This bill amends K.S.A. 2024 Supp. 79-3606 to establish a sales tax exemption for purchases made by the Johnson County Christmas Bureau Association for its charitable activities, thereby supporting its mission to assist those in need during the holiday season. In addition to this new exemption, the bill repeals the existing section of K.S.A. 2024 Supp. 79-3606, aiming to reduce the tax burden on nonprofit organizations and enhance their operational effectiveness. The bill also introduces various amendments to existing tax exemptions, including requirements for purchasers of farm machinery to provide written certification for its intended use and expanding exemptions for contractors providing meal preparation services for homebound individuals.

Furthermore, the bill clarifies the definitions of "business" and "retail business," outlines conditions for project exemption certificates, and specifies exemptions for machinery and equipment used in integrated production operations. It includes provisions for community-based facilities for individuals with intellectual disabilities and mental health needs, while also establishing guidelines for contractors working with nonprofit organizations. The bill emphasizes accountability by requiring documentation for tax-exempt purchases and outlines penalties for misuse of exemption certificates. Additionally, it allows for refunds of sales tax paid on eligible transactions prior to the bill's enactment, with certain provisions set to expire on specified dates.

Statutes affected:
As introduced: 79-3606