The bill amends the Kansas retailers' sales tax act by redefining "alcoholic beverages" to include those with 0.5% or more alcohol by volume, raising the previous threshold from 0.05%. It introduces exemptions for specific services related to communication services and purchases made by the Kansas fairgrounds foundation. The bill also clarifies various sales tax-related definitions, such as "agent," "agreement," and "retailer," while repealing existing sections of K.S.A. 2024 Supp. 79-3602 to streamline the sales tax framework in Kansas. Additionally, it specifies that delivery charges will be excluded from the sales price if separately stated, effective July 1, 2023.

Moreover, the bill outlines exemptions for sales tax applicable to nonprofit organizations, educational institutions, and government entities, detailing the process for contractors to obtain exemption certificates for tax-exempt purchases. It mandates that contractors retain invoices for five years and face penalties for misuse of exemption certificates. The bill also establishes specific exemptions for organizations involved in health and community services, including those focused on diseases and developmental disabilities, while defining eligible organizations and their purposes. Notably, it includes provisions for sales tax refunds for transactions that would have been exempt had they occurred after the bill's effective date, with certain exemptions set to expire in 2029 and 2030.

Statutes affected:
As introduced: 79-3602, 79-3606, 79-32