Session of 2000
By Representative Krehbiel

10             AN  ACT relating to income taxation; amending the Kansas community
11             services program act; amending K.S.A. 1999 Supp. 79-32,195 and 79-
12             32,197 and repealing the existing sections.
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 1999 Supp. 79-32,195 is hereby amended to read
16       as follows: 79-32,195. As used in this act, the following words and phrases
17       shall have the meanings ascribed to them herein: (a) "Business firm"
18       means any business entity authorized to do business in the state of Kansas
19       which is subject to the state income tax imposed by the provisions of the
20       Kansas income tax act, any individual subject to the state income tax
21       imposed by the provisions of the Kansas income tax act, any national
22       banking association, state bank, trust company or savings and loan asso-
23       ciation paying an annual tax on its net income pursuant to article 11 of
24       chapter 79 of the Kansas Statutes Annotated, or any insurance company
25       paying the premium tax and privilege fees imposed pursuant to K.S.A.
26       40-252, and amendments thereto;
27             (b) "community services" means:
28             (1) The conduct of activities which meet a demonstrated community
29       need and which are designed to achieve improved educational and social
30       services for Kansas children and their families, and which are coordinated
31       with communities including, but not limited to, social and human services
32       organizations that address the causes of poverty through programs and
33       services that assist low income persons in the areas of employment, food,
34       housing, emergency assistance and health care;
35             (2) crime prevention; and
36             (3) health care services.
37             (c) "crime prevention" means any nongovernmental activity which
38       aids in the prevention of crime.
39             (d) "community service organization" means any organization per-
40       forming community services in Kansas and which:
41             (1) Has obtained a ruling from the internal revenue service of the
42       United States department of the treasury that such organization is exempt
43       from income taxation under the provisions of section 501(c)(3) of the


  1       federal internal revenue code; or
  2             (2) is incorporated in the state of Kansas or another state as a non-
  3       stock, nonprofit corporation; or
  4             (3) has been designated as a community development corporation by
  5       the United States government under the provisions of title VII of the
  6       economic opportunity act of 1964; or
  7             (4) is chartered by the United States congress.
  8             (e) "contributions" shall mean and include the donation of cash, serv-
  9       ices or property other than used clothing. Stocks and bonds contributed
10       shall be valued at the stock market price on the date of transfer. Services
11       contributed shall be valued at the standard billing rate for not-for-profit
12       clients. Personal property items contributed shall be valued at the lesser
13       of its fair market value or cost to the donor and may be inclusive of costs
14       incurred in making the contribution, but shall not include sales tax. Con-
15       tributions of real estate are allowable for credit only when title thereto is
16       in fee simple absolute and is clear of any encumbrances. The amount of
17       credit allowable shall be based upon the lesser of two current independ-
18       ent appraisals conducted by state licensed appraisers.
19             (f) "health care services" shall include, but not be limited to, the
20       following: Services provided by local health departments, city, county or
21       district hospitals, city or county nursing homes, or other residential insti-
22       tutions, preventive health care services offered by a community service
23       organization including immunizations, prenatal care, the postponement
24       of entry into nursing homes by home health care services, and community
25       based services for persons with a disability, mental health services, indi-
26       gent health care, physician or health care worker recruitment, health ed-
27       ucation, emergency medical services, services provided by rural health
28       clinics, integration of health care services, home health services and serv-
29       ices provided by rural health networks.
30             (g) "rural community" means any city having a population of fewer
31       than 15,000 located in a county that is not part of a standard metropolitan
32       statistical area as defined by the United States department of commerce
33       or its successor agency. However, any such city located in a county de-
34       fined as a standard metropolitan statistical area shall be deemed a rural
35       community if a substantial number of persons in such county derive their
36       income from agriculture and, in any county where there is only one city
37       within the county which has a population of more than 15,000 and which
38       classifies as a standard metropolitan statistical area, all other cities in that
39       county having a population of less than 15,000 shall be deemed a rural
40       community.
41             Sec.  2. K.S.A. 1999 Supp. 79-32,197 is hereby amended to read as
42       follows: 79-32,197. The amount of credit allowed pursuant to K.S.A. 79-
43       32,196, and amendments thereto, shall not exceed 50% of the total


  1       amount contributed during the taxable year by the business firm to a
  2       community service organization or governmental entity for programs ap-
  3       proved pursuant to K.S.A. 79-32,198, and amendments thereto. The
  4       amount of credit allowed pursuant to K.S.A. 79-32,196, and amendments
  5       thereto, shall not exceed 70% of the total amount contributed during the
  6       taxable year by the business firm in a rural community to a community
  7       service organization or governmental entity located therein for programs
  8       approved pursuant to K.S.A. 79-32,198, and amendments thereto. If the
  9       amount of the credit allowed by K.S.A. 79-32,196, and amendments
10       thereto, exceeds the taxpayer's income tax liability imposed under the
11       Kansas income tax act, such excess amount shall be refunded to the tax-
12       payer. In no event shall the total amount of credits allowed under this
13       section exceed $5,000,000 $7,500,000 for any one fiscal year commencing
14       on and after the effective date of this act.
15             New Sec.  3. The provisions of section 1 of this act shall be applicable
16       to all taxable years commencing after December 31, 1999. 
17       Sec.  4. K.S.A. 1999 Supp. 79-32,195 and 79-32,197 are hereby
18       repealed.
19        Sec.  5. This act shall take effect and be in force from and after its
20       publication in the statute book.