The bill amends K.S.A. 2024 Supp. 79-3606 to introduce a sales tax exemption for purchases made by Kansas Legal Services, Inc., allowing the organization to operate without incurring sales tax, which supports its mission to assist low-income individuals in Kansas. It also repeals the existing section of K.S.A. 79-3606, indicating a comprehensive revision of the previous sales tax exemption provisions. In addition to this new exemption, the bill maintains existing exemptions for various entities, including state agencies and nonprofit organizations, while clarifying the conditions under which these exemptions apply.

Furthermore, the bill outlines specific amendments to existing tax exemptions for sales of tangible personal property and services, particularly for nonprofit organizations exempt from federal income taxation under section 501(c)(3). It establishes that certain purchases, such as construction machinery and tools, will not be exempt from sales tax, and mandates that contractors obtain exemption certificates for projects involving these organizations. The bill also includes provisions for sales tax refunds for qualifying purchases made prior to its enactment, ensuring that organizations can recover taxes that would have been exempt had the purchases occurred after the bill's effective date. Overall, the legislation aims to streamline tax exemptions and support various sectors, including legal services, healthcare, and community services.

Statutes affected:
As introduced: 79-3606