This bill amends K.S.A. 2024 Supp. 79-3603 to exclude from sales taxation the service of installing or applying tangible personal property in connection with the reconstruction, restoration, remodeling, renovation, repair, or replacement of a building or facility. The bill specifically states that no tax shall be imposed on such services related to original construction, including the addition of new rooms or floors, and the restoration of buildings damaged by disasters. Additionally, the bill 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, ensuring that the terms "building," "facility," "residence," and "utility structure" are well-defined for the purposes of taxation. By removing the previous tax rates and establishing these exclusions, the bill aims to promote construction and renovation activities without the burden of additional sales tax, thereby potentially stimulating economic growth in the construction sector. The act will take effect upon publication in the statute book.

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