The bill amends K.S.A. 2024 Supp. 79-3603 to exclude from sales taxation the service of installing or applying tangible personal property related to the reconstruction, restoration, remodeling, renovation, repair, or replacement of buildings or facilities. Specifically, it removes the previous tax rate of 17% starting January 1, 2023, and replaces it with a new tax rate of 6.5% for the privilege of engaging in the business of selling tangible personal property or rendering taxable services. Additionally, the bill introduces a 2% tax within redevelopment districts until the associated bonds are paid off.

Furthermore, the bill clarifies definitions related to construction and repair services, specifying that no tax will be imposed on services connected to original construction or significant renovations of buildings, residences, or infrastructure. It also repeals the existing section of K.S.A. 2024 Supp. 79-3603, effectively consolidating the changes into a more streamlined legal framework. The act is set to take effect upon publication in the statute book.

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