Session of 1997
HOUSE BILL No. 2369
By Representatives Horst, Beggs and Vickrey
9 AN ACT concerning school district finance; authorizing the imposition of
10 school district retailers' sales taxes for the purpose of financing tech-
11 nology education programs.
13 Be it enacted by the Legislature of the State of Kansas:
14 Section 1. (a) (1) For the purpose of financing, in total or in part,
15 the development, implementation, maintenance, expansion or enhance-
16 ment of technology education programs, the board of any district may
17 submit the question of imposing a school district retailers' sales tax to the
18 electors of such district at an election called and held thereon.
19 (2) The board of any district proposing to adopt a retailers' sales tax
20 shall give notice of its intention to submit such proposition for approval
21 by the electors in the manner required by K.S.A. 10-120, and amend-
22 ments thereto. The notice shall state the time of the election and the rate
23 and effective date of the proposed tax. If a majority of the electors voting
24 thereon at such election fail to approve the proposition, such proposition
25 may be resubmitted under the conditions and in the manner provided in
26 this section for submission of the proposition. If a majority of the electors
27 voting thereon at such election shall approve the levying of such tax, the
28 board of such district shall provide by resolution for the levy of the tax.
29 Any repeal of such tax or any reduction or increase in the rate thereof,
30 within the limits prescribed by subsection (b) shall be accomplished in
31 the manner provided herein for the adoption and approval of such tax
32 except that the repeal of any such retailers' sales tax may be accomplished
33 by the adoption of a resolution so providing.
34 (b) (1) The rate of any school district retailers' sales tax shall be fixed
35 in an amount not to exceed 1% which amount shall be determined by the
36 board of the district.
37 (2) The board of a district levying a retailers' sales tax is hereby pro-
38 hibited from administering or collecting such tax locally, but shall utilize
39 the services of the state department of revenue to administer , enforce
40 and collect such tax. Such tax shall be identical in its application, and
41 exemptions therefrom, to the Kansas retailers' sales tax act and all laws
42 and administrative rules and regulations of the state department of rev-
43 enue relating to the Kansas retailers' sales tax shall apply to such school
1 district sales tax insofar as such laws and rules and regulations may be
2 made applicable. The state director of taxation is hereby authorized to
3 administer, enforce and collect such school district sales taxes and to
4 adopt such rules and regulations as may be necessary for the efficient and
5 effective administration and enforcement thereof.
6 (3) Upon receipt of a certified copy of a resolution authorizing the
7 levy of a school district retailers' sales tax, the state director of taxation
8 shall cause such taxes to be collected within or outside the boundaries of
9 such district at the same time and in the same manner provided for the
10 collection of the state retailers' sales tax. All moneys collected by the
11 director of taxation under the provisions of this section shall be credited
12 to a school district retailers' sales tax fund which fund is hereby estab-
13 lished in the state treasury. Any refund due on any school district retailers'
14 sales tax collected pursuant to this section shall be paid out of the sales
15 tax refund fund and reimbursed by the director of taxation from collec-
16 tions of school district retailers' sales tax revenue. All school district re-
17 tailers' sales tax revenue collected within any school district pursuant to
18 this section shall be apportioned and remitted at least quarterly by the
19 state treasurer, on instruction from the director of taxation, to the treas-
20 urer of such school district.
21 (4) The director of taxation shall provide, upon request by the board
22 of a district levying a school district retailers' sales tax, a monthly report
23 identifying each retailer having a place of business in the district and
24 setting forth the amount of such tax remitted by each retailer during the
25 preceding month. Such report shall be made available to the board within
26 a reasonable time after it has been requested from the director of taxation.
27 The director of taxation shall be allowed to assess a reasonable fee for the
28 issuance of such report. Information received by any such board pursuant
29 to this provision shall be confidential, and it shall be unlawful for any
30 member or employee of such board to divulge any such information in
31 any manner. Any violation of this provision by any such member or em-
32 ployee is a class B misdemeanor, and such member or employee shall be
33 dismissed from office.
34 (c) For the purpose of levying taxes pursuant to this section, there is
35 hereby specifically conferred upon the board of any district the power
36 and authority to impose taxes upon services rendered outside the bound-
37 aries of the district by retailers having a place of business located within
38 such district.
39 (d) All retail transactions consummated within a district having a re-
40 tailers' sales tax, which transactions are subject to the Kansas retailers'
41 sales tax, shall also be subject to a school district retailers' sales tax. Except
42 as hereinafter provided, all retail sales, for the purpose of this section,
43 shall be considered to have been consummated at the place of business
1 of the retailer. In the event the place of business of a retailer is doubtful
2 the place or places at which the retail sales are consummated for the
3 purposes of this section shall be determined under rules and regulations
4 adopted by the secretary of revenue which rules and regulations shall be
5 considered with state and federal law insofar as applicable. Retail sales
6 involving the use, consumption, or furnishing of gas, water, electricity and
7 heat, for the purposes of this section, shall be considered to have been
8 consummated at the situs of the user or recipient thereof, and retail sales
9 involving the use or furnishing of telephone service or services taxed un-
10 der subsection (k) of K.S.A. 79-3603, and amendments thereto, shall be
11 considered to have been consummated at the situs of the subscriber billed
12 therefor. Retail sales involving the leasing of telecommunication or data
13 processing equipment commonly used in connection with telephone serv-
14 ices shall be considered to have been consummated at the situs of the
15 lessee. Retail sales involving the furnishing of services taxable under sub-
16 sections (p), (q) and (r) of K.S.A. 79-3603, and amendments thereto,
17 pursuant to a contract under which the sale of such services and the
18 furnishing of tangible personal property exceeds $10,000 per contract per
19 contractor shall be considered to have been consummated at the situs
20 where such services are performed. The director of taxation is hereby
21 authorized to request and receive from any retailer or from any board
22 levying the tax such information as may be reasonably necessary to de-
23 termine the liability of retailers for any school district sales tax. The col-
24 lection of any school district sales tax authorized at a primary or general
25 election shall commence on the first day of the calendar quarter next
26 following the 30th day after the date of the election authorizing the levy
27 of such tax. The collection of any sales tax of a school district approved
28 at any other election shall commence on the first day of the calendar
29 quarter next following the 60th day after the date of the election author-
30 izing the levy of such tax.
31 (e) For the purpose of determining the situs of installation, mainte-
32 nance, servicing and repair services taxable under the provisions of this
33 section, the place of business of the retailer of such services shall be the
34 office or other location from which such retailer does business. Such
35 location may be established by determining the location where sales or
36 service personnel report or at which mail is received, orders are taken,
37 telephone service is listed or the consideration of any other relevant fac-
38 tors established by rules and regulations of the secretary of revenue. If
39 the place of business of a retailer of services is located within the bound-
40 aries of a district imposing a retailers' sales tax, services performed by
41 such retailer are subject to the tax regardless of whether the service is
42 performed within or outside the boundaries of the district. If there is no
43 fixed or determinable place of business for any retailer, other than a re-
1 tailer having its only place or places of business in another state, the place
2 of business of such retailer shall be deemed to be the place where the
3 services are performed.
4 (f) All revenue received by a school district from a school district
5 retailers' sales tax imposed pursuant to this section shall be deposited in
6 the technology education fund of the school district and shall be expended
7 only for the purposes of such fund.
8 Sec. 2. This act shall take effect and be in force from and after its
9 publication in the statute book.