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 repeals the existing section of K.S.A. 2024 Supp. 79-3603. Additionally, it modifies the tax rate structure, changing the previously scheduled increases in the tax rate from 17% and 18% to a flat rate of 6.5% for the privilege of engaging in the business of selling tangible personal property at retail or rendering taxable services.

The bill further clarifies that no tax will be imposed on the service of installing or applying tangible personal property in connection with original construction or significant repairs of buildings, residences, or infrastructure such as bridges and highways. It defines terms related to construction and facilities, ensuring that the tax exemption applies specifically to the outlined activities. 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