As Amended by Senate Committee
         
Session of 2000
         
SENATE BILL No. 545
         
By Senator Umbarger
         
2-1
         

10             AN  ACT relating to sales taxation; authorizing Neosho county to impose
11             a countywide sales tax for jail facility purposes concerning the im-
12             position thereof by certain cities and counties; amending K.S.A.
13             1999 Supp. 12-187, 12-188 and 12-189 and repealing the existing
14             section sections; also repealing K.S.A. 1999 Supp. 12-189c.
15      
16       Be it enacted by the Legislature of the State of Kansas:
17             Section  1. K.S.A. 1999 Supp. 12-187 is hereby amended to read as
18       follows: 12-187. (a) (1) No city shall impose a retailers' sales tax under
19       the provisions of this act without the governing body of such city having
20       first submitted such proposition to and having received the approval of a
21       majority of the electors of the city voting thereon at an election called
22       and held therefor. The governing body of any city may submit the ques-
23       tion of imposing a retailers' sales tax and the governing body shall be
24       required to submit the question upon submission of a petition signed by
25       electors of such city equal in number to not less than 10% of the electors
26       of such city.
27             (2) The governing body of any class B city located in any county which
28       does not impose a countywide retailers' sales tax pursuant to paragraph
29       (5) of subsection (b) may submit the question of imposing a retailers' sales
30       tax at the rate of.25%,.5%,.75% or 1% and pledging the revenue received
31       therefrom for the purpose of financing the provision of health care serv-
32       ices, as enumerated in the question, to the electors at an election called
33       and held thereon. The tax imposed pursuant to this paragraph shall be
34       deemed to be in addition to the rate limitations prescribed in K.S.A. 12-
35       189, and amendments thereto. As used in this paragraph, health care
36       services shall include but not be limited to the following: Local health
37       departments, city, county or district hospitals, city or county nursing
38       homes, preventive health care services including immunizations, prenatal
39       care and the postponement of entry into nursing homes by home health
40       care services, mental health services, indigent health care, physician or
41       health care worker recruitment, health education, emergency medical
42       services, rural health clinics, integration of health care services, home
43       health services and rural health networks.


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


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


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  1       services, rural health clinics, integration of health care services, home
  2       health services and rural health networks.
  3             (6) The board of county commissioners of Allen county may submit
  4       the question of imposing a countywide retailers' sales tax at the rate of.5%
  5       and pledging the revenue received therefrom for the purpose of financing
  6       the costs of operation and construction of a solid waste disposal area or
  7       the modification of an existing landfill to comply with federal regulations
  8       to the electors at an election called and held thereon. The tax imposed
  9       pursuant to this paragraph shall expire upon the payment of all costs
10       incurred in the financing of the project undertaken. Nothing in this par-
11       agraph shall be construed to allow the rate of tax imposed by Allen county
12       pursuant to this paragraph to exceed or be imposed at any rate other than
13       the rates prescribed in K.S.A. 12-189 and amendments thereto.
14             (7) The board of county commissioners of Dickinson and Miami
15       county may submit the question of imposing a countywide retailers' sales
16       tax at the rate of .50% in the case of Dickinson county and at a rate
17       of up to 1% in the case of Miami county, and pledging the revenue
18       received therefrom for the purpose of financing the costs of roadway
19       construction and improvement to the electors at an election called and
20       held thereon. The tax imposed pursuant to this paragraph shall expire
21       after five years from the date such tax is first collected.
22             (8) The board of county commissioners of Sherman county may sub-
23       mit the question of imposing a countywide retailers' sales tax at the rate
24       of.25%,.5% or.75% and pledging the revenue therefrom for the purpose
25       of financing the costs of the county roads 64 and 65 construction and
26       improvement project. The tax imposed pursuant to this paragraph shall
27       expire upon payment of all costs authorized pursuant to this paragraph
28       in the financing of such project.
29             (9) The board of county commissioners of Cowley and Russell county
30       may submit the question of imposing a countywide retailers' sales tax at
31       the rate of.5% in the case of Russell county and at a rate of up to.25%,
32       in the case of Cowley county and pledging the revenue received there-
33       from for the purpose of financing economic development initiatives or
34       public infrastructure projects. The tax imposed pursuant to this paragraph
35       shall expire after five years from the date such tax is first collected.
36             (c) The boards of county commissioners of any two or more contig-
37       uous counties, upon adoption of a joint resolution by such boards, may
38       submit the question of imposing a retailers' sales tax within such counties
39       to the electors of such counties at an election called and held thereon
40       and such boards of any two or more contiguous counties shall be required
41       to submit such question upon submission of a petition in each of such
42       counties, signed by a number of electors of each of such counties where
43       submitted equal in number to not less than 10% of the electors of each


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  1       of such counties who voted at the last preceding general election for the
  2       office of secretary of state, or upon receiving resolutions requesting such
  3       an election passed by not less than 2/3 of the membership of the governing
  4       body of each of one or more cities within each of such counties which
  5       contains a population of not less than 25% of the entire population of
  6       each of such counties, or upon receiving resolutions requesting such an
  7       election passed by 2/3 of the membership of the governing body of each
  8       of one or more taxing subdivisions within each of such counties which
  9       levy not less than 25% of the property taxes levied by all taxing subdivi-
10       sions within each of such counties.
11             (d) Any city retailers' sales tax in the amount of.5% being levied by a
12       city on July 1, 1990, shall continue in effect until repealed in the manner
13       provided herein for the adoption and approval of such tax or until re-
14       pealed by the adoption of an ordinance so providing. In addition to any
15       city retailers' sales tax being levied by a city on July 1, 1990, any such city
16       may adopt an additional city retailers' sales tax in the amount of.25%
17       or.5%, provided that such additional tax is adopted and approved in the
18       manner provided for the adoption and approval of a city retailers' sales
19       tax. Any countywide retailers' sales tax in the amount of.5% or 1% in
20       effect on July 1, 1990, shall continue in effect until repealed in the manner
21       provided herein for the adoption and approval of such tax.
22             (e) A class D city shall have the same power to levy and collect a city
23       retailers' sales tax that a class A city is authorized to levy and collect and
24       in addition, the governing body of any class D city may submit the ques-
25       tion of imposing an additional city retailers' sales tax in the amount
26       of.125%,.25%,.5% or.75% and pledging the revenue received therefrom
27       for economic development initiatives, strategic planning initiatives or for
28       public infrastructure projects including buildings to the electors at an
29       election called and held thereon. Any additional sales tax imposed pur-
30       suant to this paragraph shall expire no later than five years from the date
31       of imposition thereof, except that any such tax imposed by any class
32       D city after the effective date of this act shall expire no later than
33       10 years from the date of imposition thereof.
34             (f) Any city or county proposing to adopt a retailers' sales tax shall
35       give notice of its intention to submit such proposition for approval by the
36       electors in the manner required by K.S.A. 10-120, and amendments
37       thereto. The notices shall state the time of the election and the rate and
38       effective date of the proposed tax. If a majority of the electors voting
39       thereon at such election fail to approve the proposition, such proposition
40       may be resubmitted under the conditions and in the manner provided in
41       this act for submission of the proposition. If a majority of the electors
42       voting thereon at such election shall approve the levying of such tax, the
43       governing body of any such city or county shall provide by ordinance or


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  1       resolution, as the case may be, for the levy of the tax. Any repeal of such
  2       tax or any reduction or increase in the rate thereof, within the limits
  3       prescribed by K.S.A. 12-189, and amendments thereto, shall be accom-
  4       plished in the manner provided herein for the adoption and approval of
  5       such tax except that the repeal of any such city retailers' sales tax may be
  6       accomplished by the adoption of an ordinance so providing.
  7             (g) The sufficiency of the number of signers of any petition filed
  8       under this section shall be determined by the county election officer.
  9       Every election held under this act shall be conducted by the county elec-
10       tion officer.
11             (h) The governing body of the city or county proposing to levy any
12       retailers' sales tax shall specify the purpose or purposes for which the
13       revenue would be used, and a statement generally describing such pur-
14       pose or purposes shall be included as a part of the ballot proposition.
15        Sec.  2. K.S.A. 1999 Supp. 12-188 is hereby amended to read as
16       follows: 12-188. The following classes of cities are hereby estab-
17       lished for the purpose of imposing limitations and prohibitions upon
18       the levying of sales and excise taxes or taxes in the nature of an
19       excise upon sales or transfers of personal or real property or the
20       use thereof, or the rendering or furnishing of services by cities as
21       authorized and provided by article 12, section 5, of the constitution
22       of the state of Kansas:
23             Class A cities. All cities in the state of Kansas which have the
24       authority to levy and collect excise taxes or taxes in the nature of
25       an excise upon the sales or transfers of personal or real property or
26       the use thereof, or the rendering or furnishing of services by cities.
27             Class B cities. All cities in the state of Kansas which have the
28       authority to levy and collect excise taxes or taxes in the nature of
29       an excise upon the sales or transfers of personal or real property or
30       the use thereof, or the rendering or furnishing of services for the
31       purpose of financing the provision of health care services.
32             Class C cities. All cities in the state of Kansas having a population
33       of more than 290,000 located in a county having a population of
34       more than 350,000 which has the authority to levy and collect excise
35       taxes or taxes in the nature of an excise upon the sales or transfers
36       of personal or real property or the use thereof, or the rendering or
37       furnishing of services.
38             Class D cities. All cities in the state of Kansas located in Cowley,
39       Ellis, Ellsworth, Finney, Harper, Johnson, Labette, Lyon, Montgom-
40       ery, Osage or Reno county or in both Riley and Pottawatomie coun-
41       ties which have the authority to levy and collect excise taxes or taxes
42       in the nature of an excise upon the sales or transfers of personal or
43       real property or the use thereof, or the rendering or furnishing of


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  1       services.
  2             Sec.  3. K.S.A. 1999 Supp. 12-189 is hereby amended to read as
  3       follows: 12-189. Except as otherwise provided by paragraph (2) of
  4       subsection (a) of K.S.A. 12-187, and amendments thereto, the rate
  5       of any class A, class B or class C city retailers' sales tax shall be
  6       fixed in the amount of .25%, .5%, .75% or 1% which amount shall
  7       be determined by the governing body of the city. Except as other-
  8       wise provided by paragraph (2) of subsection (a) of K.S.A. 12-187,
  9       and amendments thereto, the rate of any class D city retailers' sales
10       tax shall be fixed in the amount of .25%, .5%, .75%, 1%, 1.125%,
11       1.25%, 1.5% or 1.75%. The rate of any countywide retailers' sales
12       tax shall be fixed in an amount of either .25%, .5%, .75% or 1%
13       which amount shall be determined by the board of county commis-
14       sioners, except that:
15             (a) The board of county commissioners of Wabaunsee county, for the
16       purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and amend-
17       ments thereto, may fix such rate at 1.25%; the board of county com-
18       missioners of Cherokee, Crawford, Ford, Saline, Seward or Wyan-
19       dotte county, for the purposes of paragraph (2) of subsection (b) of
20       K.S.A. 12-187, and amendments thereto, may fix such rate at 1.5%,
21       the board of county commissioners of Atchison county, for the pur-
22       poses of paragraph (2) of subsection (b) of K.S.A. 12-187, and
23       amendments thereto, may fix such rate at 1.5% or 1.75% and the
24       board of county commissioners of Barton, Jefferson or Ottawa
25       county, for the purposes of paragraph (2) of subsection (b) of K.S.A.
26       12-187, and amendments thereto, may fix such rate at 2%;
27             (b) the board of county commissioners of Jackson county, for
28       the purposes of paragraph (3) of subsection (b) of K.S.A. 12-187,
29       and amendments thereto, may fix such rate at 2%;
30             (c) the boards of county commissioners of Finney and Ford
31       counties, for the purposes of paragraph (4) of subsection (b) of
32       K.S.A. 12-187, and amendments thereto, may fix such rate at .25%;
33             (d) the board of county commissioners of any county for the
34       purposes of paragraph (5) of subsection (b) of K.S.A. 12-187, and
35       amendments thereto, may fix such rate at a percentage which is
36       equal to the sum of the rate allowed to be imposed by a board of
37       county commissioners on the effective date of this act plus .25%,
38       .5%, .75% or 1%, as the case requires;
39             (e) the board of county commissioners of Dickinson county, for
40       the purposes of paragraph (7) of subsection (b) of K.S.A. 12-187,
41       and amendments thereto, may fix such rate at 1.5%, and the board
42       of county commissioners of Miami county, for the purposes of paragraph
43       (7) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix


8

  1       such rate at 1.25%, 1.5%, 1.75% or 2%;
  2             (f) the board of county commissioners of Sherman county, for
  3       the purposes of paragraph (8) of subsection (b) of K.S.A. 12-187,
  4       and amendments thereto, may fix such rate at 1.5%, 1.75% or 2%;
  5       or
  6             (g) the board of county commissioners of Russell county for the
  7       purposes of paragraph (9) of subsection (b) of K.S.A. 12-187, and
  8       amendments thereto, may fix such rate at 1.5%.
  9             Any county or city levying a retailers' sales tax is hereby prohib-
10       ited from administering or collecting such tax locally, but shall util-
11       ize the services of the state department of revenue to administer,
12       enforce and collect such tax. Except as otherwise specifically pro-
13       vided in K.S.A. 12-189a, and amendments thereto, such tax shall be
14       identical in its application, and exemptions therefrom, to the Kansas
15       retailers' sales tax act and all laws and administrative rules and
16       regulations of the state department of revenue relating to the Kansas
17       retailers' sales tax shall apply to such local sales tax insofar as such
18       laws and rules and regulations may be made applicable. The state
19       director of taxation is hereby authorized to administer, enforce and
20       collect such local sales taxes and to adopt such rules and regulations
21       as may be necessary for the efficient and effective administration
22       and enforcement thereof.
23             Upon receipt of a certified copy of an ordinance or resolution
24       authorizing the levy of a local retailers' sales tax, the state director
25       of taxation shall cause such taxes to be collected within or without
26       the boundaries of such taxing subdivision at the same time and in
27       the same manner provided for the collection of the state retailers'
28       sales tax. All moneys collected by the director of taxation under the
29       provisions of this section shall be credited to a county and city re-
30       tailers' sales tax fund which fund is hereby established in the state
31       treasury. Any refund due on any county or city retailers' sales tax
32       collected pursuant to this act shall be paid out of the sales tax refund
33       fund and reimbursed by the director of taxation from collections of
34       local retailers' sales tax revenue. Except for local retailers' sales tax
35       revenue required to be deposited in the redevelopment bond fund estab-
36       lished under K.S.A. 1999 Supp. 74-8927, and amendments thereto, all
37       local retailers' sales tax revenue collected within any county or city
38       pursuant to this act shall be apportioned and remitted at least quar-
39       terly by the state treasurer, on instruction from the director of tax-
40       ation, to the treasurer of such county or city.
41             The director of taxation shall provide, upon request by a city or
42       county clerk or treasurer of any city or county levying a local re-
43       tailers' sales tax, a monthly report identifying each retailer having


9

  1       a place of business in such city or county and setting forth the
  2       amount of such tax remitted by each retailer during the preceding
  3       month. Such report shall be made available to the clerk or treasurer
  4       of such city or county within a reasonable time after it has been
  5       requested from the director of taxation. The director of taxation
  6       shall be allowed to assess a reasonable fee for the issuance of such
  7       report. Information received by any city or county pursuant to this
  8       section shall be confidential, and it shall be unlawful for any officer
  9       or employee of such city or county to divulge any such information
10       in any manner. Any violation of this paragraph by a city or county
11       officer or employee is a class B misdemeanor, and such officer or
12       employee shall be dismissed from office. 
13       Sec.  2 4. K.S.A. 1999 Supp. 12-187 is, 12-188, 12-189 and 12-189c
14       are hereby repealed.
15        Sec.  3 5. This act shall take effect and be in force from and after its
16       publication in the statute book.