This 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. The bill specifies that no tax will be imposed on such services when they are part of original construction or similar activities. Additionally, it repeals the existing section of K.S.A. 2024 Supp. 79-3603, which previously included a higher tax rate of 17% starting January 1, 2023, and 18% starting January 1, 2025, for the state highway fund.

The bill also clarifies definitions related to construction and facilities, including what constitutes a "building," "facility," and "residence." It aims to provide tax relief for services associated with significant construction and renovation projects, thereby encouraging development and maintenance of infrastructure. The overall effect of the bill is to simplify the tax structure for specific services while promoting economic activity in the construction sector.

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