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 existing tax rate of 6.5% is maintained, but the previous provisions for increased rates of 17% and 18% starting January 1, 2023, and January 1, 2025, respectively, are deleted. The bill also clarifies that no tax will be imposed on the service of installing or applying tangible personal property in connection with original construction or significant repairs of buildings, residences, or highways.

Additionally, the bill repeals the existing section K.S.A. 2024 Supp. 79-3603, effectively consolidating the changes into a new framework that emphasizes the tax exemption for specific service installations related to construction and repair. This legislative change aims to alleviate the tax burden on services that contribute to the improvement and maintenance of infrastructure within the state. The act will take effect upon publication in the statute book.

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