CHAPTER 67 SENATE BILL No. 253 An Act relating to sales taxation; concerning the timing of collection of local sales taxes;
amending K.S.A. 12-191 and K.S.A. 2000 Supp. 12-189 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 12-189 is hereby amended to read as
follows: 12-189. Except as otherwise provided by paragraph (2) of sub-
section (a) of K.S.A. 12-187, and amendments thereto, the rate of any
class A, class B or class C city retailers' sales tax shall be fixed in the
amount of .25%, .5%, .75% or 1% which amount shall be determined by
the governing body of the city. Except as otherwise provided by paragraph
(2) of subsection (a) of K.S.A. 12-187, and amendments thereto, the rate
of any class D city retailers' sales tax shall be fixed in the amount of .25%,
.5%, .75%, 1%, 1.125%, 1.25%, 1.5% or 1.75%. The rate of any county-
wide retailers' sales tax shall be fixed in an amount of either .25%, .5%,
.75% or 1% which amount shall be determined by the board of county
commissioners, except that:

      (a) The board of county commissioners of Wabaunsee county, for the
purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and amend-
ments thereto, may fix such rate at 1.25%; the board of county commis-
sioners of Osage county, for the purposes of paragraph (2) of subsection
(b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 1.25%
or 1.5%; the board of county commissioners of Cherokee, Crawford,
Ford, Saline, Seward or Wyandotte county, for the purposes of paragraph
(2) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix
such rate at 1.5%, the board of county commissioners of Atchison county,
for the purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and
amendments thereto, may fix such rate at 1.5% or 1.75% and the board
of county commissioners of Barton, Jefferson or Ottawa county, for the
purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and amend-
ments thereto, may fix such rate at 2%;

      (b) the board of county commissioners of Jackson county, for the
purposes of paragraph (3) of subsection (b) of K.S.A. 12-187, and amend-
ments thereto, may fix such rate at 2%;

      (c) the boards of county commissioners of Finney and Ford counties,
for the purposes of paragraph (4) of subsection (b) of K.S.A. 12-187, and
amendments thereto, may fix such rate at .25%;

      (d) the board of county commissioners of any county for the purposes
of paragraph (5) of subsection (b) of K.S.A. 12-187, and amendments
thereto, may fix such rate at a percentage which is equal to the sum of
the rate allowed to be imposed by a board of county commissioners on
the effective date of this act plus .25%, .5%, .75% or 1%, as the case
requires;

      (e) the board of county commissioners of Dickinson county, for the
purposes of paragraph (7) of subsection (b) of K.S.A. 12-187, and amend-
ments thereto, may fix such rate at 1.5%, and the board of county com-
missioners of Miami county, for the purposes of paragraph (7) of subsec-
tion (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at
1.25%, 1.5%, 1.75% or 2%;

      (f) the board of county commissioners of Sherman county, for the
purposes of paragraph (8) of subsection (b) of K.S.A. 12-187, and amend-
ments thereto, may fix such rate at 1.5%, 1.75% or 2%;

      (g) the board of county commissioners of Russell county for the pur-
poses of paragraph (9) of subsection (b) of K.S.A. 12-187, and amend-
ments thereto, may fix such rate at 1.5%; or

      (h) the board of county commissioners of Franklin county, for the
purposes of paragraph (10) of subsection (b) of K.S.A. 12-187, and
amendments thereto, may fix such rate at 1.75%.

      Any county or city levying a retailers' sales tax is hereby prohibited
from administering or collecting such tax locally, but shall utilize the serv-
ices of the state department of revenue to administer, enforce and collect
such tax. Except as otherwise specifically provided in K.S.A. 12-189a, and
amendments thereto, such tax shall be identical in its application, and
exemptions therefrom, to the Kansas retailers' sales tax act and all laws
and administrative rules and regulations of the state department of rev-
enue relating to the Kansas retailers' sales tax shall apply to such local
sales tax insofar as such laws and rules and regulations may be made
applicable. The state director of taxation is hereby authorized to admin-
ister, enforce and collect such local sales taxes and to adopt such rules
and regulations as may be necessary for the efficient and effective ad-
ministration and enforcement thereof.

      Upon receipt of a certified copy of an ordinance or resolution author-
izing the levy of a local retailers' sales tax, the state director of taxation
shall cause such taxes to be collected within or without the boundaries of
such taxing subdivision at the same time and in the same manner provided
for the collection of the state retailers' sales tax. Such copy shall be sub-
mitted to the director of taxation within 30 days after adoption of any
such ordinance or resolution. All moneys collected by the director of
taxation under the provisions of this section shall be credited to a county
and city retailers' sales tax fund which fund is hereby established in the
state treasury. Any refund due on any county or city retailers' sales tax
collected pursuant to this act shall be paid out of the sales tax refund fund
and reimbursed by the director of taxation from collections of local re-
tailers' sales tax revenue. Except for local retailers' sales tax revenue re-
quired to be deposited in the redevelopment bond fund established under
K.S.A. 2000 Supp. 74-8927, and amendments thereto, all local retailers'
sales tax revenue collected within any county or city pursuant to this act
shall be apportioned and remitted at least quarterly by the state treasurer,
on instruction from the director of taxation, to the treasurer of such
county or city.

      Revenue that is received from the imposition of a local retailers' sales
tax which exceeds the amount of revenue required to pay the costs of a
special project for which such revenue was pledged shall be credited to
the city or county general fund, as the case requires.

      The director of taxation shall provide, upon request by a city or county
clerk or treasurer of any city or county levying a local retailers' sales tax,
monthly reports identifying each retailer having a place of business in
such city or county setting forth the tax liability and the amount of such
tax remitted by each retailer during the preceding month and identifying
each business location maintained by the retailer within such city or
county. Such report shall be made available to the clerk or treasurer of
such city or county within a reasonable 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 re-
ceived by any city or county pursuant to this section shall be confidential,
and it shall be unlawful for any officer or employee of such city or county
to divulge any such information in any manner. Any violation of this par-
agraph by a city or county officer or employee is a class B misdemeanor,
and such officer or employee shall be dismissed from office.

      Sec.  2. K.S.A. 12-191 is hereby amended to read as follows: 12-191.
All retail transactions consummated within a county or city having a retail
sales tax, which transactions are subject to the Kansas retailers' sales tax,
shall also be subject to such county or city retail sales tax, except as oth-
erwise expressly provided in K.S.A. 12-190, and amendments thereto.
Except as hereinafter provided, all retail sales, for the purpose of this act,
shall be considered to have been consummated at the place of business
of the retailer. In the event the place of business of a retailer is doubtful
the place or places at which the retail sales are consummated for the
purposes of this act shall be determined under rules and regulations
adopted by the secretary of revenue which rules and regulations shall be
considered with state and federal law insofar as applicable. Retail sales
involving the use, consumption, or furnishing of gas, water, electricity and
heat, for the purposes of this act, shall be considered to have been con-
summated at the situs of the user or recipient thereof, and retail sales
involving the use or furnishing of telephone service or services taxed un-
der subsection (k) of K.S.A. 79-3603, and amendments thereto, shall be
considered to have been consummated at the situs of the subscriber billed
therefor. Retail sales involving the leasing of telecommunication or data
processing equipment commonly used in connection with telephone serv-
ices shall be considered to have been consummated at the situs of the
lessee. Retail sales involving the furnishing of services taxable under sub-
sections (p), (q) and (r) of K.S.A. 79-3603, and amendments thereto,
pursuant to a contract under which the sale of such services and the
furnishing of tangible personal property exceeds $10,000 per contract per
contractor shall be considered to have been consummated at the situs
where such services are performed. The director of taxation is hereby
authorized to request and receive from any retailer or from any city or
county levying the tax such information as may be reasonably necessary
to determine the liability of retailers for any county or city sales tax. The
collection of any county sales tax authorized at a county primary or general
election or sales tax levied by a class B city authorized at a city primary
or general election shall commence on the first day of the calendar quar-
ter next following the 30th day after the date of the election authorizing
the levy of such tax. The collection of any sales tax of a county or city
approved at any other election shall commence on the first day of the
calendar quarter next following the 60th 90th day after the date that the
city or county has provided written notice to the director of taxation of
the election authorizing the levy of such tax. For the purposes of this
section, ``county primary election'' shall mean the election held on the
first Tuesday of August in an even-numbered year; ``county general elec-
tion'' shall mean the election held on the Tuesday succeeding the first
Monday in November of an even-numbered year; ``city primary election''
shall mean the election held on the first Tuesday in August of an even-
numbered year or a date four weeks preceding an election on the first
Tuesday in April; and ``city general election'' shall mean the election held
on the Tuesday succeeding the first Monday in November of an even-
numbered year or on the first Tuesday in April.

      A city retailers' sales tax shall not become effective within any area
annexed by a city levying such tax until the first day of the month calendar
quarter next following the 30th 90th day after the date that the governing
body of such city provided the state department of revenue with a cer-
tified copy of the annexation ordinance and a map of the city detailing
the annexed area.

      Whenever any sales tax, imposed by any city or county under the pro-
visions of this act, shall become effective, at any time prior to the time
that revenue derived therefrom may be budgeted for expenditure in such
year, such revenue shall be credited to the funds of the taxing subdivision
or subdivisions and shall be carried forward to the credit of such funds
for the ensuing budget year in the manner provided for carrying forward
balances remaining in such funds at the end of a budget year.

 Sec.  3. K.S.A. 12-191 and K.S.A. 2000 Supp. 12-189 are hereby re-
pealed.
 Sec.  4. 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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