[As Further Amended by Senate Committee of the Whole]
Session of 2000
By Committee on Assessment and Taxation

10             AN  ACT enacting the streamlined sales tax system for the 21st century
11             act.
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. This act may be cited as the streamlined sales tax system
15       for 21st century act.
16             Sec.  2. The legislature finds that:
17             (a) State and local tax systems should treat transactions in a compet-
18       itively neutral manner;
19             (b) a simplified sales and use tax system that treats all transactions in
20       a competitively neutral manner will strengthen and preserve the sales and
21       use tax as vital state and local revenue sources and preserve state fiscal
22       sovereignty;
23             (c) remote sellers should not receive preferential tax treatment at the
24       expense of local ``main street'' merchants, nor should such vendors be
25       burdened with special, discriminatory or multiple taxes.
26             (d) the state should simplify sales and use taxes to reduce the admin-
27       istrative burden of collection; and
28             (e) while states have the sovereign right to set their own tax policies,
29       states working together have the opportunity to develop a more simple,
30       uniform, and fair system of state sales and use taxation without federal
31       government mandates of interference.
32             Sec.  3. The department of revenue shall enter into discussions with
33       states regarding development of a multi-state, voluntary, streamlined sys-
34       tem for sales and use tax collection and administration. These discussions
35       shall focus on a system that would have the capability to determine
36       whether the transaction is taxable or tax exempt, the appropriate tax rate
37       applied to the transaction, and the total tax due on the transaction, and
38       shall provide a method of collecting and remitting sales and use taxes to
39       the state. Such system may provide compensation for the costs of col-
40       lecting and remitting sales and use taxes. Discussions between the de-
41       partment and other states may include, but are not limited to:
42             (a) The development of a ``joint request for information'' from po-
43       tential public and private parties governing the specifications for such


  1       system;
  2             (b) the mechanism for compensating parties for the development and
  3       operation of such system;
  4             (c) establishment of minimum statutory simplification measures nec-
  5       essary for state participation in such system; and
  6             (d) measures to preserve confidentiality of taxpayer information and
  7       privacy rights of consumers.
  8             Following these discussions, the department may proceed to issue a
  9       joint request for information.
10             Sec.  4. The department is authorized to participate in a sales tax pilot
11       project with other states and selected businesses to test means for sim-
12       plifying sales and use tax administration and may enter into joint agree-
13       ments for that purpose.
14             (a) Agreements to participate in the test shall establish provisions for
15       the administration, imposition and collection of sales and use taxes re-
16       sulting in revenues paid that are the same as would be paid under articles
17       36 and 37 [of chapter 79] of the Kansas Statutes Annotated.
18             (b) Parties to the agreements are excused from complying with the
19       provisions of articles 36 and 37 [of chapter 79] of the Kansas Statutes
20       Annotated to the extent a different procedure is required by the agree-
21       ments, except for confidentiality of taxpayer information as detailed in
22       section 5, and amendments thereto.
23             (c) Agreements authorized under this section shall terminate no later
24       than December 31, 2001.
25             Sec.  5. Return information submitted to any party or parties acting
26       for and on behalf of the state shall be treated as confidential[.] taxpayer
27       information. Disclosure of confidential taxpayer information nec-
28       essary under sections 3 and 4 shall be pursuant to a written agreement
29       between the department and the party or parties. Such party or parties
30       shall be bound by the same requirements of confidentiality as the de-
31       partment, under K.S.A. 79-3614, and amendments thereto.
32             Sec.  6. There is hereby created a legislative oversight committee
33       which shall consist of the chairpersons and minority party leaders of the
34       standing committees on taxation of the senate and the house of repre-
35       sentatives. The department shall provide testimony and information as
36       requested by the committee. The department shall provide quarterly re-
37       ports to the governor, the speaker of the house, minority leader of the
38       house, president of the senate and senate minority leader and to the
39       members of the legislative oversight committee on the progress of multi-
40       state discussions.
41             Sec.  7. By March 1, 2001, the department shall report to the gov-
42       ernor and to the speaker of the house, minority leader of the house,
43       president of the senate and senate minority leader and to the members


  1       of the legislative oversight committee on the status of multi-state discus-
  2       sions and, if a proposed system has been agreed upon by participating
  3       states, shall also recommend whether the state should participate in such
  4       system. 
  5        Sec.  8. This act shall take effect and be in force from and after its
  6       publication in the statute book.