.S.A. 12-187, and amendments thereto, the rate of any class A or
  8       class C city retailers' sales tax shall be fixed in the amount of .25%, .5%,
  9       .75% or 1% which amount shall be determined by the governing body of
10       the city. Except as otherwise provided by paragraph (2) of subsection (a)
11       of K.S.A. 12-187, and amendments thereto, the rate of any class B city
12       retailers' sales tax shall be fixed in the amount of .25%, .5%, .75%, 1%,
13       1.25%, 1.5%, 1.75% or 2%. Except as otherwise provided by paragraph
14       (2) of subsection (a) of K.S.A. 12-187, and amendments thereto, the rate
15       of any class D city retailers' sales tax shall be fixed in the amount of .25%,
16       .5%, .75%, 1%, 1.25%, 1.5% or 1.75%. The rate of any countywide re-
17       tailers' sales tax shall be fixed in an amount of either .25%, .5%, .75% or
18       1% which amount shall be determined by the board of county commis-
19       sioners, except that:
20           (a) The board of county commissioners of Atchison, Cherokee, Craw-
21       ford, Saline, Seward or Wyandotte county, for the purposes of paragraph
22       (2) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix
23       such rate at 1.5%, and the board of county commissioners of Barton,
24       Jefferson or Ottawa county, for the purposes of paragraph (2) of subsec-
25       tion (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at
26       2%;
27           (b) the board of county commissioners of Jackson county, for the
28       purposes of paragraph (3) of subsection (b) of K.S.A. 12-187, and amend-
29       ments thereto, may fix such rate at 2%;
30           (c) the boards of county commissioners of Finney and Ford counties,
31       for the purposes of paragraph (4) of subsection (b) of K.S.A. 12-187, and
32       amendments thereto, may fix such rate at .25%;
33           (d) the board of county commissioners of any county for the purposes
34       of paragraph (5) of subsection (b) of K.S.A. 12-187, and amendments
35       thereto, may fix such rate at a percentage which is equal to the sum of
36       the rate allowed to be imposed by a board of county commissioners on
37       the effective date of this act plus .25%, .5%, .75% or 1%, as the case
38       requires; or
39           (e) the board of county commissioners of Dickinson county, for the
40       purposes of paragraph (7) of subsection (b) of K.S.A. 12-187, and amend-
41       ments thereto, may fix such rate at 1.25%.
42           Any county or city levying a retailers' sales tax is hereby prohibited
43       from administering or collecting such tax locally, but shall utilize the serv-

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  1       ices of the state department of revenue to administer, enforce and collect
  2       such tax. Except as otherwise specifically provided in K.S.A. 12-189a, and
  3       amendments thereto, such tax shall be identical in its application, and
  4       exemptions therefrom, to the Kansas retailers' sales tax act and all laws
  5       and administrative rules and regulations of the state department of rev-
  6       enue relating to the Kansas retailers' sales tax shall apply to such local
  7       sales tax insofar as such laws and rules and regulations may be made
  8       applicable. The state director of taxation is hereby authorized to admin-
  9       ister, enforce and collect such local sales taxes and to adopt such rules
10       and regulations as may be necessary for the efficient and effective ad-
11       ministration and enforcement thereof.
12           Upon receipt of a certified copy of an ordinance or resolution author-
13       izing the levy of a local retailers' sales tax, the state director of taxation
14       shall cause such taxes to be collected within or without the boundaries of
15       such taxing subdivision at the same time and in the same manner provided
16       for the collection of the state retailers' sales tax. All moneys collected by
17       the director of taxation under the provisions of this section shall be cred-
18       ited to a county and city retailers' sales tax fund which fund is hereby
19       established in the state treasury. Any refund due on any county or city
20       retailers' sales tax collected pursuant to this act shall be paid out of the
21       sales tax refund fund and reimbursed by the director of taxation from
22       collections of local retailers' sales tax revenue. All local retailers' sales tax
23       revenue collected within any county or city pursuant to this act shall be
24       apportioned and remitted at least quarterly by the state treasurer, on
25       instruction from the director of taxation, to the treasurer of such county
26       or city.
27           The director of taxation shall provide, upon request by a city or county
28       clerk or treasurer of any city or county levying a local retailers' sales tax,
29       a monthly report identifying each retailer having a place of business in
30       such city or county and setting forth the amount of such tax remitted by
31       each retailer during the preceding month. Such report shall be made
32       available to the clerk or treasurer of such city or county within a reason-
33       able time after it has been requested from the director of taxation. The
34       director of taxation shall be allowed to assess a reasonable fee for the
35       issuance of such report. Information received by any city or county pur-
36       suant to this section shall be confidential, and it shall be unlawful for any
37       officer or employee of such city or county to divulge any such information
38       in any manner. Any violation of this paragraph by a city or county officer
39       or employee is a class B misdemeanor, and such officer or employee shall
40       be dismissed from office.
41           Sec. 3. K.S.A. 1997 Supp. 12-187 and 12-189 are hereby repealed.
42           Sec. 4. This act shall take effect and be in force from and after its
43       publication in the statute book.
44