SB 303 — House Substitute for SB 303 by Committee on Taxation - Decreasing the rate of ad valorem tax imposed by a school district, discontinuing certain sales tax exemptions, imposing sales tax on certain sales of lottery tickets, imposing an excise tax on all sports wagers as a rate of 2% of the amount wagered, creating the property tax relief fund and providing for transfers therefrom to the state school district finance fund and creating the sports wagering privilege tax refund fund.

If any witness fails or refuses to appear at the request of the director or refuse access to books, records and files, the district court of the proper county or the judge thereof, on application of the director, shall compel obedience by proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued from such court or a refusal to testify therein.

The provisions of K.S.A.

75-5133, 79- 3610, 79-3611, 79-3612, 79-3613, 79-3615 and 79-3617, and amendments thereto, relating to the assessment, collection, appeal and administration of the retailers' sales tax, insofar as practicable, shall have full force and effect with respect to the taxes, interest, penalties and fines imposed by this section.

Sec.

4. K.S.A.

12-18772-5142 is hereby amended to read as follows:

12-187.72-5142.

(a) NoThe cityboard shall impose a retailers' sales tax under the provisions of thiseducation act without the governing body of sucheach cityschool havingdistrict firstshall submittedlevy suchan propositionad tovalorem andtax havingupon received the approvaltaxable oftangible aproperty majority of the electorsschool ofdistrict in the cityschool votingyears thereonspecified atin ansubsection election(b) calledfor andthe heldpurpose therefor.of:

The(1) Financing governingthat bodyportion of any city may submit the questionschool ofdistrict's imposinggeneral afund retailers'budget salesthat taxis andnot thefinanced governingfrom bodyany shallother besource requiredprovided to submit the question upon submission of a petition signed by electorslaw; of such city equal in number to not less than 10% of the electors of such city.

(b)(2) paying (1) Thea boardportion of county commissioners of any county may submit the questioncosts of imposingoperating a countywide retailers' sales tax to the electors at an election called and heldmaintaining thereon,public andschools any such board shall be required to submit the question upon submission of a petition signed by electors of such county equal in numberpartial tofulfillment not less than 10% of the electorsconstitutional ofobligation such county who voted at the last preceding general election for the office of secretary of state, or upon receiving resolutions requesting such an election passed by not less than /3of the membershiplegislature ofto thefinance governing body of each of one or more cities within such county that contains a population of not less than 25% of the entireeducational populationinterests of t2e county, or upon receiving resolutions requesting such an election passed by3/ of the membershipstate; of the governing body of each of one or more taxing subdivisions within such county that levy not less than 25% of the property taxes levied by all SB 303—Am.

byand SC(3) with 2respect taxingto subdivisionsany withinredevelopment theschool county.district established prior to July 1, 1997, pursuant to K.S.A.

(2) The12-1771, board of county commissioners of Anderson, Atchison, Barton, Brown, Butler, Chase, Cowley, Cherokee, Crawford, Finney, Ford, Franklin, Grant, Jefferson, Linn, Lyon, Marion, Miami, Montgomery, Neosho, Osage, Ottawa, Reno, Riley, Saline, Seward, Sumner, Thomas, Wabaunsee, Wilson and Wyandotteamendments countiesthereto, maypaying submita theportion question of imposingthe aprincipal countywide retailers' sales tax and pledginginterest theon revenuebonds receivedissued therefromby forcities theunder purposeauthority of financingK.S.A. the construction or remodeling of a courthouse, jail, law enforcement center facility or other county administrative facility, to the electors at an election called and held thereon.

The12-1774, taxand imposedamendments pursuantthereto, tofor this paragraph shall expire when sales tax sufficient to pay all of the costs incurred in the financing of suchredevelopment facilityprojects hasupon beenproperty collectedlocated bywithin retailers as determined by the secretaryschool ofdistrict. revenue.

Nothing(b) The intax thisrequired paragraphunder subsection (a) shall be construedlevied toat allowa the rate of tax20 imposedmills byin Butler,the Chase,school Cowley,years Lyon,2025-2026 Montgomery,and Neosho,2026-2027 Riley,unless Sumnerotherwise ormodified Wilson county pursuant to thissection paragraph2, toand exceedamendments orthereto. be imposed at any rate other than the rates prescribed in K.S.A.

12-189,(c) The andproceeds amendmentsfrom thereto.the tax levied by a district under authority of this section, except the proceeds of such tax levied for the purpose described in subsection (a)(3), shall be remitted to the state treasurer in accordance with the provisions of K.S.A.

(3)75-4215, (A) Except as otherwise provided in this paragraph, the result of the election held on November 8, 1988, on the question submitted by the board of county commissioners of Jackson county for the purpose of increasing its countywide retailers' sales tax by 1% is hereby declared valid, and theamendments revenuethereto. received therefrom by the county shall be expended solely for the purpose of financing the Banner Creek reservoir project.

TheUpon taxreceipt imposedof pursuanteach tosuch thisremittance, paragraphthe shallstate taketreasurer effectshall ondeposit the effectiveentire dateamount ofin thisthe actstate andtreasury shallto expirethe notcredit laterof thanthe fivestate yearsschool afterdistrict suchfinance date.fund.

(B) The(d) No resultschool ofdistrict the election held on November 8, 1994, on the question submitted by the board of county commissioners of Ottawa county for the purpose of increasing its countywide retailers' sales tax by 1% is hereby declared valid, and the revenue received therefrom by the county shall beproceed expendedunder solelyK.S.A. for the purpose of financing the erection, construction and furnishing of a law enforcement center and jail facility.

(C) Except79-1964, as79-1964a otherwiseor provided79-1964b, in this paragraph, the result of the election held on November 2, 2004, on the question submitted by the board of county commissioners of Sedgwick county for the purpose of increasing its countywide retailers' sales tax by 1% is hereby declared valid, and theamendments revenuethereto. received therefrom by the county shall be used only to pay the costs of:

(i) Acquisition of a site and constructing and equipping thereon a new regional events center, associated parking and infrastructure improvements and related appurtenances thereto, to be located in the downtown area of the city of Wichita, Kansas, (the "downtown arena");

(ii) design for the Kansas coliseum complex and construction of improvements to the pavilions;

and (iii) establishing an operating and SB 303—Am.

by SC 3 maintenance reserve for the downtown arena and the Kansas coliseum complex.

The tax imposed pursuant to this paragraph shall commence on July 1, 2005, and shall terminate not later than 30 months after the commencement thereof.

(D) Except as otherwise provided in this paragraph, the result of the election held on August 5, 2008, on the question submitted by the board of county commissioners of Lyon county for the purpose of increasing its countywide retailers' sales tax by 1% is hereby declared valid, and the revenue received therefrom by the county shall be expended for the purposes of ad valorem tax reduction and capital outlay.

The tax imposed pursuant to this paragraph shall terminate not later than five years after the commencement thereof.

(E) Except as otherwise provided in this paragraph, the result of the election held on August 5, 2008, on the question submitted by the board of county commissioners of Rawlins county for the purpose of increasing its countywide retailers' sales tax by 0.75% is hereby declared valid, and the revenue received therefrom by the county shall be expended for the purposes of financing the costs of a swimming pool.

The tax imposed pursuant to this paragraph shall terminate not later than 15 years after the commencement thereof or upon payment of all costs authorized pursuant to this paragraph in the financing of such project.

(F) The result of the election held on December 1, 2009, on the question submitted by the board of county commissioners of Chautauqua county for the purpose of increasing its countywide retailers' sales tax by 1% is hereby declared valid, and the revenue received from such tax by the county shall be expended for the purposes of financing the costs of constructing, furnishing and equipping a county jail and law enforcement center and necessary improvements appurtenant to such jail and law enforcement center.

Any tax imposed pursuant to authority granted in this paragraph shall terminate upon payment of all costs authorized pursuant to this paragraph incurred in the financing of the project described in this paragraph.

(G) The result of the election held on April 7, 2015, on the question submitted by the board of county commissioners of Bourbon county for the purpose of increasing its retailers' sales tax by 0.4% is hereby declared valid, and the revenue received therefrom by the county shall be expended solely for the purpose of financing the costs of constructing, furnishing and operating a courthouse, law enforcement center or jail facility improvements.

Any tax imposed pursuant to authority granted in this paragraph shall terminate upon payment of all costs authorized pursuant to this paragraph incurred in the financing of the project described in this paragraph.

(H) The result of the election held on November 7, 2017, on the SB 303—Am.

by SC 4 question submitted by the board of county commissioners of Finney county for the purpose of increasing its countywide retailers' sales tax by 0.3% is hereby declared valid, and the revenues of such tax shall be used by Finney county and the city of Garden City, Kansas, as agreed in an interlocal cooperation agreement between the city and county, and as detailed in the ballot question approved by voters.

The tax imposed pursuant to this subparagraph shall be levied for a period of 15 years from the date it is first levied.

(I) The result of the election held on November 3, 2020, on the question submitted by the board of county commissioners of Cherokee county for the purpose of increasing its retailers' sales tax by 0.5% is hereby declared valid, and the revenue received therefrom by the county shall be expended solely for the purpose of financing:

(i) Ambulance services within the county;

(ii) renovations and maintenance of county buildings and facilities;

or (iii) any other projects within the county deemed necessary by the governing body of Cherokee county.

The tax imposed pursuant to this subparagraph shall terminate prior to January 1, 2033.

(4) The board of county commissioners of Finney and Ford counties may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purpose of financing all or any portion of the cost to be paid by Finney or Ford county for construction of highway projects identified as system enhancements under the provisions of K.S.A.

68-2314(b)(5), and amendments thereto, to the electors at an election called and held thereon.

Such election shall be called and held in the manner provided by the general bond law.

The tax imposed pursuant to this paragraph shall expire upon the payment of all costs authorized pursuant to this paragraph in the financing of such highway projects.

Nothing in this paragraph shall be construed to allow the rate of tax imposed by Finney or Ford county pursuant to this paragraph to exceed the maximum rate prescribed in K.S.A.

12-189, and amendments thereto.

If any funds remain upon the payment of all costs authorized pursuant to this paragraph in the financing of such highway projects in Finney county, the state treasurer shall remit such funds to the treasurer of Finney county and upon receipt of such moneys shall be deposited to the credit of the county road and bridge fund.

If any funds remain upon the payment of all costs authorized pursuant to this paragraph in the financing of such highway projects in Ford county, the state treasurer shall remit such funds to the treasurer of Ford county and upon receipt of such moneys shall be deposited to the credit of the county road and bridge fund.

(5) The board of county commissioners of any county may submit the question of imposing a retailers' sales tax at the rate of 0.25%, 0.5%, SB 303—Am.

by SC 5 0.75% or 1% and pledging the revenue received therefrom for the purpose of financing the provision of health care services, as enumerated in the question, to the electors at an election called and held thereon.

Whenever any county imposes a tax pursuant to this paragraph, any tax imposed pursuant to subsection (a)(2) by any city located in such county shall expire upon the effective date of the imposition of the countywide tax, and thereafter the state treasurer shall remit to each such city that portion of the countywide tax revenue collected by retailers within such city as certified by the director of taxation.

The tax imposed pursuant to this paragraph shall be deemed to be in addition to the rate limitations prescribed in K.S.A.

12-189, and amendments thereto.

As used in this paragraph, health care services shall include, but not be limited to, the following:

Local health departments, city or county hospitals, city or county nursing homes, preventive health care services including immunizations, prenatal care and the postponement of entry into nursing homes by home care services, mental health services, indigent health care, physician or health care worker recruitment, health education, emergency medical services, rural health clinics, integration of health care services, home health services and rural health networks.

(6) The board of county commissioners of Allen county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of operation and construction of a solid waste disposal area or the modification of an existing landfill to comply with federal regulations to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon the payment of all costs incurred in the financing of the project undertaken.

Nothing in this paragraph shall be construed to allow the rate of tax imposed by Allen county pursuant to this paragraph to exceed or be imposed at any rate other than the rates prescribed in K.S.A.

12-189, and amendments thereto.

(7) (A) The board of county commissioners of Clay and Miami county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.50% in the case of Clay county and at a rate of up to 1% in the case of Miami county, and pledging the revenue received therefrom for the purpose of financing the costs of roadway construction and improvement to the electors at an election called and held thereon.

Except as otherwise provided, the tax imposed pursuant to this subparagraph shall expire after five years from the date such tax is first collected.

The result of the election held on November 2, 2004, on the question submitted by the board of county commissioners of Miami county for the purpose of extending for an additional five-year period the countywide retailers' sales tax imposed pursuant to this subsection in Miami county is hereby declared valid.

The countywide retailers' sales tax imposed pursuant to this SB 303—Am.

by SC 6 subsection in Clay and Miami county may be extended or reenacted for additional five-year periods upon the board of county commissioners of Clay and Miami county submitting such question to the electors at an election called and held thereon for each additional five-year period as provided by law.

(B) The board of county commissioners of Dickinson county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of roadway construction and improvement to the electors at an election called and held thereon.

The tax imposed pursuant to this subparagraph shall expire after 10 years from the date such tax is first collected.

(8) The board of county commissioners of Sherman county may submit the question of imposing a countywide retailers' sales tax at the rate of 1% and pledging the revenue received therefrom for the purpose of financing the costs of street and roadway improvements to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized pursuant to this paragraph in the financing of such project.

(9) (A) The board of county commissioners of Cowley, Crawford and Woodson county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% in the case of Crawford and Woodson county and at a rate of up to 0.25%, in the case of Cowley county and pledging the revenue received therefrom for the purpose of financing economic development initiatives or public infrastructure projects.

The tax imposed pursuant to this subparagraph shall expire after five years from the date such tax is first collected.

(B) The board of county commissioners of Russell county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing economic development initiatives or public infrastructure projects.

The tax imposed pursuant to this subparagraph shall expire after 10 years from the date such tax is first collected.

(10) The board of county commissioners of Franklin county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purpose of financing recreational facilities.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized in financing such facilities.

(11) The board of county commissioners of Douglas county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purposes of conservation, access and management of open space;

preservation of SB 303—Am.

by SC 7 cultural heritage;

and economic development projects and activities.

(12) The board of county commissioners of Shawnee county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom to the city of Topeka for the purpose of financing the costs of rebuilding the Topeka boulevard bridge and other public infrastructure improvements associated with such project to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized in financing such project.

(13) The board of county commissioners of Jackson county may submit the question of imposing a countywide retailers' sales tax at a rate of 0.4% and pledging the revenue received therefrom for the purpose of financing public infrastructure projects to the electors at an election called and held thereon.

Such tax shall expire after seven years from the date such tax is first collected.

(14) The board of county commissioners of Neosho county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of roadway construction and improvement to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized pursuant to this paragraph in the financing of such project.

(15) The board of county commissioners of Saline county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of construction and operation of an expo center to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after five years from the date such tax is first collected.

(16) The board of county commissioners of Harvey county may submit the question of imposing a countywide retailers' sales tax at the rate of 1.0% and pledging the revenue received therefrom for the purpose of financing the costs of property tax relief, economic development initiatives and public infrastructure improvements to the electors at an election called and held thereon.

(17) The board of county commissioners of Atchison county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purpose of financing the costs of construction and maintenance of sports and recreational facilities to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized in financing such facilities.

(18) The board of county commissioners of Wabaunsee county may SB 303—Am.

by SC 8 submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of bridge and roadway construction and improvement to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after 15 years from the date such tax is first collected.

On and after July 1, 2019, the countywide retailers' sales tax imposed pursuant to this paragraph may be extended or reenacted for one additional period not to exceed 15 years upon the board of county commissioners of Wabaunsee county submitting such question to the electors at an election called and held thereon as provided by law.

For any countywide retailers' sales tax that is extended or reenacted pursuant to this paragraph, such tax shall expire not later than 15 years from the date such tax is first collected.

(19) The board of county commissioners of Jefferson county may submit the question of imposing a countywide retailers' sales tax at the rate of 1% and pledging the revenue received therefrom for the purpose of financing the costs of roadway construction and improvement to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after six years from the date such tax is first collected.

The countywide retailers' sales tax imposed pursuant to this paragraph may be extended or reenacted for additional six-year periods upon the board of county commissioners of Jefferson county submitting such question to the electors at an election called and held thereon for each additional six-year period as provided by law.

(20) The board of county commissioners of Riley county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 1% and pledging the revenue received therefrom for the purpose of financing the costs of bridge and roadway construction and improvement to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after five years from the date such tax is first collected.

(21) The board of county commissioners of Johnson county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purpose of financing the construction and operation costs of public safety projects, including, but not limited to, a jail, detention center, sheriff's resource center, crime lab or other county administrative or operational facility dedicated to public safety, to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after 10 years from the date such tax is first collected.

The countywide retailers' sales tax imposed pursuant to this subsection may be extended or reenacted for additional periods not exceeding 10 years upon the board of county commissioners of Johnson county submitting such question to the SB 303—Am.

by SC 9 electors at an election called and held thereon for each additional ten-year period as provided by law.

(22) The board of county commissioners of Wilson county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 1% and pledging the revenue received therefrom for the purpose of financing the costs of roadway construction and improvements to federal highways, the development of a new industrial park and other public infrastructure improvements to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized pursuant to this paragraph in the financing of such project or projects.

(23) The board of county commissioners of Butler county may submit the question of imposing a countywide retailers' sales tax at the rate of either 0.25%, 0.5%, 0.75% or 1% and pledging the revenue received therefrom for the purpose of financing the costs of public safety capital projects or bridge and roadway construction projects, or both, to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized in financing such projects.

(24) The board of county commissioners of Barton county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of roadway and bridge construction and improvement and infrastructure development and improvement to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after 10 years from the date such tax is first collected.

(25) The board of county commissioners of Jefferson county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purpose of financing the costs of the county's obligation as participating employer to make employer contributions and other required contributions to the Kansas public employees retirement system for eligible employees of the county who are members of the Kansas police and firemen's retirement system, to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized in financing such purpose.

(26) The board of county commissioners of Pottawatomie county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of construction or remodeling of a courthouse, jail, law enforcement center facility or other county administrative facility, or public infrastructure improvements, or both, to SB 303—Am.

by SC 10 the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized in financing such project or projects.

(27) The board of county commissioners of Kingman county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25%, 0.5%, 0.75% or 1% and pledging the revenue received therefrom for the purpose of financing the costs of constructing and furnishing a law enforcement center and jail facility and the costs of roadway and bridge improvements to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire not later than 20 years from the date such tax is first collected.

(28) The board of county commissioners of Edwards county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.375% and pledging the revenue therefrom for the purpose of financing the costs of economic development initiatives to the electors at an election called and held thereon.

(29) The board of county commissioners of Rooks county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue therefrom for the purpose of financing the costs of constructing or remodeling and furnishing a jail facility to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon the payment of all costs authorized in financing such project or projects.

(30) The board of county commissioners of Douglas county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing the construction or remodeling of a courthouse, jail, law enforcement center facility,detention facility or other county administrative facility, specifically including mental health and for the operation thereof.

(31) The board of county commissioners of Bourbon county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 1%, in increments of 0.05%, and pledging the revenue received therefrom for the purpose of financing the costs of constructing, furnishing and operating a courthouse, law enforcement center or jail facility improvements to the electors at an election called and held thereon.

(32) The board of county commissioners of Marion county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of property tax relief, economic development initiatives and the construction of public infrastructure improvements, including buildings, to the electors at an election called and held thereon.

(33) The board of county commissioners of Wilson county may SB 303—Am.

by SC 11 submit the question of imposing a countywide retailers' sales tax at the rate of 0.25%, 0.5%, 0.75% or 1% and pledging the revenue received therefrom for the purpose of supporting emergency medical and ambulance services in the county to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after 10 years from the date such tax is first collected.

The countywide retailers' sales tax imposed pursuant to this paragraph may be extended or reenacted for additional periods not exceeding 10 years per period upon the board of county commissioners of Wilson county submitting such question to the electors at an election called and held thereon for each additional period as provided by law.

This paragraph shall not be construed to cause the expiration, repeal or termination of any existing city retailers' sales tax for health care services as defined in paragraph (5).

(34) The board of county commissioners of Atchison county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 1% and pledging the revenue received for the purpose of joint law enforcement communications and solid waste disposal in Atchison county to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after 10 years from the date such tax is first collected.

(35) The board of county commissioners of Dickinson county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purpose of financing the costs of public safety capital projects to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after five years from the date such tax is first collected.

The countywide retailers' sales tax imposed pursuant to this paragraph may be extended or reenacted for additional five-year periods upon the board of county commissioners of Dickinson county submitting such question to the electors at an election called and held thereon for each additional five-year period as provided by law.

(36) The board of county commissioners of Rawlins county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 1% and pledging the revenue received therefrom for the purpose of financing the costs of construction, remodeling, capital improvements or maintenance of attendance centers or other district facilities of any school district or school districts within the county.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized in financing the costs of attendance centers or other district facilities for U.S.D.

No.

105.

(37) The board of county commissioners of Marshall county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 1% and pledging the revenue therefrom for the purpose of SB 303—Am.

by SC 12 financing the costs of constructing or remodeling and furnishing a jail facility to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon the payment of all costs authorized in financing such project or projects.

(38) The board of county commissioners of Neosho county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of roadway and bridge construction, maintenance and improvement to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after 10 years from the date such tax is first collected.

(39) The board of county commissioners of Pawnee county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 1% and pledging the revenue received therefrom for the purposes of:

(A) Healthcare services for those items authorized pursuant to subsection (b)(5);

and (B) furnishing and equipping county-supported public safety operations deemed necessary by the board of county commissioners of Pawnee county including, but not limited to, the sheriff's department, jail, emergency management and emergency dispatch services.

(40) The board of county commissioners of Seward county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.5% and pledging the revenue received therefrom for the purpose of financing the costs of roadway and bridge construction, maintenance and improvement to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after 10 years from the date such tax is first collected.

The countywide retailers' sales tax imposed pursuant to this paragraph may be extended or reenacted for additional 10- year periods upon the board of county commissioners of Seward county submitting such question to the electors at an election called and held thereon for each additional 10-year period as provided by law.

(41) The board of county commissioners of Jackson county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purpose of supporting hospital services in the county to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after 10 years from the date such tax is first collected.

(42) The board of county commissioners of Labette county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.125% and pledging the revenue received therefrom for the purpose of providing financial support to fire departments located in the county to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire after five years from the SB 303—Am.

by SC 13 date such tax is first collected.

The countywide retailers' sales tax imposed pursuant to this paragraph may be extended or reenacted for additional five-year periods upon the board of county commissioners of Labette county submitting such question to the electors at an election called and held thereon for each additional five-year period as provided by law.

(43) The board of county commissioners of Leavenworth county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.125% or 0.25% and pledging the revenue received therefrom for the purposes of furnishing, equipping, improving and maintaining county-supported emergency management operations to the electors at an election called and held thereon.

(44) The board of county commissioners of Lincoln county may submit the question of imposing a countywide retailers' sales tax at the rate of up to 1% and pledging the revenue received therefrom for the purpose of financing the costs of constructing, improving, equipping, renovating and maintaining county buildings, facilities, roadways and bridges to the electors at an election called and held thereon.

(45) The board of county commissioners of Sheridan county may submit the question of imposing a countywide retailers' sales tax at the rate of 0.25% and pledging the revenue received therefrom for the purpose of financing the costs of constructing a jail and law enforcement center to the electors at an election called and held thereon.

The tax imposed pursuant to this paragraph shall expire upon payment of all costs authorized in financing such project.

(c) The boards of county commissioners of any two or more contiguous counties, upon adoption of a joint resolution by such boards, may submit the question of imposing a retailers' sales tax within such counties to the electors of such counties at an election called and held thereon and such boards of any two or more contiguous counties shall be required to submit such question upon submission of a petition in each of such counties, signed by a number of electors of each of such counties where submitted equal in number to not less than 10% of the electors of each of such counties who voted at the last preceding general election for the office of secretary of state, or upon receiving resolutions requesting such an election passed by not less tha3 / of the membership of the governing body of each of one or more cities within each of such counties that contains a population of not less than 25% of the entire population of each of such counties, or upon receiving resolutions requesting such an election passed by3/ of the membership of the governing body of each of one or more taxing subdivisions within each of such counties that levy not less than 25% of the property taxes levied by all taxing subdivisions within each of such counties.

(d) Notwithstanding any provision of law to the contrary, including SB 303—Am.

by SC 14 subsection (b)(5), any city retailers' sales tax being levied by a city prior to July 1, 2006, shall continue in effect until repealed in the manner provided herein for the adoption and approval of such tax or until repealed by the adoption of an ordinance for such repeal.

Any countywide retailers' sales tax in the amount of 0.5% or 1% in effect on July 1, 1990, shall continue in effect until repealed in the manner provided herein for the adoption and approval of such tax.

(e) Any city or county proposing to adopt a retailers' sales tax shall give notice of its intention to submit such proposition for approval by the electors in the manner required by K.S.A.

10-120, and amendments thereto.

The notices shall state the time of the election and the rate and effective date of the proposed tax.

If a majority of the electors voting thereon at such election fail to approve the proposition, such proposition may be resubmitted under the conditions and in the manner provided in this act for submission of the proposition.

If a majority of the electors voting thereon at such election shall approve the levying of such tax, the governing body of any such city or county shall provide by ordinance or resolution, as the case may be, for the levy of the tax.

Any repeal of such tax or any reduction or increase in the rate thereof, within the limits prescribed by K.S.A.

12-189, and amendments thereto, shall be accomplished in the manner provided herein for the adoption and approval of such tax except that the repeal of any such city retailers' sales tax may be accomplished by the adoption of an ordinance so providing.

(f) The sufficiency of the number of signers of any petition filed under this section shall be determined by the county election officer.

Every election held under this act shall be conducted by the county election officer.

(g) (1) The governing body of the city or county proposing to levy any retailers' sales tax shall specify the purpose or purposes for which the revenue would be used, and a statement generally describing such purpose or purposes shall be included as a part of the ballot proposition.

(2) In addition to the requirements set forth in paragraph (1), the governing body of the county proposing to levy a countywide retailers' sales tax shall include as a part of the ballot proposition whether:

(A) The apportionment formula provided in K.S.A.

12-192, and amendments thereto, will apply to the revenue;

(B) an interlocal agreement was entered whereby the county will retain either all or part of the revenue;

or (C) pursuant to law, the county retains the revenue in its entirety.

2. K.S.A.5. K.S.A.

12-18979-3606 is hereby amended to read as follows:

12-189.79-3606.

The ratefollowing of any city retailers' sales tax shall be fixedexempt infrom incrementsthe oftax 0.05%imposed andby inthis anact: amount not to exceed 2% for general purposes and not to exceed 1% for special purposes, which shall be SB 303—Am.

by(a) All SCsales 15of determinedmotor-vehicle byfuel theor governingother bodyarticles ofupon which a sales H Sub for SB 303 4 or excise tax has been paid, not subject to refund, under the city.laws of this state except cigarettes and electronic cigarettes as defined by K.S.A.

For79- any3301, retailers'and salesamendments taxthereto, imposedincluding byconsumable amaterial city for special purposes, such cityelectronic shallcigarettes, specifycereal themalt purposesbeverages forand whichmalt suchproducts taxas isdefined imposed.by K.S.A.

All79-3817, suchand specialamendments purposethereto, retailers'including saleswort, taxesliquid imposedmalt, bymalt asyrup cityand shallmalt expireextract, afterthat 10is yearsnot fromsubject theto datetaxation suchunder taxthe isprovisions firstof collected.K.S.A.

The79-41a02, rateand ofamendments anythereto, countywidemotor retailers'vehicles salestaxed taxpursuant shall be fixed in an amount not to exceedK.S.A. 1% and shall be fixed in increments of 0.25%, and which amount shall be determined by the board of county commissioners, except that:

(a) The79-5117, boardand ofamendments countythereto, commissionerstires oftaxed Wabaunseepursuant county,to for the purposes of K.S.A.

12-187(b)(2),65-3424d, and amendments thereto, maydrycleaning fixand suchlaundry rateservices attaxed 1.25%;pursuant to K.S.A.

the65-34,150, boardand ofamendments countythereto, commissionersand ofgross Osagereceipts orfrom Renoregulated county,sports forcontests taxed pursuant to the purposesKansas ofprofessional K.S.A.regulated sports act, and amendments thereto;

12-187(b)(2),(b) all sales of tangible personal property or service, including the renting and amendmentsleasing thereto,of maytangible fixpersonal suchproperty, ratepurchased atdirectly 1.25%by the state of Kansas, a political subdivision thereof, other than a school or 1.5%;educational institution, or purchased by a public or private nonprofit hospital, public hospital authority, nonprofit blood, tissue or organ bank or nonprofit integrated community care organization and used exclusively for state, political subdivision, hospital, public hospital authority, nonprofit blood, tissue or organ bank or nonprofit integrated community care organization purposes, except when:

(1) Such state, hospital or public hospital authority is engaged or proposes to engage in any business specifically taxable under the boardprovisions of countythis commissionersact and such items of Cherokee,tangible Crawford,personal Finney,property Ford,or Saline,service Sewardare used or Wyandotteproposed county,to forbe theused purposesin ofsuch K.S.A.business;

12-187(b)(2),or and(2) amendmentssuch thereto,political maysubdivision fixis engaged or proposes to engage in the business of furnishing gas, electricity or heat to others and such rateitems atof 1.5%;personal property or service are used or proposed to be used in such business;

the(c) all boardsales of countytangible commissionerspersonal property or services, including the renting and leasing of Atchisontangible personal property, purchased directly by a public or Thomasprivate county,elementary or secondary school or public or private nonprofit educational institution and used primarily by such school or institution for nonsectarian programs and activities provided or sponsored by such school or institution or in the purposeserection, repair or enlargement of K.S.A.buildings to be used for such purposes.

12-187(b)(2),The andexemption amendmentsherein thereto,provided mayshall fixnot apply to erection, construction, repair, enlargement or equipment of buildings used primarily for human habitation, except that such rateexemption atshall 1.5%apply to the erection, construction, repair, enlargement or 1.75%;equipment of buildings used for human habitation by the cerebral palsy research foundation of Kansas located in Wichita, Kansas, multi community diversified services, incorporated, located in McPherson, Kansas, the Kansas state school for the blind and the Kansas state school for the deaf;

theH boardSub for SB 303 5 (d) all sales of countytangible commissionerspersonal property or services purchased by a contractor for the purpose of Anderson,constructing, Barton,equipping, Jeffersonreconstructing, maintaining, repairing, enlarging, furnishing or Ottawaremodeling county,facilities for any public or private nonprofit hospital or public hospital authority, public or private elementary or secondary school, a public or private nonprofit educational institution, state correctional institution including a privately constructed correctional institution contracted for state use and ownership, that would be exempt from taxation under the purposesprovisions of K.S.A.this act if purchased directly by such hospital or public hospital authority, school, educational institution or a state correctional institution;

12-187(b)(2),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 political subdivision of the state or district described in subsection (s), the total cost of which is paid from funds of such political subdivision or district and amendmentsthat thereto,would maybe fixexempt from taxation under the provisions of this act if purchased directly by such ratepolitical atsubdivision 2%;or district.

theNothing boardin ofthis countysubsection commissionersor ofin Marion county, for the purposesprovisions of K.S.A.

12-187(b)(2),12-3418, and amendments thereto, mayshall fixbe suchdeemed rateto atexempt 2.5%;the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any political subdivision of the state or any such district.

theAs boardused ofin countythis commissionerssubsection, of Franklin, Linn and Miami counties, for the purposes of K.S.A.

12-187(b)(2),12-3418 and 79-3640, and amendments thereto, may"funds fixof such rate at a percentagepolitical thatsubdivision" isshall equalmean togeneral thetax sumrevenues, of the rateproceeds allowed to be imposed by the respective board of countyany commissionersbonds onand Julygifts 1,or 2007,grants-in-aid. plus up to 1.0%;

andGifts shall not mean funds used for the boardpurpose of countyconstructing, commissionersequipping, ofreconstructing, Brownrepairing, enlarging, furnishing or Grantremodeling county,facilities forthat theare purposesto ofbe K.S.A.leased to the donor.

12-When 187(b)(2),any political subdivision of the state, district described in subsection (s), public or private nonprofit hospital or public hospital authority, public or private elementary or secondary school, public or private nonprofit educational institution, state correctional institution including a privately constructed correctional institution contracted for state use and amendmentsownership thereto,shall maycontract fixfor suchthe ratepurpose atof upconstructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to 2%;the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project.

(b) theThe boardcontractor ofshall countyfurnish commissionersthe number of Jacksonsuch county,certificate forto all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the purposessame bearing the number of K.S.A.such certificate.

12-187(b)(3),Upon andcompletion amendmentsof thereto,the mayproject fixthe suchcontractor rateshall atfurnish 2%;to the political subdivision, district described in subsection (s), hospital or public hospital authority, school, educational institution or department of corrections concerned a sworn statement, on a H Sub for SB 303 6 form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection.

(c) theAs boardsan alternative to the foregoing procedure, any such contracting entity may apply to the secretary of countyrevenue commissionersfor agent status for the sole purpose of Finneyissuing and Fordfurnishing counties,project exemption certificates to contractors pursuant to rules and regulations adopted by the secretary establishing conditions and standards for the purposesgranting and maintaining of K.S.A.such status.

12-187(b)(4),All invoices shall be held by the contractor for a period of five years and amendmentsshall thereto,be maysubject fixto suchaudit rateby atthe 0.25%;director of taxation.

(d) theIf boardany 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 and paid by th such contractor to the director of countytaxation commissionersnot later than the 20 day of anythe county,month following the close of the month in which it shall be determined that such materials will not be used for the purposespurpose for which such certificate was issued, the political subdivision, district described in subsection (s), hospital or public hospital authority, school, educational institution or the contractor contracting with the department of K.S.A.corrections for a correctional institution 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.

12-187(b)(5),Any andcontractor amendmentsor thereto,any mayagent, fixemployee suchor ratesubcontractor atthereof, who shall use or otherwise dispose of any materials purchased under such a percentagecertificate for any purpose other than that for which such a certificate is equalissued towithout the sumpayment of the ratesales allowedor tocompensating betax otherwise imposed byupon asuch boardmaterials, ofshall countybe commissionersguilty onof thea effectivemisdemeanor dateand, ofupon thisconviction acttherefor, plusshall 0.25%,be 0.5%,subject 0.75%to orthe 1%,penalties asprovided thefor casein requires;K.S.A.

(e) the79-3615(h), boardand ofamendments countythereto; commissioners of Dickinson county, for the purposes of K.S.A.

12-187(b)(7),(e) all andsales amendmentsof thereto,tangible maypersonal fixproperty suchor rateservices atpurchased 1.5%,by anda contractor for the boarderection, ofrepair countyor commissionersenlargement of Miamibuildings county,or other projects for SBthe 303—Am.government of the United States, its agencies or instrumentalities, that would be exempt from taxation if purchased directly by the government of the United States, its agencies or instrumentalities.

byWhen SCthe 16government of the purposesUnited States, its agencies or instrumentalities shall contract for the erection, repair, or enlargement of K.S.A.any building or other project, 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.

12-187(b)(7),The andcontractor amendmentsshall thereto,furnish maythe fixnumber of such ratecertificates atto 1.25%,all 1.5%,suppliers 1.75%from orwhom 2%;such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate.

(f) theUpon boardcompletion of countythe commissionersproject the contractor shall furnish to the government of ShermanH county,Sub for SB 303 7 the purposesUnited States, its agencies or instrumentalities concerned a sworn statement, on a form to be provided by the director of K.S.A.taxation, that all purchases so made were entitled to exemption under this subsection.

12-187(b)(8),As andan amendmentsalternative thereto,to maythe fixforegoing procedure, any such ratecontracting atentity 2.25%;may apply to the secretary of revenue for agent status for the sole purpose of issuing and furnishing project exemption certificates to contractors pursuant to rules and regulations adopted by the secretary establishing conditions and standards for the granting and maintaining of such status.

(g) theAll boardinvoices ofshall countybe commissionersheld by the contractor for a period of Crawfordfive oryears Russelland countyshall forbe subject to audit by the purposesdirector of K.S.A.taxation.

12-187(b)(9),Any andcontractor amendmentsor thereto,any mayagent, fixemployee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such ratea atcertificate 1.5%;for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise 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.

(h) the79-3615(h), boardand ofamendments countythereto; commissioners of Franklin county, for the purposes of K.S.A.

12-187(b)(10),(f) tangible andpersonal amendmentsproperty thereto,purchased mayby fixa suchrailroad rateor atpublic 1.75%;utility for consumption or movement directly and immediately in interstate commerce;

(i) the(g) sales boardof aircraft including remanufactured and modified aircraft sold to persons using directly or through an authorized agent such aircraft as certified or licensed carriers of countypersons commissionersor property in interstate or foreign commerce under authority of Douglasthe county,laws of the United States or any foreign government or sold to any foreign government or agency or instrumentality of such foreign government and all sales of aircraft for use outside of the purposesUnited States and sales of K.S.A.aircraft repair, modification and replacement parts and sales of services employed in the remanufacture, modification and repair of aircraft;

12-187(b)(11)(h) all andrentals (b)(30),of andnonsectarian amendmentstextbooks thereto,by maypublic fixor suchprivate rateelementary ator 1.75%;secondary schools;

(j) the(i) the boardlease or rental of countyall commissionersfilms, records, tapes, or any type of Jacksonsound county,or forpicture thetranscriptions purposesused ofby K.S.A.motion picture exhibitors;

12-187(b)(13),(j) meals andserved amendmentswithout thereto,charge mayor fixfood used in the preparation of such ratemeals atto 1.4%;employees of any restaurant, eating house, dining car, hotel, drugstore or other place where meals or drinks are regularly sold to the public if such employees' duties are related to the furnishing or sale of such meals or drinks;

(k) the(k) any boardmotor ofvehicle, countysemitrailer commissionersor ofpole Sedgwicktrailer, county,as forsuch theterms purposesare ofdefined by K.S.A.

12-187(b)(3)(C),8-126, and amendments thereto, mayor fixaircraft suchsold rateand atdelivered 2%;in this state to a bona fide resident of another state, which motor vehicle, semitrailer, pole trailer or aircraft is not to be registered or based in this state and which vehicle, semitrailer, pole trailer or aircraft will not H Sub for SB 303 8 remain in this state more than 10 days;

(l) the(l) all boardisolated or occasional sales of countytangible commissionerspersonal property, services, substances or things, except isolated or occasional sale of Neoshomotor county,vehicles forspecifically taxed under the purposesprovisions of K.S.A.

12-187(b)(14),79-3603(o), and amendments thereto,thereto; may fix such rate at 1.0% or 1.5%;

(m) the(m) all boardsales of countytangible commissionerspersonal property that become an ingredient or component part of Salinetangible county,personal property or services produced, manufactured or compounded for ultimate sale at retail within or without the purposesstate of K.S.A.Kansas;

12-187(b)(15), and amendmentsany thereto,such producer, manufacturer or compounder may fixobtain suchfrom ratethe atdirector upof taxation and furnish to 1.5%;the supplier an exemption certificate number for tangible personal property for use as an ingredient or component part of the property or services produced, manufactured or compounded;

(n) the(n) all boardsales of countytangible commissionerspersonal property that is consumed in the production, manufacture, processing, mining, drilling, refining or compounding of Harveytangible county,personal property, the treating of by-products or wastes derived from any such production process, the providing of services or the irrigation of crops for ultimate sale at retail within or without the purposesstate of K.S.A.Kansas;

12-187(b)(16), and amendmentsany thereto,purchaser of such property may fixobtain from the director of taxation and furnish to the supplier an exemption certificate number for tangible personal property for consumption in such rateproduction, atmanufacture, 2.0%;processing, mining, drilling, refining, compounding, treating, irrigation and in providing such services;

(o) the(o) all boardsales of countyanimals, commissionersfowl ofand Atchisonaquatic county,plants forand animals, the primary purpose of which is use in agriculture or aquaculture, as defined in K.S.A.

12-187(b)(17),47-1901, and amendments thereto, maythe fixproduction suchof ratefood atfor ahuman percentageconsumption, that is equal to the sumproduction of theanimal, ratedairy, allowedpoultry toor beaquatic imposedplant byand theanimal boardproducts, offiber countyor commissionersfur, ofor Atchisonthe countyproduction onof theoffspring effectivefor dateuse offor thisany actsuch pluspurpose 0.25%;or purposes;

(p) the(p) all boardsales of countydrugs commissionersdispensed ofpursuant Wabaunseeto county,a forprescription theorder purposeby ofa licensed practitioner or a mid-level practitioner as defined by K.S.A.

12-187(b)(18),65- 1626, and amendments thereto,thereto. may fix such rate at a percentage that is equal to the sum of the rate allowed to be imposed by the board of county commissioners of Wabaunsee county on July 1, 2007, plus 0.5%;

(q) theAs boardused in this subsection, "drug" means a compound, substance or preparation and any component of countya commissionerscompound, substance or preparation, other than food and food ingredients, dietary supplements or alcoholic beverages, recognized in the official United States pharmacopeia, official homeopathic pharmacopoeia of Jeffersonthe county,United States or official national formulary, and supplement to any of them, intended for use in the purposediagnosis, cure, mitigation, treatment or prevention of disease or intended to affect the structure or any function of the body, except that for taxable years commencing after December 31, 2013, this subsection shall not apply to any sales of drugs used in the performance or induction of an abortion, as defined in K.S.A.

12-187(b)(19)65-6701, and (25), and amendments thereto,H maySub fixfor suchSB rate303 at9 2.25%;thereto;

(r) the(q) all boardsales of countyinsulin commissionersdispensed by a person licensed by the state board of Rileypharmacy county,to a person for treatment of diabetes at the SBdirection 303—Am.of a person licensed to practice medicine by the state board of healing arts;

(r) all sales of oxygen delivery equipment, kidney dialysis equipment, enteral feeding systems, prosthetic devices and mobility enhancing equipment prescribed in writing by SCa 17person purposelicensed to practice the healing arts, dentistry or optometry, and in addition to such sales, all sales of hearing aids, as defined by K.S.A.

12-187(b)(20),74-5807(c), and amendments thereto, mayand fixrepair suchand ratereplacement atparts atherefor, percentageincluding thatbatteries, isby equala toperson licensed in the sumpractice of thedispensing rateand allowedfitting tohearing beaids imposedpursuant byto the boardprovisions of countyK.S.A. commissioners of Riley county on July 1, 2007, plus up to 1%;

(s) the74-5808, boardand ofamendments countythereto. commissioners of Johnson county, for the purposes of K.S.A.

12-187(b)(21),For and amendments thereto, may fix such rate at a percentage that is equal to the sumpurposes of thethis ratesubsection: allowed to be imposed by the board of county commissioners of Johnson county on July 1, 2007, plus 0.25%;

(t) the(1) board"Mobility ofenhancing countyequipment" commissionersmeans ofequipment Wilsonincluding county,repair forand replacement parts to same, but does not include durable medical equipment, which is primarily and customarily used to provide or increase the purposesability ofto K.S.A.move from one place to another and which is appropriate for use either in a home or a motor vehicle;

12-187(b)(22),is andnot amendmentsgenerally thereto,used mayby fixpersons suchwith ratenormal atmobility; up to 2%;

(u) theand boarddoes ofnot countyinclude commissionersany ofmotor Butlervehicle county,or forequipment theon purposesa ofmotor K.S.A.vehicle normally provided by a motor vehicle manufacturer;

12-187(b)(23), and amendments(2) thereto,"prosthetic maydevice" fixmeans sucha ratereplacement, atcorrective aor percentagesupportive thatdevice isincluding equalrepair toand replacement parts for same worn on or in the sumbody to artificially replace a missing portion of the ratebody, otherwiseprevent allowedor pursuantcorrect tophysical thisdeformity section,or plusmalfunction 0.25%,or 0.5%,support 0.75%a weak or 1%;deformed portion of the body;

(v) the(s) except boardas ofprovided countyin commissioners of Barton county, for the purposes of K.S.A.

12-187(b)(24),82a-2101, and amendments thereto, mayall fixsales suchof ratetangible atpersonal upproperty toor 1.5%;services purchased directly or indirectly by a groundwater management district organized or operating under the authority of K.S.A.

(w) the82a-1020 boardet ofseq., countyand commissionersamendments ofthereto, Lyonby county,a forrural water district organized or operating under the purposesauthority of K.S.A.

12-187(b)(3)(D),82a-612, and amendments thereto, mayor fixby sucha ratewater atsupply 1.5%;district organized or operating under the authority of K.S.A.

(x) the19-3501 boardet ofseq., county19- commissioners3522 ofet Rawlinsseq. county, for the purposes of K.S.A.

12-187(b)(3)(E),or 19-3545, and amendments thereto, maywhich fixproperty suchor rateservices atare 1.75%;used in the construction activities, operation or maintenance of the district;

(y) the(t) all boardsales of countyfarm commissionersmachinery ofand Chautauquaequipment county,or foraquaculture machinery and equipment, repair and replacement parts therefor and services performed in the purposesrepair and maintenance of K.S.A.such machinery and equipment.

12-187(b)(3)(F),For the purposes of this subsection the term "farm machinery and amendmentsequipment thereto,or mayaquaculture fixmachinery suchand rateequipment" atshall 2.0%;include a work-site utility vehicle, as defined in K.S.A.

(z) the8-126, boardand ofamendments countythereto, commissionersand ofis Pottawatomieequipped county,with a bed or cargo box for hauling materials, and shall also include machinery and equipment used in the purposesoperation of Christmas tree farming but shall not include any passenger vehicle, truck, H Sub for SB 303 10 truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as such terms are defined by K.S.A.

12-187(b)(26),8-126, and amendments thereto,thereto. may fix such rate at up to 1.5%;

(aa) the"Farm boardmachinery ofand countyequipment" commissionersincludes ofprecision Kingmanfarming county,equipment forthat theis purposesportable ofor K.S.A.is installed or purchased to be installed on farm machinery and equipment.

12-187(b)(27),"Precision andfarming amendmentsequipment" thereto,includes may fix such rate at a percentage that is equal to the sumfollowing ofitems theused rateonly otherwisein allowedcomputer-assisted pursuantfarming, toranching thisor section,aquaculture plusproduction 0.25%,operations: 0.5%, 0.75%, or 1%;

(bb) theSoil boardtesting ofsensors, countyyield commissionersmonitors, ofcomputers, Edwardsmonitors, county,software, forglobal thepositioning purposesand ofmapping K.S.A.systems, guiding systems, modems, data communications equipment and any necessary mounting hardware, wiring and antennas.

12-187(b)(28),Each purchaser of farm machinery and amendmentsequipment thereto,or mayaquaculture fixmachinery suchand rateequipment atexempted 1.375%;herein must certify in writing on the copy of the invoice or sales ticket to be retained by the seller that the farm machinery and equipment or aquaculture machinery and equipment purchased will be used only in farming, ranching or aquaculture production.

(cc) theFarming boardor ofranching countyshall commissionersinclude the operation of Rooksa county,feedlot and farm and ranch work for hire and the purposesoperation of K.S.A.a nursery;

12-187(b)(29),(u) all andleases amendmentsor thereto,rentals mayof fixtangible personal property used as a dwelling if such ratetangible atpersonal upproperty tois 1.5%;leased or rented for a period of more than 28 consecutive days;

(dd) the(v) all boardsales of countytangible commissionerspersonal ofproperty Bourbonto county,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 purposeshome to otherwise homebound elderly persons over 60 years of K.S.A.age and to otherwise homebound disabled persons, as all or part of any food service project funded in whole or in 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;

12-187(b)(3)(G)(w) all andsales (b)(31),of natural gas, electricity, heat and amendmentswater thereto,delivered SBthrough 303—Am.mains, lines or pipes:

by(1) SCTo 18residential maypremises fixfor suchnoncommercial rateuse atby upthe tooccupant 2.0%;of such premises;

(ee) the(2) boardfor ofagricultural countyuse commissionersand ofalso, Marionfor county,such foruse, theall purposessales of K.S.A.propane gas;

12-187(b)(32),(3) andfor amendmentsuse thereto,in maythe fixsevering suchof rateoil; at 2.5%;

(ff) theand board(4) ofto countyany commissionersproperty ofwhich Finneyis county,exempt forfrom theproperty purposestaxation ofpursuant to K.S.A.

12-187(b)(3)(H),79-201b, andSecond amendmentsthrough thereto,Sixth.As mayused fixin suchthis rateparagraph, at"severing" ameans percentage that is equal to the sumsame ofas thedefined ratein otherwiseK.S.A. allowed pursuant to this section, plus 0.3%;

(gg) the79-4216(k), boardand ofamendments countythereto. commissioners of Cherokee county, for the purposes of K.S.A.

12-187(b)(3)(I),For andall amendmentssales thereto,of maynatural fixgas, suchelectricity rateand atheat adelivered percentagethrough thatmains, islines equalor pipes pursuant to the sumprovisions of thesubsection rate(w)(1) otherwiseand allowed(w)(2), pursuantthe toprovisions of this section,subsection plusshall 0.5%;expire H Sub for SB 303 11 on December 31, 2005;

(hh) the(x) all boardsales of countypropane commissionersgas, ofLP-gas, Wilsoncoal, county,wood and other fuel sources for the purposesproduction of K.S.A.heat or lighting for noncommercial use of an occupant of residential premises occurring prior to January 1, 2006;

12-187(b)(33),(y) all andsales amendmentsof thereto,materials mayand fixservices suchused ratein atthe arepairing, percentageservicing, thataltering, ismaintaining, equalmanufacturing, toremanufacturing, theor summodification of therailroad raterolling otherwisestock allowedfor pursuantuse toin thisinterstate section,or plusforeign 0.25%,commerce 0.5%,under 0.75%authority orof 1%;the laws of the United States;

(ii) the(z) all boardsales of countytangible commissionerspersonal ofproperty Atchisonand county,services forpurchased directly by a port authority or by a contractor therefor as provided by the purposesprovisions of K.S.A.

12-187(b)(34),12-3418, and amendments thereto,thereto; may fix such rate at a percentage that is equal to the sum of the rate otherwise allowed pursuant to this section, plus up to 1%;

(jj) the(aa) all boardsales of countymaterials commissionersand ofservices Dickinsonapplied county,to equipment that is transported into the state from without the state for repair, service, alteration, maintenance, remanufacture or modification and that is subsequently transported outside the purposesstate for use in the transmission of K.S.A.liquids or natural gas by means of pipeline in interstate or foreign commerce under authority of the laws of the United States;

12-187(b)(35),(bb) all andsales amendments thereto, may fix such rate at a percentage that is equal to the sum of theused ratemobile otherwisehomes allowedor pursuantmanufactured tohomes. this section, plus 0.25%;

(kk) theAs boardused ofin countythis commissionerssubsection: of Rawlins county, for the purposes of K.S.A.

12-187(b)(36),(1) and"Mobile amendmentshomes" thereto,and may"manufactured fixhomes" suchmean rate at a percentage that is equal to the sumsame ofas thedefined ratein otherwiseK.S.A. allowed pursuant to this section, plus up to 1%;

(ll) the58-4202, boardand ofamendments countythereto; commissioners of Marshall county, for the purposes of K.S.A.

12-187(b)(37), and amendments(2) thereto,"sales mayof fixused suchmobile ratehomes ator amanufactured percentagehomes" thatmeans issales equalother tothan the sumoriginal ofretail thesale ratethereof; otherwise allowed pursuant to this section, plus up to 1%;

(mm) the(cc) all boardsales of countytangible commissionerspersonal ofproperty Neoshoor county,services purchased prior to January 1, 2012, except as otherwise provided, for the purposespurpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a business or retail business that meets the requirements established in K.S.A.

12-187(b)(38),74-50,115, and amendments thereto, mayand fixthe suchsale rateand installation of machinery and equipment purchased for installation at aany percentagesuch thatbusiness isor equalretail tobusiness, theand sumall sales of tangible personal property or services purchased on or after January 1, 2012, for the ratepurpose otherwiseof allowedand pursuantin toconjunction thiswith section,constructing, plusreconstructing, 0.5%;enlarging or remodeling a business that meets the requirements established in K.S.A.

(nn) the74-50,115(e), boardand ofamendments countythereto, commissionersand the sale and installation of Pawneemachinery county,and equipment purchased for theinstallation purposesat ofany K.S.A.such business.

12-187(b)(39),When anda amendmentsperson thereto,shall maycontract fixfor the construction, reconstruction, enlargement or remodeling of any such ratebusiness ator aretail percentagebusiness, thatsuch isperson equalshall obtain from the state and furnish to the sumcontractor ofan exemption certificate for the rateproject otherwiseinvolved, allowedand pursuantthe tocontractor thismay section,purchase plusmaterials, upmachinery toand 1%;equipment for incorporation in such project.

(oo) theThe boardcontractor ofshall countyfurnish commissionersthe number of Sewardsuch county,certificates forto all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the purposessame bearing the number of K.S.A.such certificate.

12-187(b)(40),Upon andcompletion amendmentsof thereto,the mayproject fixthe suchcontractor rateshall atfurnish to the owner of the H Sub for SB 303 12 business or retail business a percentagesworn thatstatement, ison equala form to be provided by the sumdirector of thetaxation, ratethat otherwiseall allowedpurchases SBso 303—Am.made were entitled to exemption under this subsection.

All invoices shall be held by SCthe 19contractor pursuantfor a period of five years and shall be subject to thisaudit section,by plusthe 0.5%;director of taxation.

andAny (pp) thecontractor boardor ofany countyagent, commissionersemployee or subcontractor thereof, who shall use or otherwise dispose of Jacksonany county,materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the purposespayment of the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in K.S.A.

12-187(b)(41),79-3615(h), and amendments thereto,thereto. may fix such rate at a percentage that is equal to the sum of the rate otherwise allowed pursuant to this section, plus 0.25%;

andAs (qq) theused boardin ofthis countysubsection, commissioners"business" ofand Labette"retail county,business" formean the purposessame ofas defined in K.S.A.

12-187(b)(42),74-50,114, and amendments thereto,thereto. may fix such rate at a percentage that is equal to the sum of the rate otherwise allowed pursuant to this section, plus 0.125%;

(rr) theProject boardexemption ofcertificates countythat commissionershave ofbeen Leavenworthpreviously county,issued forunder this subsection by the purposesdepartment of revenue pursuant to K.S.A.

12-187(b)(43),74-50,115, and amendments thereto, maybut fixnot suchincluding rateK.S.A. at a percentage that is equal to the sum of the rate otherwise allowed pursuant to this section, plus 0.125% or 0.25%;

(ss) the74-50,115(e), boardand ofamendments countythereto, commissionersprior ofto LincolnJanuary county,1, 2012, and have not expired will be effective for the purposesterm of K.S.A.the project or two years from the effective date of the certificate, whichever occurs earlier.

12-187(b)(44),Project exemption certificates that are submitted to the department of revenue prior to January 1, 2012, and amendmentsare thereto,found mayto fixqualify suchwill ratebe atissued a percentageproject thatexemption iscertificate equalthat towill thebe sumeffective offor thea ratetwo-year otherwiseperiod allowedor pursuantfor tothe thisterm section,of plusthe upproject, towhichever 1%;occurs earlier;

and(dd) all (tt) thesales board of countytangible commissionerspersonal ofproperty Sheridanpurchased county,with forfood stamps issued by the purposesUnited States department of K.S.A.agriculture;

12-187(b)(45),(ee) all sales of lottery tickets and amendmentsshares thereto,made mayas fixpart suchof ratea atlottery operated by the state of Kansas and are administered as a percentagepart thatof isthe equalmultistate tolottery association whereby the sumimposition of theKansas rateretailers' otherwisesales allowedtax pursuantis prohibited in order to thisprovide section,for plussuch 0.25%.lottery products;

Any(ff) on countyand orafter cityJuly levying1, a1988, retailers'all sales taxof isnew herebymobile prohibitedhomes from administering or collectingmanufactured suchhomes taxto locally,the butextent shallof utilize40% the services of the stategross departmentreceipts, ofdetermined revenuewithout regard to administer,any enforcetrade-in andallowance, collectreceived from such tax.sale.

ExceptAs asused otherwisein specificallythis providedsubsection, "mobile homes" and "manufactured homes" mean the same as defined in K.S.A.

12-58-4202, 189a, and amendments thereto,thereto; such tax shall be identical in its application, and exemptions therefrom, to the Kansas retailers' sales tax act and all laws and administrative rules and regulations of the state department of revenue relating to the Kansas retailers' sales tax shall apply to such local sales tax insofar as such laws and rules and regulations may be made applicable.

The(gg) all statesales director of taxationtangible ispersonal herebyproperty authorizedpurchased toin administer,accordance enforcewith andvouchers collectissued suchpursuant local sales taxes and to adoptthe suchfederal rulesspecial andsupplemental regulationsfood asprogram may be necessary for thewomen, efficientinfants and effectivechildren; administration and enforcement thereof.

Upon(hh) all receiptsales of amedical certifiedsupplies copyand ofequipment, anincluding ordinancedurable ormedical resolutionequipment, authorizingpurchased thedirectly levyby of a localnonprofit retailers'skilled salesnursing tax,home the director of taxation shall cause such taxes to be collected within or withoutnonprofit theintermediate boundariesnursing ofcare suchhome, taxingas subdivisiondefined atby theK.S.A. same time and in the same manner provided for the collection of the state retailers' sales tax.

Such39-923, copyand shallamendments bethereto, submittedfor to the directorpurpose of taxationproviding withinmedical 30services daysto afterresidents adoptionthereof. of any such ordinance or resolution.

TheThis directorexemption of taxation shall confirmnot thatapply all provisions of law applicable to thetangible authorizationpersonal ofproperty localcustomarily salesused taxfor havehuman beenhabitation followedpurposes. prior to causing the collection.

IfAs used in this H Sub for SB 303 13 subsection, "durable medical equipment" means equipment including repair and replacement parts for such equipment, that can withstand repeated use, is primarily and customarily used to serve a medical purpose, generally is not useful to a person in the directorabsence of taxationillness SBor 303—Am.injury and is not worn in or on the body, but does not include mobility enhancing equipment as defined in subsection (r), oxygen delivery equipment, kidney dialysis equipment or enteral feeding systems;

by(ii) all SCsales 20of discoverstangible thatpersonal aproperty citypurchased ordirectly countyby dida notnonprofit complyorganization withfor anynonsectarian provisioncomprehensive ofmultidiscipline lawyouth applicabledevelopment toprograms theand authorizationactivities ofprovided aor localsponsored salesby taxsuch afterorganization, collectionand hasall commenced,sales theof directortangible shallpersonal immediatelyproperty notifyby the city or countyon andbehalf cease collection of suchany sales tax until such noncomplianceorganization. is remedied.

AllThis moneysexemption collected by the director of taxation under the provisions of this section shall benot creditedapply to atangible countypersonal andproperty citycustomarily retailers'used salesfor taxhuman fund,habitation whichpurposes; fund is hereby established in the state treasury, except that all moneys collected by the director of taxation pursuant to the authority granted in K.S.A.

12-187(b)(22),(jj) all andsales amendmentsof thereto,tangible shallpersonal beproperty creditedor toservices, including the Wilsonrenting countyand capitalleasing improvementsof fund.tangible personal property, purchased directly on behalf of a community-based facility for people with intellectual disability or mental health center organized pursuant to K.S.A.

Any19-4001 refundet dueseq., onand anyamendments countythereto, orand citylicensed retailers'in salesaccordance taxwith collected pursuant to this act shall be paid out of the salesprovisions tax refund fund and reimbursed by the director of taxationK.S.A. from collections of local retailers' sales tax revenue.

Except39-2001 et seq., and amendments thereto, and all sales of tangible personal property or services purchased by contractors during the time period from July, 2003, through June, 2006, for localthe retailers'purpose of constructing, equipping, maintaining or furnishing a new facility for a community-based facility for people with intellectual disability or mental health center located in Riverton, Cherokee County, Kansas, that would have been eligible for sales tax revenueexemption requiredpursuant to bethis depositedsubsection inif thepurchased redevelopmentdirectly bondby fundsuch establishedfacility underor K.S.A.center.

74-8927,This andexemption amendmentsshall thereto,not allapply local retailers' sales tax revenue collected within any county or city pursuant to thistangible actpersonal shallproperty becustomarily apportionedused andfor remittedhuman athabitation leastpurposes; quarterly by the state treasurer, on instruction from the director of taxation, to the treasurer of such county or city.

Revenue(kk) that(1) is(A) all receivedsales from the imposition of amachinery localand retailers'equipment sales tax that exceedsare theused amountin ofthis revenuestate requiredas toan payintegral theor costsessential part of aan specialintegrated projectproduction foroperation whichby sucha revenuemanufacturing wasor pledgedprocessing shallplant be credited to the city or countyfacility; general fund, as the case requires.

The(B) all director of taxation shall provide, upon request by a city or county clerk or treasurer or finance officer of any city or county levying a local retailers' sales tax, monthly reports identifying each retailer doing business in such city or county or making taxable sales sourced to such city or county, setting forth the tax liability and the amount of suchinstallation, taxrepair remitted by each retailer during the preceding month and identifyingmaintenance eachservices businessperformed locationon maintainedsuch bymachinery the retailer and suchequipment; retailer's sales or use tax registration or account number.

Suchand report(C) all shallsales beof maderepair availableand toreplacement theparts clerkand oraccessories treasurerpurchased orfor finance officer of such citymachinery orand countyequipment. within a reasonable time after it has been requested from the director of taxation.

The(2) For directorpurposes of taxationthis shallsubsection: be allowed to assess a reasonable fee for the issuance of such report.

Information(A) "Integrated receivedproduction byoperation" anymeans cityan orintegrated countyseries pursuantof tooperations thisengaged sectionin shallat bea confidential,manufacturing andor itprocessing shallplant beor unlawfulfacility forto anyprocess, officertransform or employeeconvert oftangible suchpersonal cityproperty by physical, chemical or countyother tomeans divulgeinto anya suchdifferent informationform, composition or character from that in anywhich manner.it originally existed.

AnyIntegrated violationproduction ofoperations this paragraph by a city or county officer or employee is a class A misdemeanor, and such officer or employee shall beinclude: dismissed from office.

Reports(i) ofProduction violationsline ofoperations, thisincluding paragraphpackaging shalloperations; be investigated by the attorney general.

The(ii) districtpreproduction attorneyoperations orto countyhandle, attorneystore and thetreat attorneyraw generalH shallSub havefor authoritySB to303 prosecute14 violationsmaterials; of this paragraph.

SB(iii) 303—Am.post production handling, storage, warehousing and distribution operations;

byand SC(iv) 21waste, Sec.pollution and environmental control operations, if any;

3. K.S.A.(B) "production line" means the assemblage of machinery and equipment at a manufacturing or processing plant or facility where the actual transformation or processing of tangible personal property occurs;

(C) "manufacturing or processing plant or facility" means a single, fixed location owned or controlled by a manufacturing or processing business that consists of one or more structures or buildings in a contiguous area where integrated production operations are conducted to manufacture or process tangible personal property to be ultimately sold at retail.

Such term shall not include any facility primarily operated for the purpose of conveying or assisting in the conveyance of natural gas, electricity, oil or water.

Abusiness may operate one or more manufacturing or processing plants or facilities at different locations to manufacture or process a single product of tangible personal property to be ultimately sold at retail;

(D) "manufacturing or processing business" means a business that utilizes an integrated production operation to manufacture, process, fabricate, finish or assemble items for wholesale and retail distribution as part of what is commonly regarded by the general public as an industrial manufacturing or processing operation or an agricultural commodity processing operation.

(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, wholesale bottling, newspaper printing, ready mixed concrete production, and the remanufacturing of used parts for wholesale or retail sale.

Such processing operations shall include operations at an oil well, gas well, mine or other excavation site where the oil, gas, minerals, coal, clay, stone, sand or gravel that has been extracted from the earth is cleaned, separated, crushed, ground, milled, screened, washed or otherwise treated or prepared before its transmission to a refinery or before any other wholesale or retail distribution.

(ii) Agricultural commodity processing operations include, by way of illustration but not of limitation, meat packing, poultry slaughtering and dressing, processing and packaging farm and dairy products in sealed containers for wholesale and retail distribution, feed grinding, grain milling, frozen food processing, and grain handling, cleaning, blending, fumigation, drying and aeration operations engaged in by grain elevators or other grain storage facilities.

(iii) Manufacturing or processing businesses do not include, by way of illustration but not of limitation, nonindustrial businesses whose operations are primarily retail and that H Sub for SB 303 15 produce or process tangible personal property as an incidental part of conducting the retail business, such as retailers who bake, cook or prepare food products in the regular course of their retail trade, grocery stores, meat lockers and meat markets that butcher or dress livestock or poultry in the regular course of their retail trade, contractors who alter, service, repair or improve real property, and retail businesses that clean, service or refurbish and repair tangible personal property for its owner;

(E) "repair and replacement parts and accessories" means all parts and accessories for exempt machinery and equipment, including, but not limited to, dies, jigs, molds, patterns and safety devices that are attached to exempt machinery or that are otherwise used in production, and parts and accessories that require periodic replacement such as belts, drill bits, grinding wheels, grinding balls, cutting bars, saws, refractory brick and other refractory items for exempt kiln equipment used in production operations;

(F) "primary" or "primarily" mean more than 50% of the time.

(3) For purposes of this subsection, machinery and equipment shall be deemed to be used as an integral or essential part of an integrated production operation when used to:

(A) Receive, transport, convey, handle, treat or store raw materials in preparation of its placement on the production line;

(B) transport, convey, handle or store the property undergoing manufacturing or processing at any point from the beginning of the production line through any warehousing or distribution operation of the final product that occurs at the plant or facility;

(C) act upon, effect, promote or otherwise facilitate a physical change to the property undergoing manufacturing or processing;

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

(E) test or measure raw materials, the property undergoing manufacturing or processing or the finished product, as a necessary part of the manufacturer's integrated production operations;

(F) plan, manage, control or record the receipt and flow of inventories of raw materials, consumables and component parts, the flow of the property undergoing manufacturing or processing and the management of inventories of the finished product;

(G) produce energy for, lubricate, control the operating of or otherwise enable the functioning of other production machinery and equipment and the continuation of production operations;

(H) package the property being manufactured or processed in a container or wrapping in which such property is normally sold or transported;

(I) transmit or transport electricity, coke, gas, water, steam or similar H Sub for SB 303 16 substances used in production operations from the point of generation, if produced by the manufacturer or processor at the plant site, to that manufacturer's production operation;

or, if purchased or delivered from off-site, from the point where the substance enters the site of the plant or facility to that manufacturer's production operations;

(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil, solvents or other substances that are used in production operations;

(K) provide and control an environment required to maintain certain levels of air quality, humidity or temperature in special and limited areas of the plant or facility, where such regulation of temperature or humidity is part of and essential to the production process;

(L) treat, transport or store waste or other byproducts of production operations at the plant or facility;

or (M) control pollution at the plant or facility where the pollution is produced by the manufacturing or processing operation.

(4) The following machinery, equipment and materials shall be deemed to be exempt even though it may not otherwise qualify as machinery and equipment used as an integral or essential part of an integrated production operation:

(A) Computers and related peripheral equipment that are utilized by a manufacturing or processing business for engineering of the finished product or for research and development or product design;

(B) machinery and equipment that is utilized by a manufacturing or processing business to manufacture or rebuild tangible personal property that is used in manufacturing or processing operations, including tools, dies, molds, forms and other parts of qualifying machinery and equipment;

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

(D) industrial fixtures, devices, support facilities and special 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.

An exemption certificate for such purchases shall be signed by the manufacturer or processor.

If the fabricator purchases such material, the fabricator shall also sign the exemption certificate;

(E) a manufacturing or processing business' laboratory equipment that is not located at the plant or facility, but that would otherwise qualify for exemption under subsection (3)(E);

(F) all machinery and equipment used in surface mining activities as described in K.S.A.

49-601 et seq., and amendments thereto, beginning from the time a reclamation plan is filed to the acceptance of the completed final site reclamation.

(5) "Machinery and equipment used as an integral or essential part of an integrated production operation" shall not include:

(A) Machinery and equipment used for nonproduction purposes, H Sub for SB 303 17 including, but not limited to, machinery and equipment used for plant security, fire prevention, first aid, accounting, administration, record keeping, advertising, marketing, sales or other related activities, plant cleaning, plant communications and employee work scheduling;

(B) machinery, equipment and tools used primarily in maintaining and repairing any type of machinery and equipment or the building and plant;

(C) transportation, transmission and distribution equipment not primarily used in a production, warehousing or material handling operation at the plant or facility, including the means of conveyance of natural gas, electricity, oil or water, and equipment related thereto, located outside the plant or facility;

(D) office machines and equipment including computers and related peripheral equipment not used directly and primarily to control or measure the manufacturing process;

(E) furniture and other furnishings;

(F) buildings, other than exempt machinery and equipment that is permanently affixed to or becomes a physical part of the building, and any other part of real estate that is not otherwise exempt;

(G) building fixtures that are not integral to the manufacturing operation, such as utility systems for heating, ventilation, air conditioning, communications, plumbing or electrical;

(H) machinery and equipment used for general plant heating, cooling and lighting;

(I) motor vehicles that are registered for operation on public highways;

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

(6) Paragraphs (3) and (5) shall not be construed as exclusive listings of the machinery and equipment that qualify or do not qualify as an integral or essential part of an integrated production operation.

When machinery or equipment is used as an integral or essential part of production operations part of the time and for nonproduction purposes at other times, the primary use of the machinery or equipment shall determine whether or not such machinery or equipment qualifies for exemption.

(7) The secretary of revenue shall adopt rules and regulations necessary to administer the provisions of this subsection;

(ll) all sales of educational materials purchased for distribution to the public at no charge by a nonprofit corporation organized for the purpose of encouraging, fostering and conducting programs for the improvement of public health, except that for taxable years commencing after December H Sub for SB 303 18 31, 2013, this subsection shall not apply to any sales of such materials purchased by a nonprofit corporation which performs any abortion, as defined in K.S.A.

65-6701, and amendments thereto;

(mm) all sales of seeds and tree seedlings;

fertilizers, insecticides, herbicides, germicides, pesticides and fungicides;

and services, purchased and used for the purpose of producing plants in order to prevent soil erosion on land devoted to agricultural use;

(nn) except as otherwise provided in this act, all sales of services rendered by an advertising agency or licensed broadcast station or any member, agent or employee thereof;

(oo) all sales of tangible personal property purchased by a community action group or agency for the exclusive purpose of repairing or weatherizing housing occupied by low-income individuals;

(pp) all sales of drill bits and explosives actually utilized in the exploration and production of oil or gas;

(qq) all sales of tangible personal property and services purchased by a nonprofit museum or historical society or any combination thereof, including a nonprofit organization that is organized for the purpose of stimulating public interest in the exploration of space by providing educational information, exhibits and experiences, that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;

(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 shall not apply to any sales of such tangible personal property purchased by a nonprofit organization which performs any abortion, as defined in K.S.A.

65-6701, and amendments thereto;

(ss) all sales of tangible personal property and services purchased by a public broadcasting station licensed by the federal communications commission as a noncommercial educational television or radio station;

(tt) all sales of tangible personal property and services purchased by or on behalf of a not-for-profit corporation that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the sole purpose of constructing a Kansas Korean War memorial;

(uu) all sales of tangible personal property and services purchased by or on behalf of any rural volunteer fire-fighting organization for use exclusively in the performance of its duties and functions;

(vv) all sales of tangible personal property purchased by any of the following organizations that are exempt from federal income taxation H Sub for SB 303 19 pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the following purposes, and all sales of any such property by or on behalf of any such organization for any such purpose:

(1) The American heart association, Kansas affiliate, inc.

for the purposes of providing education, training, certification in emergency cardiac care, research and other related services to reduce disability and death from cardiovascular diseases and stroke;

(2) the Kansas alliance for the mentally ill, inc.

for the purpose of advocacy for persons with mental illness and to education, research and support for their families;

(3) the Kansas mental illness awareness council for the purposes of advocacy for persons who are mentally ill and for education, research and support for them and their families;

(4) the American diabetes association Kansas affiliate, inc.

for the purpose of eliminating diabetes through medical research, public education focusing on disease prevention and education, patient education including information on coping with diabetes, and professional education and training;

(5) the American lung association of Kansas, inc.

for the purpose of eliminating all lung diseases through medical research, public education including information on coping with lung diseases, professional education and training related to lung disease and other related services to reduce the incidence of disability and death due to lung disease;

(6) the Kansas chapters of the Alzheimer's disease and related disorders association, inc.

for the purpose of providing assistance and support to persons in Kansas with Alzheimer's disease, and their families and caregivers;

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

(8) the national kidney foundation of Kansas and western Missouri for the purpose of eliminating kidney disease through medical research and public and private education related to such disease;

(9) the heartstrings community foundation for the purpose of providing training,employment and activitiesfor adults with developmental disabilities;

(10) the cystic fibrosis foundation, heart of America chapter, for the purposes of assuring the development of the means to cure and control cystic fibrosis and improving the quality of life for those with the disease;

(11) the spina bifida association of Kansas for the purpose of providing financial, educational and practical aid to families and individuals with spina bifida.

Such aid includes, but is not limited to, funding for medical devices, counseling and medical educational H Sub for SB 303 20 opportunities;

(12) the CHWC, Inc., for the purpose of rebuilding urban core neighborhoods through the construction of new homes, acquiring and renovating existing homes and other related activities, and promoting economic development in such neighborhoods;

(13) the cross-lines cooperative council for the purpose of providing social services to low income individuals and families;

(14) the dreams work, inc., for the purpose of providing young adult day services to individuals with developmental disabilities and assisting families in avoiding institutional or nursing home care for a developmentally disabled member of their family;

(15) the KSDS, Inc., for the purpose of promoting the independence and inclusion of people with disabilities as fully participating and contributing members of their communities and society through the training and providing of guide and service dogs to people with disabilities, and providing disability education and awareness to the general public;

(16) the lyme association of greater Kansas City, Inc., for the purpose of providing support to persons with lyme disease and public education relating to the prevention, treatment and cure of lyme disease;

(17) the dream factory, inc., for the purpose of granting the dreams of children with critical and chronic illnesses;

(18) the Ottawa Suzuki strings, inc., for the purpose of providing students and families with education and resources necessary to enable each child to develop fine character and musical ability to the fullest potential;

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

(20) the Johnson county young matrons, inc., for the purpose of promoting a positive future for members of the community through volunteerism, financial support and education through the efforts of an all volunteer organization;

(21) the American cancer society, inc., for the purpose of eliminating cancer as a major health problem by preventing cancer, saving lives and diminishing suffering from cancer, through research, education, advocacy and service;

(22) the community services of Shawnee, inc., for the purpose of providing food and clothing to those in need;

(23) the angel babies association, for the purpose of providing assistance, support and items of necessity to teenage mothers and their babies;

and H Sub for SB 303 21 (24) the Kansas fairgrounds foundation for the purpose of the preservation, renovation and beautification of the Kansas state fairgrounds;

(ww) all sales of tangible personal property purchased by the habitat for humanity for the exclusive use of being incorporated within a housing project constructed by such organization;

(xx) all sales of tangible personal property and services purchased by a nonprofit zoo that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, or on behalf of such zoo by an entity itself exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986 contracted with to operate such zoo 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 nonprofit zoo that would be exempt from taxation under the provisions of this section if purchased directly by such nonprofit zoo or the entity operating such zoo.

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 nonprofit zoo.

When any nonprofit zoo 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.

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 number of such certificate.

Upon completion of the project the contractor 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.

All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation.

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 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, the nonprofit zoo 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.

Any contractor or H Sub for SB 303 22 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 issued without the payment of the sales or compensating tax otherwise 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.

79-3615(h), and amendments thereto;

(yy) all sales of tangible personal property and services purchased by a parent-teacher association or organization, and all sales of tangible personal property by or on behalf of such association or organization;

(zz) all sales of machinery and equipment purchased by over-the-air, free access radio or television station that is used directly and primarily for the purpose of producing a broadcast signal or is such that the failure of the machinery or equipment to operate would cause broadcasting to cease.

For purposes of this subsection, machinery and equipment shall include, but not be limited to, that required by rules and regulations of the federal communications commission, and all sales of electricity which are essential or necessary for the purpose of producing a broadcast signal or is such that the failure of the electricity would cause broadcasting to cease;

(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 directly by such organization.

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 organization.

When any such organization 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.

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 number of such certificate.

Upon completion of the project the contractor shall furnish to such organization 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.

All invoices shall be held by the contractor for a period of five H Sub for SB 303 23 years and shall be subject to audit by the director of taxation.

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 and paid by such contractor to the director of taxation not later th 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.

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 issued without the payment of the sales or compensating tax otherwise 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.

79-3615(h), and amendments thereto.

Sales tax paid on and after July 1, 1998, but prior to the effective date of this act upon the gross receipts received from any sale exempted by the amendatory provisions of this subsection shall be refunded.

Each claim for a sales tax refund shall be verified and submitted to the director of taxation upon forms furnished by the director and shall be accompanied by any additional documentation required by the director.

The director shall review each claim and shall refund that amount of sales tax paid as determined under the provisions of this subsection.

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

(bbb) all sales of food for human consumption by an organization that is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, pursuant to a food distribution program that offers such food at a price below cost in exchange for the performance of community service by the purchaser thereof;

(ccc) on and after July 1, 1999, all sales of tangible personal property and services purchased by 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 clinic or center that would be exempt from taxation under the provisions of this H Sub for SB 303 24 section if purchased directly by such 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 performs any abortion, as defined in K.S.A.

65-6701, and amendments thereto.

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 clinic or center.

When any such 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.

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 number of such certificate.

Upon completion of the project the contractor shall furnish to such 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.

All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation.

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 and th 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 clinic or center 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.

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 issued without the payment of the sales or compensating tax otherwise 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.

79-3615(h), and amendments thereto;

(ddd) on and after January 1, 1999, and before January 1, 2000, all sales of materials and services purchased by any class II or III railroad as classified by the federal surface transportation board for the construction, renovation, repair or replacement of class II or III railroad track and H Sub for SB 303 25 facilities used directly in interstate commerce.

In the event any such track or facility for which materials and services were purchased sales tax exempt is not operational for five years succeeding the allowance of such exemption, the total amount of sales tax that would have been payable except for the operation of this subsection shall be recouped in accordance with rules and regulations adopted for such purpose by the secretary of revenue;

(eee) on and after January 1, 1999, and before January 1, 2001, all sales of materials and services purchased for the original construction, reconstruction, repair or replacement of grain storage facilities, including railroad sidings providing access thereto;

(fff) all sales of material handling equipment, racking systems and other related machinery and equipment that is used for the handling, movement or storage of tangible personal property in a warehouse or distribution facility in this state;

all sales of installation, repair and maintenance services performed on such machinery and equipment;

and all sales of repair and replacement parts for such machinery and equipment.

For purposes of this subsection, a warehouse or distribution facility means a single, fixed location that consists of buildings or structures in a contiguous area where storage or distribution operations are conducted that are separate and apart from the business' retail operations, if any, and that do not otherwise qualify for exemption as occurring at a manufacturing or processing plant or facility.

Material handling and storage equipment shall include aeration, dust control, cleaning, handling and other such equipment that is used in a public grain warehouse or other commercial grain storage facility, whether used for grain handling, grain storage, grain refining or processing, or other grain treatment operation;

(ggg) all sales of tangible personal property and services purchased by or on behalf of the Kansas academy of science, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, and used solely by such academy for the preparation, publication and dissemination of education materials;