This bill amends K.S.A. 79-3651 to modify the requirements surrounding exemption certificates for 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, relieving sellers from the burden of proving that the service is not subject to tax if they believe it qualifies for the exemption.

Additionally, the bill repeals the existing section of K.S.A. 79-3651, which indicates a significant shift in the legal framework governing sales tax exemptions. The amendments also clarify the responsibilities of sellers and purchasers regarding exemption certificates, including the conditions under which sellers can be relieved from tax liability and the penalties for misuse of exemption certificates. Overall, the bill seeks to streamline the sales tax exemption process while ensuring compliance and accountability among sellers and purchasers.

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