Session of 2000
SENATE BILL No. 466
By Senator Bond
1-20
9 AN ACT
providing for the financing of unified school districts;
amending
10 K.S.A. 1999 Supp.
79-3603, 79-3620, 79-3703 and 79-3710 and re-
11 pealing the existing
sections.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 Section
1. K.S.A. 1999 Supp. 79-3603 is hereby amended to read as
15 follows: 79-3603. For the privilege of
engaging in the business of selling
16 tangible personal property at retail in
this state or rendering or furnishing
17 any of the services taxable under this act,
there is hereby levied and there
18 shall be collected and paid a tax at the
rate of 4.9% 5.2% and, within a
19 redevelopment district established pursuant
to K.S.A. 74-8921, and
20 amendments thereto, there is hereby levied
and there shall be collected
21 and paid an additional tax at the rate of
2% until the earlier of the date
22 the bonds issued to finance or refinance
the redevelopment project have
23 been paid in full or the final scheduled
maturity of the first series of bonds
24 issued to finance any part of the
project, upon:
25 (a) The gross
receipts received from the sale of tangible personal
26 property at retail within this state;
27 (b) (1) the
gross receipts from intrastate telephone or telegraph serv-
28 ices and (2) the gross receipts received
from the sale of interstate tele-
29 phone or telegraph services, which (A)
originate within this state and
30 terminate outside the state and are billed
to a customer's telephone num-
31 ber or account in this state; or (B)
originate outside this state and ter-
32 minate within this state and are billed to
a customer's telephone number
33 or account in this state except that the
sale of interstate telephone or
34 telegraph service does not include: (A) Any
interstate incoming or out-
35 going wide area telephone service or wide
area transmission type service
36 which entitles the subscriber to make or
receive an unlimited number of
37 communications to or from persons having
telephone service in a speci-
38 fied area which is outside the state in
which the station provided this
39 service is located; (B) any interstate
private communications service to
40 the persons contracting for the receipt of
that service that entitles the
41 purchaser to exclusive or priority use of a
communications channel or
42 group of channels between exchanges; (C)
any value-added nonvoice
43 service in which computer processing
applications are used to act on the
2
1 form, content, code or protocol of
the information to be transmitted; (D)
2 any telecommunication service to a
provider of telecommunication serv-
3 ices which will be used to render
telecommunications services, including
4 carrier access services; or (E) any
service or transaction defined in this
5 section among entities classified as
members of an affiliated group as
6 provided by federal law (U.S.C.
Section 1504). For the purposes of this
7 subsection the term gross receipts
does not include purchases of tele-
8 phone, telegraph or
telecommunications using a prepaid telephone call-
9 ing card or pre-paid authorization
number. As used in this subsection, a
10 pre-paid telephone calling card or pre-paid
authorization number means
11 the right to exclusively make telephone
calls, paid for in advance, with
12 the prepaid value measured in minutes or
other time units, that enables
13 the origination of calls using an access
number or authorization code or
14 both, whether manually or electronically
dialed;
15 (c) the gross
receipts from the sale or furnishing of gas, water, elec-
16 tricity and heat, which sale is not
otherwise exempt from taxation under
17 the provisions of this act, and whether
furnished by municipally or pri-
18 vately owned utilities;
19 (d) the gross
receipts from the sale of meals or drinks furnished at
20 any private club, drinking establishment,
catered event, restaurant, eating
21 house, dining car, hotel, drugstore or
other place where meals or drinks
22 are regularly sold to the public;
23 (e) the gross
receipts from the sale of admissions to any place pro-
24 viding amusement, entertainment or
recreation services including admis-
25 sions to state, county, district and local
fairs, but such tax shall not be
26 levied and collected upon the gross
receipts received from sales of ad-
27 missions to any cultural and historical
event which occurs triennially;
28 (f) the gross
receipts from the operation of any coin-operated device
29 dispensing or providing tangible personal
property, amusement or other
30 services except laundry services, whether
automatic or manually operated;
31 (g) the gross
receipts from the service of renting of rooms by hotels,
32 as defined by K.S.A. 36-501 and amendments
thereto, or by accommo-
33 dation brokers, as defined by K.S.A.
12-1692, and amendments thereto;
34 (h) the gross
receipts from the service of renting or leasing of tangible
35 personal property except such tax shall not
apply to the renting or leasing
36 of machinery, equipment or other personal
property owned by a city and
37 purchased from the proceeds of industrial
revenue bonds issued prior to
38 July 1, 1973, in accordance with the
provisions of K.S.A. 12-1740 through
39 12-1749, and amendments thereto, and any
city or lessee renting or leas-
40 ing such machinery, equipment or other
personal property purchased
41 with the proceeds of such bonds who shall
have paid a tax under the
42 provisions of this section upon sales made
prior to July 1, 1973, shall be
43 entitled to a refund from the sales tax
refund fund of all taxes paid
3
1 thereon;
2 (i) the
gross receipts from the rendering of dry cleaning, pressing,
3 dyeing and laundry services except
laundry services rendered through a
4 coin-operated device whether
automatic or manually operated;
5 (j) the
gross receipts from the rendering of the services of washing
6 and washing and waxing of
vehicles;
7 (k) the
gross receipts from cable, community antennae and other sub-
8 scriber radio and television
services;
9 (l) the
gross receipts received from the sales of tangible personal
10 property to all contractors, subcontractors
or repairmen of materials and
11 supplies for use by them in erecting
structures for others, or building on,
12 or otherwise improving, altering, or
repairing real or personal property
13 of others;
14 (m) the gross
receipts received from fees and charges by public and
15 private clubs, drinking establishments,
organizations and businesses for
16 participation in sports, games and other
recreational activities, but such
17 tax shall not be levied and collected upon
the gross receipts received from:
18 (1) Fees and charges by any political
subdivision, by any organization
19 exempt from property taxation pursuant to
paragraph Ninth of K.S.A. 79-
20 201, and amendments thereto, or by any
youth recreation organization
21 exclusively providing services to persons
18 years of age or younger which
22 is exempt from federal income taxation
pursuant to section 501(c)(3) of
23 the federal internal revenue code of 1986,
for participation in sports,
24 games and other recreational activities;
and (2) entry fees and charges for
25 participation in a special event or
tournament sanctioned by a national
26 sporting association to which spectators
are charged an admission which
27 is taxable pursuant to subsection (e);
28 (n) the gross
receipts received from dues charged by public and pri-
29 vate clubs, drinking establishments,
organizations and businesses, pay-
30 ment of which entitles a member to the use
of facilities for recreation or
31 entertainment, but such tax shall not be
levied and collected upon the
32 gross receipts received from: (1) Dues
charged by any organization ex-
33 empt from property taxation pursuant to
paragraphs Eighth and Ninth of
34 K.S.A. 79-201, and amendments thereto; and
(2) sales of memberships
35 in a nonprofit organization which is exempt
from federal income taxation
36 pursuant to section 501 (c)(3) of the
federal internal revenue code of
37 1986, and whose purpose is to support the
operation of a nonprofit zoo;
38 (o) the gross
receipts received from the isolated or occasional sale of
39 motor vehicles or trailers but not
including: (1) The transfer of motor
40 vehicles or trailers by a person to a
corporation solely in exchange for
41 stock securities in such corporation; or
(2) the transfer of motor vehicles
42 or trailers by one corporation to another
when all of the assets of such
43 corporation are transferred to such other
corporation; or (3) the sale of
4
1 motor vehicles or trailers which are
subject to taxation pursuant to the
2 provisions of K.S.A. 79-5101 et seq.,
and amendments thereto, by an
3 immediate family member to another
immediate family member. For the
4 purposes of clause (3), immediate
family member means lineal ascendants
5 or descendants, and their spouses. In
determining the base for computing
6 the tax on such isolated or
occasional sale, the fair market value of any
7 motor vehicle or trailer traded in by
the purchaser to the seller may be
8 deducted from the selling price;
9 (p) the
gross receipts received for the service of installing or
applying
10 tangible personal property which when
installed or applied is not being
11 held for sale in the regular course of
business, and whether or not such
12 tangible personal property when installed
or applied remains tangible
13 personal property or becomes a part of real
estate, except that no tax shall
14 be imposed upon the service of installing
or applying tangible personal
15 property in connection with the original
construction of a building or
16 facility, the original construction,
reconstruction, restoration, remodeling,
17 renovation, repair or replacement of a
residence or the construction, re-
18 construction, restoration, replacement or
repair of a bridge or highway.
19 For the purposes of
this subsection:
20 (1) "Original
construction" shall mean the first or initial construction
21 of a new building or facility. The term
"original construction" shall include
22 the addition of an entire room or floor to
any existing building or facility,
23 the completion of any unfinished portion of
any existing building or fa-
24 cility and the restoration, reconstruction
or replacement of a building or
25 facility damaged or destroyed by fire,
flood, tornado, lightning, explosion
26 or earthquake, but such term, except with
regard to a residence, shall not
27 include replacement, remodeling,
restoration, renovation or reconstruc-
28 tion under any other circumstances;
29 (2) "building"
shall mean only those enclosures within which individ-
30 uals customarily are employed, or which are
customarily used to house
31 machinery, equipment or other property, and
including the land improve-
32 ments immediately surrounding such
building;
33 (3) "facility"
shall mean a mill, plant, refinery, oil or gas well, water
34 well, feedlot or any conveyance,
transmission or distribution line of any
35 cooperative, nonprofit, membership
corporation organized under or sub-
36 ject to the provisions of K.S.A. 17-4601 et
seq., and amendments thereto,
37 or of any municipal or quasi-municipal
corporation, including the land
38 improvements immediately surrounding such
facility; and
39 (4) "residence"
shall mean only those enclosures within which indi-
40 viduals customarily live;
41 (q) the gross
receipts received for the service of repairing, servicing,
42 altering or maintaining tangible personal
property, except computer soft-
43 ware described in subsection (s), which
when such services are rendered
5
1 is not being held for sale in the
regular course of business, and whether
2 or not any tangible personal property
is transferred in connection there-
3 with. The tax imposed by this
subsection shall be applicable to the services
4 of repairing, servicing, altering or
maintaining an item of tangible personal
5 property which has been and is
fastened to, connected with or built into
6 real property;
7 (r) the
gross receipts from fees or charges made under service or
8 maintenance agreement contracts for
services, charges for the providing
9 of which are taxable under the
provisions of subsection (p) or (q);
10 (s) the gross
receipts received from the sale of computer software,
11 and the sale of the services of modifying,
altering, updating or maintaining
12 computer software. As used in this
subsection, "computer software"
13 means information and directions loaded
into a computer which dictate
14 different functions to be performed by the
computer. Computer software
15 includes any canned or prewritten program
which is held or existing for
16 general or repeated sale, even if the
program was originally developed
17 for a single end user as custom computer
software. The sale of computer
18 software or services does not include: (1)
The initial sale of any custom
19 computer program which is originally
developed for the exclusive use of
20 a single end user; or (2) those services
rendered in the modification of
21 computer software when the modification is
developed exclusively for a
22 single end user only to the extent of the
modification and only to the
23 extent that the actual amount charged for
the modification is separately
24 stated on invoices, statements and other
billing documents provided to
25 the end user. The services of modification,
alteration, updating and main-
26 tenance of computer software shall only
include the modification, alter-
27 ation, updating and maintenance of computer
software taxable under this
28 subsection whether or not the services are
actually provided; and
29 (t) the gross
receipts received for telephone answering services, in-
30 cluding mobile phone services, beeper
services and other similar services;
31 and
32 (u) the gross
receipts received from the sale of prepaid telephone
33 calling cards or pre-paid authorization
numbers and the recharge of such
34 cards or numbers. A pre-paid telephone
calling card or pre-paid author-
35 ization number means the right to
exclusively make telephone calls, paid
36 for in advance, with the prepaid value
measured in minutes or other time
37 units, that enables the origination of
calls using an access number or
38 authorization code or both, whether
manually or electronically dialed. If
39 the sale or recharge of such card or number
does not take place at the
40 vendor's place of business, it shall be
conclusively determined to take
41 place at the customer's shipping address;
if there is no item shipped then
42 it shall be the customer's billing
address.
43 Sec.
2. K.S.A. 1999 Supp. 79-3620 is hereby amended to read as
6
1 follows: 79-3620. (a) All revenue
collected or received by the director of
2 taxation from the taxes imposed by
this act shall be deposited daily with
3 the state treasurer. The state
treasurer shall credit all revenue received
4 from this act, less amounts withheld
as provided in subsection (b) and
5 amounts credited as provided in
subsection (c) and (d), to the state gen-
6 eral fund.
7 (b) A
refund fund, designated as "sales tax refund fund" not to
exceed
8 $100,000 shall be set apart and
maintained by the director from sales tax
9 collections and estimated tax
collections and held by the state treasurer
10 for prompt payment of all sales tax refunds
including refunds authorized
11 under the provisions of K.S.A. 79-3635, and
amendments thereto. Such
12 fund shall be in such amount, within the
limit set by this section, as the
13 director shall determine is necessary to
meet current refunding require-
14 ments under this act. In the event such
fund as established by this section
15 is, at any time, insufficient to provide
for the payment of refunds due
16 claimants thereof, the director shall
certify the amount of additional funds
17 required to the director of accounts and
reports who shall promptly trans-
18 fer the required amount from the state
general fund to the sales tax refund
19 fund, and notify the state treasurer, who
shall make proper entry in the
20 records.
21 (c)
(1) The state treasurer shall credit
5/98 5/104 of the revenue col-
22 lected or received from the tax imposed by
K.S.A. 79-3603, and amend-
23 ments thereto, at the rate of
4.9% 5.2%, and deposited as provided in
24 subsection (a), exclusive of amounts
credited pursuant to subsection (d),
25 in to the state
highway fund.
26 (2) The state
treasurer shall credit 6/104 of the revenue collected or
27 received from the tax imposed by K.S.A.
79-3603, and amendments
28 thereto, at the rate of 5.2%, and
deposited as provided in subsection (a)
29 exclusive of amounts credited pursuant
to subsection (d) to the state school
30 district finance fund.
31 (d) The state
treasurer shall credit all revenue collected or received
32 from the tax imposed by K.S.A. 79-3603, and
amendments thereto, as
33 certified by the director, from taxpayers
doing business within that por-
34 tion of a redevelopment district occupied
by a redevelopment project that
35 was determined by the secretary of commerce
and housing to be of state-
36 wide as well as local importance or will
create a major tourism area for
37 the state as specified in subsection
(a)(1)(D) of K.S.A. 12-1774, and
38 amendments thereto, to the city bond
finance fund, which fund is hereby
39 created. The provisions of this subsection
shall expire when the total of
40 all amounts credited hereunder and under
subsection (d) of K.S.A. 79-
41 3710, and amendments thereto, is sufficient
to retire the special obliga-
42 tion bonds issued for the purpose of
financing all or a portion of the costs
43 of such redevelopment project.
7
1 Sec.
3. K.S.A. 1999 Supp. 79-3703 is hereby amended to read as
2 follows: 79-3703. There is hereby
levied and there shall be collected from
3 every person in this state a tax or
excise for the privilege of using, storing,
4 or consuming within this state any
article of tangible personal property.
5 Such tax shall be levied and
collected in an amount equal to the consid-
6 eration paid by the taxpayer
multiplied by the rate of 4.9% 5.2%.
Within
7 a redevelopment district established
pursuant to K.S.A. 1999 Supp. 74-
8 8921, and amendments thereto, there
is hereby levied and there shall be
9 collected and paid an additional tax
of 2% until the earlier of: (1) The
10 date the bonds issued to finance or
refinance the redevelopment project
11 undertaken in the district have been paid
in full; or (2) the final scheduled
12 maturity of the first series of bonds
issued to finance the redevelopment
13 project. All property purchased or leased
within or without this state and
14 subsequently used, stored or consumed in
this state shall be subject to
15 the compensating tax if the same property
or transaction would have been
16 subject to the Kansas retailers' sales tax
had the transaction been wholly
17 within this state.
18 Sec.
4. K.S.A. 1999 Supp. 79-3710 is hereby amended to read as
19 follows: 79-3710. (a) All revenue collected
or received by the director
20 under the provisions of this act shall be
deposited daily with the state
21 treasurer and the state treasurer shall
credit the same, less amounts set
22 apart as provided in subsection (b) and
amounts credited as provided in
23 subsection (c) and (d), to the general
revenue fund of the state.
24 (b) A revolving
fund, designated as "compensating tax refund fund"
25 not to exceed $10,000 shall be set apart
and maintained by the director
26 from compensating tax collections and
estimated tax collections and held
27 by the state treasurer for prompt payment
of all compensating tax refunds.
28 Such fund shall be in such amount, within
the limit set by this section,
29 as the director shall determine is
necessary to meet current refunding
30 requirements under this act.
31 (c)
(1) The state treasurer shall credit
5/98 5/104 of the revenue col-
32 lected or received from the tax imposed by
K.S.A. 79-3703, and amend-
33 ments thereto, at the rate of
4.9% 5.2%, and deposited as provided in
34 subsection (a), exclusive of amounts
credited pursuant to subsection (d),
35 in to the state
highway fund.
36 (2) The state
treasurer shall credit 6/104 of the revenue collected or
37 received from the tax imposed by K.S.A.
79-3703, and amendments
38 thereto, at the rate of 5.2%, and
deposited as provided in subsection (a),
39 exclusive of amounts credited pursuant
to subsection (d), to the state
40 school district finance fund.
41 (d) The state
treasurer shall credit all revenue collected or received
42 from the tax imposed by K.S.A. 79-3703, and
amendments thereto, as
43 certified by the director, from taxpayers
doing business within that por-
8
1 tion of a redevelopment district
occupied by a redevelopment project that
2 was determined by the secretary of
commerce and housing to be of state-
3 wide as well as local importance or
will create a major tourism area for
4 the state as specified in subsection
(a)(1)(D) of K.S.A. 12-1774, and
5 amendments thereto, to the city bond
finance fund created by subsection
6 (d) of K.S.A. 79-3620, and amendments
thereto. The provisions of this
7 subsection shall expire when the
total of all amounts credited hereunder
8 and under subsection (d) of K.S.A.
79-3620, and amendments thereto, is
9 sufficient to retire the special
obligation bonds issued for the purpose of
10 financing all or a portion of the costs of
such redevelopment project.
11 Sec. 5. K.S.A. 1999 Supp.
79-3603, 79-3620, 79-3703 and 79-3710
12 are hereby repealed.
13 Sec. 6. This act shall
take effect and be in force from and after its
14 publication in the statute book.