SB 107 — As Introduced — Kansas Legislature

Session of 2025

SENATE BILL No. 107

By Committee on Federal and State Affairs

1-29

1AN ACT concerning sales taxation; relating to exemptions; providing an

2exemption for period products, diapers and incontinence products;

3amending K.S.A. 2024 Supp. 79-3606 and repealing the existing

4section.

6Be it enacted by the Legislature of the State of Kansas:

7Section 1. K.S.A. 2024 Supp. 79-3606 is hereby amended to read as

8follows: 79-3606. The following shall be exempt from the tax imposed by

9this act:

10(a) All sales of motor-vehicle fuel or other articles upon which a sales

11or excise tax has been paid, not subject to refund, under the laws of this

12state except cigarettes and electronic cigarettes as defined by K.S.A. 79-

133301, and amendments thereto, including consumable material for such

14electronic cigarettes, cereal malt beverages and malt products as defined

15by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,

16malt syrup and malt extract, that is not subject to taxation under the

17provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles

18taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed

19pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and

20laundry services taxed pursuant to K.S.A. 65-34,150, and amendments

21thereto, and gross receipts from regulated sports contests taxed pursuant to

22the Kansas professional regulated sports act, and amendments thereto;

23(b) all sales of tangible personal property or service, including the

24renting and leasing of tangible personal property, purchased directly by the

25state of Kansas, a political subdivision thereof, other than a school or

26educational institution, or purchased by a public or private nonprofit

27hospital, public hospital authority, nonprofit blood, tissue or organ bank or

28nonprofit integrated community care organization and used exclusively for

29state, political subdivision, hospital, public hospital authority, nonprofit

30blood, tissue or organ bank or nonprofit integrated community care

31organization purposes, except when: (1) Such state, hospital or public

32hospital authority is engaged or proposes to engage in any business

33specifically taxable under the provisions of this act and such items of

34tangible personal property or service are used or proposed to be used in

35such business; or (2) such political subdivision is engaged or proposes to

36engage in the business of furnishing gas, electricity or heat to others and

1such items of personal property or service are used or proposed to be used

2in such business;

3(c) all sales of tangible personal property or services, including the

4renting and leasing of tangible personal property, purchased directly by a

5public or private elementary or secondary school or public or private

6nonprofit educational institution and used primarily by such school or

7institution for nonsectarian programs and activities provided or sponsored

8by such school or institution or in the erection, repair or enlargement of

9buildings to be used for such purposes. The exemption herein provided

10shall not apply to erection, construction, repair, enlargement or equipment

11of buildings used primarily for human habitation, except that such

12exemption shall apply to the erection, construction, repair, enlargement or

13equipment of buildings used for human habitation by the cerebral palsy

14research foundation of Kansas located in Wichita, Kansas, multi

15community diversified services, incorporated, located in McPherson,

16Kansas, the Kansas state school for the blind and the Kansas state school

17for the deaf;

18(d) all sales of tangible personal property or services purchased by a

19contractor for the purpose of constructing, equipping, reconstructing,

20maintaining, repairing, enlarging, furnishing or remodeling facilities for

21any public or private nonprofit hospital or public hospital authority, public

22or private elementary or secondary school, a public or private nonprofit

23educational institution, state correctional institution including a privately

24constructed correctional institution contracted for state use and ownership,

25that would be exempt from taxation under the provisions of this act if

26purchased directly by such hospital or public hospital authority, school,

27educational institution or a state correctional institution; and all sales of

28tangible personal property or services purchased by a contractor for the

29purpose of constructing, equipping, reconstructing, maintaining, repairing,

30enlarging, furnishing or remodeling facilities for any political subdivision

31of the state or district described in subsection (s), the total cost of which is

32paid from funds of such political subdivision or district and that would be

33exempt from taxation under the provisions of this act if purchased directly

34by such political subdivision or district. Nothing in this subsection or in

35the provisions of K.S.A. 12-3418, and amendments thereto, shall be

36deemed to exempt the purchase of any construction machinery, equipment

37or tools used in the constructing, equipping, reconstructing, maintaining,

38repairing, enlarging, furnishing or remodeling facilities for any political

39subdivision of the state or any such district. As used in this subsection,

40K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a

41political subdivision" shall mean general tax revenues, the proceeds of any

42bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the

43purpose of constructing, equipping, reconstructing, repairing, enlarging,

1furnishing or remodeling facilities that are to be leased to the donor. When

2any political subdivision of the state, district described in subsection (s),

3public or private nonprofit hospital or public hospital authority, public or

4private elementary or secondary school, public or private nonprofit

5educational institution, state correctional institution including a privately

6constructed correctional institution contracted for state use and ownership

7shall contract for the purpose of constructing, equipping, reconstructing,

8maintaining, repairing, enlarging, furnishing or remodeling facilities, it

9shall obtain from the state and furnish to the contractor an exemption

10certificate for the project involved, and the contractor may purchase

11materials for incorporation in such project. The contractor shall furnish the

12number of such certificate to all suppliers from whom such purchases are

13made, and such suppliers shall execute invoices covering the same bearing

14the number of such certificate. Upon completion of the project the

15contractor shall furnish to the political subdivision, district described in

16subsection (s), hospital or public hospital authority, school, educational

17institution or department of corrections concerned a sworn statement, on a

18form to be provided by the director of taxation, that all purchases so made

19were entitled to exemption under this subsection. As an alternative to the

20foregoing procedure, any such contracting entity may apply to the

21secretary of revenue for agent status for the sole purpose of issuing and

22furnishing project exemption certificates to contractors pursuant to rules

23and regulations adopted by the secretary establishing conditions and

24standards for the granting and maintaining of such status. All invoices

25shall be held by the contractor for a period of five years and shall be

26subject to audit by the director of taxation. If any materials purchased

27under such a certificate are found not to have been incorporated in the

28building or other project or not to have been returned for credit or the sales

29or compensating tax otherwise imposed upon such materials that will not

30be so incorporated in the building or other project reported and paid by

31such contractor to the director of taxation not later than the 20th day of the

32month following the close of the month in which it shall be determined

33that such materials will not be used for the purpose for which such

34certificate was issued, the political subdivision, district described in

35subsection (s), hospital or public hospital authority, school, educational

36institution or the contractor contracting with the department of corrections

37for a correctional institution concerned shall be liable for tax on all

38materials purchased for the project, and upon payment thereof it may

39recover the same from the contractor together with reasonable attorney

40fees. Any contractor or any agent, employee or subcontractor thereof, who

41shall use or otherwise dispose of any materials purchased under such a

42certificate for any purpose other than that for which such a certificate is

43issued without the payment of the sales or compensating tax otherwise

1imposed upon such materials, shall be guilty of a misdemeanor and, upon

2conviction therefor, shall be subject to the penalties provided for in K.S.A.

379-3615(h), and amendments thereto;

4(e) all sales of tangible personal property or services purchased by a

5contractor for the erection, repair or enlargement of buildings or other

6projects for the government of the United States, its agencies or

7instrumentalities, that would be exempt from taxation if purchased directly

8by the government of the United States, its agencies or instrumentalities.

9When the government of the United States, its agencies or

10instrumentalities shall contract for the erection, repair, or enlargement of

11any building or other project, it shall obtain from the state and furnish to

12the contractor an exemption certificate for the project involved, and the

13contractor may purchase materials for incorporation in such project. The

14contractor shall furnish the number of such certificates to all suppliers

15from whom such purchases are made, and such suppliers shall execute

16invoices covering the same bearing the number of such certificate. Upon

17completion of the project the contractor shall furnish to the government of

18the United States, its agencies or instrumentalities concerned a sworn

19statement, on a form to be provided by the director of taxation, that all

20purchases so made were entitled to exemption under this subsection. As an

21alternative to the foregoing procedure, any such contracting entity may

22apply to the secretary of revenue for agent status for the sole purpose of

23issuing and furnishing project exemption certificates to contractors

24pursuant to rules and regulations adopted by the secretary establishing

25conditions and standards for the granting and maintaining of such status.

26All invoices shall be held by the contractor for a period of five years and

27shall be subject to audit by the director of taxation. Any contractor or any

28agent, employee or subcontractor thereof, who shall use or otherwise

29dispose of any materials purchased under such a certificate for any purpose

30other than that for which such a certificate is issued without the payment

31of the sales or compensating tax otherwise imposed upon such materials,

32shall be guilty of a misdemeanor and, upon conviction therefor, shall be

33subject to the penalties provided for in K.S.A. 79-3615(h), and

34amendments thereto;

35(f) tangible personal property purchased by a railroad or public utility

36for consumption or movement directly and immediately in interstate

37commerce;

38(g) sales of aircraft including remanufactured and modified aircraft

39sold to persons using directly or through an authorized agent such aircraft

40as certified or licensed carriers of persons or property in interstate or

41foreign commerce under authority of the laws of the United States or any

42foreign government or sold to any foreign government or agency or

43instrumentality of such foreign government and all sales of aircraft for use

1outside of the United States and sales of aircraft repair, modification and

2replacement parts and sales of services employed in the remanufacture,

3modification and repair of aircraft;

4(h) all rentals of nonsectarian textbooks by public or private

5elementary or secondary schools;

6(i) the lease or rental of all films, records, tapes, or any type of sound

7or picture transcriptions used by motion picture exhibitors;

8(j) meals served without charge or food used in the preparation of

9such meals to employees of any restaurant, eating house, dining car, hotel,

10drugstore or other place where meals or drinks are regularly sold to the

11public if such employees' duties are related to the furnishing or sale of

12such meals or drinks;

13(k) any motor vehicle, semitrailer or pole trailer, as such terms are

14defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and

15delivered in this state to a bona fide resident of another state, which motor

16vehicle, semitrailer, pole trailer or aircraft is not to be registered or based

17in this state and which vehicle, semitrailer, pole trailer or aircraft will not

18remain in this state more than 10 days;

19(l) all isolated or occasional sales of tangible personal property,

20services, substances or things, except isolated or occasional sale of motor

21vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and

22amendments thereto;

23(m) all sales of tangible personal property that become an ingredient

24or component part of tangible personal property or services produced,

25manufactured or compounded for ultimate sale at retail within or without

26the state of Kansas; and any such producer, manufacturer or compounder

27may obtain from the director of taxation and furnish to the supplier an

28exemption certificate number for tangible personal property for use as an

29ingredient or component part of the property or services produced,

30manufactured or compounded;

31(n) all sales of tangible personal property that is consumed in the

32production, manufacture, processing, mining, drilling, refining or

33compounding of tangible personal property, the treating of by-products or

34wastes derived from any such production process, the providing of

35services or the irrigation of crops for ultimate sale at retail within or

36without the state of Kansas; and any purchaser of such property may

37obtain from the director of taxation and furnish to the supplier an

38exemption certificate number for tangible personal property for

39consumption in such production, manufacture, processing, mining,

40drilling, refining, compounding, treating, irrigation and in providing such

41services;

42(o) all sales of animals, fowl and aquatic plants and animals, the

43primary purpose of which is use in agriculture or aquaculture, as defined in

1K.S.A. 47-1901, and amendments thereto, the production of food for

2human consumption, the production of animal, dairy, poultry or aquatic

3plant and animal products, fiber or fur, or the production of offspring for

4use for any such purpose or purposes;

5(p) all sales of drugs dispensed pursuant to a prescription order by a

6licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-

71626, and amendments thereto. As used in this subsection, "drug" means a

8compound, substance or preparation and any component of a compound,

9substance or preparation, other than food and food ingredients, dietary

10supplements or alcoholic beverages, recognized in the official United

11States pharmacopeia, official homeopathic pharmacopoeia of the United

12States or official national formulary, and supplement to any of them,

13intended for use in the diagnosis, cure, mitigation, treatment or prevention

14of disease or intended to affect the structure or any function of the body,

15except that for taxable years commencing after December 31, 2013, this

16subsection shall not apply to any sales of drugs used in the performance or

17induction of an abortion, as defined in K.S.A. 65-6701, and amendments

18thereto;

19(q) all sales of insulin dispensed by a person licensed by the state

20board of pharmacy to a person for treatment of diabetes at the direction of

21a person licensed to practice medicine by the state board of healing arts;

22(r) all sales of oxygen delivery equipment, kidney dialysis equipment,

23enteral feeding systems, prosthetic devices and mobility enhancing

24equipment prescribed in writing by a person licensed to practice the

25healing arts, dentistry or optometry, and in addition to such sales, all sales

26of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,

27and repair and replacement parts therefor, including batteries, by a person

28licensed in the practice of dispensing and fitting hearing aids pursuant to

29the provisions of K.S.A. 74-5808, and amendments thereto. For the

30purposes of this subsection: (1) "Mobility enhancing equipment" means

31equipment including repair and replacement parts to same, but does not

32include durable medical equipment, which is primarily and customarily

33used to provide or increase the ability to move from one place to another

34and which is appropriate for use either in a home or a motor vehicle; is not

35generally used by persons with normal mobility; and does not include any

36motor vehicle or equipment on a motor vehicle normally provided by a

37motor vehicle manufacturer; and (2) "prosthetic device" means a

38replacement, corrective or supportive device including repair and

39replacement parts for same worn on or in the body to artificially replace a

40missing portion of the body, prevent or correct physical deformity or

41malfunction or support a weak or deformed portion of the body;

42(s) except as provided in K.S.A. 82a-2101, and amendments thereto,

43all sales of tangible personal property or services purchased directly or

1indirectly by a groundwater management district organized or operating

2under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,

3by a rural water district organized or operating under the authority of

4K.S.A. 82a-612, and amendments thereto, or by a water supply district

5organized or operating under the authority of K.S.A. 19-3501 et seq., 19-

63522 et seq. or 19-3545, and amendments thereto, which property or

7services are used in the construction activities, operation or maintenance of

8the district;

9(t) all sales of farm machinery and equipment or aquaculture

10machinery and equipment, repair and replacement parts therefor and

11services performed in the repair and maintenance of such machinery and

12equipment. For the purposes of this subsection the term "farm machinery

13and equipment or aquaculture machinery and equipment" shall include a

14work-site utility vehicle, as defined in K.S.A. 8-126, and amendments

15thereto, and is equipped with a bed or cargo box for hauling materials, and

16shall also include machinery and equipment used in the operation of

17Christmas tree farming but shall not include any passenger vehicle, truck,

18truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as

19such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm

20machinery and equipment" includes precision farming equipment that is

21portable or is installed or purchased to be installed on farm machinery and

22equipment. "Precision farming equipment" includes the following items

23used only in computer-assisted farming, ranching or aquaculture

24production operations: Soil testing sensors, yield monitors, computers,

25monitors, software, global positioning and mapping systems, guiding

26systems, modems, data communications equipment and any necessary

27mounting hardware, wiring and antennas. Each purchaser of farm

28machinery and equipment or aquaculture machinery and equipment

29exempted herein must certify in writing on the copy of the invoice or sales

30ticket to be retained by the seller that the farm machinery and equipment

31or aquaculture machinery and equipment purchased will be used only in

32farming, ranching or aquaculture production. Farming or ranching shall

33include the operation of a feedlot and farm and ranch work for hire and the

34operation of a nursery;

35(u) all leases or rentals of tangible personal property used as a

36dwelling if such tangible personal property is leased or rented for a period

37of more than 28 consecutive days;

38(v) all sales of tangible personal property to any contractor for use in

39preparing meals for delivery to homebound elderly persons over 60 years

40of age and to homebound disabled persons or to be served at a group-

41sitting at a location outside of the home to otherwise homebound elderly

42persons over 60 years of age and to otherwise homebound disabled

43persons, as all or part of any food service project funded in whole or in

1part by government or as part of a private nonprofit food service project

2available to all such elderly or disabled persons residing within an area of

3service designated by the private nonprofit organization, and all sales of

4tangible personal property for use in preparing meals for consumption by

5indigent or homeless individuals whether or not such meals are consumed

6at a place designated for such purpose, and all sales of food products by or

7on behalf of any such contractor or organization for any such purpose;

8(w) all sales of natural gas, electricity, heat and water delivered

9through mains, lines or pipes: (1) To residential premises for

10noncommercial use by the occupant of such premises; (2) for agricultural

11use and also, for such use, all sales of propane gas; (3) for use in the

12severing of oil; and (4) to any property which is exempt from property

13taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this

14paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),

15and amendments thereto. For all sales of natural gas, electricity and heat

16delivered through mains, lines or pipes pursuant to the provisions of

17subsection (w)(1) and (w)(2), the provisions of this subsection shall expire

18on December 31, 2005;

19(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources

20for the production of heat or lighting for noncommercial use of an

21occupant of residential premises occurring prior to January 1, 2006;

22(y) all sales of materials and services used in the repairing, servicing,

23altering, maintaining, manufacturing, remanufacturing, or modification of

24railroad rolling stock for use in interstate or foreign commerce under

25authority of the laws of the United States;

26(z) all sales of tangible personal property and services purchased

27directly by a port authority or by a contractor therefor as provided by the

28provisions of K.S.A. 12-3418, and amendments thereto;

29(aa) all sales of materials and services applied to equipment that is

30transported into the state from without the state for repair, service,

31alteration, maintenance, remanufacture or modification and that is

32subsequently transported outside the state for use in the transmission of

33liquids or natural gas by means of pipeline in interstate or foreign

34commerce under authority of the laws of the United States;

35(bb) all sales of used mobile homes or manufactured homes. As used

36in this subsection: (1) "Mobile homes" and "manufactured homes" mean

37the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)

38"sales of used mobile homes or manufactured homes" means sales other

39than the original retail sale thereof;

40(cc) all sales of tangible personal property or services purchased prior

41to January 1, 2012, except as otherwise provided, for the purpose of and in

42conjunction with constructing, reconstructing, enlarging or remodeling a

43business or retail business that meets the requirements established in

1K.S.A. 74-50,115, and amendments thereto, and the sale and installation of

2machinery and equipment purchased for installation at any such business

3or retail business, and all sales of tangible personal property or services

4purchased on or after January 1, 2012, for the purpose of and in

5conjunction with constructing, reconstructing, enlarging or remodeling a

6business that meets the requirements established in K.S.A. 74-50,115(e),

7and amendments thereto, and the sale and installation of machinery and

8equipment purchased for installation at any such business. When a person

9shall contract for the construction, reconstruction, enlargement or

10remodeling of any such business or retail business, such person shall

11obtain from the state and furnish to the contractor an exemption certificate

12for the project involved, and the contractor may purchase materials,

13machinery and equipment for incorporation in such project. The contractor

14shall furnish the number of such certificates to all suppliers from whom

15such purchases are made, and such suppliers shall execute invoices

16covering the same bearing the number of such certificate. Upon

17completion of the project the contractor shall furnish to the owner of the

18business or retail business a sworn statement, on a form to be provided by

19the director of taxation, that all purchases so made were entitled to

20exemption under this subsection. All invoices shall be held by the

21contractor for a period of five years and shall be subject to audit by the

22director of taxation. Any contractor or any agent, employee or

23subcontractor thereof, who shall use or otherwise dispose of any materials,

24machinery or equipment purchased under such a certificate for any

25purpose other than that for which such a certificate is issued without the

26payment of the sales or compensating tax otherwise imposed thereon, shall

27be guilty of a misdemeanor and, upon conviction therefor, shall be subject

28to the penalties provided for in K.S.A. 79-3615(h), and amendments

29thereto. As used in this subsection, "business" and "retail business" mean

30the same as defined in K.S.A. 74-50,114, and amendments thereto. Project

31exemption certificates that have been previously issued under this

32subsection by the department of revenue pursuant to K.S.A. 74-50,115,

33and amendments thereto, but not including K.S.A. 74-50,115(e), and

34amendments thereto, prior to January 1, 2012, and have not expired will be

35effective for the term of the project or two years from the effective date of

36the certificate, whichever occurs earlier. Project exemption certificates that

37are submitted to the department of revenue prior to January 1, 2012, and

38are found to qualify will be issued a project exemption certificate that will

39be effective for a two-year period or for the term of the project, whichever

40occurs earlier;

41(dd) all sales of tangible personal property purchased with food

42stamps issued by the United States department of agriculture;

43(ee) all sales of lottery tickets and shares made as part of a lottery

1operated by the state of Kansas;

2(ff) on and after July 1, 1988, all sales of new mobile homes or

3manufactured homes to the extent of 40% of the gross receipts, determined

4without regard to any trade-in allowance, received from such sale. As used

5in this subsection, "mobile homes" and "manufactured homes" mean the

6same as defined in K.S.A. 58-4202, and amendments thereto;

7(gg) all sales of tangible personal property purchased in accordance

8with vouchers issued pursuant to the federal special supplemental food

9program for women, infants and children;

10(hh) all sales of medical supplies and equipment, including durable

11medical equipment, purchased directly by a nonprofit skilled nursing home

12or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,

13and amendments thereto, for the purpose of providing medical services to

14residents thereof. This exemption shall not apply to tangible personal

15property customarily used for human habitation purposes. As used in this

16subsection, "durable medical equipment" means equipment including

17repair and replacement parts for such equipment, that can withstand

18repeated use, is primarily and customarily used to serve a medical purpose,

19generally is not useful to a person in the absence of illness or injury and is

20not worn in or on the body, but does not include mobility enhancing

21equipment as defined in subsection (r), oxygen delivery equipment, kidney

22dialysis equipment or enteral feeding systems;

23(ii) all sales of tangible personal property purchased directly by a

24nonprofit organization for nonsectarian comprehensive multidiscipline

25youth development programs and activities provided or sponsored by such

26organization, and all sales of tangible personal property by or on behalf of

27any such organization. This exemption shall not apply to tangible personal

28property customarily used for human habitation purposes;

29(jj) all sales of tangible personal property or services, including the

30renting and leasing of tangible personal property, purchased directly on

31behalf of a community-based facility for people with intellectual disability

32or mental health center organized pursuant to K.S.A. 19-4001 et seq., and

33amendments thereto, and licensed in accordance with the provisions of

34K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible

35personal property or services purchased by contractors during the time

36period from July, 2003, through June, 2006, for the purpose of

37constructing, equipping, maintaining or furnishing a new facility for a

38community-based facility for people with intellectual disability or mental

39health center located in Riverton, Cherokee County, Kansas, that would

40have been eligible for sales tax exemption pursuant to this subsection if

41purchased directly by such facility or center. This exemption shall not

42apply to tangible personal property customarily used for human habitation

43purposes;

1(kk) (1) (A) all sales of machinery and equipment that are used in this

2state as an integral or essential part of an integrated production operation

3by a manufacturing or processing plant or facility;

4(B) all sales of installation, repair and maintenance services

5performed on such machinery and equipment; and

6(C) all sales of repair and replacement parts and accessories

7purchased for such machinery and equipment.

8(2) For purposes of this subsection:

9(A) "Integrated production operation" means an integrated series of

10operations engaged in at a manufacturing or processing plant or facility to

11process, transform or convert tangible personal property by physical,

12chemical or other means into a different form, composition or character

13from that in which it originally existed. Integrated production operations

14shall include: (i) Production line operations, including packaging

15operations; (ii) preproduction operations to handle, store and treat raw

16materials; (iii) post production handling, storage, warehousing and

17distribution operations; and (iv) waste, pollution and environmental

18control operations, if any;

19(B) "production line" means the assemblage of machinery and

20equipment at a manufacturing or processing plant or facility where the

21actual transformation or processing of tangible personal property occurs;

22(C) "manufacturing or processing plant or facility" means a single,

23fixed location owned or controlled by a manufacturing or processing

24business that consists of one or more structures or buildings in a

25contiguous area where integrated production operations are conducted to

26manufacture or process tangible personal property to be ultimately sold at

27retail. Such term shall not include any facility primarily operated for the

28purpose of conveying or assisting in the conveyance of natural gas,

29electricity, oil or water. A business may operate one or more manufacturing

30or processing plants or facilities at different locations to manufacture or

31process a single product of tangible personal property to be ultimately sold

32at retail;

33(D) "manufacturing or processing business" means a business that

34utilizes an integrated production operation to manufacture, process,

35fabricate, finish or assemble items for wholesale and retail distribution as

36part of what is commonly regarded by the general public as an industrial

37manufacturing or processing operation or an agricultural commodity

38processing operation. (i) Industrial manufacturing or processing operations

39include, by way of illustration but not of limitation, the fabrication of

40automobiles, airplanes, machinery or transportation equipment, the

41fabrication of metal, plastic, wood or paper products, electricity power

42generation, water treatment, petroleum refining, chemical production,

43wholesale bottling, newspaper printing, ready mixed concrete production,

1and the remanufacturing of used parts for wholesale or retail sale. Such

2processing operations shall include operations at an oil well, gas well,

3mine or other excavation site where the oil, gas, minerals, coal, clay, stone,

4sand or gravel that has been extracted from the earth is cleaned, separated,

5crushed, ground, milled, screened, washed or otherwise treated or prepared

6before its transmission to a refinery or before any other wholesale or retail

7distribution. (ii) Agricultural commodity processing operations include, by

8way of illustration but not of limitation, meat packing, poultry slaughtering

9and dressing, processing and packaging farm and dairy products in sealed

10containers for wholesale and retail distribution, feed grinding, grain

11milling, frozen food processing, and grain handling, cleaning, blending,

12fumigation, drying and aeration operations engaged in by grain elevators

13or other grain storage facilities. (iii) Manufacturing or processing

14businesses do not include, by way of illustration but not of limitation,

15nonindustrial businesses whose operations are primarily retail and that

16produce or process tangible personal property as an incidental part of

17conducting the retail business, such as retailers who bake, cook or prepare

18food products in the regular course of their retail trade, grocery stores,

19meat lockers and meat markets that butcher or dress livestock or poultry in

20the regular course of their retail trade, contractors who alter, service, repair

21or improve real property, and retail businesses that clean, service or

22refurbish and repair tangible personal property for its owner;

23(E) "repair and replacement parts and accessories" means all parts

24and accessories for exempt machinery and equipment, including, but not

25limited to, dies, jigs, molds, patterns and safety devices that are attached to

26exempt machinery or that are otherwise used in production, and parts and

27accessories that require periodic replacement such as belts, drill bits,

28grinding wheels, grinding balls, cutting bars, saws, refractory brick and

29other refractory items for exempt kiln equipment used in production

30operations;

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

32(3) For purposes of this subsection, machinery and equipment shall

33be deemed to be used as an integral or essential part of an integrated

34production operation when used to:

35(A) Receive, transport, convey, handle, treat or store raw materials in

36preparation of its placement on the production line;

37(B) transport, convey, handle or store the property undergoing

38manufacturing or processing at any point from the beginning of the

39production line through any warehousing or distribution operation of the

40final product that occurs at the plant or facility;

41(C) act upon, effect, promote or otherwise facilitate a physical change

42to the property undergoing manufacturing or processing;

43(D) guide, control or direct the movement of property undergoing

1manufacturing or processing;

2(E) test or measure raw materials, the property undergoing

3manufacturing or processing or the finished product, as a necessary part of

4the manufacturer's integrated production operations;

5(F) plan, manage, control or record the receipt and flow of inventories

6of raw materials, consumables and component parts, the flow of the

7property undergoing manufacturing or processing and the management of

8inventories of the finished product;

9(G) produce energy for, lubricate, control the operating of or

10otherwise enable the functioning of other production machinery and

11equipment and the continuation of production operations;

12(H) package the property being manufactured or processed in a

13container or wrapping in which such property is normally sold or

14transported;

15(I) transmit or transport electricity, coke, gas, water, steam or similar

16substances used in production operations from the point of generation, if

17produced by the manufacturer or processor at the plant site, to that

18manufacturer's production operation; or, if purchased or delivered from

19off-site, from the point where the substance enters the site of the plant or

20facility to that manufacturer's production operations;

21(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,

22solvents or other substances that are used in production operations;

23(K) provide and control an environment required to maintain certain

24levels of air quality, humidity or temperature in special and limited areas

25of the plant or facility, where such regulation of temperature or humidity is

26part of and essential to the production process;

27(L) treat, transport or store waste or other byproducts of production

28operations at the plant or facility; or

29(M) control pollution at the plant or facility where the pollution is

30produced by the manufacturing or processing operation.

31(4) The following machinery, equipment and materials shall be

32deemed to be exempt even though it may not otherwise qualify as

33machinery and equipment used as an integral or essential part of an

34integrated production operation: (A) Computers and related peripheral

35equipment that are utilized by a manufacturing or processing business for

36engineering of the finished product or for research and development or

37product design; (B) machinery and equipment that is utilized by a

38manufacturing or processing business to manufacture or rebuild tangible

39personal property that is used in manufacturing or processing operations,

40including tools, dies, molds, forms and other parts of qualifying machinery

41and equipment; (C) portable plants for aggregate concrete, bulk cement

42and asphalt including cement mixing drums to be attached to a motor

43vehicle; (D) industrial fixtures, devices, support facilities and special

1foundations necessary for manufacturing and production operations, and

2materials and other tangible personal property sold for the purpose of

3fabricating such fixtures, devices, facilities and foundations. An exemption

4certificate for such purchases shall be signed by the manufacturer or

5processor. If the fabricator purchases such material, the fabricator shall

6also sign the exemption certificate; (E) a manufacturing or processing

7business' laboratory equipment that is not located at the plant or facility,

8but that would otherwise qualify for exemption under subsection (3)(E);

9(F) all machinery and equipment used in surface mining activities as

10described in K.S.A. 49-601 et seq., and amendments thereto, beginning

11from the time a reclamation plan is filed to the acceptance of the

12completed final site reclamation.

13(5) "Machinery and equipment used as an integral or essential part of

14an integrated production operation" shall not include:

15(A) Machinery and equipment used for nonproduction purposes,

16including, but not limited to, machinery and equipment used for plant

17security, fire prevention, first aid, accounting, administration, record

18keeping, advertising, marketing, sales or other related activities, plant

19cleaning, plant communications and employee work scheduling;

20(B) machinery, equipment and tools used primarily in maintaining

21and repairing any type of machinery and equipment or the building and

22plant;

23(C) transportation, transmission and distribution equipment not

24primarily used in a production, warehousing or material handling

25operation at the plant or facility, including the means of conveyance of

26natural gas, electricity, oil or water, and equipment related thereto, located

27outside the plant or facility;

28(D) office machines and equipment including computers and related

29peripheral equipment not used directly and primarily to control or measure

30the manufacturing process;

31(E) furniture and other furnishings;

32(F) buildings, other than exempt machinery and equipment that is

33permanently affixed to or becomes a physical part of the building, and any

34other part of real estate that is not otherwise exempt;

35(G) building fixtures that are not integral to the manufacturing

36operation, such as utility systems for heating, ventilation, air conditioning,

37communications, plumbing or electrical;

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

39and lighting;

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

41highways; or

42(J) employee apparel, except safety and protective apparel that is

43purchased by an employer and furnished gratuitously to employees who

1are involved in production or research activities.

2(6) Paragraphs (3) and (5) shall not be construed as exclusive listings

3of the machinery and equipment that qualify or do not qualify as an

4integral or essential part of an integrated production operation. When

5machinery or equipment is used as an integral or essential part of

6production operations part of the time and for nonproduction purposes at

7other times, the primary use of the machinery or equipment shall

8determine whether or not such machinery or equipment qualifies for

9exemption.

10(7) The secretary of revenue shall adopt rules and regulations

11necessary to administer the provisions of this subsection;

12(ll) all sales of educational materials purchased for distribution to the

13public at no charge by a nonprofit corporation organized for the purpose of

14encouraging, fostering and conducting programs for the improvement of

15public health, except that for taxable years commencing after December

1631, 2013, this subsection shall not apply to any sales of such materials

17purchased by a nonprofit corporation which performs any abortion, as

18defined in K.S.A. 65-6701, and amendments thereto;

19(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,

20herbicides, germicides, pesticides and fungicides; and services, purchased

21and used for the purpose of producing plants in order to prevent soil

22erosion on land devoted to agricultural use;

23(nn) except as otherwise provided in this act, all sales of services

24rendered by an advertising agency or licensed broadcast station or any

25member, agent or employee thereof;

26(oo) all sales of tangible personal property purchased by a community

27action group or agency for the exclusive purpose of repairing or

28weatherizing housing occupied by low-income individuals;

29(pp) all sales of drill bits and explosives actually utilized in the

30exploration and production of oil or gas;

31(qq) all sales of tangible personal property and services purchased by

32a nonprofit museum or historical society or any combination thereof,

33including a nonprofit organization that is organized for the purpose of

34stimulating public interest in the exploration of space by providing

35educational information, exhibits and experiences, that is exempt from

36federal income taxation pursuant to section 501(c)(3) of the federal

37internal revenue code of 1986;

38(rr) all sales of tangible personal property that will admit the

39purchaser thereof to any annual event sponsored by a nonprofit

40organization that is exempt from federal income taxation pursuant to

41section 501(c)(3) of the federal internal revenue code of 1986, except that

42for taxable years commencing after December 31, 2013, this subsection

43shall not apply to any sales of such tangible personal property purchased

1by a nonprofit organization which performs any abortion, as defined in

2K.S.A. 65-6701, and amendments thereto;

3(ss) all sales of tangible personal property and services purchased by

4a public broadcasting station licensed by the federal communications

5commission as a noncommercial educational television or radio station;

6(tt) all sales of tangible personal property and services purchased by

7or on behalf of a not-for-profit corporation that is exempt from federal

8income taxation pursuant to section 501(c)(3) of the federal internal

9revenue code of 1986, for the sole purpose of constructing a Kansas

10Korean War memorial;

11(uu) all sales of tangible personal property and services purchased by

12or on behalf of any rural volunteer fire-fighting organization for use

13exclusively in the performance of its duties and functions;

14(vv) all sales of tangible personal property purchased by any of the

15following organizations that are exempt from federal income taxation

16pursuant to section 501(c)(3) of the federal internal revenue code of 1986,

17for the following purposes, and all sales of any such property by or on

18behalf of any such organization for any such purpose:

19(1) The American heart association, Kansas affiliate, inc. for the

20purposes of providing education, training, certification in emergency

21cardiac care, research and other related services to reduce disability and

22death from cardiovascular diseases and stroke;

23(2) the Kansas alliance for the mentally ill, inc. for the purpose of

24advocacy for persons with mental illness and to education, research and

25support for their families;

26(3) the Kansas mental illness awareness council for the purposes of

27advocacy for persons who are mentally ill and for education, research and

28support for them and their families;

29(4) the American diabetes association Kansas affiliate, inc. for the

30purpose of eliminating diabetes through medical research, public education

31focusing on disease prevention and education, patient education including

32information on coping with diabetes, and professional education and

33training;

34(5) the American lung association of Kansas, inc. for the purpose of

35eliminating all lung diseases through medical research, public education

36including information on coping with lung diseases, professional education

37and training related to lung disease and other related services to reduce the

38incidence of disability and death due to lung disease;

39(6) the Kansas chapters of the Alzheimer's disease and related

40disorders association, inc. for the purpose of providing assistance and

41support to persons in Kansas with Alzheimer's disease, and their families

42and caregivers;

43(7) the Kansas chapters of the Parkinson's disease association for the

1purpose of eliminating Parkinson's disease through medical research and

2public and professional education related to such disease;

3(8) the national kidney foundation of Kansas and western Missouri

4for the purpose of eliminating kidney disease through medical research

5and public and private education related to such disease;

6(9) the heartstrings community foundation for the purpose of

7providing training, employment and activities for adults with

8developmental disabilities;

9(10) the cystic fibrosis foundation, heart of America chapter, for the

10purposes of assuring the development of the means to cure and control

11cystic fibrosis and improving the quality of life for those with the disease;

12(11) the spina bifida association of Kansas for the purpose of

13providing financial, educational and practical aid to families and

14individuals with spina bifida. Such aid includes, but is not limited to,

15funding for medical devices, counseling and medical educational

16opportunities;

17(12) the CHWC, Inc., for the purpose of rebuilding urban core

18neighborhoods through the construction of new homes, acquiring and

19renovating existing homes and other related activities, and promoting

20economic development in such neighborhoods;

21(13) the cross-lines cooperative council for the purpose of providing

22social services to low income individuals and families;

23(14) the dreams work, inc., for the purpose of providing young adult

24day services to individuals with developmental disabilities and assisting

25families in avoiding institutional or nursing home care for a

26developmentally disabled member of their family;

27(15) the KSDS, Inc., for the purpose of promoting the independence

28and inclusion of people with disabilities as fully participating and

29contributing members of their communities and society through the

30training and providing of guide and service dogs to people with

31disabilities, and providing disability education and awareness to the

32general public;

33(16) the lyme association of greater Kansas City, Inc., for the purpose

34of providing support to persons with lyme disease and public education

35relating to the prevention, treatment and cure of lyme disease;

36(17) the dream factory, inc., for the purpose of granting the dreams of

37children with critical and chronic illnesses;

38(18) the Ottawa Suzuki strings, inc., for the purpose of providing

39students and families with education and resources necessary to enable

40each child to develop fine character and musical ability to the fullest

41potential;

42(19) the international association of lions clubs for the purpose of

43creating and fostering a spirit of understanding among all people for

1humanitarian needs by providing voluntary services through community

2involvement and international cooperation;

3(20) the Johnson county young matrons, inc., for the purpose of

4promoting a positive future for members of the community through

5volunteerism, financial support and education through the efforts of an all

6volunteer organization;

7(21) the American cancer society, inc., for the purpose of eliminating

8cancer as a major health problem by preventing cancer, saving lives and

9diminishing suffering from cancer, through research, education, advocacy

10and service;

11(22) the community services of Shawnee, inc., for the purpose of

12providing food and clothing to those in need;

13(23) the angel babies association, for the purpose of providing

14assistance, support and items of necessity to teenage mothers and their

15babies; and

16(24) the Kansas fairgrounds foundation for the purpose of the

17preservation, renovation and beautification of the Kansas state fairgrounds;

18(ww) all sales of tangible personal property purchased by the habitat

19for humanity for the exclusive use of being incorporated within a housing

20project constructed by such organization;

21(xx) all sales of tangible personal property and services purchased by

22a nonprofit zoo that is exempt from federal income taxation pursuant to

23section 501(c)(3) of the federal internal revenue code of 1986, or on behalf

24of such zoo by an entity itself exempt from federal income taxation

25pursuant to section 501(c)(3) of the federal internal revenue code of 1986

26contracted with to operate such zoo and all sales of tangible personal

27property or services purchased by a contractor for the purpose of

28constructing, equipping, reconstructing, maintaining, repairing, enlarging,

29furnishing or remodeling facilities for any nonprofit zoo that would be

30exempt from taxation under the provisions of this section if purchased

31directly by such nonprofit zoo or the entity operating such zoo. Nothing in

32this subsection shall be deemed to exempt the purchase of any construction

33machinery, equipment or tools used in the constructing, equipping,

34reconstructing, maintaining, repairing, enlarging, furnishing or remodeling

35facilities for any nonprofit zoo. When any nonprofit zoo shall contract for

36the purpose of constructing, equipping, reconstructing, maintaining,

37repairing, enlarging, furnishing or remodeling facilities, it shall obtain

38from the state and furnish to the contractor an exemption certificate for the

39project involved, and the contractor may purchase materials for

40incorporation in such project. The contractor shall furnish the number of

41such certificate to all suppliers from whom such purchases are made, and

42such suppliers shall execute invoices covering the same bearing the

43number of such certificate. Upon completion of the project the contractor

1shall furnish to the nonprofit zoo concerned a sworn statement, on a form

2to be provided by the director of taxation, that all purchases so made were

3entitled to exemption under this subsection. All invoices shall be held by

4the contractor for a period of five years and shall be subject to audit by the

5director of taxation. If any materials purchased under such a certificate are

6found not to have been incorporated in the building or other project or not

7to have been returned for credit or the sales or compensating tax otherwise

8imposed upon such materials that will not be so incorporated in the

9building or other project reported and paid by such contractor to the

10director of taxation not later than the 20th day of the month following the

11close of the month in which it shall be determined that such materials will

12not be used for the purpose for which such certificate was issued, the

13nonprofit zoo concerned shall be liable for tax on all materials purchased

14for the project, and upon payment thereof it may recover the same from

15the contractor together with reasonable attorney fees. Any contractor or

16any agent, employee or subcontractor thereof, who shall use or otherwise

17dispose of any materials purchased under such a certificate for any purpose

18other than that for which such a certificate is issued without the payment

19of the sales or compensating tax otherwise imposed upon such materials,

20shall be guilty of a misdemeanor and, upon conviction therefor, shall be

21subject to the penalties provided for in K.S.A. 79-3615(h), and

22amendments thereto;

23(yy) all sales of tangible personal property and services purchased by

24a parent-teacher association or organization, and all sales of tangible

25personal property by or on behalf of such association or organization;

26(zz) all sales of machinery and equipment purchased by over-the-air,

27free access radio or television station that is used directly and primarily for

28the purpose of producing a broadcast signal or is such that the failure of

29the machinery or equipment to operate would cause broadcasting to cease.

30For purposes of this subsection, machinery and equipment shall include,

31but not be limited to, that required by rules and regulations of the federal

32communications commission, and all sales of electricity which are

33essential or necessary for the purpose of producing a broadcast signal or is

34such that the failure of the electricity would cause broadcasting to cease;

35(aaa) all sales of tangible personal property and services purchased by

36a religious organization that is exempt from federal income taxation

37pursuant to section 501(c)(3) of the federal internal revenue code, and used

38exclusively for religious purposes, and all sales of tangible personal

39property or services purchased by a contractor for the purpose of

40constructing, equipping, reconstructing, maintaining, repairing, enlarging,

41furnishing or remodeling facilities for any such organization that would be

42exempt from taxation under the provisions of this section if purchased

43directly by such organization. Nothing in this subsection shall be deemed

1to exempt the purchase of any construction machinery, equipment or tools

2used in the constructing, equipping, reconstructing, maintaining, repairing,

3enlarging, furnishing or remodeling facilities for any such organization.

4When any such organization shall contract for the purpose of constructing,

5equipping, reconstructing, maintaining, repairing, enlarging, furnishing or

6remodeling facilities, it shall obtain from the state and furnish to the

7contractor an exemption certificate for the project involved, and the

8contractor may purchase materials for incorporation in such project. The

9contractor shall furnish the number of such certificate to all suppliers from

10whom such purchases are made, and such suppliers shall execute invoices

11covering the same bearing the number of such certificate. Upon

12completion of the project the contractor shall furnish to such organization

13concerned a sworn statement, on a form to be provided by the director of

14taxation, that all purchases so made were entitled to exemption under this

15subsection. All invoices shall be held by the contractor for a period of five

16years and shall be subject to audit by the director of taxation. If any

17materials purchased under such a certificate are found not to have been

18incorporated in the building or other project or not to have been returned

19for credit or the sales or compensating tax otherwise imposed upon such

20materials that will not be so incorporated in the building or other project

21reported and paid by such contractor to the director of taxation not later

22than the 20th day of the month following the close of the month in which it

23shall be determined that such materials will not be used for the purpose for

24which such certificate was issued, such organization concerned shall be

25liable for tax on all materials purchased for the project, and upon payment

26thereof it may recover the same from the contractor together with

27reasonable attorney fees. Any contractor or any agent, employee or

28subcontractor thereof, who shall use or otherwise dispose of any materials

29purchased under such a certificate for any purpose other than that for

30which such a certificate is issued without the payment of the sales or

31compensating tax otherwise imposed upon such materials, shall be guilty

32of a misdemeanor and, upon conviction therefor, shall be subject to the

33penalties provided for in K.S.A. 79-3615(h), and amendments thereto.

34Sales tax paid on and after July 1, 1998, but prior to the effective date of

35this act upon the gross receipts received from any sale exempted by the

36amendatory provisions of this subsection shall be refunded. Each claim for

37a sales tax refund shall be verified and submitted to the director of taxation

38upon forms furnished by the director and shall be accompanied by any

39additional documentation required by the director. The director shall

40review each claim and shall refund that amount of sales tax paid as

41determined under the provisions of this subsection. All refunds shall be

42paid from the sales tax refund fund upon warrants of the director of

43accounts and reports pursuant to vouchers approved by the director or the

1director's designee;

2(bbb) all sales of food for human consumption by an organization that

3is exempt from federal income taxation pursuant to section 501(c)(3) of

4the federal internal revenue code of 1986, pursuant to a food distribution

5program that offers such food at a price below cost in exchange for the

6performance of community service by the purchaser thereof;

7(ccc) on and after July 1, 1999, all sales of tangible personal property

8and services purchased by a primary care clinic or health center the

9primary purpose of which is to provide services to medically underserved

10individuals and families, and that is exempt from federal income taxation

11pursuant to section 501(c)(3) of the federal internal revenue code, and all

12sales of tangible personal property or services purchased by a contractor

13for the purpose of constructing, equipping, reconstructing, maintaining,

14repairing, enlarging, furnishing or remodeling facilities for any such clinic

15or center that would be exempt from taxation under the provisions of this

16section if purchased directly by such clinic or center, except that for

17taxable years commencing after December 31, 2013, this subsection shall

18not apply to any sales of such tangible personal property and services

19purchased by a primary care clinic or health center which performs any

20abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing

21in this subsection shall be deemed to exempt the purchase of any

22construction machinery, equipment or tools used in the constructing,

23equipping, reconstructing, maintaining, repairing, enlarging, furnishing or

24remodeling facilities for any such clinic or center. When any such clinic or

25center shall contract for the purpose of constructing, equipping,

26reconstructing, maintaining, repairing, enlarging, furnishing or remodeling

27facilities, it shall obtain from the state and furnish to the contractor an

28exemption certificate for the project involved, and the contractor may

29purchase materials for incorporation in such project. The contractor shall

30furnish the number of such certificate to all suppliers from whom such

31purchases are made, and such suppliers shall execute invoices covering the

32same bearing the number of such certificate. Upon completion of the

33project the contractor shall furnish to such clinic or center concerned a

34sworn statement, on a form to be provided by the director of taxation, that

35all purchases so made were entitled to exemption under this subsection.

36All invoices shall be held by the contractor for a period of five years and

37shall be subject to audit by the director of taxation. If any materials

38purchased under such a certificate are found not to have been incorporated

39in the building or other project or not to have been returned for credit or

40the sales or compensating tax otherwise imposed upon such materials that

41will not be so incorporated in the building or other project reported and

42paid by such contractor to the director of taxation not later than the 20th

43day of the month following the close of the month in which it shall be

1determined that such materials will not be used for the purpose for which

2such certificate was issued, such clinic or center concerned shall be liable

3for tax on all materials purchased for the project, and upon payment

4thereof it may recover the same from the contractor together with

5reasonable attorney fees. Any contractor or any agent, employee or

6subcontractor thereof, who shall use or otherwise dispose of any materials

7purchased under such a certificate for any purpose other than that for

8which such a certificate is issued without the payment of the sales or

9compensating tax otherwise imposed upon such materials, shall be guilty

10of a misdemeanor and, upon conviction therefor, shall be subject to the

11penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

12(ddd) on and after January 1, 1999, and before January 1, 2000, all

13sales of materials and services purchased by any class II or III railroad as

14classified by the federal surface transportation board for the construction,

15renovation, repair or replacement of class II or III railroad track and

16facilities used directly in interstate commerce. In the event any such track

17or facility for which materials and services were purchased sales tax

18exempt is not operational for five years succeeding the allowance of such

19exemption, the total amount of sales tax that would have been payable

20except for the operation of this subsection shall be recouped in accordance

21with rules and regulations adopted for such purpose by the secretary of

22revenue;

23(eee) on and after January 1, 1999, and before January 1, 2001, all

24sales of materials and services purchased for the original construction,

25reconstruction, repair or replacement of grain storage facilities, including

26railroad sidings providing access thereto;

27(fff) all sales of material handling equipment, racking systems and

28other related machinery and equipment that is used for the handling,

29movement or storage of tangible personal property in a warehouse or

30distribution facility in this state; all sales of installation, repair and

31maintenance services performed on such machinery and equipment; and

32all sales of repair and replacement parts for such machinery and

33equipment. For purposes of this subsection, a warehouse or distribution

34facility means a single, fixed location that consists of buildings or

35structures in a contiguous area where storage or distribution operations are

36conducted that are separate and apart from the business' retail operations,

37if any, and that do not otherwise qualify for exemption as occurring at a

38manufacturing or processing plant or facility. Material handling and

39storage equipment shall include aeration, dust control, cleaning, handling

40and other such equipment that is used in a public grain warehouse or other

41commercial grain storage facility, whether used for grain handling, grain

42storage, grain refining or processing, or other grain treatment operation;

43(ggg) all sales of tangible personal property and services purchased

1by or on behalf of the Kansas academy of science, which is exempt from

2federal income taxation pursuant to section 501(c)(3) of the federal

3internal revenue code of 1986, and used solely by such academy for the

4preparation, publication and dissemination of education materials;

5(hhh) all sales of tangible personal property and services purchased

6by or on behalf of all domestic violence shelters that are member agencies

7of the Kansas coalition against sexual and domestic violence;

8(iii) all sales of personal property and services purchased by an

9organization that is exempt from federal income taxation pursuant to

10section 501(c)(3) of the federal internal revenue code of 1986, and such

11personal property and services are used by any such organization in the

12collection, storage and distribution of food products to nonprofit

13organizations that distribute such food products to persons pursuant to a

14food distribution program on a charitable basis without fee or charge, and

15all sales of tangible personal property or services purchased by a

16contractor for the purpose of constructing, equipping, reconstructing,

17maintaining, repairing, enlarging, furnishing or remodeling facilities used

18for the collection and storage of such food products for any such

19organization which is exempt from federal income taxation pursuant to

20section 501(c)(3) of the federal internal revenue code of 1986, that would

21be exempt from taxation under the provisions of this section if purchased

22directly by such organization. Nothing in this subsection shall be deemed

23to exempt the purchase of any construction machinery, equipment or tools

24used in the constructing, equipping, reconstructing, maintaining, repairing,

25enlarging, furnishing or remodeling facilities for any such organization.

26When any such organization shall contract for the purpose of constructing,

27equipping, reconstructing, maintaining, repairing, enlarging, furnishing or

28remodeling facilities, it shall obtain from the state and furnish to the

29contractor an exemption certificate for the project involved, and the

30contractor may purchase materials for incorporation in such project. The

31contractor shall furnish the number of such certificate to all suppliers from

32whom such purchases are made, and such suppliers shall execute invoices

33covering the same bearing the number of such certificate. Upon

34completion of the project the contractor shall furnish to such organization

35concerned a sworn statement, on a form to be provided by the director of

36taxation, that all purchases so made were entitled to exemption under this

37subsection. All invoices shall be held by the contractor for a period of five

38years and shall be subject to audit by the director of taxation. If any

39materials purchased under such a certificate are found not to have been

40incorporated in such facilities or not to have been returned for credit or the

41sales or compensating tax otherwise imposed upon such materials that will

42not be so incorporated in such facilities reported and paid by such

43contractor to the director of taxation not later than the 20th day of the

1month following the close of the month in which it shall be determined

2that such materials will not be used for the purpose for which such

3certificate was issued, such organization concerned shall be liable for tax

4on all materials purchased for the project, and upon payment thereof it

5may recover the same from the contractor together with reasonable

6attorney fees. Any contractor or any agent, employee or subcontractor

7thereof, who shall use or otherwise dispose of any materials purchased

8under such a certificate for any purpose other than that for which such a

9certificate is issued without the payment of the sales or compensating tax

10otherwise imposed upon such materials, shall be guilty of a misdemeanor

11and, upon conviction therefor, shall be subject to the penalties provided for

12in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after

13July 1, 2005, but prior to the effective date of this act upon the gross

14receipts received from any sale exempted by the amendatory provisions of

15this subsection shall be refunded. Each claim for a sales tax refund shall be

16verified and submitted to the director of taxation upon forms furnished by

17the director and shall be accompanied by any additional documentation

18required by the director. The director shall review each claim and shall

19refund that amount of sales tax paid as determined under the provisions of

20this subsection. All refunds shall be paid from the sales tax refund fund

21upon warrants of the director of accounts and reports pursuant to vouchers

22approved by the director or the director's designee;

23(jjj) all sales of dietary supplements dispensed pursuant to a

24prescription order by a licensed practitioner or a mid-level practitioner as

25defined by K.S.A. 65-1626, and amendments thereto. As used in this

26subsection, "dietary supplement" means any product, other than tobacco,

27intended to supplement the diet that: (1) Contains one or more of the

28following dietary ingredients: A vitamin, a mineral, an herb or other

29botanical, an amino acid, a dietary substance for use by humans to

30supplement the diet by increasing the total dietary intake or a concentrate,

31metabolite, constituent, extract or combination of any such ingredient; (2)

32is intended for ingestion in tablet, capsule, powder, softgel, gelcap or

33liquid form, or if not intended for ingestion, in such a form, is not

34represented as conventional food and is not represented for use as a sole

35item of a meal or of the diet; and (3) is required to be labeled as a dietary

36supplement, identifiable by the supplemental facts box found on the label

37and as required pursuant to 21 C.F.R. § 101.36;

38(lll) all sales of tangible personal property and services purchased by

39special olympics Kansas, inc. for the purpose of providing year-round

40sports training and athletic competition in a variety of olympic-type sports

41for individuals with intellectual disabilities by giving them continuing

42opportunities to develop physical fitness, demonstrate courage, experience

43joy and participate in a sharing of gifts, skills and friendship with their

1families, other special olympics athletes and the community, and activities

2provided or sponsored by such organization, and all sales of tangible

3personal property by or on behalf of any such organization;

4(mmm) all sales of tangible personal property purchased by or on

5behalf of the Marillac center, inc., which is exempt from federal income

6taxation pursuant to section 501(c)(3) of the federal internal revenue code,

7for the purpose of providing psycho-social-biological and special

8education services to children, and all sales of any such property by or on

9behalf of such organization for such purpose;

10(nnn) all sales of tangible personal property and services purchased

11by the west Sedgwick county-sunrise rotary club and sunrise charitable

12fund for the purpose of constructing a boundless playground which is an

13integrated, barrier free and developmentally advantageous play

14environment for children of all abilities and disabilities;

15(ooo) all sales of tangible personal property by or on behalf of a

16public library serving the general public and supported in whole or in part

17with tax money or a not-for-profit organization whose purpose is to raise

18funds for or provide services or other benefits to any such public library;

19(ppp) all sales of tangible personal property and services purchased

20by or on behalf of a homeless shelter that is exempt from federal income

21taxation pursuant to section 501(c)(3) of the federal income tax code of

221986, and used by any such homeless shelter to provide emergency and

23transitional housing for individuals and families experiencing

24homelessness, and all sales of any such property by or on behalf of any

25such homeless shelter for any such purpose;

26(qqq) all sales of tangible personal property and services purchased

27by TLC for children and families, inc., hereinafter referred to as TLC,

28which is exempt from federal income taxation pursuant to section 501(c)

29(3) of the federal internal revenue code of 1986, and such property and

30services are used for the purpose of providing emergency shelter and

31treatment for abused and neglected children as well as meeting additional

32critical needs for children, juveniles and family, and all sales of any such

33property by or on behalf of TLC for any such purpose; and all sales of

34tangible personal property or services purchased by a contractor for the

35purpose of constructing, maintaining, repairing, enlarging, furnishing or

36remodeling facilities for the operation of services for TLC for any such

37purpose that would be exempt from taxation under the provisions of this

38section if purchased directly by TLC. Nothing in this subsection shall be

39deemed to exempt the purchase of any construction machinery, equipment

40or tools used in the constructing, maintaining, repairing, enlarging,

41furnishing or remodeling such facilities for TLC. When TLC contracts for

42the purpose of constructing, maintaining, repairing, enlarging, furnishing

43or remodeling such facilities, it shall obtain from the state and furnish to

1the contractor an exemption certificate for the project involved, and the

2contractor may purchase materials for incorporation in such project. The

3contractor shall furnish the number of such certificate to all suppliers from

4whom such purchases are made, and such suppliers shall execute invoices

5covering the same bearing the number of such certificate. Upon

6completion of the project the contractor shall furnish to TLC a sworn

7statement, on a form to be provided by the director of taxation, that all

8purchases so made were entitled to exemption under this subsection. All

9invoices shall be held by the contractor for a period of five years and shall

10be subject to audit by the director of taxation. If any materials purchased

11under such a certificate are found not to have been incorporated in the

12building or other project or not to have been returned for credit or the sales

13or compensating tax otherwise imposed upon such materials that will not

14be so incorporated in the building or other project reported and paid by

15such contractor to the director of taxation not later than the 20th day of the

16month following the close of the month in which it shall be determined

17that such materials will not be used for the purpose for which such

18certificate was issued, TLC shall be liable for tax on all materials

19purchased for the project, and upon payment thereof it may recover the

20same from the contractor together with reasonable attorney fees. Any

21contractor or any agent, employee or subcontractor thereof, who shall use

22or otherwise dispose of any materials purchased under such a certificate

23for any purpose other than that for which such a certificate is issued

24without the payment of the sales or compensating tax otherwise imposed

25upon such materials, shall be guilty of a misdemeanor and, upon

26conviction therefor, shall be subject to the penalties provided for in K.S.A.

2779-3615(h), and amendments thereto;

28(rrr) all sales of tangible personal property and services purchased by

29any county law library maintained pursuant to law and sales of tangible

30personal property and services purchased by an organization that would

31have been exempt from taxation under the provisions of this subsection if

32purchased directly by the county law library for the purpose of providing

33legal resources to attorneys, judges, students and the general public, and

34all sales of any such property by or on behalf of any such county law

35library;

36(sss) all sales of tangible personal property and services purchased by

37catholic charities or youthville, hereinafter referred to as charitable family

38providers, which is exempt from federal income taxation pursuant to

39section 501(c)(3) of the federal internal revenue code of 1986, and which

40such property and services are used for the purpose of providing

41emergency shelter and treatment for abused and neglected children as well

42as meeting additional critical needs for children, juveniles and family, and

43all sales of any such property by or on behalf of charitable family

1providers for any such purpose; and all sales of tangible personal property

2or services purchased by a contractor for the purpose of constructing,

3maintaining, repairing, enlarging, furnishing or remodeling facilities for

4the operation of services for charitable family providers for any such

5purpose which would be exempt from taxation under the provisions of this

6section if purchased directly by charitable family providers. Nothing in

7this subsection shall be deemed to exempt the purchase of any construction

8machinery, equipment or tools used in the constructing, maintaining,

9repairing, enlarging, furnishing or remodeling such facilities for charitable

10family providers. When charitable family providers contracts for the

11purpose of constructing, maintaining, repairing, enlarging, furnishing or

12remodeling such facilities, it shall obtain from the state and furnish to the

13contractor an exemption certificate for the project involved, and the

14contractor may purchase materials for incorporation in such project. The

15contractor shall furnish the number of such certificate to all suppliers from

16whom such purchases are made, and such suppliers shall execute invoices

17covering the same bearing the number of such certificate. Upon

18completion of the project the contractor shall furnish to charitable family

19providers a sworn statement, on a form to be provided by the director of

20taxation, that all purchases so made were entitled to exemption under this

21subsection. All invoices shall be held by the contractor for a period of five

22years and shall be subject to audit by the director of taxation. If any

23materials purchased under such a certificate are found not to have been

24incorporated in the building or other project or not to have been returned

25for credit or the sales or compensating tax otherwise imposed upon such

26materials that will not be so incorporated in the building or other project

27reported and paid by such contractor to the director of taxation not later

28than the 20th day of the month following the close of the month in which it

29shall be determined that such materials will not be used for the purpose for

30which such certificate was issued, charitable family providers shall be

31liable for tax on all materials purchased for the project, and upon payment

32thereof it may recover the same from the contractor together with

33reasonable attorney fees. Any contractor or any agent, employee or

34subcontractor thereof, who shall use or otherwise dispose of any materials

35purchased under such a certificate for any purpose other than that for

36which such a certificate is issued without the payment of the sales or

37compensating tax otherwise imposed upon such materials, shall be guilty

38of a misdemeanor and, upon conviction therefor, shall be subject to the

39penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

40(ttt) all sales of tangible personal property or services purchased by a

41contractor for a project for the purpose of restoring, constructing,

42equipping, reconstructing, maintaining, repairing, enlarging, furnishing or

43remodeling a home or facility owned by a nonprofit museum that has been

1granted an exemption pursuant to subsection (qq), which such home or

2facility is located in a city that has been designated as a qualified

3hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and

4amendments thereto, and which such project is related to the purposes of

5K.S.A. 75-5071 et seq., and amendments thereto, and that would be

6exempt from taxation under the provisions of this section if purchased

7directly by such nonprofit museum. Nothing in this subsection shall be

8deemed to exempt the purchase of any construction machinery, equipment

9or tools used in the restoring, constructing, equipping, reconstructing,

10maintaining, repairing, enlarging, furnishing or remodeling a home or

11facility for any such nonprofit museum. When any such nonprofit museum

12shall contract for the purpose of restoring, constructing, equipping,

13reconstructing, maintaining, repairing, enlarging, furnishing or remodeling

14a home or facility, it shall obtain from the state and furnish to the

15contractor an exemption certificate for the project involved, and the

16contractor may purchase materials for incorporation in such project. The

17contractor shall furnish the number of such certificates to all suppliers

18from whom such purchases are made, and such suppliers shall execute

19invoices covering the same bearing the number of such certificate. Upon

20completion of the project, the contractor shall furnish to such nonprofit

21museum a sworn statement on a form to be provided by the director of

22taxation that all purchases so made were entitled to exemption under this

23subsection. All invoices shall be held by the contractor for a period of five

24years and shall be subject to audit by the director of taxation. If any

25materials purchased under such a certificate are found not to have been

26incorporated in the building or other project or not to have been returned

27for credit or the sales or compensating tax otherwise imposed upon such

28materials that will not be so incorporated in a home or facility or other

29project reported and paid by such contractor to the director of taxation not

30later than the 20th day of the month following the close of the month in

31which it shall be determined that such materials will not be used for the

32purpose for which such certificate was issued, such nonprofit museum

33shall be liable for tax on all materials purchased for the project, and upon

34payment thereof it may recover the same from the contractor together with

35reasonable attorney fees. Any contractor or any agent, employee or

36subcontractor thereof, who shall use or otherwise dispose of any materials

37purchased under such a certificate for any purpose other than that for

38which such a certificate is issued without the payment of the sales or

39compensating tax otherwise imposed upon such materials, shall be guilty

40of a misdemeanor and, upon conviction therefor, shall be subject to the

41penalties provided for in K.S.A. 79-3615(h), and amendments thereto;

42(uuu) all sales of tangible personal property and services purchased

43by Kansas children's service league, hereinafter referred to as KCSL,

1which is exempt from federal income taxation pursuant to section 501(c)

2(3) of the federal internal revenue code of 1986, and which such property

3and services are used for the purpose of providing for the prevention and

4treatment of child abuse and maltreatment as well as meeting additional

5critical needs for children, juveniles and family, and all sales of any such

6property by or on behalf of KCSL for any such purpose; and all sales of

7tangible personal property or services purchased by a contractor for the

8purpose of constructing, maintaining, repairing, enlarging, furnishing or

9remodeling facilities for the operation of services for KCSL for any such

10purpose that would be exempt from taxation under the provisions of this

11section if purchased directly by KCSL. Nothing in this subsection shall be

12deemed to exempt the purchase of any construction machinery, equipment

13or tools used in the constructing, maintaining, repairing, enlarging,

14furnishing or remodeling such facilities for KCSL. When KCSL contracts

15for the purpose of constructing, maintaining, repairing, enlarging,

16furnishing or remodeling such facilities, it shall obtain from the state and

17furnish to the contractor an exemption certificate for the project involved,

18and the contractor may purchase materials for incorporation in such

19project. The contractor shall furnish the number of such certificate to all

20suppliers from whom such purchases are made, and such suppliers shall

21execute invoices covering the same bearing the number of such certificate.

22Upon completion of the project the contractor shall furnish to KCSL a

23sworn statement, on a form to be provided by the director of taxation, that

24all purchases so made were entitled to exemption under this subsection.

25All invoices shall be held by the contractor for a period of five years and

26shall be subject to audit by the director of taxation. If any materials

27purchased under such a certificate are found not to have been incorporated

28in the building or other project or not to have been returned for credit or

29the sales or compensating tax otherwise imposed upon such materials that

30will not be so incorporated in the building or other project reported and

31paid by such contractor to the director of taxation not later than the 20th

32day of the month following the close of the month in which it shall be

33determined that such materials will not be used for the purpose for which

34such certificate was issued, KCSL shall be liable for tax on all materials

35purchased for the project, and upon payment thereof it may recover the

36same from the contractor together with reasonable attorney fees. Any

37contractor or any agent, employee or subcontractor thereof, who shall use

38or otherwise dispose of any materials purchased under such a certificate

39for any purpose other than that for which such a certificate is issued

40without the payment of the sales or compensating tax otherwise imposed

41upon such materials, shall be guilty of a misdemeanor and, upon

42conviction therefor, shall be subject to the penalties provided for in K.S.A.

4379-3615(h), and amendments thereto;

1(vvv) all sales of tangible personal property or services, including the

2renting and leasing of tangible personal property or services, purchased by

3jazz in the woods, inc., a Kansas corporation that is exempt from federal

4income taxation pursuant to section 501(c)(3) of the federal internal

5revenue code, for the purpose of providing jazz in the woods, an event

6benefiting children-in-need and other nonprofit charities assisting such

7children, and all sales of any such property by or on behalf of such

8organization for such purpose;

9(www) all sales of tangible personal property purchased by or on

10behalf of the Frontenac education foundation, which is exempt from

11federal income taxation pursuant to section 501(c)(3) of the federal

12internal revenue code, for the purpose of providing education support for

13students, and all sales of any such property by or on behalf of such

14organization for such purpose;

15(xxx) all sales of personal property and services purchased by the

16booth theatre foundation, inc., an organization, which is exempt from

17federal income taxation pursuant to section 501(c)(3) of the federal

18internal revenue code of 1986, and which such personal property and

19services are used by any such organization in the constructing, equipping,

20reconstructing, maintaining, repairing, enlarging, furnishing or remodeling

21of the booth theatre, and all sales of tangible personal property or services

22purchased by a contractor for the purpose of constructing, equipping,

23reconstructing, maintaining, repairing, enlarging, furnishing or remodeling

24the booth theatre for such organization, that would be exempt from

25taxation under the provisions of this section if purchased directly by such

26organization. Nothing in this subsection shall be deemed to exempt the

27purchase of any construction machinery, equipment or tools used in the

28constructing, equipping, reconstructing, maintaining, repairing, enlarging,

29furnishing or remodeling facilities for any such organization. When any

30such organization shall contract for the purpose of constructing, equipping,

31reconstructing, maintaining, repairing, enlarging, furnishing or remodeling

32facilities, it shall obtain from the state and furnish to the contractor an

33exemption certificate for the project involved, and the contractor may

34purchase materials for incorporation in such project. The contractor shall

35furnish the number of such certificate to all suppliers from whom such

36purchases are made, and such suppliers shall execute invoices covering the

37same bearing the number of such certificate. Upon completion of the

38project the contractor shall furnish to such organization concerned a sworn

39statement, on a form to be provided by the director of taxation, that all

40purchases so made were entitled to exemption under this subsection. All

41invoices shall be held by the contractor for a period of five years and shall

42be subject to audit by the director of taxation. If any materials purchased

43under such a certificate are found not to have been incorporated in such

1facilities or not to have been returned for credit or the sales or

2compensating tax otherwise imposed upon such materials that will not be

3so incorporated in such facilities reported and paid by such contractor to

4the director of taxation not later than the 20th day of the month following

5the close of the month in which it shall be determined that such materials

6will not be used for the purpose for which such certificate was issued, such

7organization concerned shall be liable for tax on all materials purchased

8for the project, and upon payment thereof it may recover the same from

9the contractor together with reasonable attorney fees. Any contractor or

10any agent, employee or subcontractor thereof, who shall use or otherwise

11dispose of any materials purchased under such a certificate for any purpose

12other than that for which such a certificate is issued without the payment

13of the sales or compensating tax otherwise imposed upon such materials,

14shall be guilty of a misdemeanor and, upon conviction therefor, shall be

15subject to the penalties provided for in K.S.A. 79-3615(h), and

16amendments thereto. Sales tax paid on and after January 1, 2007, but prior

17to the effective date of this act upon the gross receipts received from any

18sale which would have been exempted by the provisions of this subsection

19had such sale occurred after the effective date of this act shall be refunded.

20Each claim for a sales tax refund shall be verified and submitted to the

21director of taxation upon forms furnished by the director and shall be

22accompanied by any additional documentation required by the director.

23The director shall review each claim and shall refund that amount of sales

24tax paid as determined under the provisions of this subsection. All refunds

25shall be paid from the sales tax refund fund upon warrants of the director

26of accounts and reports pursuant to vouchers approved by the director or

27the director's designee;

28(yyy) all sales of tangible personal property and services purchased

29by TLC charities foundation, inc., hereinafter referred to as TLC charities,

30which is exempt from federal income taxation pursuant to section 501(c)

31(3) of the federal internal revenue code of 1986, and which such property

32and services are used for the purpose of encouraging private philanthropy

33to further the vision, values, and goals of TLC for children and families,

34inc.; and all sales of such property and services by or on behalf of TLC

35charities for any such purpose and all sales of tangible personal property or

36services purchased by a contractor for the purpose of constructing,

37maintaining, repairing, enlarging, furnishing or remodeling facilities for

38the operation of services for TLC charities for any such purpose that would

39be exempt from taxation under the provisions of this section if purchased

40directly by TLC charities. Nothing in this subsection shall be deemed to

41exempt the purchase of any construction machinery, equipment or tools

42used in the constructing, maintaining, repairing, enlarging, furnishing or

43remodeling such facilities for TLC charities. When TLC charities contracts

1for the purpose of constructing, maintaining, repairing, enlarging,

2furnishing or remodeling such facilities, it shall obtain from the state and

3furnish to the contractor an exemption certificate for the project involved,

4and the contractor may purchase materials for incorporation in such

5project. The contractor shall furnish the number of such certificate to all

6suppliers from whom such purchases are made, and such suppliers shall

7execute invoices covering the same bearing the number of such certificate.

8Upon completion of the project the contractor shall furnish to TLC

9charities a sworn statement, on a form to be provided by the director of

10taxation, that all purchases so made were entitled to exemption under this

11subsection. All invoices shall be held by the contractor for a period of five

12years and shall be subject to audit by the director of taxation. If any

13materials purchased under such a certificate are found not to have been

14incorporated in the building or other project or not to have been returned

15for credit or the sales or compensating tax otherwise imposed upon such

16materials that will not be incorporated into the building or other project

17reported and paid by such contractor to the director of taxation not later

18than the 20th day of the month following the close of the month in which it

19shall be determined that such materials will not be used for the purpose for

20which such certificate was issued, TLC charities shall be liable for tax on

21all materials purchased for the project, and upon payment thereof it may

22recover the same from the contractor together with reasonable attorney

23fees. Any contractor or any agent, employee or subcontractor thereof, who

24shall use or otherwise dispose of any materials purchased under such a

25certificate for any purpose other than that for which such a certificate is

26issued without the payment of the sales or compensating tax otherwise

27imposed upon such materials, shall be guilty of a misdemeanor and, upon

28conviction therefor, shall be subject to the penalties provided for in K.S.A.

2979-3615(h), and amendments thereto;

30(zzz) all sales of tangible personal property purchased by the rotary

31club of shawnee foundation, which is exempt from federal income taxation

32pursuant to section 501(c)(3) of the federal internal revenue code of 1986,

33as amended, used for the purpose of providing contributions to community

34service organizations and scholarships;

35(aaaa) all sales of personal property and services purchased by or on

36behalf of victory in the valley, inc., which is exempt from federal income

37taxation pursuant to section 501(c)(3) of the federal internal revenue code,

38for the purpose of providing a cancer support group and services for

39persons with cancer, and all sales of any such property by or on behalf of

40any such organization for any such purpose;

41(bbbb) all sales of entry or participation fees, charges or tickets by

42Guadalupe health foundation, which is exempt from federal income

43taxation pursuant to section 501(c)(3) of the federal internal revenue code,

1for such organization's annual fundraising event which purpose is to

2provide health care services for uninsured workers;

3(cccc) all sales of tangible personal property or services purchased by

4or on behalf of wayside waifs, inc., which is exempt from federal income

5taxation pursuant to section 501(c)(3) of the federal internal revenue code,

6for the purpose of providing such organization's annual fundraiser, an

7event whose purpose is to support the care of homeless and abandoned

8animals, animal adoption efforts, education programs for children and

9efforts to reduce animal over-population and animal welfare services, and

10all sales of any such property, including entry or participation fees or

11charges, by or on behalf of such organization for such purpose;

12(dddd) all sales of tangible personal property or services purchased

13by or on behalf of goodwill industries or Easter seals of Kansas, inc., both

14of which are exempt from federal income taxation pursuant to section

15501(c)(3) of the federal internal revenue code, for the purpose of providing

16education, training and employment opportunities for people with

17disabilities and other barriers to employment;

18(eeee) all sales of tangible personal property or services purchased by

19or on behalf of all American beef battalion, inc., which is exempt from

20federal income taxation pursuant to section 501(c)(3) of the federal

21internal revenue code, for the purpose of educating, promoting and

22participating as a contact group through the beef cattle industry in order to

23carry out such projects that provide support and morale to members of the

24United States armed forces and military services;

25(ffff) all sales of tangible personal property and services purchased by

26sheltered living, inc., which is exempt from federal income taxation

27pursuant to section 501(c)(3) of the federal internal revenue code of 1986,

28and which such property and services are used for the purpose of

29providing residential and day services for people with developmental

30disabilities or intellectual disability, or both, and all sales of any such

31property by or on behalf of sheltered living, inc., for any such purpose; and

32all sales of tangible personal property or services purchased by a

33contractor for the purpose of rehabilitating, constructing, maintaining,

34repairing, enlarging, furnishing or remodeling homes and facilities for

35sheltered living, inc., for any such purpose that would be exempt from

36taxation under the provisions of this section if purchased directly by

37sheltered living, inc. Nothing in this subsection shall be deemed to exempt

38the purchase of any construction machinery, equipment or tools used in the

39constructing, maintaining, repairing, enlarging, furnishing or remodeling

40such homes and facilities for sheltered living, inc. When sheltered living,

41inc., contracts for the purpose of rehabilitating, constructing, maintaining,

42repairing, enlarging, furnishing or remodeling such homes and facilities, it

43shall obtain from the state and furnish to the contractor an exemption

1certificate for the project involved, and the contractor may purchase

2materials for incorporation in such project. The contractor shall furnish the

3number of such certificate to all suppliers from whom such purchases are

4made, and such suppliers shall execute invoices covering the same bearing

5the number of such certificate. Upon completion of the project the

6contractor shall furnish to sheltered living, inc., a sworn statement, on a

7form to be provided by the director of taxation, that all purchases so made

8were entitled to exemption under this subsection. All invoices shall be held

9by the contractor for a period of five years and shall be subject to audit by

10the director of taxation. If any materials purchased under such a certificate

11are found not to have been incorporated in the building or other project or

12not to have been returned for credit or the sales or compensating tax

13otherwise imposed upon such materials that will not be so incorporated in

14the building or other project reported and paid by such contractor to the

15director of taxation not later than the 20th day of the month following the

16close of the month in which it shall be determined that such materials will

17not be used for the purpose for which such certificate was issued, sheltered

18living, inc., shall be liable for tax on all materials purchased for the

19project, and upon payment thereof it may recover the same from the

20contractor together with reasonable attorney fees. Any contractor or any

21agent, employee or subcontractor thereof, who shall use or otherwise

22dispose of any materials purchased under such a certificate for any purpose

23other than that for which such a certificate is issued without the payment

24of the sales or compensating tax otherwise imposed upon such materials,

25shall be guilty of a misdemeanor and, upon conviction therefor, shall be

26subject to the penalties provided for in K.S.A. 79-3615(h), and

27amendments thereto;

28(gggg) all sales of game birds for which the primary purpose is use in

29hunting;

30(hhhh) all sales of tangible personal property or services purchased

31on or after July 1, 2014, for the purpose of and in conjunction with

32constructing, reconstructing, enlarging or remodeling a business identified

33under the North American industry classification system (NAICS)

34subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and

35installation of machinery and equipment purchased for installation at any

36such business. The exemption provided in this subsection shall not apply

37to projects that have actual total costs less than $50,000. When a person

38contracts for the construction, reconstruction, enlargement or remodeling

39of any such business, such person shall obtain from the state and furnish to

40the contractor an exemption certificate for the project involved, and the

41contractor may purchase materials, machinery and equipment for

42incorporation in such project. The contractor shall furnish the number of

43such certificates to all suppliers from whom such purchases are made, and

1such suppliers shall execute invoices covering the same bearing the

2number of such certificate. Upon completion of the project, the contractor

3shall furnish to the owner of the business a sworn statement, on a form to

4be provided by the director of taxation, that all purchases so made were

5entitled to exemption under this subsection. All invoices shall be held by

6the contractor for a period of five years and shall be subject to audit by the

7director of taxation. Any contractor or any agent, employee or

8subcontractor of the contractor, who shall use or otherwise dispose of any

9materials, machinery or equipment purchased under such a certificate for

10any purpose other than that for which such a certificate is issued without

11the payment of the sales or compensating tax otherwise imposed thereon,

12shall be guilty of a misdemeanor and, upon conviction therefor, shall be

13subject to the penalties provided for in K.S.A. 79-3615(h), and

14amendments thereto;

15(iiii) all sales of tangible personal property or services purchased by a

16contractor for the purpose of constructing, maintaining, repairing,

17enlarging, furnishing or remodeling facilities for the operation of services

18for Wichita children's home for any such purpose that would be exempt

19from taxation under the provisions of this section if purchased directly by

20Wichita children's home. Nothing in this subsection shall be deemed to

21exempt the purchase of any construction machinery, equipment or tools

22used in the constructing, maintaining, repairing, enlarging, furnishing or

23remodeling such facilities for Wichita children's home. When Wichita

24children's home contracts for the purpose of constructing, maintaining,

25repairing, enlarging, furnishing or remodeling such facilities, it shall obtain

26from the state and furnish to the contractor an exemption certificate for the

27project involved, and the contractor may purchase materials for

28incorporation in such project. The contractor shall furnish the number of

29such certificate to all suppliers from whom such purchases are made, and

30such suppliers shall execute invoices covering the same bearing the

31number of such certificate. Upon completion of the project, the contractor

32shall furnish to Wichita children's home a sworn statement, on a form to be

33provided by the director of taxation, that all purchases so made were

34entitled to exemption under this subsection. All invoices shall be held by

35the contractor for a period of five years and shall be subject to audit by the

36director of taxation. If any materials purchased under such a certificate are

37found not to have been incorporated in the building or other project or not

38to have been returned for credit or the sales or compensating tax otherwise

39imposed upon such materials that will not be so incorporated in the

40building or other project reported and paid by such contractor to the

41director of taxation not later than the 20th day of the month following the

42close of the month in which it shall be determined that such materials will

43not be used for the purpose for which such certificate was issued, Wichita

1children's home shall be liable for the tax on all materials purchased for the

2project, and upon payment, it may recover the same from the contractor

3together with reasonable attorney fees. Any contractor or any agent,

4employee or subcontractor, who shall use or otherwise dispose of any

5materials purchased under such a certificate for any purpose other than that

6for which such a certificate is issued without the payment of the sales or

7compensating tax otherwise imposed upon such materials, shall be guilty

8of a misdemeanor and, upon conviction, shall be subject to the penalties

9provided for in K.S.A. 79-3615(h), and amendments thereto;

10(jjjj) all sales of tangible personal property or services purchased by

11or on behalf of the beacon, inc., that is exempt from federal income

12taxation pursuant to section 501(c)(3) of the federal internal revenue code,

13for the purpose of providing those desiring help with food, shelter, clothing

14and other necessities of life during times of special need;

15(kkkk) all sales of tangible personal property and services purchased

16by or on behalf of reaching out from within, inc., which is exempt from

17federal income taxation pursuant to section 501(c)(3) of the federal

18internal revenue code, for the purpose of sponsoring self-help programs for

19incarcerated persons that will enable such incarcerated persons to become

20role models for non-violence while in correctional facilities and productive

21family members and citizens upon return to the community;

22(llll) all sales of tangible personal property and services purchased by

23Gove county healthcare endowment foundation, inc., which is exempt

24from federal income taxation pursuant to section 501(c)(3) of the federal

25internal revenue code of 1986, and which such property and services are

26used for the purpose of constructing and equipping an airport in Quinter,

27Kansas, and all sales of tangible personal property or services purchased

28by a contractor for the purpose of constructing and equipping an airport in

29Quinter, Kansas, for such organization, that would be exempt from

30taxation under the provisions of this section if purchased directly by such

31organization. Nothing in this subsection shall be deemed to exempt the

32purchase of any construction machinery, equipment or tools used in the

33constructing or equipping of facilities for such organization. When such

34organization shall contract for the purpose of constructing or equipping an

35airport in Quinter, Kansas, it shall obtain from the state and furnish to the

36contractor an exemption certificate for the project involved, and the

37contractor may purchase materials for incorporation in such project. The

38contractor shall furnish the number of such certificate to all suppliers from

39whom such purchases are made, and such suppliers shall execute invoices

40covering the same bearing the number of such certificate. Upon

41completion of the project, the contractor shall furnish to such organization

42concerned a sworn statement, on a form to be provided by the director of

43taxation, that all purchases so made were entitled to exemption under this

1subsection. All invoices shall be held by the contractor for a period of five

2years and shall be subject to audit by the director of taxation. If any

3materials purchased under such a certificate are found not to have been

4incorporated in such facilities or not to have been returned for credit or the

5sales or compensating tax otherwise imposed upon such materials that will

6not be so incorporated in such facilities reported and paid by such

7contractor to the director of taxation no later than the 20th day of the month

8following the close of the month in which it shall be determined that such

9materials will not be used for the purpose for which such certificate was

10issued, such organization concerned shall be liable for tax on all materials

11purchased for the project, and upon payment thereof it may recover the

12same from the contractor together with reasonable attorney fees. Any

13contractor or any agent, employee or subcontractor thereof, who purchased

14under such a certificate for any purpose other than that for which such a

15certificate is issued without the payment of the sales or compensating tax

16otherwise imposed upon such materials, shall be guilty of a misdemeanor

17and, upon conviction therefor, shall be subject to the penalties provided for

18in K.S.A. 79-3615(h), and amendments thereto. The provisions of this

19subsection shall expire and have no effect on and after July 1, 2019;

20(mmmm) all sales of gold or silver coins; and palladium, platinum,

21gold or silver bullion. For the purposes of this subsection, "bullion" means

22bars, ingots or commemorative medallions of gold, silver, platinum,

23palladium, or a combination thereof, for which the value of the metal

24depends on its content and not the form;

25(nnnn) all sales of tangible personal property or services purchased

26by friends of hospice of Jefferson county, an organization that is exempt

27from federal income taxation pursuant to section 501(c)(3) of the federal

28internal revenue code of 1986, for the purpose of providing support to the

29Jefferson county hospice agency in end-of-life care of Jefferson county

30families, friends and neighbors, and all sales of entry or participation fees,

31charges or tickets by friends of hospice of Jefferson county for such

32organization's fundraising event for such purpose;

33(oooo) all sales of tangible personal property or services purchased

34for the purpose of and in conjunction with constructing, reconstructing,

35enlarging or remodeling a qualified business facility by a qualified firm or

36qualified supplier that meets the requirements established in K.S.A. 2024

37Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has

38been approved for a project exemption certificate by the secretary of

39commerce, and the sale and installation of machinery and equipment

40purchased by such qualified firm or qualified supplier for installation at

41any such qualified business facility. When a person shall contract for the

42construction, reconstruction, enlargement or remodeling of any such

43qualified business facility, such person shall obtain from the state and

1furnish to the contractor an exemption certificate for the project involved,

2and the contractor may purchase materials, machinery and equipment for

3incorporation in such project. The contractor shall furnish the number of

4such certificates to all suppliers from whom such purchases are made, and

5such suppliers shall execute invoices covering the same bearing the

6number of such certificate. Upon completion of the project, the contractor

7shall furnish to the owner of the qualified firm or qualified supplier a

8sworn statement, on a form to be provided by the director of taxation, that

9all purchases so made were entitled to exemption under this subsection.

10All invoices shall be held by the contractor for a period of five years and

11shall be subject to audit by the director of taxation. Any contractor or any

12agent, employee or subcontractor thereof who shall use or otherwise

13dispose of any materials, machinery or equipment purchased under such a

14certificate for any purpose other than that for which such a certificate is

15issued without the payment of the sales or compensating tax otherwise

16imposed thereon, shall be guilty of a misdemeanor and, upon conviction

17therefor, shall be subject to the penalties provided for in K.S.A. 79-

183615(h), and amendments thereto. As used in this subsection, "qualified

19business facility," "qualified firm" and "qualified supplier" mean the same

20as defined in K.S.A. 2024 Supp. 74-50,311, and amendments thereto;

21(pppp) (1) all sales of tangible personal property or services

22purchased by a not-for-profit corporation that is designated as an area

23agency on aging by the secretary for aging and disabilities services and is

24exempt from federal income taxation pursuant to section 501(c)(3) of the

25federal internal revenue code for the purpose of coordinating and

26providing seniors and those living with disabilities with services that

27promote person-centered care, including home-delivered meals,

28congregate meal settings, long-term case management, transportation,

29information, assistance and other preventative and intervention services to

30help service recipients remain in their homes and communities or for the

31purpose of constructing, equipping, reconstructing, maintaining, repairing,

32enlarging, furnishing or remodeling facilities for such area agency on

33aging; and

34(2) all sales of tangible personal property or services purchased by a

35contractor for the purpose of constructing, equipping, reconstructing,

36maintaining, repairing, enlarging, furnishing or remodeling facilities for an

37area agency on aging that would be exempt from taxation under the

38provisions of this section if purchased directly by such area agency on

39aging. Nothing in this paragraph shall be deemed to exempt the purchase

40of any construction machinery, equipment or tools used in the

41constructing, equipping, reconstructing, maintaining, repairing, enlarging,

42furnishing or remodeling facilities for an area agency on aging. When an

43area agency on aging contracts for the purpose of constructing, equipping,

1reconstructing, maintaining, repairing, enlarging, furnishing or remodeling

2facilities, it shall obtain from the state and furnish to the contractor an

3exemption certificate for the project involved, and such contractor may

4purchase materials for incorporation in such project. The contractor shall

5furnish the number of such certificate to all suppliers from whom such

6purchases are made, and such suppliers shall execute invoices covering the

7same bearing the number of such certificate. Upon completion of the

8project, the contractor shall furnish to such area agency on aging a sworn

9statement, on a form to be provided by the director of taxation, that all

10purchases so made were entitled to exemption under this subsection. All

11invoices shall be held by the contractor for a period of five years and shall

12be subject to audit by the director of taxation. If any materials purchased

13under such a certificate are found not to have been incorporated in the

14building or other project or not to have been returned for credit or the sales

15or compensating tax otherwise imposed upon such materials that will not

16be so incorporated in the building or other project reported and paid by

17such contractor to the director of taxation not later than the 20th day of the

18month following the close of the month in which it shall be determined

19that such materials will not be used for the purpose for which such

20certificate was issued, the area agency on aging concerned shall be liable

21for tax on all materials purchased for the project, and upon payment

22thereof, the area agency on aging may recover the same from the

23contractor together with reasonable attorney fees. Any contractor or any

24agent, employee or subcontractor thereof who shall use or otherwise

25dispose of any materials purchased under such a certificate for any purpose

26other than that for which such a certificate is issued without the payment

27of the sales or compensating tax otherwise imposed upon such materials

28shall be guilty of a misdemeanor and, upon conviction therefor, shall be

29subject to the penalties provided for in K.S.A. 79-3615(h), and

30amendments thereto;

31(qqqq) all sales of tangible personal property or services purchased

32by Kansas suicide prevention HQ, inc., an organization that is exempt

33from federal income taxation pursuant to section 501(c)(3) of the federal

34internal revenue code of 1986, for the purpose of bringing suicide

35prevention training and awareness to communities across the state;

36(rrrr) all sales of the services of slaughtering, butchering, custom

37cutting, dressing, processing and packaging of an animal for human

38consumption when the animal is delivered or furnished by a customer that

39owns the animal and such meat or poultry is for use or consumption by

40such customer;

41(ssss) all sales of tangible personal property or services purchased by

42or on behalf of doorstep inc., an organization that is exempt from federal

43income taxation pursuant to section 501(c)(3) of the federal internal

1revenue code of 1986, for the purpose of providing short-term emergency

2aid to families and individuals in need, including assistance with food,

3clothing, rent, prescription medications, transportation and utilities, and

4providing information on services to promote long-term self-sufficiency;

5(tttt) on and after January 1, 2024, all sales of tangible personal

6property or services purchased by exploration place, inc., an organization

7that is exempt from federal income taxation pursuant to section 501(c)(3)

8of the federal internal revenue code, and which such property and services

9are used for the purpose of constructing, remodeling, furnishing or

10equipping a riverfront amphitheater, a destination playscape, an education

11center and indoor renovations at exploration place in Wichita, Kansas, all

12sales of tangible personal property or services purchased by Kansas

13children's discovery center inc. in Topeka, Kansas, and which such

14property and services are used for the purpose of constructing, remodeling,

15furnishing or equipping projects that include indoor-outdoor classrooms,

16an expanded multi-media gallery, a workshop and loading dock and safety

17upgrades such as a tornado shelter, lactation room, first aid room and

18sensory room and all sales of tangible personal property or services

19purchased by a contractor for the purpose of constructing, remodeling,

20furnishing or equipping such projects, for such organizations, that would

21be exempt from taxation under the provisions of this section if purchased

22directly by such organizations. Nothing in this subsection shall be deemed

23to exempt the purchase of any construction machinery, equipment or tools

24used in the constructing, remodeling, furnishing or equipping of facilities

25for such organization. When such organization shall contract for the

26purpose of constructing, remodeling, furnishing or equipping such

27projects, it shall obtain from the state and furnish to the contractor an

28exemption certificate for the project involved, and the contractor may

29purchase materials for incorporation in such project. The contractor shall

30furnish the number of such certificate to all suppliers from whom such

31purchases are made, and such suppliers shall execute invoices covering the

32same bearing the number of such certificate. Upon completion of the

33project, the contractor shall furnish to such organization a sworn statement,

34on a form to be provided by the director of taxation, that all purchases so

35made were entitled to exemption under this subsection. All invoices shall

36be held by the contractor for a period of five years and shall be subject to

37audit by the director of taxation. If any materials purchased under such a

38certificate are found not to have been incorporated in such facilities or not

39to have been returned for credit or the sales or compensating tax otherwise

40imposed upon such materials that will not be so incorporated in such

41facilities reported and paid by such contractor to the director of taxation no

42later than the 20th day of the month following the close of the month in

43which it shall be determined that such materials will not be used for the

1purpose for which such certificate was issued, such organization shall be

2liable for tax on all materials purchased for the project, and upon payment

3thereof may recover the same from the contractor together with reasonable

4attorney fees. Any contractor or agent, employee or subcontractor thereof,

5who purchased under such a certificate for any purpose other than that for

6which such a certificate is issued without the payment of the sales or

7compensating tax otherwise imposed upon such materials, shall be guilty

8of a misdemeanor and, upon conviction therefor, shall be subject to the

9penalties provided for in K.S.A. 79-3615(h), and amendments thereto.

10Sales tax paid on and after January 1, 2024, but prior to the effective date

11of this act, upon the gross receipts received from any sale exempted by the

12amendatory provisions of this subsection shall be refunded. Each claim for

13a sales tax refund shall be verified and submitted to the director of taxation

14upon forms furnished by the director and shall be accompanied by any

15additional documentation required by the director. The director shall

16review each claim and shall refund that amount of sales tax paid as

17determined under the provisions of this subsection. All refunds shall be

18paid from the sales tax refund fund upon warrants of the director of

19accounts and reports pursuant to vouchers approved by the director or the

20director's designee. The provisions of this subsection shall expire and have

21no effect on and after December 31, 2030;

22(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary

23components, appurtenances, accessories or other infrastructure purchased

24for use in the provision of communications services; and

25(B) all services purchased by a provider in the provision of the

26communications service used in the repair, maintenance or installation in

27such communications service.

28(2) As used in this subsection:

29(A) "Communications service" means internet access service,

30telecommunications service, video service or any combination thereof.

31(B) "Equipment, machinery, software, ancillary components,

32appurtenances, accessories or other infrastructure" includes, but is not

33limited to:

34(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,

35amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,

36transmitters, circuit cards, insulating and protective materials and cases,

37power equipment, backup power equipment, diagnostic equipment, storage

38devices, modems, cable modem termination systems and servers;

39(ii) other general central office or headend equipment, such as

40channel cards, frames and cabinets;

41(iii) equipment used in successor technologies, including items used

42to monitor, test, maintain, enable or facilitate qualifying equipment,

43machinery, software, ancillary components, appurtenances and

1accessories; and

2(iv) other infrastructure that is used in whole or in part to provide

3communications services, including broadcasting, distributing, sending,

4receiving, storing, transmitting, retransmitting, amplifying, switching,

5providing connectivity for or routing communications services.

6(C) "Internet access service" means the same as internet access as

7defined in section 1105 of the internet tax freedom act amendments of

82007, public law 110-108.

9(D) "Provider" means a person or entity that sells communications

10service, including an affiliate or subsidiary.

11(E) "Telecommunications service" means the same as defined in

12K.S.A. 79-3602, and amendments thereto.

13(F) "Video service" means the same as defined in K.S.A. 12-2022,

14and amendments thereto.

15(3) The provisions of this subsection shall expire and have no effect

16on and after July 1, 2029;

17(vvvv) (1) all sales of tangible personal property or services

18purchased by a contractor for the purpose of constructing, equipping,

19reconstructing, maintaining, repairing, enlarging, furnishing or remodeling

20a building that is operated by, or is intended to be operated by, the Kansas

21fairgrounds foundation, a not-for-profit corporation exempt from federal

22income taxation pursuant to section 501(c)(3) of the federal internal

23revenue code of 1986, and located on the grounds of the Kansas state fair,

24and such tangible personal property would be exempt from taxation under

25the provisions of this paragraph if purchased directly by such eligible not-

26for-profit corporation. Nothing in this subsection shall be deemed to

27exempt the purchase of any construction machinery, equipment or tools

28used in the constructing, equipping, reconstructing, maintaining, repairing,

29enlarging, furnishing or remodeling a building for such eligible not-for-

30profit corporation. When such eligible not-for-profit corporation contracts

31for the purpose of constructing, equipping, reconstructing, maintaining,

32repairing, enlarging, furnishing or remodeling a building, such corporation

33shall obtain from the state and furnish to the contractor an exemption

34certificate for the project involved, and such contractor may purchase

35materials for incorporation in such project. The contractor shall furnish the

36number of such certificate to all suppliers from whom such purchases are

37made, and such suppliers shall execute invoices covering such purchases

38bearing the number of such certificate. Upon completion of the project, the

39contractor shall furnish to such eligible not-for-profit corporation a sworn

40statement, on a form to be provided by the director of taxation, that all

41purchases so made were entitled to exemption under this subsection. All

42invoices shall be held by the contractor for a period of five years and shall

43be subject to audit by the director of taxation. If any materials purchased

1under such a certificate are found not to have been incorporated in the

2building or returned for credit, the contractor shall report and pay the sales

3or compensating tax to the director of taxation not later than the 20th day of

4the month following the close of the month in which it is determined that

5such materials will not be used for the purpose for which such certificate

6was issued. The eligible not-for-profit corporation concerned shall be

7liable for tax on all materials purchased for the project, and upon payment

8thereof, the eligible not-for-profit corporation may recover the same from

9the contractor together with reasonable attorney fees. Any contractor or

10any agent, employee or subcontractor thereof who shall use or otherwise

11dispose of any materials purchased under such a certificate for any purpose

12other than that for which such a certificate is issued without the payment

13of the sales or compensating tax otherwise imposed upon such materials

14shall be guilty of a misdemeanor and, upon conviction therefor, shall be

15subject to the penalties provided for in K.S.A. 79-3615(h), and

16amendments thereto.

17(2) Sales tax paid on and after May 19, 2023, but prior to the effective

18date of this act upon the gross receipts received from any sale which would

19have been exempted by the provisions of this subsection had such sale

20occurred after the effective date of this act shall be refunded. Each claim

21for a sales tax refund shall be verified and submitted to the director of

22taxation upon forms furnished by the director and shall be accompanied by

23any additional documentation required by the director. The director shall

24review each claim and shall refund that amount of sales tax paid as

25determined under the provisions of this subsection. All refunds shall be

26paid from the sales tax refund fund upon warrants of the director of

27accounts and reports pursuant to vouchers approved by the director or the

28director's designee; ~~and~~

29(wwww) (1) all sales of tangible personal property or services

30purchased by a pregnancy resource center or residential maternity facility.

31(2) As used in this subsection, "pregnancy resource center" or

32"residential maternity facility" means an organization that is:

33(A) Exempt from federal income taxation pursuant to section 501(c)

34(3) of the federal internal revenue code of 1986;

35(B) a nonprofit organization organized under the laws of this state;

36and

37(C) a pregnancy resource center or residential maternity facility that:

38(i) Maintains a dedicated phone number for clients;

39(ii) maintains in this state its primary physical office, clinic or

40residential home that is open for clients for a minimum of 20 hours per

41week, excluding state holidays;

42(iii) offers services, at no cost to the client, for the express purpose of

43providing assistance to women in order to carry their pregnancy to term,

1encourage parenting or adoption, prevent abortion and promote healthy

2childbirth; and

3(iv) utilizes trained healthcare providers, as defined by K.S.A. 2024

4Supp. 79-32,316, and amendments thereto, to perform any available

5medical procedures; and

6(xxxx) all sales of period products, diapers and incontinence

7products, including disposable and reusable options. As used in this

8subsection:

9(1) "Diapers" means absorbent garments worn by infants or toddlers

10who are not toilet-trained or by individuals who are incapable of

11controlling their bladder or bowel movements;

12(2) "incontinence products" means products designed specifically for

13hygiene matters related to urinary incontinence, including, but not limited

14to, adult diapers; and

15(3) "period products" or "menstrual products" means tampons, panty

16liners, menstrual cups, sanitary napkins, and other similar tangible

17personal property designed for period hygiene in connection with the

18human menstrual cycle.

19Sec. 2. K.S.A. 2024 Supp. 79-3606 is hereby repealed.

20Sec. 3. This act shall take effect and be in force from and after its

21publication in the statute book.