This bill amends K.S.A. 79-3651 to modify the requirements for exemption certificates related to sales tax, specifically excluding certain custom meat processing services from these requirements. The bill establishes that, starting July 1, 2024, purchasers claiming an exemption under K.S.A. 79-3606(rrrr) will not need to provide an exemption certificate to the seller, and sellers will not be required to maintain such certificates for these transactions. This change aims to simplify the process for both sellers and purchasers while ensuring that sellers are relieved from the burden of proving that the service is not subject to tax, provided they believe the service qualifies for the exemption.

Additionally, the bill repeals the existing section of K.S.A. 79-3651, which indicates a significant overhaul of the current law regarding sales tax exemptions. The amendments also clarify the responsibilities of sellers and purchasers in relation to exemption certificates, including the conditions under which sellers can claim relief from tax liability and the penalties for misuse of exemption certificates. Overall, the bill seeks to streamline the sales tax exemption process while maintaining accountability for improper claims.

Statutes affected:
As introduced: 79-3603, 79-3603d
Version 2: 79-3651