The bill amends K.S.A. 2024 Supp. 79-3603 to exclude from sales taxation the service of installing or applying tangible personal property specifically for the purposes of reconstruction, restoration, remodeling, renovation, repair, or replacement of buildings or facilities. The new legal language clarifies that no tax will be imposed on these services when they are related to original construction or significant repairs of structures, including residences and infrastructure like bridges and highways. Additionally, the bill repeals the existing section of K.S.A. 2024 Supp. 79-3603, which indicates a significant change in the sales tax framework regarding these services.

Furthermore, the bill modifies the tax rate structure, maintaining a base tax rate of 6.5% while eliminating a previously scheduled increase to 17% and 18% in subsequent years. The revenue generated from the tax will continue to support the state highway fund and related purposes. The bill aims to provide clarity and relief for contractors and service providers involved in construction and repair work, potentially stimulating economic activity in the construction sector by reducing the tax burden associated with these services.

Statutes affected:
As introduced: 79-3603, 79-3603d