The bill amends K.S.A. 2024 Supp. 79-3606 to introduce a sales tax exemption for purchases made by the Friends of Cedar Crest Association, a nonprofit organization, allowing them to allocate more resources towards their initiatives. The existing section of the law is repealed to incorporate this new exemption while maintaining various other exemptions already outlined in the law, such as those for motor-vehicle fuel, educational institutions, and drugs dispensed by licensed practitioners. The bill emphasizes the importance of these exemptions in supporting public and nonprofit entities and ensures compliance with existing tax regulations.

Additionally, the bill clarifies and expands tax exemptions related to sales of tangible personal property and services for various nonprofit organizations, including those providing food distribution, health services, and support for vulnerable populations. It establishes requirements for obtaining exemption certificates for contractors involved in construction projects for these organizations and outlines penalties for misuse of such certificates. The bill also specifies that certain purchases, such as construction machinery and tools, will not be exempt from sales tax, ensuring compliance with tax regulations while supporting the operational needs of nonprofit organizations.

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