The bill amends K.S.A. 2024 Supp. 79-3606 to clarify and expand the list of sales tax exemptions in Kansas, particularly for motor-vehicle fuel and other articles on which a sales or excise tax has been paid, with exceptions for cigarettes and electronic cigarettes. It also specifies exemptions for tangible personal property or services purchased by state and local governments, educational institutions, and nonprofit organizations, provided these items are used exclusively for their intended purposes. Additionally, the bill introduces provisions for contractors purchasing materials for construction projects related to public or private nonprofit hospitals and educational institutions, requiring them to obtain exemption certificates and maintain compliance with tax regulations.

Moreover, the bill outlines specific exemptions for various nonprofit organizations, including those involved in health advocacy and community services, while excluding organizations that perform abortions from certain exemptions. It establishes a process for obtaining exemption certificates for contractors working with these organizations and details the responsibilities of both parties regarding the use of materials purchased under these exemptions. The bill also introduces penalties for misuse of exemption certificates and includes provisions for sales tax refunds for exempt sales made prior to the bill's enactment. Overall, the legislation aims to streamline the tax exemption process for nonprofits while ensuring accountability and compliance with tax regulations.

Statutes affected:
As introduced: 79-3606