Brief(1)
H.B. 2099, as amended by the House Committee of the Whole,
would provide sales tax exemptions for:
1. sales of repair and replacement parts for prosthetic
and orthopedic appliances which have been prescribed by persons licensed
to practice the healing arts, dentistry, or optometry, as well as services
performed in the installation, maintenance, or repair of such appliances;
2. purchases of nonprofit primary care clinic or health
center, the primary purpose of which is to provide services to medically
underserved individuals and families, as well as certain purchases made
on behalf of such entities by contractors; and
3. sales of certain assistive technology devices (including
wheelchairs, stairway lifts, and hearing aids), as well as sales of repair
and replacement parts for such devices and services performed in the installation,
maintenance, or repair of such property.
Background
The
original bill dealt with the provisions relating to the direct purchases
exemption for certain clinics serving the medically underserved. The House
Committee amended the bill to extend that exemption to indirect purchases
made on behalf of such clinics by contractors and to add the provisions
of H.B. 2132 (relating to exemptions for certain assistive devices). The
House Committee of the Whole amended the bill to clarify that the assistive
devices exemption could apply to purchases of certain environmental control
units; to provide that repair and replacement parts and labor services
for repairing such devices would also be exempt; and to provide a similar
repair and replacement parts and labor services exemption for prosthetic
and orthopedic appliances currently exempt pursuant to K.S.A. 1998 Supp.
79-3606 (r).
The Department of Revenue
has indicated that the House Committee of the Whole would reduce receipts
as follows:
| ($ in millions) | |||
| Total
|
SGF | SHF | |
| FY 2000 | ($1.333) | ($1.265) | ($0.068) |
| FY 2001 | ($1.512) | ($1.435) | ($0.077) |
| FY 2002 | ($1.573) | ($1.493) | ($0.080) |
| FY 2003 | ($1.636) | ($1.552) | ($0.083) |
| FY 2004 | ($1.701) | ($1.614) | ($0.087) |