Session of 1999
HOUSE BILL No. 2063
By Committee on Local Government
1-20
9 AN ACT concerning cities and counties; relating to the retailers' sales
10 tax; amending K.S.A. 1998 Supp. 12-189 and 12-192 and repealing the
11 existing sections; also repealing K.S.A. 1998 Supp. 12-189c and 12-
12 192c.
13
14 Be it enacted by the Legislature of the State of Kansas:
15 Section 1. K.S.A. 1998 Supp. 12-189 is hereby amended to read as
16 follows: 12-189. Except as otherwise provided by paragraph (2) of sub-
17 section (a) of K.S.A. 12-187, and amendments thereto, the rate of any
18 class A, class B or class C city retailers' sales tax shall be fixed in the
19 amount of .25%, .5%, .75% or 1% which amount shall be determined by
20 the governing body of the city. Except as otherwise provided by paragraph
21 (2) of subsection (a) of K.S.A. 12-187, and amendments thereto, the rate
22 of any class D city retailers' sales tax shall be fixed in the amount of .25%,
23 .5%, .75%, 1%, 1.125%, 1.25%, 1.5% or 1.75%. The rate of any county-
24 wide retailers' sales tax shall be fixed in an amount of either .25%, .5%,
25 .75% or 1% which amount shall be determined by the board of county
26 commissioners, except that:
27 (a) The board of county commissioners of Cherokee, Crawford, Ford,
28 Saline, Seward or Wyandotte county, for the purposes of paragraph (2)
29 of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such
30 rate at 1.5%, the board of county commissioners of Atchison county, for
31 the purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and
32 amendments thereto, may fix such rate at 1.5% or 1.75% and the board
33 of county commissioners of Barton, Jefferson or Ottawa county, for the
34 purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and amend-
35 ments thereto, may fix such rate at 2%;
36 (b) the board of county commissioners of Jackson county, for the
37 purposes of paragraph (3) of subsection (b) of K.S.A. 12-187, and amend-
38 ments thereto, may fix such rate at 2%;
39 (c) the boards of county commissioners of Finney and Ford counties,
40 for the purposes of paragraph (4) of subsection (b) of K.S.A. 12-187, and
41 amendments thereto, may fix such rate at .25%;
42 (d) the board of county commissioners of any county for the purposes
43 of paragraph (5) of subsection (b) of K.S.A. 12-187, and amendments
44 thereto, may fix such rate at a percentage which is equal to the sum of
45 the rate allowed to be imposed by a board of county commissioners on
46 the effective date of this act plus .25%, .5%, .75% or 1%, as the case
47 requires;
48 (e) the board of county commissioners of Dickinson county, for the
49 purposes of paragraph (7) of subsection (b) of K.S.A. 12-187, and amend-
50 ments thereto, may fix such rate at 1.5%; or
51 (f) the board of county commissioners of Sherman county, for the
52 purposes of paragraph (8) of subsection (b) of K.S.A. 12-187, and amend-
53 ments thereto, may fix such rate at l.5%, 1.75% or 2%.
54 Any county or city levying a retailers' sales tax is hereby prohibited
55 from administering or collecting such tax locally, but shall utilize the serv-
56 ices of the state department of revenue to administer, enforce and collect
57 such tax. Except as otherwise specifically provided in K.S.A. 12-189a, and
58 amendments thereto, such tax shall be identical in its application, and
59 exemptions therefrom, to the Kansas retailers' sales tax act and all laws
60 and administrative rules and regulations of the state department of rev-
61 enue relating to the Kansas retailers' sales tax shall apply to such local
62 sales tax insofar as such laws and rules and regulations may be made
63 applicable. The state director of taxation is hereby authorized to admin-
64 ister, enforce and collect such local sales taxes and to adopt such rules
65 and regulations as may be necessary for the efficient and effective ad-
66 ministration and enforcement thereof.
67 Upon receipt of a certified copy of an ordinance or resolution author-
68 izing the levy of a local retailers' sales tax, the state director of taxation
69 shall cause such taxes to be collected within or without the boundaries of
70 such taxing subdivision at the same time and in the same manner provided
71 for the collection of the state retailers' sales tax. All moneys collected by
72 the director of taxation under the provisions of this section shall be cred-
73 ited to a county and city retailers' sales tax fund which fund is hereby
74 established in the state treasury. Any refund due on any county or city
75 retailers' sales tax collected pursuant to this act shall be paid out of the
76 sales tax refund fund and reimbursed by the director of taxation from
77 collections of local retailers' sales tax revenue. Except for local retailers'
78 sales tax revenue required to be deposited in the redevelopment bond fund
79 established under K.S.A. 1998 Supp. 74-8927, and amendments thereto,
80 all local retailers' sales tax revenue collected within any county or city
81 pursuant to this act shall be apportioned and remitted at least quarterly
82 by the state treasurer, on instruction from the director of taxation, to the
83 treasurer of such county or city.
84 The director of taxation shall provide, upon request by a city or county
85 clerk or treasurer of any city or county levying a local retailers' sales tax,
86 a monthly report identifying each retailer having a place of business in
87 such city or county and setting forth the amount of such tax remitted by
88 each retailer during the preceding month. Such report shall be made
89 available to the clerk or treasurer of such city or county within a reason-
90 able time after it has been requested from the director of taxation. The
91 director of taxation shall be allowed to assess a reasonable fee for the
92 issuance of such report. Information received by any city or county pur-
93 suant to this section shall be confidential, and it shall be unlawful for any
94 officer or employee of such city or county to divulge any such information
95 in any manner. Any violation of this paragraph by a city or county officer
96 or employee is a class B misdemeanor, and such officer or employee shall
97 be dismissed from office.
98 Sec. 2. K.S.A. 1998 Supp. 12-192 is hereby amended to read as fol-
99 lows: 12-192. (a) Except as otherwise provided by subsection (b), (d) or
100 (h), all revenue received by the director of taxation from a countywide
101 retailers' sales tax shall be apportioned among the county and each city
102 located in such county in the following manner: (1) One-half of all reve-
103 nue received by the director of taxation shall be apportioned among the
104 county and each city located in such county in the proportion that the
105 total tangible property tax levies made in such county in the preceding
106 year for all funds of each such governmental unit bear to the total of all
107 such levies made in the preceding year, and (2) 1/2 of all revenue received
108 by the director of taxation from such countywide retailers' sales tax shall
109 be apportioned among the county and each city located in such county,
110 first to the county that portion of the revenue equal to the proportion
111 that the population of the county residing in the unincorporated area of
112 the county bears to the total population of the county, and second to the
113 cities in the proportion that the population of each city bears to the total
114 population of the county, except that no persons residing within the Fort
115 Riley military reservation shall be included in the determination of the
116 population of any city located within Riley county. All revenue appor-
117 tioned to a county shall be paid to its county treasurer and shall be cred-
118 ited to the general fund of the county.
119 (b) (1) As an alternative and in lieu of the apportionment formula
120 provided in subsection (a), all revenue received by the director of taxation
121 from a countywide retailers' sales tax imposed within Johnson county at
122 the rate of .75% or 1% after the effective date of this act may be appor-
123 tioned among the county and each city located in such county in the
124 following manner: (A) The revenue received from the first .5% rate of
125 tax shall be apportioned in the manner prescribed by subsection (a) and
126 (B) the revenue received from the rate of tax exceeding .5% shall be
127 apportioned as follows: (i) One-fourth shall be apportioned among the
128 county and each city located in such county in the proportion that the
129 total tangible property tax levies made in such county in the preceding
130 year for all funds of each such governmental unit bear to the total of all
131 such levies made in the preceding year and (ii) one-fourth shall be ap-
132 portioned among the county and each city located in such county, first to
133 the county that portion of the revenue equal to the proportion that the
134 population of the county residing in the unincorporated area of the county
135 bears to the total population of the county, and second to the cities in the
136 proportion that the population of each city bears to the total population
137 of the county and (iii) one-half shall be retained by the county for its sole
138 use and benefit.
139 (2) In lieu of the apportionment formula provided in subsection (a),
140 all money received by the director of taxation from a countywide sales tax
141 imposed within Montgomery county pursuant to the election held on
142 November 8, 1994, shall be remitted to and shall be retained by the
143 county and expended only for the purpose for which the revenue received
144 from the tax was pledged. All revenue apportioned and paid from the
145 imposition of such tax to the treasurer of any city prior to the effective
146 date of this act shall be remitted to the county treasurer and expended
147 only for the purpose for which the revenue received from the tax was
148 pledged.
149 (c) (1) Except as otherwise provided by paragraph (2) of this subsec-
150 tion, for purposes of subsections (a) and (b), the term "total tangible
151 property tax levies" means the aggregate dollar amount of tax revenue
152 derived from ad valorem tax levies applicable to all tangible property
153 located within each such city or county. The ad valorem property tax levy
154 of any county or city district entity or subdivision shall be included within
155 this term if the levy of any such district entity or subdivision is applicable
156 to all tangible property located within each such city or county.
157 (2) For the purposes of subsections (a) and (b), any ad valorem prop-
158 erty tax levied on property located in a city in Johnson county for the
159 purpose of providing fire protection service in such city shall be included
160 within the term "total tangible property tax levies" for such city regardless
161 of its applicability to all tangible property located within each such city.
162 If the tax is levied by a district which extends across city boundaries, for
163 purposes of this computation, the amount of such levy shall be appor-
164 tioned among each city in which such district extends in the proportion
165 that such tax levied within each city bears to the total tax levied by the
166 district.
167 (d) (1) All revenue received from a countywide retailers' sales tax
168 imposed pursuant to paragraphs (2), (6), (7) or (8) of subsection (b) of
169 K.S.A. 12-187, and amendments thereto, shall be remitted to and shall
170 be retained by the county and expended only for the purpose for which
171 the revenue received from the tax was pledged.
172 (2) Except as otherwise provided in paragraph (5) of subsection (b)
173 of K.S.A. 12-187, and amendments thereto, all revenues received from a
174 countywide retailers' sales tax imposed pursuant to paragraph (5) of sub-
175 section (b) of K.S.A. 12-187, and amendments thereto, shall be remitted
176 to and shall be retained by the county and expended only for the purpose
177 for which the revenue received from the tax was pledged.
178 (e) All revenue apportioned to the several cities of the county shall
179 be paid to the respective treasurers thereof and deposited in the general
180 fund of the city. Whenever the territory of any city is located in two or
181 more counties and any one or more of such counties do not levy a coun-
182 tywide retailers' sales tax, or whenever such counties do not levy coun-
183 tywide retailers' sales taxes at a uniform rate, the revenue received by
184 such city from the proceeds of the countywide retailers' sales tax, as an
185 alternative to depositing the same in the general fund, may be used for
186 the purpose of reducing the tax levies of such city upon the taxable tan-
187 gible property located within the county levying such countywide retail-
188 ers' sales tax.
189 (f) Prior to March 1 of each year, the secretary of revenue shall advise
190 each county treasurer of the revenue collected in such county from the
191 state retailers' sales tax for the preceding calendar year.
192 (g) Prior to December 31 of each year, the clerk of every county
193 imposing a countywide retailers' sales tax shall provide such information
194 deemed necessary by the secretary of revenue to apportion and remit
195 revenue to the counties and cities pursuant to this section.
196 (h) The provisions of subsection (a) and (b) for the apportionment of
197 countywide retailers' sales tax shall not apply to any revenues received
198 pursuant to a county or countywide retailers' sales tax levied or collected
199 under K.S.A. 1998 Supp. 74-8929, and amendments thereto. All such rev-
200 enue collected under K.S.A. 1998 Supp. 74-8929, and amendments
201 thereto, shall be deposited into the redevelopment bond fund established
202 by K.S.A. 1998 Supp. 74-8927, and amendments thereto, for the period
203 of time set forth in K.S.A. 1998 Supp. 74-8927, and amendments thereto.
204 Sec. 3. K.S.A. 1998 Supp. 12-189, 12-189c, 12-192 and 12-192c are
205 hereby repealed.
206 Sec. 4. This act shall take effect and be in force from and after its
207 publication in the statute book.