CHAPTER 188
HOUSE BILL No. 2007
(Amends Chapter 5)
An Act relating to transient guest taxation; concerning the provision of certain information
by the director of taxation to local governments relating thereto; amending K.S.A. 2000
Supp. 12-1694, as amended by section 50 of 2001 Senate Bill No. 15, and 12-1698, as
amended by section 51 of 2001 Senate Bill No. 15 and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 12-1694 as amended by section 50 of
2001 Senate Bill No. 15 is hereby amended to read as follows: 12-1694.
(a) Any tax levied and collected pursuant to K.S.A. 12-1693, and amend-
ments thereto, shall become due and payable by the business monthly,
on or before the 25th day of the month immediately succeeding the
month in which it is collected, with the first payment due and payable on
or before the 25th day of the month specified in the resolution of the
governing body which levies the tax, but any person filing an annual or
quarterly return under the Kansas retailers' sales tax act, as prescribed in
K.S.A. 79-3607, and amendments thereto, may, with the approval of the
secretary of revenue and upon such conditions as the secretary of revenue
may prescribe, pay the tax required by this act on the same basis and at
the same time such person pays the retailer's sales tax. Each business
shall make a true report to the department of revenue, on a form pre-
scribed by the secretary of revenue, providing such information as may
be necessary to determine the amounts to which any such tax shall apply
for all gross rental receipts for the applicable month or months, which
report shall be accompanied by the tax disclosed thereby. Records of gross
rental receipts shall be kept separate and apart from the records of other
retail sales made by a business in order to facilitate the examination of
books and records as provided herein.

      (b) The secretary of revenue or the secretary's authorized represen-
tative shall have the right at all reasonable times during business hours
to make such examination and inspection of the books and records of a
business as may be necessary to determine the accuracy of such reports.

      (c) The secretary of revenue is hereby authorized to administer and
collect any transient guest tax levied pursuant to this act and to adopt
such rules and regulations as may be necessary for the efficient and ef-
fective administration and enforcement of the collection thereof. When-
ever any business liable to pay any transient guest tax refuses or neglects
to pay the same, the amount, including any penalty, shall be collected in
the manner prescribed for the collection of the retailers' sales tax by
K.S.A. 79-3617, and amendments thereto. All of the taxes collected under
the provisions of this act shall be remitted by the secretary of revenue to
the state treasurer in accordance with the provisions of K.S.A. 75-4215,
and amendments thereto. Upon receipt of each such remittance, the state
treasurer shall deposit the entire amount in the state treasury, and the
state treasurer shall credit 2% of all taxes so collected to the state general
fund to defray the expenses of the department in administration and en-
forcement of the collection thereof. The remainder of such taxes shall be
credited to the county and city transient guest tax fund, which fund is
hereby established. All moneys in the county and city transient guest tax
fund shall be remitted at least quarterly by the state treasurer, on instruc-
tion from the secretary of revenue, to the treasurers of those cities which,
by virtue of their participation in the election provided for in K.S.A. 12-
1693, and amendments thereto, are qualified to receive disbursements
from such transient guest tax fund for the amount collected within such
city, and to the treasurer of such county for the amount collected in the
unincorporated areas of such county.

      (d) The director of taxation shall provide, upon request by a city or
county clerk or treasurer of any city or county levying a transient guest
tax, of any city located within any such county or of any county within
which is located any such city, monthly reports identifying each person
doing business in such city or county to which such tax is applicable setting
forth the tax liability and the amount of such tax remitted by such business
during the preceding month, and identifying each business location main-
tained by the person within such city or county. Such report shall be made
available to the clerk or treasurer of such city or county within a reason-
able time after it has been requested from the director of taxation. The
director of taxation shall be allowed to assess a reasonable fee for the
issuance of such report. Information received by any city or county pur-
suant to this section shall be kept confidential, and it shall be unlawful
for any officer or employee of such city or county to divulge any such
information in any manner, except that such information may be divulged
by any such clerk or treasurer to any financial officer designated to receive
such information by the governing body of any such city or county. Any
violation of this paragraph by a city or county officer or employee is a
class B misdemeanor, and such officer or employee shall be dismissed
from office.

      (e) All such moneys received by the county treasurer or city treasurer
from disbursements from the county and city transient guest tax fund
shall be credited to the tourism and convention promotion fund of such
county or city and shall only be expended for convention and tourism
promotion, except that not more than 20% of the moneys credited to
such fund shall be expended for tourism promotion.

      Sec.  2. K.S.A. 2000 Supp. 12-1698 as amended by section 51 of 2001
Senate Bill No. 15 is hereby amended to read as follows: 12-1698. (a) Any
tax levied and collected pursuant to K.S.A. 12-1697, and amendments
thereto, shall become due and payable by the business monthly, on or
before the 25th day of the month immediately succeeding the month in
which it is collected, with the first payment due and payable on or before
the 25th day of the month specified in the resolution of the governing
body which levies the tax, but any person filing an annual or quarterly
return under the Kansas retailers' sales tax act, as prescribed in K.S.A.
79-3607, and amendments thereto, shall, upon such conditions as the
secretary of revenue may prescribe, pay the tax required by this act on
the same basis and at the same time such person pays the retailers' sales
tax. Each business shall make a true report to the department of revenue,
on a form prescribed by the secretary of revenue, providing such infor-
mation as may be necessary to determine the amounts to which any such
tax shall apply for all gross rental receipts for the applicable month or
months, which report shall be accompanied by the tax disclosed thereby.
Records of gross rental receipts shall be kept separate and apart from the
records of other retail sales made by a business in order to facilitate the
examination of books and records as provided herein.

      (b) The secretary of revenue or the secretary's authorized represen-
tative shall have the right at all reasonable times during business hours
to make such examination and inspection of the books and records of a
business as may be necessary to determine the accuracy of such reports.

      (c) The secretary of revenue is hereby authorized to administer and
collect any transient guest tax levied pursuant to this act and to adopt
such rules and regulations as may be necessary for the efficient and ef-
fective administration and enforcement of the collection thereof. When-
ever any business liable to pay any transient guest tax refuses or neglects
to pay the same, the amount, including any penalty, shall be collected in
the manner prescribed for the collection of the retailers' sales tax by
K.S.A. 79-3617, and amendments thereto. All of the taxes collected under
the provisions of this act shall be remitted by the secretary of revenue to
the state treasurer in accordance with the provisions of K.S.A. 75-4215,
and amendments thereto. Upon receipt of each such remittance, the state
treasurer shall deposit the entire amount in the state treasury, and the
state treasurer shall credit 2% of all taxes so collected to the state general
fund to defray the expenses of the department in administration and en-
forcement of the collection thereof. The remainder of such taxes shall be
credited to the county or city transient guest tax fund, which fund is
hereby established. All moneys in the county or city transient guest tax
fund shall be remitted at least quarterly by the state treasurer to the
county or city treasurer of each county or city levying a transient guest
tax under the provisions of this act in the proportion, as certified by the
director of taxation, that the amount collected from such tax in each such
county or city bears to the total amount collected from such taxes in all
counties or cities for the period covered by the distribution.

      (d) The director of taxation shall provide, upon request by a city or
county clerk or treasurer of any city or county levying a transient guest
tax of any city located within any such county or of any county within
which is located any such city, monthly reports identifying each person
doing business in such city or county to which such tax is applicable setting
forth the tax liability and the amount of such tax remitted by such business
during the preceding month, and identifying each business location main-
tained by the person within such city or county. Such report shall be made
available to the clerk or treasurer of such city or county within a reason-
able time after it has been requested from the director of taxation. The
director of taxation shall be allowed to assess a reasonable fee for the
issuance of such report. Information received by any city or county pur-
suant to this section shall be kept confidential, and it shall be unlawful
for any officer or employee of such city or county to divulge any such
information in any manner, except that such information may be divulged
by any such clerk or treasurer to any financial officer designated to receive
such information by the governing body of any such city or county. Any
violation of this paragraph by a city or county officer or employee is a
class B misdemeanor, and such officer or employee shall be dismissed
from office.

      (e) Except as otherwise provided in K.S.A. 12-1774, and amendments
thereto, all such moneys received by the county or city treasurer from
disbursements from the county or city transient guest tax fund shall be
credited to the tourism and convention promotion fund of such county
or city and shall only be expended for convention and tourism promotion.

 Sec.  3. K.S.A. 2000 Supp. 12-1694, as amended by section 50 of 2001
Senate Bill No. 15 and 12-1698, as amended by section 51 of 2001 Senate
Bill No. 15, are hereby repealed.

 Sec.  4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 21, 2001.
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