Brief(1)
S.B. 59 would amend a sales tax exemption enacted in 1998 relating to certain purchases of 501(c)(3) religious organizations to clarify that certain indirect purchases made on behalf of the organizations by contractors would qualify for the exemption, provided such purchases are for constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing, or remodeling the organization's facilities.
Additional language would allow for refunds by making the bill retroactive to July 1, 1998.
Background
The Department of Revenue has indicated that the fiscal note provided for the exemption during the 1998 Session assumed that indirect contractor purchases were included.
Senator Donovan testified that this bill would not expand the fiscal note beyond the level assumed by the 1998 Legislature when the religious exemption originally was enacted.
The Senate Committee amended the bill to make it effective upon publication in the Kansas Register.
The House Committee amended the bill to make it retroactive and provide for refunds.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.