CHAPTER 62 SENATE BILL No. 42 (Amended by Chapter 167) An Act relating to the liquor drink tax; concerning periods of limitations; amending K.S.A. 79-41a03 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 79-41a03 is hereby amended to read as follows: 79-
41a03. (a) The tax levied and collected pursuant to K.S.A. 79-41a02 and
amendments thereto shall become due and payable by the club, caterer,
drinking establishment or temporary permit holder monthly, or on or
before the 25th day of the month immediately succeeding the month in
which it is collected, but any club, caterer, drinking establishment or
temporary permit holder filing an annual or quarterly return under the
Kansas retailers' sales tax act, as prescribed in K.S.A. 79-3607 and amend-
ments 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 the club, caterer, drinking establishment or temporary
permit holder pays such retailers' sales tax. Each club, caterer, drinking
establishment or temporary permit holder shall make a true report to the
department of revenue, on a form prescribed 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 receipts derived from the
sale of alcoholic liquor by the club, caterer, drinking establishment or
temporary permit holder for the applicable month or months, which re-
port shall be accompanied by the tax disclosed thereby. Records of gross
receipts derived from the sale of alcoholic liquor shall be kept separate
and apart from the records of other retail sales made by a club, caterer,
drinking establishment or temporary permit holder 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
club, caterer, drinking establishment or temporary permit holder as may
be necessary to determine the accuracy of such reports required here-
under.

      (c) The secretary of revenue is hereby authorized to administer and
collect the tax imposed hereunder and to adopt such rules and regulations
as may be necessary for the efficient and effective administration and
enforcement of the collection thereof. Whenever any club, caterer, drink-
ing establishment or temporary permit holder liable to pay the tax im-
posed hereunder refuses or neglects to pay the same, the amount, in-
cluding 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.

      (d) The secretary of revenue shall remit daily to the state treasurer
all revenue collected under the provisions of this act. The state treasurer
shall deposit the entire amount of each remittance in the state treasury.
Subject to the maintenance requirements of the local alcoholic liquor
refund fund created under K.S.A. 79-41a09 and amendments thereto,
25% of the remittance shall be credited to the state general fund, 5%
shall be credited to the community alcoholism and intoxication programs
fund created by K.S.A. 41-1126 and amendments thereto and the balance
shall be credited to the local alcoholic liquor fund created by K.S.A. 79-
41a04 and amendments thereto.

      (e) Whenever, in the judgment of the secretary of revenue, it is nec-
essary, in order to secure the collection of any tax, penalties or interest
due, or to become due, under the provisions of this act, the secretary may
require any person subject to such tax to file a bond with the director of
taxation under conditions established by and in such form and amount as
prescribed by rules and regulations adopted by the secretary.

      (f) The amount of tax imposed by this act shall be assessed within
three years after the return is filed, and no proceedings in court for the
collection of such taxes shall be begun after the expiration of such period
except in the cases of fraud. In the case of a false or fraudulent return
with intent to evade tax, the tax may be assessed or a proceeding in court
for collection of such tax may be begun at any time, within two years from
the discovery of such fraud. No refund or credit shall be allowed by the
director after three years from the date of payment of the tax as provided
in this act unless before the expiration of such period a claim therefor is
filed by the taxpayer, and no suit or action to recover on any claim for
refund shall be commenced until after the expiration of six months from
the date of filing a claim therefor with the director. Before the expiration
of time prescribed in this section for the assessment of additional tax or
the filing of a claim for refund, the director is hereby authorized to enter
into an agreement in writing with the taxpayer consenting to the extension
of the periods of limitations for the assessment of tax or for the filing of a
claim for refund, at any time prior to the expiration of the periods of
limitations. The period so agreed upon may be extended by subsequent
agreements in writing made before the expiration of the period previously
agreed upon.

 Sec.  2. K.S.A. 79-41a03 is hereby repealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 3, 2001.
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