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 current tax rate of 6.5% will remain in effect, with a scheduled increase to 18% starting January 1, 2025. Additionally, the bill repeals the existing section of K.S.A. 2024 Supp. 79-3603, which previously included a higher tax rate of 17% effective from January 1, 2023.

The bill also clarifies definitions related to construction and repair services, specifying that no tax will be imposed on services related to original construction or significant renovations of buildings, residences, or infrastructure such as bridges and highways. This change aims to support the construction industry by reducing the tax burden on essential services that contribute to the improvement and maintenance of public and private facilities. The act will take effect upon publication in the statute book.

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