The bill amends K.S.A. 2024 Supp. 79-3606 to establish a sales tax exemption for purchases made by the Friends of Cedar Crest Association, aimed at supporting their efforts in promoting and preserving the Cedar Crest area. It repeals the existing section of the law to incorporate this specific exemption while maintaining various other sales tax exemptions for state and local governments, educational institutions, and nonprofit organizations. The legislation ensures that these exemptions are used for their intended purposes, thereby enhancing support for the Friends of Cedar Crest Association while preserving the broader framework of sales tax exemptions.

Additionally, the bill introduces amendments to clarify and expand existing tax exemptions for nonprofit organizations, particularly those exempt under section 501(c)(3) of the federal internal revenue code. It outlines the procedures for obtaining exemption certificates for contractors working on projects for these organizations, ensuring compliance with tax regulations. The bill specifies that certain purchases, such as construction machinery, will not be exempt, and establishes penalties for misuse of exemption certificates. Furthermore, it includes provisions for refunds of sales tax paid on qualifying purchases made prior to the bill's effective date, facilitating tax relief for charitable organizations while ensuring proper oversight and compliance.

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