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AN ACT relating to community colleges; authorizing the imposition of a
  retailers' sales tax by the governing body thereof; providing authorities
  and duties for the department of revenue relating thereto; amending
  K.S.A. 71-204 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
  New Section 1.  (a) For the sole purpose of providing revenue in
order to reduce the reliance upon revenue received from property taxa-
tion for the maintenance and operation of a community college, and to
maintain such reduction, the board of trustees of any community college
may submit the question of imposing a community college district retail-
ers' sales tax to the electors of such district at an election called and held
thereon.
  (b)  As used in sections 1 through 6, the term community college shall
only apply to such colleges located in Cloud or Pratt county.
  (c)  The board of trustees of any community college proposing to
adopt a retailers' sales tax shall give notice of its intention to submit such
proposition for approval by the electors in the manner required by K.S.A.
10-120, and amendments thereto. The notices shall state the time of the
election and the rate and effective date of the proposed tax. If a majority
of the electors voting thereon at such election fail to approve the prop-
osition, such proposition may be resubmitted under the conditions and
in the manner provided in this act for submission of the proposition. If a
majority of the electors voting thereon at such election shall approve the
levying of such tax, the board of trustees of such community college shall
provide by resolution for the levy of the tax. Any repeal of such tax or any
reduction or increase in the rate thereof, within the limits prescribed by
section 2 shall be accomplished in the manner provided herein for the
adoption and approval of such tax except that the repeal of any such
retailers' sales tax may be accomplished by the adoption of a resolution
so providing. Also, the board of trustees shall submit the question of
repealing such tax at an election called and held thereon upon submission
by a petition signed by electors of the district equal in number to not less
than 10% of the electors of such district.
  New Sec. 2.  (a) The rate of any community college retailers' sales tax
shall be fixed in the amount of .25%, .5%, .75% or 1% which amount
shall be determined by the board of trustees of the community college.
  (b)  The board of trustees of a community college levying a retailers'
sales tax is hereby prohibited from administering or collecting such tax
locally, but shall utilize the services of the state department of revenue
to administer, enforce and collect such tax. Such tax shall be identical in
its application, and exemptions therefrom, to the Kansas retailers' sales
tax act and all laws and administrative rules and regulations of the state
department of revenue relating to the Kansas retailers' sales tax shall apply
to such community college sales tax insofar as such laws and rules and
regulations may be made applicable. The state director of taxation is
hereby authorized to administer, enforce and collect such community
college sales taxes and to adopt such rules and regulations as may be
necessary for the efficient and effective administration and enforcement
thereof.
  (c)  Upon receipt of a certified copy of a resolution authorizing the
levy of a community college retailers' sales tax, the state director of tax-
ation shall cause such taxes to be collected within or without the bound-
aries of such taxing subdivision at the same time and in the same manner
provided for the collection of the state retailers' sales tax. All moneys
collected by the director of taxation under the provisions of this section
shall be credited to a community college retailers' sales tax fund which
fund is hereby established in the state treasury. Any refund due on any
community college retailers' sales tax collected pursuant to this act shall
be paid out of the sales tax refund fund and reimbursed by the director
of taxation from collections of community college retailers' sales tax rev-
enue. All community college retailers' sales tax revenue collected within
any community college district pursuant to this act shall be apportioned
and remitted at least quarterly by the state treasurer, on instruction from
the director of taxation, to the treasurer of such community college.
  (d)  The director of taxation shall provide, upon request by the board
of trustees of a community college levying a community college retailers'
sales tax, a monthly report identifying each retailer having a place of
business in the community college district and setting forth the amount
of such tax remitted by each retailer during the preceding month. Such
report shall be made available to such board within a reasonable time
after it has been requested from the director of taxation. The director of
taxation shall be allowed to assess a reasonable fee for the issuance of
such report. Information received by any such board pursuant to this
section shall be confidential, and it shall be unlawful for any member or
employee of such board to divulge any such information in any manner.
Any violation of this paragraph by any such member or employee is a
class B misdemeanor, and such member or employee shall be dismissed
from office.
  New Sec. 3.  For the purpose of levying taxes pursuant to this act,
there is hereby specifically conferred upon boards of trustees of any com-
munity college the power and authority to impose taxes upon services
rendered without the boundaries of the taxing jurisdiction by retailers
having a place of business located within such taxing jurisdiction.
  New Sec. 4.  All retail transactions consummated within a community
college district having a retail sales tax, which transactions are subject to
the Kansas retailers' sales tax, shall also be subject to a community college
retail sales tax. Except as hereinafter provided, all retail sales, for the
purpose of this act, shall be considered to have been consummated at the
place of business of the retailer. In the event the place of business of a
retailer is doubtful the place or places at which the retail sales are con-
summated for the purposes of this act shall be determined under rules
and regulations adopted by the secretary of revenue which rules and reg-
ulations shall be considered with state and federal law insofar as appli-
cable. Retail sales involving the use, consumption, or furnishing of gas,
water, electricity and heat, for the purposes of this act, shall be considered
to have been consummated at the situs of the user or recipient thereof,
and retail sales involving the use or furnishing of telephone service or
services taxed under subsection (k) of K.S.A. 79-3603, and amendments
thereto, shall be considered to have been consummated at the situs of
the subscriber billed therefor. Retail sales involving the leasing of tele-
communication or data processing equipment commonly used in con-
nection with telephone services shall be considered to have been consum-
mated at the situs of the lessee. Retail sales involving the furnishing of
services taxable under subsections (p), (q) and (r) of K.S.A. 79-3603, and
amendments thereto, pursuant to a contract under which the sale of such
services and the furnishing of tangible personal property exceeds $10,000
per contract per contractor shall be considered to have been consum-
mated at the situs where such services are performed. The director of
taxation is hereby authorized to request and receive from any retailer or
from any board of trustees levying the tax such information as may be
reasonably necessary to determine the liability of retailers for any com-
munity college sales tax. The collection of any community college sales
tax authorized at a county primary or general election or sales tax au-
thorized at a city, primary or general election shall commence on the first
day of the calendar quarter next following the 30th day after the date of
the election authorizing the levy of such tax. The collection of any sales
tax of a community college approved at any other election shall commence
on the first day of the calendar quarter next following the 60th day after
the date of the election authorizing the levy of such tax. For the purposes
of this section, ``county primary election'' shall mean the election held on
the first Tuesday of August in an even-numbered year; ``county general
election'' shall mean the election held on the Tuesday succeeding the first
Monday in November of an even-numbered year; ``city primary election''
shall mean the election held on the first Tuesday in August of an even-
numbered year or a date four weeks preceding an election on the first
Tuesday in April; and ``city general election'' shall mean the election held
on the Tuesday succeeding the first Monday in November of an even-
numbered year or on the first Tuesday in April.
  New Sec. 5.  For the purpose of determining the situs of installation,
maintenance, servicing and repair services taxable under the provisions
of this act, the place of business of the retailer of such services shall be
the office or other location from which such retailer does business. Such
location may be established by determining the location where sales or
service personnel report or at which mail is received, orders are taken,
telephone service is listed or the consideration of any other relevant fac-
tors established by rules and regulations of the secretary of revenue. If
the place of business of a retailer of services is located within the bound-
aries of a community college district imposing a local retailers' sales tax,
services performed by such retailer are subject to the tax regardless of
whether the service is performed within or without the boundaries of the
taxing jurisdiction. If there is no fixed or determinable place of business
for any retailer, other than a retailer having its only place or places of
business in another state, the place of business of such retailer shall be
deemed to be the place where the services are performed.
  New Sec. 6.  (a) All revenue received from a community college re-
tailers' sales tax imposed pursuant to this act shall be expended only for
the purposes for which a property tax may be levied pursuant to K.S.A.
71-204, and amendments thereto.
  (b)  The tax levy imposed by a board of trustees of a community col-
lege upon taxable tangible property located within the community college
district shall be reduced by an amount equivalent to the amount of rev-
enue distributed for use by the board pursuant to this act for the budget
year next following the initial 12-month period of distribution of such
revenue.
  Sec. 7.  K.S.A. 71-204 is hereby amended to read as follows: 71-204.
For all community college maintenance and operation purposes, the
board of trustees is authorized to levy a tax on the taxable tangible prop-
erty of the community college district.
  Such tax levy shall be the amount determined by the board of trustees
to be sufficient to finance that part of the budget of the community col-
lege which is not financed by either (a) anticipated state aid of any type,
  (b) anticipated student tuition, or (c) anticipated out-district tuition, (d)
anticipated revenue from a community college retailers' sales tax, or (d)
(e) anticipated federal aid of any type. The budget of the community
college shall be prepared and adopted as provided by law, and the tax
levy therefor shall be certified to the county clerk of every county a part
of the territory of which is in the community college district.
  Sec. 8.  K.S.A. 71-204 is hereby repealed.
  Sec. 9.  This act shall take effect and be in force from and after its
publication in the statute book.