The bill amends K.S.A. 2024 Supp. 79-3603 to discontinue the imposition of sales tax on certain cable services, specifically removing the taxation on community antennae and television services. The new legal language specifies that the gross receipts from cable and other subscriber radio and television services will no longer be taxed, except for those services subject to the franchise fee outlined in federal law (47 U.S.C. 542). Additionally, the bill repeals the existing section of K.S.A. 2024 Supp. 79-3603, which previously included a higher tax rate for certain services.

The bill also makes adjustments to the overall sales tax structure, maintaining a base tax rate of 6.5% for the sale of tangible personal property and various services while eliminating the previously scheduled increases in tax rates that were set to take effect in 2023 and 2025. The changes aim to simplify the tax code and provide relief to consumers by removing the tax burden on specific cable services, thereby promoting access to these services without additional financial constraints.

Statutes affected:
As introduced: 79-3603, 79-3603d
As Amended by House Committee: 79-3603, 79-3603d