The bill amends K.S.A. 2025 Supp. 79-3606 to introduce a sales tax exemption for manufactured homes, mobile homes, modular homes, and materials and services used by contractors in the construction or remodeling of affordable housing for certain not-for-profit organizations. This initiative aims to alleviate the financial burden of sales tax on these transactions, thereby promoting affordable housing development. Additionally, the bill repeals an existing section of K.S.A. 2025 Supp. 79-3606, indicating a significant restructuring of the sales tax exemption framework to better support not-for-profit organizations involved in affordable housing initiatives.

Moreover, the bill clarifies and expands tax exemptions for various nonprofit organizations, particularly those recognized under section 501(c)(3) of the federal internal revenue code. It outlines the conditions under which these organizations can obtain exemption certificates for construction-related projects and specifies the responsibilities of contractors, including maintaining records for audit purposes. The bill also establishes penalties for the misuse of materials purchased under these exemptions and allows for sales tax refunds on qualifying purchases made prior to the bill's enactment. Overall, the legislation aims to streamline tax exemptions while ensuring compliance and accountability in their use, ultimately enhancing support for nonprofit initiatives and community services.

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