The bill amends K.S.A. 2025 Supp. 79-3606 to introduce a sales tax exemption specifically for purchases made by O'Connell Children's Shelter, Inc., as part of a broader effort to support nonprofit organizations. This amendment replaces the existing section of the law, which outlines various sales tax exemptions for entities such as educational institutions and hospitals. The bill clarifies the conditions under which these exemptions apply, ensuring they are utilized for their intended purposes, thereby alleviating some financial burdens on organizations like O'Connell Children's Shelter.

In addition to the new exemption, the bill expands existing tax exemptions for various nonprofit organizations and specifies the requirements for contractors working on projects for these entities. It mandates that contractors obtain exemption certificates and maintain records for audit purposes, with penalties for misuse of materials purchased under these exemptions. The bill also includes provisions for sales tax refunds for qualifying purchases made prior to its enactment and sets expiration dates for certain exemptions, ensuring compliance and accountability while facilitating the operations of nonprofit organizations.

Statutes affected:
As introduced: 79-3606, 79-3615