[As Amended by House Committee of the Whole]
[As Further Amended by Senate Committee of the Whole]
As Amended by Senate Committee
Session of 1999
SENATE BILL No. 2
By Senator Morris
12-10
12 AN ACT relating to sales taxation; classifying cities in Finney county for
13 imposition authority for economic development purposes; amending
14 K.S.A. 1998 Supp. 12-188 and repealing the existing section. provid-
15 ing local retailers' sales tax imposition authority for certain cities
16 and counties; [exempting sales of food for human consumption;]
17 amending K.S.A. 1998 Supp. 12-187, 12-188, 12-189 and 12-192[,
18 12-192 and 79-3603] and repealing the existing sections.
19
20 Be it enacted by the Legislature of the State of Kansas:
21 Section 1. K.S.A. 1998 Supp. 12-188 is hereby amended to read as
22 follows: 12-188. The following classes of cities are hereby established for
23 the purpose of imposing limitations and prohibitions upon the levying of
24 sales and excise taxes or taxes in the nature of an excise upon sales or
25 transfers of personal or real property or the use thereof, or the rendering
26 or furnishing of services by cities as authorized and provided by article
27 12, section 5, of the constitution of the state of Kansas:
28 Class A cities. All cities in the state of Kansas which have the authority
29 to levy and collect excise taxes or taxes in the nature of an excise upon
30 the sales or transfers of personal or real property or the use thereof, or
31 the rendering or furnishing of services by cities.
32 Class B cities. All cities in the state of Kansas which have the authority
33 to levy and collect excise taxes or taxes in the nature of an excise upon
34 the sales or transfers of personal or real property or the use thereof, or
35 the rendering or furnishing of services for the purpose of financing the
36 provision of health care services.
37 Class C cities. All cities in the state of Kansas having a population of
38 more than 290,000 located in a county having a population of more than
39 350,000 which has the authority to levy and collect excise taxes or taxes
40 in the nature of an excise upon the sales or transfers of personal or real
41 property or the use thereof, or the rendering or furnishing of services.
42 Class D cities. All cities in the state of Kansas located in Cowley, Ellis,
43 Ellsworth, Finney, Johnson, Labette[, Osage] or, [Lyon,] Montgomery
44 or Reno county or in both Riley and Pottawatomie counties which have
45 the authority to levy and collect excise taxes or taxes in the nature of an
46 excise upon the sales or transfers of personal or real property or the use
47 thereof, or the rendering or furnishing of services.
48 Sec. 2. K.S.A. 1998 Supp. 12-188 is hereby repealed.
49 Sec. 3. This act shall take effect and be in force from and after its
50 publication in the statute book.
51
52 follows: 12-187. (a) (1) No city shall impose a retailers' sales tax
53 under the provisions of this act without the governing body of such
54 city having first submitted such proposition to and having received
55 the approval of a majority of the electors of the city voting thereon
56 at an election called and held therefor. The governing body of any
57 city may submit the question of imposing a retailers' sales tax and
58 the governing body shall be required to submit the question upon
59 submission of a petition signed by electors of such city equal in
60 number to not less than 10% of the electors of such city.
61 (2) The governing body of any class B city located in any county
62 which does not impose a countywide retailers' sales tax pursuant to
63 paragraph (5) of subsection (b) may submit the question of impos-
64 ing a retailers' sales tax at the rate of .25%, .5%, .75% or 1% and
65 pledging the revenue received therefrom for the purpose of financ-
66 ing the provision of health care services, as enumerated in the ques-
67 tion, to the electors at an election called and held thereon. The tax
68 imposed pursuant to this paragraph shall be deemed to be in ad-
69 dition to the rate limitations prescribed in K.S.A. 12-189, and
70 amendments thereto. As used in this paragraph, health care services
71 shall include but not be limited to the following: Local health de-
72 partments, city, county or district hospitals, city or county nursing
73 homes, preventive health care services including immunizations,
74 prenatal care and the postponement of entry into nursing homes by
75 home health care services, mental health services, indigent health
76 care, physician or health care worker recruitment, health educa-
77 tion, emergency medical services, rural health clinics, integration
78 of health care services, home health services and rural health
79 networks.
80 (b) (1) The board of county commissioners of any county may
81 submit the question of imposing a countywide retailers' sales tax to
82 the electors at an election called and held thereon, and any such
83 board shall be required to submit the question upon submission of
84 a petition signed by electors of such county equal in number to not
85 less than 10% of the electors of such county who voted at the last
86 preceding general election for the office of secretary of state, or
87 upon receiving resolutions requesting such an election passed by
88 not less than 2/3 of the membership of the governing body of each of
89 one or more cities within such county which contains a population
90 of not less than 25% of the entire population of the county, or upon
91 receiving resolutions requesting such an election passed by 2/3 of the
92 membership of the governing body of each of one or more taxing
93 subdivisions within such county which levy not less than 25% of the
94 property taxes levied by all taxing subdivisions within the county.
95 (2) The board of county commissioners of Atchison, Barton,
96 Butler, Cowley, Cherokee, Crawford, Ford, Jefferson, Lyon, Mont-
97 gomery, Ottawa, Riley, Saline, Seward and Wyandotte counties
98 may submit the question of imposing a countywide retailers' sales
99 tax and pledging the revenue received therefrom for the purpose of
100 financing the construction or remodeling of a courthouse, jail, law
101 enforcement center facility or other county administrative facility,
102 to the electors at an election called and held thereon. The tax im-
103 posed pursuant to this paragraph shall expire when sales tax suffi-
104 cient to pay all of the costs incurred in the financing of such facility
105 has been collected by retailers as determined by the secretary of
106 revenue. Nothing in this paragraph shall be construed to allow the
107 rate of tax imposed by Butler, Cowley, Lyon, Montgomery or Riley
108 county pursuant to this paragraph to exceed or be imposed at any
109 rate other than the rates prescribed in K.S.A. 12-189, and amend-
110 ments thereto.
111 (3) (A) Except as otherwise provided in this paragraph, the re-
112 sult of the election held on November 8, 1988, on the question sub-
113 mitted by the board of county commissioners of Jackson county for
114 the purpose of increasing its countywide retailers' sales tax by 1%
115 is hereby declared valid, and the revenue received therefrom by the
116 county shall be expended solely for the purpose of financing the
117 Banner Creek reservoir project. The tax imposed pursuant to this
118 paragraph shall take effect on the effective date of this act and shall
119 expire not later than five years after such date.
120 (B) The result of the election held on November 8, 1994, on the
121 question submitted by the board of county commissioners of Ottawa
122 county for the purpose of increasing its countywide retailers' sales
123 tax by 1% is hereby declared valid, and the revenue received there-
124 from by the county shall be expended solely for the purpose of fi-
125 nancing the erection, construction and furnishing of a law enforce-
126 ment center and jail facility.
127 (4) The board of county commissioners of Finney and Ford
128 counties may submit the question of imposing a countywide retail-
129 ers' sales tax at the rate of .25% and pledging the revenue received
130 therefrom for the purpose of financing all or any portion of the cost
131 to be paid by Finney or Ford county for construction of highway
132 projects identified as system enhancements under the provisions of
133 paragraph (5) of subsection (b) of K.S.A. 68-2314, and amendments
134 thereto, to the electors at an election called and held thereon. Such
135 election shall be called and held in the manner provided by the
136 general bond law. The tax imposed pursuant to this paragraph shall
137 expire upon the payment of all costs authorized pursuant to this
138 paragraph in the financing of such highway projects. Nothing in
139 this paragraph shall be construed to allow the rate of tax imposed
140 by Finney or Ford county pursuant to this paragraph to exceed the
141 maximum rate prescribed in K.S.A. 12-189, and amendments
142 thereto. If any funds remain upon the payment of all costs author-
143 ized pursuant to this paragraph in the financing of such highway
144 projects in Finney county, the state treasurer shall remit such funds
145 to the treasurer of Finney county and upon receipt of such moneys
146 shall be deposited to the credit of the county road and bridge fund.
147 If any funds remain upon the payment of all costs authorized pur-
148 suant to this paragraph in the financing of such highway projects
149 in Ford county, the state treasurer shall remit such funds to the
150 treasurer of Ford county and upon receipt of such moneys shall be
151 deposited to the credit of the county road and bridge fund.
152 (5) The board of county commissioners of any county may sub-
153 mit the question of imposing a retailers' sales tax at the rate of .25%,
154 .5%, .75% or 1% and pledging the revenue received therefrom for
155 the purpose of financing the provision of health care services, as
156 enumerated in the question, to the electors at an election called and
157 held thereon. Whenever any county imposes a tax pursuant to this
158 paragraph, any tax imposed pursuant to paragraph (2) of subsec-
159 tion (a) by any city located in such county shall expire upon the
160 effective date of the imposition of the countywide tax, and thereafter
161 the state treasurer shall remit to each such city that portion of the
162 countywide tax revenue collected by retailers within such city as
163 certified by the director of taxation. The tax imposed pursuant to
164 this paragraph shall be deemed to be in addition to the rate limi-
165 tations prescribed in K.S.A. 12-189, and amendments thereto. As
166 used in this paragraph, health care services shall include but not
167 be limited to the following: Local health departments, city or county
168 hospitals, city or county nursing homes, preventive health care serv-
169 ices including immunizations, prenatal care and the postponement
170 of entry into nursing homes by home care services, mental health
171 services, indigent health care, physician or health care worker re-
172 cruitment, health education, emergency medical services, rural
173 health clinics, integration of health care services, home health serv-
174 ices and rural health networks.
175 (6) The board of county commissioners of Allen county may
176 submit the question of imposing a countywide retailers' sales tax at
177 the rate of .5% and pledging the revenue received therefrom for the
178 purpose of financing the costs of operation and construction of a
179 solid waste disposal area or the modification of an existing landfill
180 to comply with federal regulations to the electors at an election
181 called and held thereon. The tax imposed pursuant to this para-
182 graph shall expire upon the payment of all costs incurred in the
183 financing of the project undertaken. Nothing in this paragraph shall
184 be construed to allow the rate of tax imposed by Allen county pur-
185 suant to this paragraph to exceed or be imposed at any rate other
186 than the rates prescribed in K.S.A. 12-189 and amendments thereto.
187 (7) The board of county commissioners of Dickinson county
188 may submit the question of imposing a countywide retailers' sales
189 tax at the rate of .50% and pledging the revenue received therefrom
190 for the purpose of financing the costs of roadway construction and
191 improvement to the electors at an election called and held thereon.
192 The tax imposed pursuant to this paragraph shall expire after five
193 years from the date such tax is first collected.
194 (8) The board of county commissioners of Sherman county may
195 submit the question of imposing a countywide retailers' sales tax at
196 the rate of .25%, .5% or .75% and pledging the revenue therefrom
197 for the purpose of financing the costs of the county roads 64 and 65
198 construction and improvement project. The tax imposed pursuant
199 to this paragraph shall expire upon payment of all costs authorized
200 pursuant to this paragraph in the financing of such project.
201 (9) The board of county commissioners of Russell county may submit
202 the question of imposing a countywide retailers' sales tax at the rate of
203 .5% and pledging the revenue received therefrom for the purpose of fi-
204 nancing economic development initiatives or public infrastructure pro-
205 jects. The tax imposed pursuant to this paragraph shall expire after five
206 years from the date such tax is first collected.
207 (c) The boards of county commissioners of any two or more con-
208 tiguous counties, upon adoption of a joint resolution by such
209 boards, may submit the question of imposing a retailers' sales tax
210 within such counties to the electors of such counties at an election
211 called and held thereon and such boards of any two or more con-
212 tiguous counties shall be required to submit such question upon
213 submission of a petition in each of such counties, signed by a num-
214 ber of electors of each of such counties where submitted equal in
215 number to not less than 10% of the electors of each of such counties
216 who voted at the last preceding general election for the office of
217 secretary of state, or upon receiving resolutions requesting such an
218 election passed by not less than 2/3 of the membership of the gov-
219 erning body of each of one or more cities within each of such coun-
220 ties which contains a population of not less than 25% of the entire
221 population of each of such counties, or upon receiving resolutions
222 requesting such an election passed by 2/3 of the membership of the
223 governing body of each of one or more taxing subdivisions within
224 each of such counties which levy not less than 25% of the property
225 taxes levied by all taxing subdivisions within each of such counties.
226 (d) Any city retailers' sales tax in the amount of .5% being levied
227 by a city on July 1, 1990, shall continue in effect until repealed in
228 the manner provided herein for the adoption and approval of such
229 tax or until repealed by the adoption of an ordinance so providing.
230 In addition to any city retailers' sales tax being levied by a city on
231 July 1, 1990, any such city may adopt an additional city retailers'
232 sales tax in the amount of .25% or .5%, provided that such addi-
233 tional tax is adopted and approved in the manner provided for the
234 adoption and approval of a city retailers' sales tax. Any countywide
235 retailers' sales tax in the amount of .5% or 1% in effect on July 1,
236 1990, shall continue in effect until repealed in the manner provided
237 herein for the adoption and approval of such tax.
238 (e) A class D city shall have the same power to levy and collect
239 a city retailers' sales tax that a class A city is authorized to levy and
240 collect and in addition, the governing body of any class D city may
241 submit the question of imposing an additional city retailers' sales
242 tax in the amount of .125%, .25%, .5% or .75% and pledging the
243 revenue received therefrom for economic development initiatives,
244 strategic planning initiatives or for public infrastructure projects
245 including buildings to the electors at an election called and held
246 thereon. Any additional sales tax imposed pursuant to this para-
247 graph shall expire no later than five years from the date of impo-
248 sition thereof.
249 (f) Any city or county proposing to adopt a retailers' sales tax
250 shall give notice of its intention to submit such proposition for ap-
251 proval by the electors in the manner required by K.S.A. 10-120, and
252 amendments thereto. The notices shall state the time of the election
253 and the rate and effective date of the proposed tax. If a majority of
254 the electors voting thereon at such election fail to approve the prop-
255 osition, such proposition may be resubmitted under the conditions
256 and in the manner provided in this act for submission of the prop-
257 osition. If a majority of the electors voting thereon at such election
258 shall approve the levying of such tax, the governing body of any
259 such city or county shall provide by ordinance or resolution, as the
260 case may be, for the levy of the tax. Any repeal of such tax or any
261 reduction or increase in the rate thereof, within the limits pre-
262 scribed by K.S.A. 12-189, and amendments thereto, shall be accom-
263 plished in the manner provided herein for the adoption and ap-
264 proval of such tax except that the repeal of any such city retailers'
265 sales tax may be accomplished by the adoption of an ordinance so
266 providing.
267 (g) The sufficiency of the number of signers of any petition filed
268 under this section shall be determined by the county election offi-
269 cer. Every election held under this act shall be conducted by the
270 county election officer.
271 (h) The governing body of the city or county proposing to levy
272 any retailers' sales tax shall specify the purpose or purposes for
273 which the revenue would be used, and a statement generally de-
274 scribing such purpose or purposes shall be included as a part of the
275 ballot proposition.
276 Sec. 3. K.S.A. 1998 Supp. 12-189 is hereby amended to read as
277 follows: 12-189. Except as otherwise provided by paragraph (2) of
278 subsection (a) of K.S.A. 12-187, and amendments thereto, the rate
279 of any class A, class B or class C city retailers' sales tax shall be
280 fixed in the amount of .25%, .5%, .75% or 1% which amount shall
281 be determined by the governing body of the city. Except as other-
282 wise provided by paragraph (2) of subsection (a) of K.S.A. 12-187,
283 and amendments thereto, the rate of any class D city retailers' sales
284 tax shall be fixed in the amount of .25%, .5%, .75%, 1%, 1.125%,
285 1.25%, 1.5% or 1.75%. The rate of any countywide retailers' sales
286 tax shall be fixed in an amount of either .25%, .5%, .75% or 1%
287 which amount shall be determined by the board of county commis-
288 sioners, except that:
289 (a) The board of county commissioners of Cherokee, Crawford,
290 Ford, Saline, Seward or Wyandotte county, for the purposes of par-
291 agraph (2) of subsection (b) of K.S.A. 12-187, and amendments
292 thereto, may fix such rate at 1.5%, the board of county commis-
293 sioners of Atchison county, for the purposes of paragraph (2) of
294 subsection (b) of K.S.A. 12-187, and amendments thereto, may fix
295 such rate at 1.5% or 1.75% and the board of county commissioners
296 of Barton, Jefferson or Ottawa county, for the purposes of para-
297 graph (2) of subsection (b) of K.S.A. 12-187, and amendments
298 thereto, may fix such rate at 2%;
299 (b) the board of county commissioners of Jackson county, for
300 the purposes of paragraph (3) of subsection (b) of K.S.A. 12-187,
301 and amendments thereto, may fix such rate at 2%;
302 (c) the boards of county commissioners of Finney and Ford
303 counties, for the purposes of paragraph (4) of subsection (b) of
304 K.S.A. 12-187, and amendments thereto, may fix such rate at .25%;
305 (d) the board of county commissioners of any county for the
306 purposes of paragraph (5) of subsection (b) of K.S.A. 12-187, and
307 amendments thereto, may fix such rate at a percentage which is
308 equal to the sum of the rate allowed to be imposed by a board of
309 county commissioners on the effective date of this act plus .25%,
310 .5%, .75% or 1%, as the case requires;
311 (e) the board of county commissioners of Dickinson county, for
312 the purposes of paragraph (7) of subsection (b) of K.S.A. 12-187,
313 and amendments thereto, may fix such rate at 1.5%; or
314 (f) the board of county commissioners of Sherman county, for
315 the purposes of paragraph (8) of subsection (b) of K.S.A. 12-187,
316 and amendments thereto, may fix such rate at l.5%, 1.75% or 2%.;
317 or
318 (g) the board of county commissioners of Russell county for the pur-
319 poses of paragraph (9) of subsection (b) of K.S.A. 12-187, and amend-
320 ments thereto, may fix such rate at 1.5%.
321 Any county or city levying a retailers' sales tax is hereby prohib-
322 ited from administering or collecting such tax locally, but shall util-
323 ize the services of the state department of revenue to administer,
324 enforce and collect such tax. Except as otherwise specifically pro-
325 vided in K.S.A. 12-189a, and amendments thereto, such tax shall be
326 identical in its application, and exemptions therefrom, to the Kansas
327 retailers' sales tax act and all laws and administrative rules and
328 regulations of the state department of revenue relating to the Kansas
329 retailers' sales tax shall apply to such local sales tax insofar as such
330 laws and rules and regulations may be made applicable. The state
331 director of taxation is hereby authorized to administer, enforce and
332 collect such local sales taxes and to adopt such rules and regulations
333 as may be necessary for the efficient and effective administration
334 and enforcement thereof.
335 Upon receipt of a certified copy of an ordinance or resolution
336 authorizing the levy of a local retailers' sales tax, the state director
337 of taxation shall cause such taxes to be collected within or without
338 the boundaries of such taxing subdivision at the same time and in
339 the same manner provided for the collection of the state retailers'
340 sales tax. All moneys collected by the director of taxation under the
341 provisions of this section shall be credited to a county and city re-
342 tailers' sales tax fund which fund is hereby established in the state
343 treasury. Any refund due on any county or city retailers' sales tax
344 collected pursuant to this act shall be paid out of the sales tax refund
345 fund and reimbursed by the director of taxation from collections of
346 local retailers' sales tax revenue. All local retailers' sales tax reve-
347 nue collected within any county or city pursuant to this act shall
348 be apportioned and remitted at least quarterly by the state trea-
349 surer, on instruction from the director of taxation, to the treasurer
350 of such county or city.
351 The director of taxation shall provide, upon request by a city or
352 county clerk or treasurer of any city or county levying a local re-
353 tailers' sales tax, a monthly report identifying each retailer having
354 a place of business in such city or county and setting forth the
355 amount of such tax remitted by each retailer during the preceding
356 month. Such report shall be made available to the clerk or treasurer
357 of such city or county within a reasonable time after it has been
358 requested from the director of taxation. The director of taxation
359 shall be allowed to assess a reasonable fee for the issuance of such
360 report. Information received by any city or county pursuant to this
361 section shall be confidential, and it shall be unlawful for any officer
362 or employee of such city or county to divulge any such information
363 in any manner. Any violation of this paragraph by a city or county
364 officer or employee is a class B misdemeanor, and such officer or
365 employee shall be dismissed from office.
366 Sec. 4. K.S.A. 1998 Supp. 12-192 is hereby amended to read as
367 follows: 12-192. (a) Except as otherwise provided by subsection (b),
368 (d) or (h), all revenue received by the director of taxation from a
369 countywide retailers' sales tax shall be apportioned among the
370 county and each city located in such county in the following man-
371 ner: (1) One-half of all revenue received by the director of taxation
372 shall be apportioned among the county and each city located in such
373 county in the proportion that the total tangible property tax levies
374 made in such county in the preceding year for all funds of each such
375 governmental unit bear to the total of all such levies made in the
376 preceding year, and (2) 1/2 of all revenue received by the director
377 of taxation from such countywide retailers' sales tax shall be ap-
378 portioned among the county and each city located in such county,
379 first to the county that portion of the revenue equal to the propor-
380 tion that the population of the county residing in the unincorpor-
381 ated area of the county bears to the total population of the county,
382 and second to the cities in the proportion that the population of
383 each city bears to the total population of the county, except that no
384 persons residing within the Fort Riley military reservation shall be
385 included in the determination of the population of any city located
386 within Riley county. All revenue apportioned to a county shall be
387 paid to its county treasurer and shall be credited to the general fund
388 of the county.
389 (b) (1) As an alternative and in lieu of the apportionment for-
390 mula provided in subsection (a), all revenue received by the direc-
391 tor of taxation from a countywide retailers' sales tax imposed within
392 Johnson county at the rate of .75% or 1% after the effective date of
393 this act may be apportioned among the county and each city located
394 in such county in the following manner: (A) The revenue received
395 from the first .5% rate of tax shall be apportioned in the manner
396 prescribed by subsection (a) and (B) the revenue received from the
397 rate of tax exceeding .5% shall be apportioned as follows: (i) One-
398 fourth shall be apportioned among the county and each city located
399 in such county in the proportion that the total tangible property tax
400 levies made in such county in the preceding year for all funds of
401 each such governmental unit bear to the total of all such levies made
402 in the preceding year and (ii) one-fourth shall be apportioned
403 among the county and each city located in such county, first to the
404 county that portion of the revenue equal to the proportion that the
405 population of the county residing in the unincorporated area of the
406 county bears to the total population of the county, and second to
407 the cities in the proportion that the population of each city bears
408 to the total population of the county and (iii) one-half shall be re-
409 tained by the county for its sole use and benefit.
410 (2) In lieu of the apportionment formula provided in subsection
411 (a), all money received by the director of taxation from a county-
412 wide sales tax imposed within Montgomery county pursuant to the
413 election held on November 8, 1994, shall be remitted to and shall
414 be retained by the county and expended only for the purpose for
415 which the revenue received from the tax was pledged. All revenue
416 apportioned and paid from the imposition of such tax to the trea-
417 surer of any city prior to the effective date of this act shall be re-
418 mitted to the county treasurer and expended only for the purpose
419 for which the revenue received from the tax was pledged.
420 (c) (1) Except as otherwise provided by paragraph (2) of this
421 subsection, for purposes of subsections (a) and (b), the term "total
422 tangible property tax levies" means the aggregate dollar amount of
423 tax revenue derived from ad valorem tax levies applicable to all
424 tangible property located within each such city or county. The ad
425 valorem property tax levy of any county or city district entity or
426 subdivision shall be included within this term if the levy of any such
427 district entity or subdivision is applicable to all tangible property
428 located within each such city or county.
429 (2) For the purposes of subsections (a) and (b), any ad valorem
430 property tax levied on property located in a city in Johnson county
431 for the purpose of providing fire protection service in such city shall
432 be included within the term "total tangible property tax levies" for
433 such city regardless of its applicability to all tangible property lo-
434 cated within each such city. If the tax is levied by a district which
435 extends across city boundaries, for purposes of this computation,
436 the amount of such levy shall be apportioned among each city in
437 which such district extends in the proportion that such tax levied
438 within each city bears to the total tax levied by the district.
439 (d) (1) All revenue received from a countywide retailers' sales
440 tax imposed pursuant to paragraphs (2), (6), (7) or, (8) or (9) of
441 subsection (b) of K.S.A. 12-187, and amendments thereto, shall be
442 remitted to and shall be retained by the county and expended only
443 for the purpose for which the revenue received from the tax was
444 pledged.
445 (2) Except as otherwise provided in paragraph (5) of subsection
446 (b) of K.S.A. 12-187, and amendments thereto, all revenues received
447 from a countywide retailers' sales tax imposed pursuant to para-
448 graph (5) of subsection (b) of K.S.A. 12-187, and amendments
449 thereto, shall be remitted to and shall be retained by the county
450 and expended only for the purpose for which the revenue received
451 from the tax was pledged.
452 (e) All revenue apportioned to the several cities of the county
453 shall be paid to the respective treasurers thereof and deposited in
454 the general fund of the city. Whenever the territory of any city is
455 located in two or more counties and any one or more of such coun-
456 ties do not levy a countywide retailers' sales tax, or whenever such
457 counties do not levy countywide retailers' sales taxes at a uniform
458 rate, the revenue received by such city from the proceeds of the
459 countywide retailers' sales tax, as an alternative to depositing the
460 same in the general fund, may be used for the purpose of reducing
461 the tax levies of such city upon the taxable tangible property located
462 within the county levying such countywide retailers' sales tax.
463 (f) Prior to March 1 of each year, the secretary of revenue shall
464 advise each county treasurer of the revenue collected in such county
465 from the state retailers' sales tax for the preceding calendar year.
466 (g) Prior to December 31 of each year, the clerk of every county
467 imposing a countywide retailers' sales tax shall provide such infor-
468 mation deemed necessary by the secretary of revenue to apportion
469 and remit revenue to the counties and cities pursuant to this section.
470 [Sec. 5. K.S.A. 1998 Supp. 79-3603 is hereby amended to read
471 as follows: 79-3603. For the privilege of engaging in the business
472 of selling tangible personal property at retail in this state or ren-
473 dering or furnishing any of the services taxable under this act,
474 there is hereby levied and there shall be collected and paid a tax
475 at the rate of 4.9% upon:
476 [(a) The gross receipts received from the sale of tangible per-
477 sonal property at retail within this state;
478 [(b) (1) the gross receipts from intrastate telephone or tele-
479 graph services and (2) the gross receipts received from the sale of
480 interstate telephone or telegraph services, which (A) originate
481 within this state and terminate outside the state and are billed to
482 a customer's telephone number or account in this state; or (B) orig-
483 inate outside this state and terminate within this state and are
484 billed to a customer's telephone number or account in this state
485 except that the sale of interstate telephone or telegraph service
486 does not include: (A) Any interstate incoming or outgoing wide
487 area telephone service or wide area transmission type service
488 which entitles the subscriber to make or receive an unlimited num-
489 ber of communications to or from persons having telephone serv-
490 ice in a specified area which is outside the state in which the station
491 provided this service is located; (B) any interstate private com-
492 munications service to the persons contracting for the receipt of
493 that service that entitles the purchaser to exclusive or priority use
494 of a communications channel or group of channels between ex-
495 changes; (C) any value-added nonvoice service in which computer
496 processing applications are used to act on the form, content, code
497 or protocol of the information to be transmitted; (D) any telecom-
498 munication service to a provider of telecommunication services
499 which will be used to render telecommunications services, includ-
500 ing carrier access services; or (E) any service or transaction de-
501 fined in this section among entities classified as members of an
502 affiliated group as provided by federal law (U.S.C. Section 1504).
503 For the purposes of this subsection the term gross receipts does
504 not include purchases of telephone, telegraph or telecommunica-
505 tions using a prepaid telephone calling card or pre-paid authori-
506 zation number. As used in this subsection, a pre-paid telephone
507 calling card or pre-paid authorization number means the right to
508 exclusively make telephone calls, paid for in advance, with the pre-
509 paid value measured in minutes or other time units, that enables
510 the origination of calls using an access number or authorization
511 code or both, whether manually or electronically dialed;
512 [(c) the gross receipts from the sale or furnishing of gas, water,
513 electricity and heat, which sale is not otherwise exempt from tax-
514 ation under the provisions of this act, and whether furnished by
515 municipally or privately owned utilities;
516 [(d) the gross receipts from the sale of meals or drinks fur-
517 nished at any private club, drinking establishment, catered event,
518 restaurant, eating house, dining car, hotel, drugstore or other
519 place where meals or drinks are regularly sold to the public;
520 [(e) the gross receipts from the sale of admissions to any place
521 providing amusement, entertainment or recreation services in-
522 cluding admissions to state, county, district and local fairs, but such
523 tax shall not be levied and collected upon the gross receipts re-
524 ceived from sales of admissions to any cultural and historical event
525 which occurs triennially;
526 [(f) the gross receipts from the operation of any coin-operated
527 device dispensing or providing tangible personal property, amuse-
528 ment or other services except laundry services, whether automatic
529 or manually operated;
530 [(g) the gross receipts from the service of renting of rooms by
531 hotels, as defined by K.S.A. 36-501 and amendments thereto, or
532 by accommodation brokers, as defined by K.S.A. 12-1692, and
533 amendments thereto;
534 [(h) the gross receipts from the service of renting or leasing of
535 tangible personal property except such tax shall not apply to the
536 renting or leasing of machinery, equipment or other personal
537 property owned by a city and purchased from the proceeds of in-
538 dustrial revenue bonds issued prior to July 1, 1973, in accordance
539 with the provisions of K.S.A. 12-1740 through 12-1749, and amend-
540 ments thereto, and any city or lessee renting or leasing such ma-
541 chinery, equipment or other personal property purchased with the
542 proceeds of such bonds who shall have paid a tax under the pro-
543 visions of this section upon sales made prior to July 1, 1973, shall
544 be entitled to a refund from the sales tax refund fund of all taxes
545 paid thereon;
546 [(i) the gross receipts from the rendering of dry cleaning,
547 pressing, dyeing and laundry services except laundry services ren-
548 dered through a coin-operated device whether automatic or man-
549 ually operated;
550 [(j) the gross receipts from the rendering of the services of
551 washing and washing and waxing of vehicles;
552 [(k) the gross receipts from cable, community antennae and
553 other subscriber radio and television services;
554 [(l) the gross receipts received from the sales of tangible per-
555 sonal property to all contractors, subcontractors or repairmen of
556 materials and supplies for use by them in erecting structures for
557 others, or building on, or otherwise improving, altering, or re-
558 pairing real or personal property of others;
559 [(m) the gross receipts received from fees and charges by pub-
560 lic and private clubs, drinking establishments, organizations and
561 businesses for participation in sports, games and other recrea-
562 tional activities, but such tax shall not be levied and collected upon
563 the gross receipts received from: (1) Fees and charges by any po-
564 litical subdivision, by any organization exempt from property tax-
565 ation pursuant to paragraph Ninth of K.S.A. 79-201, and amend-
566 ments thereto, or by any youth recreation organization exclusively
567 providing services to persons 18 years of age or younger which is
568 exempt from federal income taxation pursuant to section 501(c)(3)
569 of the federal internal revenue code of 1986, for participation in
570 sports, games and other recreational activities; and (2) entry fees
571 and charges for participation in a special event or tournament
572 sanctioned by a national sporting association to which spectators
573 are charged an admission which is taxable pursuant to subsection
574 (e);
575 [(n) the gross receipts received from dues charged by public
576 and private clubs, drinking establishments, organizations and busi-
577 nesses, payment of which entitles a member to the use of facilities
578 for recreation or entertainment, but such tax shall not be levied
579 and collected upon the gross receipts received from: (1) Dues
580 charged by any organization exempt from property taxation pur-
581 suant to paragraphs Eighth and Ninth of K.S.A. 79-201, and amend-
582 ments thereto; and (2) sales of memberships in a nonprofit or-
583 ganization which is exempt from federal income taxation pursuant
584 to section 501 (c)(3) of the federal internal revenue code of 1986,
585 and whose purpose is to support the operation of a nonprofit zoo;
586 [(o) the gross receipts received from the isolated or occasional
587 sale of motor vehicles or trailers but not including: (1) The transfer
588 of motor vehicles or trailers by a person to a corporation solely in
589 exchange for stock securities in such corporation; or (2) the trans-
590 fer of motor vehicles or trailers by one corporation to another
591 when all of the assets of such corporation are transferred to such
592 other corporation; or (3) the sale of motor vehicles or trailers
593 which are subject to taxation pursuant to the provisions of K.S.A.
594 79-5101 et seq., and amendments thereto, by an immediate family
595 member to another immediate family member. For the purposes
596 of clause (3), immediate family member means lineal ascendants
597 or descendants, and their spouses. In determining the base for
598 computing the tax on such isolated or occasional sale, the fair mar-
599 ket value of any motor vehicle or trailer traded in by the purchaser
600 to the seller may be deducted from the selling price;
601 [(p) the gross receipts received for the service of installing or
602 applying tangible personal property which when installed or ap-
603 plied is not being held for sale in the regular course of business,
604 and whether or not such tangible personal property when installed
605 or applied remains tangible personal property or becomes a part
606 of real estate, except that no tax shall be imposed upon the service
607 of installing or applying tangible personal property in connection
608 with the original construction of a building or facility, the original
609 construction, reconstruction, restoration, remodeling, renovation,
610 repair or replacement of a residence or the construction, recon-
611 struction, restoration, replacement or repair of a bridge or
612 highway.
613 [For the purposes of this subsection:
614 [(1) "Original construction" shall mean the first or initial con-
615 struction of a new building or facility. The term "original construc-
616 tion" shall include the addition of an entire room or floor to any
617 existing building or facility, the completion of any unfinished por-
618 tion of any existing building or facility and the restoration, recon-
619 struction or replacement of a building or facility damaged or de-
620 stroyed by fire, flood, tornado, lightning, explosion or earthquake,
621 but such term, except with regard to a residence, shall not include
622 replacement, remodeling, restoration, renovation or reconstruc-
623 tion under any other circumstances;
624 [(2) "building" shall mean only those enclosures within which
625 individuals customarily are employed, or which are customarily
626 used to house machinery, equipment or other property, and in-
627 cluding the land improvements immediately surrounding such
628 building;
629 [(3) "facility" shall mean a mill, plant, refinery, oil or gas well,
630 water well, feedlot or any conveyance, transmission or distribution
631 line of any cooperative, nonprofit, membership corporation or-
632 ganized under or subject to the provisions of K.S.A. 17-4601 et
633 seq., and amendments thereto, or of any municipal or quasi-mu-
634 nicipal corporation, including the land improvements immediately
635 surrounding such facility; and
636 [(4) "residence" shall mean only those enclosures within which
637 individuals customarily live;
638 [(q) the gross receipts received for the service of repairing,
639 servicing, altering or maintaining tangible personal property, ex-
640 cept computer software described in subsection (s), which when
641 such services are rendered is not being held for sale in the regular
642 course of business, and whether or not any tangible personal prop-
643 erty is transferred in connection therewith. The tax imposed by
644 this subsection shall be applicable to the services of repairing, serv-
645 icing, altering or maintaining an item of tangible personal prop-
646 erty which has been and is fastened to, connected with or built into
647 real property;
648 [(r) the gross receipts from fees or charges made under service
649 or maintenance agreement contracts for services, charges for the
650 providing of which are taxable under the provisions of subsection
651 (p) or (q);
652 [(s) the gross receipts received from the sale of computer soft-
653 ware, and the sale of the services of modifying, altering, updating
654 or maintaining computer software. As used in this subsection,
655 "computer software" means information and directions loaded
656 into a computer which dictate different functions to be performed
657 by the computer. Computer software includes any canned or pre-
658 written program which is held or existing for general or repeated
659 sale, even if the program was originally developed for a single end
660 user as custom computer software. The sale of computer software
661 or services does not include: (1) The initial sale of any custom com-
662 puter program which is originally developed for the exclusive use
663 of a single end user; or (2) those services rendered in the modifi-
664 cation of computer software when the modification is developed
665 exclusively for a single end user only to the extent of the modifi-
666 cation and only to the extent that the actual amount charged for
667 the modification is separately stated on invoices, statements and
668 other billing documents provided to the end user. The services of
669 modification, alteration, updating and maintenance of computer
670 software shall only include the modification, alteration, updating
671 and maintenance of computer software taxable under this subsec-
672 tion whether or not the services are actually provided; and
673 [(t) the gross receipts received for telephone answering serv-
674 ices, including mobile phone services, beeper services and other
675 similar services; and
676 [(u) the gross receipts received from the sale of prepaid tele-
677 phone calling cards or pre-paid authorization numbers and the
678 recharge of such cards or numbers. A pre-paid telephone calling
679 card or pre-paid authorization number means the right to exclu-
680 sively make telephone calls, paid for in advance, with the prepaid
681 value measured in minutes or other time units, that enables the
682 origination of calls using an access number or authorization code
683 or both, whether manually or electronically dialed. If the dale or
684 recharge of such card or number does not take place at the ven-
685 dor's place of business, it shall be conclusively determined to take
686 place at the customer's shipping address; if there is no item
687 shipped then it shall be the customer's billing address.; and
688 [(v) (1) the gross receipts received from sales of food for human con-
689 sumption at the rate of: (A) 3.3% on June 1, 1999, and before June 1,
690 2001; and (B) 2.2% on June 1, 2001, and before June 1, 2002; (2) on and
691 after June 1, 2002, all sales of food for human consumption are hereby
692 exempt; and (3) as used in this subsection, "food for human consumption"
693 means only that food which is eligible for purchase with food stamps
694 issued by the United States department of agriculture pursuant to regu-
695 lations in effect on January 1, 1998, regardless of whether the retailer
696 from which the food is purchased is participating in the food stamp pro-
697 gram. Such phrase shall not include meals prepared for immediate con-
698 sumption on or off premises of the retailer.]
699 Sec. \ bicu\ 5 [6]. K.S.A. 1998 Supp. 12-187, 12-188, 12-189 and 12-
700 192 [, 12-192 and 79-3603] are hereby repealed.
701 Sec. \ bicu\ 6 [7]. This act shall take effect and be in force from and
702 after its publication in the Kansas register.