SESSION OF 2020
SUPPLEMENTAL NOTE ON HOUSE SUBSTITUTE FOR
SENATE BILL NO. 266
As Recommended by House Committee on
Taxation

Brief*
House Sub. for SB 266 would mandate the collection
and remittance of sales and compensating use tax by most
marketplace facilitators beginning July 1, 2020. Such entities
with annual gross receipts from sales sourced into Kansas in
excess of $100,000 would be subject to the mandate, which
also would apply to out-of-state retailers with annual receipts
from sales sourced into Kansas in excess of $100,000.
The bill would generally define “marketplace facilitators”
to include entities that have entered into agreements with
remote sellers to process payments; provide delivery,
fulfillment or storage services; list products for sale; set
prices; take orders; conduct certain advertising or promotion;
or provide customer service.
The bill further would clarify that, in addition to state and
local sales and use tax, marketplace facilitators also would be
responsible for collecting and remitting certain prepaid
wireless 911 fees and local transient guest taxes.
The Department of Revenue (KDOR) would be
authorized to require marketplace facilitators to provide any
information necessary to assure implementation of the bill’s
provisions, including the documentation of sales.
The Secretary of Revenue would be required to adopt
any rules and regulations deemed necessary.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Background
SB 266, as introduced, dealt with the qualifications of
county and district appraisers and members of the State
Board of Tax Appeals and was introduced by the Senate
Committee on Assessment and Taxation at the request of
Senator Alley.
In the Senate Committee hearing, representatives of the
Kansas Policy Institute and the Kansas Chamber of
Commerce testified as proponents. Written-only testimony in
support of the bill was provided by the Kansas Association of
Realtors and the Kansas Cooperative Council.
Representatives of the Kansas Association of Counties and
the Kansas County Appraisers Association testified as
opponents. A representative of the Property Valuation
Division, KDOR, provided neutral testimony on the bill.
The Senate Committee on Assessment and Taxation
amended the bill to change to July 1, 2021, the date upon
which appraisal courses necessary to qualify for the
designation of registered mass appraiser and all continuing
education courses required to retain such designation be
approved by the Kansas Real Estate Appraisal Board.
The House Committee on Taxation on May 14, 2020,
voted to remove the bill’s original provisions, insert the
language relating to collection of sales and use tax by
marketplace facilitators, and recommend a substitute bill be
created.
In the House Committee hearing, a representative of the
KDOR stated the substitute bill would be expected to
increase overall compensating use tax receipts for FY 2021
by $19.4 million. Of this amount, $16.2 million would be an
increase in State General Fund receipts, and $3.2 million
would be an increase in State Highway Fund receipts. Local
compensating use taxes also would be expected to increase,
although an estimate of that amount was not immediately

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available. The fiscal note prepared for the bill as introduced
does not apply to the substitute bill.
Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2021 Governor’s Budget Report.


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Statutes affected:
As introduced: 19-430, 19-432, 58-4105, 74-2433
As Amended by Senate Committee: 19-430, 19-432, 58-4105, 74-2433
Version 3: 79-3702