This 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 bill also modifies the tax rate structure, eliminating the previously scheduled increases to 17% and 18% on January 1, 2023, and January 1, 2025, respectively, and maintains a tax rate of 6.5%. Additionally, it introduces a new provision that clarifies the tax exemption for services related to the original construction and repair of buildings, residences, and infrastructure.

Furthermore, the bill repeals the existing section of K.S.A. 2024 Supp. 79-3603, effectively replacing it with the new language that outlines the specific exclusions and definitions related to the taxation of services. This includes detailed definitions of terms such as "original construction," "building," "facility," and "residence," which are essential for determining the applicability of the tax exemptions. The act will take effect upon publication in the statute book.

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