The bill amends K.S.A. 2024 Supp. 79-3606 to introduce a sales tax exemption specifically for purchases made by bowling centers or bowling alleys, aiming to alleviate financial burdens on the bowling industry. It repeals the existing section of the law, indicating a significant shift in the approach to sales tax exemptions. Additionally, the bill maintains various existing exemptions for sales of tangible personal property and services for state entities, educational institutions, and hospitals, while also expanding the list of exemptions to include purchases related to meal preparation for homebound individuals and utilities for residential and agricultural use.

Moreover, the bill clarifies the exemption status of certain purchases made by nonprofit organizations, specifying that construction machinery and tools used by charitable organizations are not exempt from sales tax unless proper exemption certificates are obtained. It establishes penalties for misuse of exemption certificates and outlines the responsibilities of contractors regarding materials purchased under these exemptions. The legislation aims to streamline tax exemptions for various sectors, enhance support for nonprofit organizations, and ensure compliance with tax regulations, while also providing provisions for sales tax refunds on transactions that would have been exempt under the new law.

Statutes affected:
As introduced: 79-3606
As Amended by Senate Committee: 79-3606