Brief (1)
SB 253 would change two timing issues related to implementing an approved local retail sales tax. The first change would impose a 30-day deadline for a city or county to notify the Director of Taxation following the adoption of a local retail sales tax. Under current law, no deadline exists. The second change would increase the time between notifying the Director and implementing the sales tax from 60 days to 90 days.
The bill would also specify accounting procedures for "excess" local retail sales tax receipts. Historically, special local sales taxes have been implemented to fund specific projects, such as a new county jail or infrastructure upgrades. This bill would require a local government to deposit any receipts received in excess of the amount necessary to pay the cost of a special project into its general fund.
Background
SB 253 was requested by the Department of Revenue as a part of the Streamlined Sales Tax for the 21st Century Project. This project is a multi-state effort to address local government concerns about loss of revenues from remote sales by striving to reduce the burdens on multi-state merchants to comply with various state sales and use tax laws, and by seeking to provide incentives for multi-state merchants to voluntarily collect and remit use tax on sales to customers in states where they may not have any physical presence or legal obligation to collect and remit. SB 253 proposes one of the changes needed to bring Kansas sales and use tax law into compliance with the requirements of the Streamlined Sales Tax Agreement.
The Senate Committee held a hearing on SB 253 at which time representatives of the Department of Revenue and the Kansas Association of Counties testified in favor of the bill.
The Division of the Budget reports that there is no fiscal effect associated with SB 253.
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/fulltext.cgi