The bill amends K.S.A. 2024 Supp. 79-3606 to enhance and clarify the exemptions from sales tax in Kansas, particularly for various public and nonprofit entities. Key insertions include exemptions for tangible personal property or services purchased by hospitals, educational institutions, and other nonprofit organizations, provided these items are used exclusively for their intended purposes. The bill also specifies that certain construction-related purchases made by contractors for public or private institutions will be exempt from sales tax, contingent upon obtaining an exemption certificate from the state. Additionally, it outlines the responsibilities of contractors in maintaining records and the penalties for misuse of exemption certificates.

Furthermore, the bill expands the list of exemptions to include sales related to agricultural and manufacturing activities, such as farm machinery and aquaculture equipment, while clarifying the definitions of essential machinery and equipment for integrated production operations. It also addresses sales tax refunds for exempt purchases made prior to the bill's effective date and establishes specific procedures for contractors working with nonprofit organizations. Notably, the bill includes provisions that restrict exemptions for organizations that perform abortions and outlines penalties for misuse of exemption certificates. Overall, the legislation aims to streamline the tax exemption process, support charitable activities, and ensure compliance with tax regulations.

Statutes affected:
As introduced: 79-3606, 79-32