HB 2081 — Substitute for HB 2081 by Committee on Taxation - Providing a sales tax exemption for community pharmacies serving medically underserved individuals and families.

Session of 20252026 Substitute for HOUSE BILLNo.BILL No.

2081 By Committee on Taxation Requested2-12 by Representative Kessler 1-23 AN ACT relating to taxation;

20242025 Supp.

20242025 Supp.

or (2) such political subdivision is engaged or proposes to HB 2081 2 engage in the business of furnishing gas, electricity or heat to others and HB 2081 2 such items of personal property or service are used or proposed to be used in such business;

Gifts shall not mean funds used for the HB 2081 3 purpose of constructing, equipping, reconstructing, repairing, enlarging, HB 2081 3 furnishing or remodeling facilities that are to be leased to the donor.

Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is HB 2081 4 issued without the payment of the sales or compensating tax otherwise HB 2081 4 imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A.

(g) sales of aircraft including remanufactured and modified aircraft sold to persons using directly or through an authorized agent such aircraft as certified or licensed carriers of persons or property in interstate or foreign commerce under authority of the laws of the United States or any foreign government or sold to any foreign government or agency or HB 2081 5 instrumentality of such foreign government and all sales of aircraft for use HB 2081 5 outside of the United States and sales of aircraft repair, modification and replacement parts and sales of services employed in the remanufacture, modification and repair of aircraft;

(o) all sales of animals, fowl and aquatic plants and animals, the HB 2081 6 primary purpose of which is use in agriculture or aquaculture, as defined in HB 2081 6 K.S.A.

82a-2101, and amendments thereto, HB 2081 7 all sales of tangible personal property or services purchased directly or HB 2081 7 indirectly by a groundwater management district organized or operating under the authority of K.S.A.

(v) all sales of tangible personal property to any contractor for use in preparing meals for delivery to homebound elderly persons over 60 years of age and to homebound disabled persons or to be served at a group- sitting at a location outside of the home to otherwise homebound elderly persons over 60 years of age and to otherwise homebound disabled HB 2081 8 persons, as all or part of any food service project funded in whole or in HB 2081 8 part by government or as part of a private nonprofit food service project available to all such elderly or disabled persons residing within an area of service designated by the private nonprofit organization, and all sales of tangible personal property for use in preparing meals for consumption by indigent or homeless individuals whether or not such meals are consumed at a place designated for such purpose, and all sales of food products by or on behalf of any such contractor or organization for any such purpose;

79-201b, Second through Sixth.Sixth.As used in this paragraph, "severing" means the same as defined in K.S.A.

As used in this paragraph, "severing" means the same as defined in K.S.A.

(cc) all sales of tangible personal property or services purchased prior to January 1, 2012, except as otherwise provided, for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a HB 2081 9 business or retail business that meets the requirements established in HB 2081 9 K.S.A.

HB 2081 10 (ee) all sales of lottery tickets and shares made as part of a lottery HB 2081 10 operated by the state of Kansas;

This exemption shall not apply to tangible personal property customarily used for human habitation HB 2081 11 purposes;

HB 2081 11 (kk) (1) (A) all sales of machinery and equipment that are used in this state as an integral or essential part of an integrated production operation by a manufacturing or processing plant or facility;

(i) Industrial manufacturing or processing operations include, by way of illustration but not of limitation, the fabrication of automobiles, airplanes, machinery or transportation equipment, the fabrication of metal, plastic, wood or paper products, electricity power generation, water treatment, petroleum refining, chemical production, HB 2081 12 wholesale bottling, newspaper printing, ready mixed concrete production, HB 2081 12 and the remanufacturing of used parts for wholesale or retail sale.

HB 2081 13 (D) guide, control or direct the movement of property undergoing HB 2081 13 manufacturing or processing;

(C) portable plants for aggregate concrete, bulk cement and asphalt including cement mixing drums to be attached to a motor HB 2081 14 vehicle;

(D) industrial fixtures, devices, support facilities and special HB 2081 14 foundations necessary for manufacturing and production operations, and materials and other tangible personal property sold for the purpose of fabricating such fixtures, devices, facilities and foundations.

or (J) employee apparel, except safety and protective apparel that is HB 2081 15 purchased by an employer and furnished gratuitously to employees who HB 2081 15 are involved in production or research activities.

(rr) all sales of tangible personal property that will admit the purchaser thereof to any annual event sponsored by a nonprofit organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, except that for taxable years commencing after December 31, 2013, this subsection HB 2081 16 shall not apply to any sales of such tangible personal property purchased HB 2081 16 by a nonprofit organization which performs any abortion, as defined in K.S.A.

HB 2081 17 (7) the Kansas chapters of the Parkinson's disease association for the HB 2081 17 purpose of eliminating Parkinson's disease through medical research and public and professional education related to such disease;

(19) the international association of lions clubs for the purpose of HB 2081 18 creating and fostering a spirit of understanding among all people for HB 2081 18 humanitarian needs by providing voluntary services through community involvement and international cooperation;

The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the HB 2081 19 number of such certificate.

Upon completion of the project the contractor HB 2081 19 shall furnish to the nonprofit zoo concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection.

(aaa) all sales of tangible personal property and services purchased by a religious organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, and used exclusively for religious purposes, and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such organization that would be exempt from taxation under the provisions of this section if purchased HB 2081 20 directly by such organization.

Nothing in this subsection shall be deemed HB 2081 20 to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such organization.

If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project reported andath paid by such contractor to the director of taxation not later than the 20 day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such organization concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees.

All refunds shall be paid from the sales tax refund fund upon warrants of the director of HB 2081 21 accounts and reports pursuant to vouchers approved by the director or the HB 2081 21 director's designee;

(ccc) (1) on and after July 1, 1999,1999as as provided by paragraph (3), all sales of tangible personal property and services purchased by a community pharmacy, a primary care clinic or health center the primary purpose of which is to provide services to medically underserved individuals and families, and that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code, and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such community pharmacy, clinic or center that would be exempt from taxation under the provisions of this section if purchased directly by such community pharmacy, clinic or center, except that for taxable years commencing after December 31, 2013, this subsection shall not apply to any sales of such tangible personal property and services purchased by a primary care clinic or health center which that performs any abortion, as defined in K.S.A.

65-6701,65- 6701, and amendments thereto, or a community pharmacy that dispenses a prescription drug intended to be used for the purpose of causing an abortion, as defined in K.S.A.

Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any such community pharmacy, clinic or center.

When any such community pharmacy, clinic or center shall contract for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project.

Upon completion of the project the contractor shall furnish to such community pharmacy, clinic or center concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection.

If any materials purchased under such a certificate are HB 2081 22 found not to have HB 2081 22 been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials that will not be so incorporated in the building or other project not reported and paid by such contractor to the director of taxation not later than the 20 day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such community pharmacy, clinic or center concerned shall be liable for tax not paid on all such materials purchased for the project, and upon payment thereof it such community pharmacy, clinic or center may recover the same from the contractor together with reasonable attorney fees.

79-3615(h), and amendments thereto.thereto;

(2) For purposes of this subsection, "community pharmacy" or "pharmacy" means a retail pharmacy engaged in the dispensing of prescriptions and that may also provide other healthcare products or services.

(3) The provisions of paragraph (1) shall apply to a community pharmacy on and after July 1, 2025;2026;