The bill amends K.S.A. 2024 Supp. 79-3606 to clarify and expand the list of sales tax exemptions in Kansas, maintaining existing exemptions for motor-vehicle fuel, tangible personal property purchased by state entities and educational institutions, and sales related to nonprofit hospitals. It introduces new provisions for farm machinery and aquaculture equipment, requiring purchasers to certify in writing that these items will be used solely for farming, ranching, or aquaculture production. The bill also expands exemptions to include sales of tangible personal property for contractors providing meal preparation for homebound elderly and disabled individuals, as well as various utilities and services for residential and agricultural use.

Additionally, the bill specifies exemptions for machinery and equipment used in integrated production operations, clarifying that items used for nonproduction purposes do not qualify for exemption. It outlines the responsibilities of contractors working with nonprofit organizations, requiring them to obtain exemption certificates and maintain records for audit purposes. The bill also establishes penalties for misuse of exemption certificates and allows for refunds of sales tax paid on exempt transactions occurring between July 1, 2005, and the bill's effective date. Overall, the amendments aim to streamline the tax exemption process while ensuring compliance and accountability among organizations benefiting from these exemptions.

Statutes affected:
As introduced: 79-3606