The 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. Effective 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, streamlining 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 claim relief from tax liability and the penalties for misuse of resale certificates. Overall, the bill seeks to enhance the efficiency of sales tax administration while ensuring compliance with tax obligations.

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