Session of 1998
                   
HOUSE BILL No. 2644
         
By Committee on Taxation
         
1-16
            9             AN ACT relating to sales taxation; authorizing Sherman county to impose
10             sales tax for highway improvement purposes; amending K.S.A. 1997
11             Supp. 12-187, 12-189 and 12-192 and repealing the existing sections.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 1997 Supp. 12-187 is hereby amended to read as
15       follows: 12-187. (a) (1) No city shall impose a retailers' sales tax under
16       the provisions of this act without the governing body of such city having
17       first submitted such proposition to and having received the approval of a
18       majority of the electors of the city voting thereon at an election called
19       and held therefor. The governing body of any city may submit the ques-
20       tion of imposing a retailers' sales tax and the governing body shall be
21       required to submit the question upon submission of a petition signed by
22       electors of such city equal in number to not less than 10% of the electors
23       of such city.
24           (2) The governing body of any city located in any county which does
25       not impose a countywide retailers' sales tax pursuant to paragraph (5) of
26       subsection (b) may submit the question of imposing a retailers' sales tax
27       at the rate of .25%, .5%, .75% or 1% and pledging the revenue received
28       therefrom for the purpose of financing the provision of health care serv-
29       ices, as enumerated in the question, to the electors at an election called
30       and held thereon. The tax imposed pursuant to this paragraph shall be
31       deemed to be in addition to the rate limitations prescribed in K.S.A.
32       12-189, and amendments thereto. As used in this paragraph, health care
33       services shall include but not be limited to the following: Local health
34       departments, city, county or district hospitals, city or county nursing
35       homes, preventive health care services including immunizations, prenatal
36       care and the postponement of entry into nursing homes by home health
37       care services, mental health services, indigent health care, physician or
38       health care worker recruitment, health education, emergency medical
39       services, rural health clinics, integration of health care services, home
40       health services and rural health networks.
41           (b) (1) The board of county commissioners of any county may submit
42       the question of imposing a countywide retailers' sales tax to the electors
43       at an election called and held thereon, and any such board shall be re-

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  1       quired to submit the question upon submission of a petition signed by
  2       electors of such county equal in number to not less than 10% of the
  3       electors of such county who voted at the last preceding general election
  4       for the office of secretary of state, or upon receiving resolutions request-
  5       ing such an election passed by not less than 2/3 of the membership of the
  6       governing body of each of one or more cities within such county which
  7       contains a population of not less than 25% of the entire population of the
  8       county, or upon receiving resolutions requesting such an election passed
  9       by 2/3 of the membership of the governing body of each of one or more
10       taxing subdivisions within such county which levy not less than 25% of
11       the property taxes levied by all taxing subdivisions within the county.
12           (2) The board of county commissioners of Barton, Butler, Cowley,
13       Cherokee, Crawford, Jefferson, Lyon, Montgomery, Ottawa, Riley, Sa-
14       line, Seward and Wyandotte counties may submit the question of impos-
15       ing a countywide retailers' sales tax and pledging the revenue received
16       therefrom for the purpose of financing the construction or remodeling of
17       a courthouse, jail, law enforcement center facility or other county admin-
18       istrative facility, to the electors at an election called and held thereon.
19       The tax imposed pursuant to this paragraph shall expire when sales tax
20       sufficient to pay all of the costs incurred in the financing of such facility
21       has been collected by retailers as determined by the secretary of revenue.
22       Nothing in this paragraph shall be construed to allow the rate of tax
23       imposed by Butler, Cowley, Lyon, Montgomery or Riley county pursuant
24       to this paragraph to exceed or be imposed at any rate other than the rates
25       prescribed in K.S.A. 12-189, and amendments thereto.
26           (3) (A) Except as otherwise provided in this paragraph, the result of
27       the election held on November 8, 1988, on the question submitted by
28       the board of county commissioners of Jackson county for the purpose of
29       increasing its countywide retailers' sales tax by 1% is hereby declared
30       valid, and the revenue received therefrom by the county shall be ex-
31       pended solely for the purpose of financing the Banner Creek reservoir
32       project. The tax imposed pursuant to this paragraph shall take effect on
33       the effective date of this act and shall expire not later than five years after
34       such date.
35           (B) The result of the election held on November 8, 1994, on the
36       question submitted by the board of county commissioners of Ottawa
37       county for the purpose of increasing its countywide retailers' sales tax by
38       1% is hereby declared valid, and the revenue received therefrom by the
39       county shall be expended solely for the purpose of financing the erection,
40       construction and furnishing of a law enforcement center and jail facility.
41           (4) The board of county commissioners of Finney and Ford counties
42       may submit the question of imposing a countywide retailers' sales tax at
43       the rate of .25% and pledging the revenue received therefrom for the

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  1       purpose of financing all or any portion of the cost to be paid by Finney
  2       or Ford county for construction of highway projects identified as system
  3       enhancements under the provisions of paragraph (5) of subsection (b) of
  4       K.S.A. 68-2314, and amendments thereto, to the electors at an election
  5       called and held thereon. Such election shall be called and held in the
  6       manner provided by the general bond law. The tax imposed pursuant to
  7       this paragraph shall expire upon the payment of all costs authorized pur-
  8       suant to this paragraph in the financing of such highway projects. Nothing
  9       in this paragraph shall be construed to allow the rate of tax imposed by
10       Finney or Ford county pursuant to this paragraph to exceed the maximum
11       rate prescribed in K.S.A. 12-189, and amendments thereto. If any funds
12       remain upon the payment of all costs authorized pursuant to this para-
13       graph in the financing of such highway projects in Finney county, the
14       state treasurer shall remit such funds to the treasurer of Finney county
15       and upon receipt of such moneys shall be deposited to the credit of the
16       county road and bridge fund. If any funds remain upon the payment of
17       all costs authorized pursuant to this paragraph in the financing of such
18       highway projects in Ford county, the state treasurer shall remit such funds
19       to the treasurer of Ford county and upon receipt of such moneys shall
20       be deposited to the credit of the county road and bridge fund.
21           (5) The board of county commissioners of any county may submit the
22       question of imposing a retailers' sales tax at the rate of .25%, .5%, .75%
23       or 1% and pledging the revenue received therefrom for the purpose of
24       financing the provision of health care services, as enumerated in the ques-
25       tion, to the electors at an election called and held thereon. Whenever any
26       county imposes a tax pursuant to this paragraph, any tax imposed pursuant
27       to paragraph (2) of subsection (a) by any city located in such county shall
28       expire upon the effective date of the imposition of the countywide tax,
29       and thereafter the state treasurer shall remit to each such city that portion
30       of the countywide tax revenue collected by retailers within such city as
31       certified by the director of taxation. The tax imposed pursuant to this
32       paragraph shall be deemed to be in addition to the rate limitations pre-
33       scribed in K.S.A. 12-189, and amendments thereto. As used in this par-
34       agraph, health care services shall include but not be limited to the follow-
35       ing: Local health departments, city or county hospitals, city or county
36       nursing homes, preventive health care services including immunizations,
37       prenatal care and the postponement of entry into nursing homes by home
38       care services, mental health services, indigent health care, physician or
39       health care worker recruitment, health education, emergency medical
40       services, rural health clinics, integration of health care services, home
41       health services and rural health networks.
42           (6) The board of county commissioners of Allen county may submit
43       the question of imposing a countywide retailers' sales tax at the rate of

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  1       .5% and pledging the revenue received therefrom for the purpose of
  2       financing the costs of operation and construction of a solid waste disposal
  3       area or the modification of an existing landfill to comply with federal
  4       regulations to the electors at an election called and held thereon. The tax
  5       imposed pursuant to this paragraph shall expire upon the payment of all
  6       costs incurred in the financing of the project undertaken. Nothing in this
  7       paragraph shall be construed to allow the rate of tax imposed by Allen
  8       county pursuant to this paragraph to exceed or be imposed at any rate
  9       other than the rates prescribed in K.S.A. 12-189 and amendments
10       thereto.
11           (7) The board of county commissioners of Dickinson county may sub-
12       mit the question of imposing a countywide retailers' sales tax at the rate
13       of .25% and pledging the revenue received therefrom for the purpose of
14       financing the costs of renovating a building owned by the county to be
15       used for community purposes to the electors at an election called and
16       held thereon. The tax imposed pursuant to this paragraph shall expire
17       after three years from the date such tax is first collected.
18           (8) The board of county commissioners of Sherman county may sub-
19       mit the question of imposing a countywide retailers' sales tax at the rate
20       of .75% and pledging the revenue therefrom for the purpose of financing
21       the costs of the highway 24 construction and improvement project. The
22       tax imposed pursuant to this paragraph shall expire upon payment of all
23       costs authorized pursuant to this paragraph in the financing of such pro-
24       ject.
25           (c) The boards of county commissioners of any two or more contig-
26       uous counties, upon adoption of a joint resolution by such boards, may
27       submit the question of imposing a retailers' sales tax within such counties
28       to the electors of such counties at an election called and held thereon
29       and such boards of any two or more contiguous counties shall be required
30       to submit such question upon submission of a petition in each of such
31       counties, signed by a number of electors of each of such counties where
32       submitted equal in number to not less than 10% of the electors of each
33       of such counties who voted at the last preceding general election for the
34       office of secretary of state, or upon receiving resolutions requesting such
35       an election passed by not less than 2/3 of the membership of the governing
36       body of each of one or more cities within each of such counties which
37       contains a population of not less than 25% of the entire population of
38       each of such counties, or upon receiving resolutions requesting such an
39       election passed by 2/3 of the membership of the governing body of each
40       of one or more taxing subdivisions within each of such counties which
41       levy not less than 25% of the property taxes levied by all taxing subdivi-
42       sions within each of such counties.
43           (d) Any city retailers' sales tax in the amount of .5% being levied by

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  1       a city on July 1, 1990, shall continue in effect until repealed in the manner
  2       provided herein for the adoption and approval of such tax or until re-
  3       pealed by the adoption of an ordinance so providing. In addition to any
  4       city retailers' sales tax being levied by a city on July 1, 1990, any such city
  5       may adopt an additional city retailers' sales tax in the amount of .25% or
  6       .5%, provided that such additional tax is adopted and approved in the
  7       manner provided for the adoption and approval of a city retailers' sales
  8       tax. Any countywide retailers' sales tax in the amount of .5% or 1% in
  9       effect on July 1, 1990, shall continue in effect until repealed in the manner
10       provided herein for the adoption and approval of such tax.
11           (e) A class B city shall have the same power to levy and collect a city
12       retailers' sales tax that a class A city is authorized to levy and collect and
13       in addition, in 1990, 1991 or 1992, the governing body of any class B city
14       may submit the question of imposing an additional city retailers' sales tax
15       in an amount not to exceed 1% and pledging the revenue received there-
16       from for flood control projects to the electors at an election called and
17       held thereon. Any additional sales tax imposed pursuant to this paragraph
18       shall expire upon the payment of all costs incurred in financing such flood
19       control projects.
20           (f) A class D city shall have the same power to levy and collect a city
21       retailers' sales tax that a class A city is authorized to levy and collect and
22       in addition, the governing body of any class D city may submit the ques-
23       tion of imposing an additional city retailers' sales tax in the amount of
24       .25%, .5% or .75% and pledging the revenue received therefrom for ec-
25       onomic development initiatives, strategic planning initiatives or for public
26       infrastructure projects including buildings to the electors at an election
27       called and held thereon. Any additional sales tax imposed pursuant to this
28       paragraph shall expire no later than five years from the date of imposition
29       thereof.
30           (g) Any city or county proposing to adopt a retailers' sales tax shall
31       give notice of its intention to submit such proposition for approval by the
32       electors in the manner required by K.S.A. 10-120, and amendments
33       thereto. The notices shall state the time of the election and the rate and
34       effective date of the proposed tax. If a majority of the electors voting
35       thereon at such election fail to approve the proposition, such proposition
36       may be resubmitted under the conditions and in the manner provided in
37       this act for submission of the proposition. If a majority of the electors
38       voting thereon at such election shall approve the levying of such tax, the
39       governing body of any such city or county shall provide by ordinance or
40       resolution, as the case may be, for the levy of the tax. Any repeal of such
41       tax or any reduction or increase in the rate thereof, within the limits
42       prescribed by K.S.A. 12-189, and amendments thereto, shall be accom-
43       plished in the manner provided herein for the adoption and approval of

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  1       such tax except that the repeal of any such city retailers' sales tax may be
  2       accomplished by the adoption of an ordinance so providing.
  3           (h) The sufficiency of the number of signers of any petition filed
  4       under this section shall be determined by the county election officer.
  5       Every election held under this act shall be conducted by the county elec-
  6       tion officer.
  7           (i) The governing body of the city or county proposing to levy any
  8       retailers' sales tax shall specify the purpose or purposes for which the
  9       revenue would be used, and a statement generally describing such pur-
10       pose or purposes shall be included as a part of the ballot proposition.
11           Sec. 2. K.S.A. 1997 Supp. 12-189 is hereby amended to read as fol-
12       lows: 12-189. Except as otherwise provided by paragraph (2) of subsection
13       (a) of K.S.A. 12-187, and amendments thereto, the rate of any class A or
14       class C city retailers' sales tax shall be fixed in the amount of .25%, .5%,
15       .75% or 1% which amount shall be determined by the governing body of
16       the city. Except as otherwise provided by paragraph (2) of subsection (a)
17       of K.S.A. 12-187, and amendments thereto, the rate of any class B city
18       retailers' sales tax shall be fixed in the amount of .25%, .5%, .75%, 1%,
19       1.25%, 1.5%, 1.75% or 2%. Except as otherwise provided by paragraph
20       (2) of subsection (a) of K.S.A. 12-187, and amendments thereto, the rate
21       of any class D city retailers' sales tax shall be fixed in the amount of .25%,
22       .5%, .75%, 1%, 1.25%, 1.5% or 1.75%. The rate of any countywide re-
23       tailers' sales tax shall be fixed in an amount of either .25%, .5%, .75% or
24       1% which amount shall be determined by the board of county commis-
25       sioners, except that:
26           (a) The board of county commissioners of Cherokee, Crawford, Sa-
27       line, Seward or Wyandotte county, for the purposes of paragraph (2) of
28       subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such
29       rate at 1.5%, and the board of county commissioners of Barton, Jefferson
30       or Ottawa county, for the purposes of paragraph (2) of subsection (b) of
31       K.S.A. 12-187, and amendments thereto, may fix such rate at 2%;
32           (b) the board of county commissioners of Jackson county, for the
33       purposes of paragraph (3) of subsection (b) of K.S.A. 12-187, and amend-
34       ments thereto, may fix such rate at 2%;
35           (c) the boards of county commissioners of Finney and Ford counties,
36       for the purposes of paragraph (4) of subsection (b) of K.S.A. 12-187, and
37       amendments thereto, may fix such rate at .25%;
38           (d) the board of county commissioners of any county for the purposes
39       of paragraph (5) of subsection (b) of K.S.A. 12-187, and amendments
40       thereto, may fix such rate at a percentage which is equal to the sum of
41       the rate allowed to be imposed by a board of county commissioners on
42       the effective date of this act plus .25%, .5%, .75% or 1%, as the case
43       requires; or

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  1           (e) the board of county commissioners of Dickinson county, for the
  2       purposes of paragraph (7) of subsection (b) of K.S.A. 12-187, and amend-
  3       ments thereto, may fix such rate at 1.25%; or
  4           (f) the board of county commissioners of Sherman county, for the
  5       purposes of paragraph (8) of subsection (b) of K.S.A. 12-187, and amend-
  6       ments thereto, may fix such rate at 2%.
  7           Any county or city levying a retailers' sales tax is hereby prohibited
  8       from administering or collecting such tax locally, but shall utilize the serv-
  9       ices of the state department of revenue to administer, enforce and collect
10       such tax. Except as otherwise specifically provided in K.S.A. 12-189a, and
11       amendments thereto, such tax shall be identical in its application, and
12       exemptions therefrom, to the Kansas retailers' sales tax act and all laws
13       and administrative rules and regulations of the state department of rev-
14       enue relating to the Kansas retailers' sales tax shall apply to such local
15       sales tax insofar as such laws and rules and regulations may be made
16       applicable. The state director of taxation is hereby authorized to admin-
17       ister, enforce and collect such local sales taxes and to adopt such rules
18       and regulations as may be necessary for the efficient and effective ad-
19       ministration and enforcement thereof.
20           Upon receipt of a certified copy of an ordinance or resolution author-
21       izing the levy of a local retailers' sales tax, the state director of taxation
22       shall cause such taxes to be collected within or without the boundaries of
23       such taxing subdivision at the same time and in the same manner provided
24       for the collection of the state retailers' sales tax. All moneys collected by
25       the director of taxation under the provisions of this section shall be cred-
26       ited to a county and city retailers' sales tax fund which fund is hereby
27       established in the state treasury. Any refund due on any county or city
28       retailers' sales tax collected pursuant to this act shall be paid out of the
29       sales tax refund fund and reimbursed by the director of taxation from
30       collections of local retailers' sales tax revenue. All local retailers' sales tax
31       revenue collected within any county or city pursuant to this act shall be
32       apportioned and remitted at least quarterly by the state treasurer, on
33       instruction from the director of taxation, to the treasurer of such county
34       or city.
35           The director of taxation shall provide, upon request by a city or county
36       clerk or treasurer of any city or county levying a local retailers' sales tax,
37       a monthly report identifying each retailer having a place of business in
38       such city or county and setting forth the amount of such tax remitted by
39       each retailer during the preceding month. Such report shall be made
40       available to the clerk or treasurer of such city or county within a reason-
41       able time after it has been requested from the director of taxation. The
42       director of taxation shall be allowed to assess a reasonable fee for the
43       issuance of such report. Information received by any city or county pur-

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  1       suant to this section shall be confidential, and it shall be unlawful for any
  2       officer or employee of such city or county to divulge any such information
  3       in any manner. Any violation of this paragraph by a city or county officer
  4       or employee is a class B misdemeanor, and such officer or employee shall
  5       be dismissed from office.
  6           Sec. 3. K.S.A. 1997 Supp. 12-192 is hereby amended to read as fol-
  7       lows: 12-192. (a) Except as otherwise provided by subsection (b), (d) or
  8       (h), all revenue received by the director of taxation from a countywide
  9       retailers' sales tax shall be apportioned among the county and each city
10       located in such county in the following manner: (1) One-half of all reve-
11       nue received by the director of taxation shall be apportioned among the
12       county and each city located in such county in the proportion that the
13       total tangible property tax levies made in such county in the preceding
14       year for all funds of each such governmental unit bear to the total of all
15       such levies made in the preceding year, and (2) except as provided by
16       paragraph (3), 1/2 of all revenue received by the director of taxation from
17       such countywide retailers' sales tax shall be apportioned among the county
18       and each city located in such county, first to the county that portion of
19       the revenue equal to the proportion that the population of the county
20       residing in the unincorporated area of the county bears to the total pop-
21       ulation of the county, and second to the cities in the proportion that the
22       population of each city bears to the total population of the county, except
23       that no persons residing within the Fort Riley military reservation shall
24       be included in the determination of the population of any city located
25       within Riley county, or (3) one-half of all revenue received by the director
26       of taxation from countywide retailers' sales taxes levied in Geary county
27       in any year shall be apportioned among the county and each city located
28       in such county, first to the county that portion of the revenue equal to
29       the proportion that the population of the county residing in the unincor-
30       porated area of the county less the population residing on a military res-
31       ervation bears to the total population of the county less the population
32       residing on a military reservation, and second to the cities in the propor-
33       tion that the population of each city bears to the total population of the
34       county less the population residing on a military reservation. All revenue
35       apportioned to a county shall be paid to its county treasurer and shall be
36       credited to the general fund of the county.
37           (b) (1) As an alternative and in lieu of the apportionment formula
38       provided in subsection (a), all revenue received by the director of taxation
39       from a countywide retailers' sales tax imposed within Johnson county at
40       the rate of .75% or 1% after the effective date of this act may be appor-
41       tioned among the county and each city located in such county in the
42       following manner: (A) The revenue received from the first .5% rate of
43       tax shall be apportioned in the manner prescribed by subsection (a) and

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  1       (B) the revenue received from the rate of tax exceeding .5% shall be
  2       apportioned as follows: (i) One-fourth shall be apportioned among the
  3       county and each city located in such county in the proportion that the
  4       total tangible property tax levies made in such county in the preceding
  5       year for all funds of each such governmental unit bear to the total of all
  6       such levies made in the preceding year and (ii) one-fourth shall be ap-
  7       portioned among the county and each city located in such county, first to
  8       the county that portion of the revenue equal to the proportion that the
  9       population of the county residing in the unincorporated area of the county
10       bears to the total population of the county, and second to the cities in the
11       proportion that the population of each city bears to the total population
12       of the county and (iii) one-half shall be retained by the county for its sole
13       use and benefit.
14           (2) In lieu of the apportionment formula provided in subsection (a),
15       all money received by the director of taxation from a countywide sales tax
16       imposed within Montgomery county pursuant to the election held on
17       November 8, 1994, shall be remitted to and shall be retained by the
18       county and expended only for the purpose for which the revenue received
19       from the tax was pledged. All revenue apportioned and paid from the
20       imposition of such tax to the treasurer of any city prior to the effective
21       date of this act shall be remitted to the county treasurer and expended
22       only for the purpose for which the revenue received from the tax was
23       pledged.
24           (c) (1) Except as otherwise provided by paragraph (2) of this subsec-
25       tion, for purposes of subsections (a) and (b), the term ``total tangible
26       property tax levies'' means the aggregate dollar amount of tax revenue
27       derived from ad valorem tax levies applicable to all tangible property
28       located within each such city or county. The ad valorem property tax levy
29       of any county or city district entity or subdivision shall be included within
30       this term if the levy of any such district entity or subdivision is applicable
31       to all tangible property located within each such city or county.
32           (2) For the purposes of subsections (a) and (b), any ad valorem prop-
33       erty tax levied on property located in a city in Johnson county for the
34       purpose of providing fire protection service in such city shall be included
35       within the term ``total tangible property tax levies'' for such city regardless
36       of its applicability to all tangible property located within each such city.
37       If the tax is levied by a district which extends across city boundaries, for
38       purposes of this computation, the amount of such levy shall be appor-
39       tioned among each city in which such district extends in the proportion
40       that such tax levied within each city bears to the total tax levied by the
41       district.
42           (d) (1) All revenue received from a countywide retailers' sales tax
43       imposed pursuant to paragraphs (2), (6) or, (7) or (8) of subsection (b) of

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  1       K.S.A. 12-187, and amendments thereto, shall be remitted to and shall
  2       be retained by the county and expended only for the purpose for which
  3       the revenue received from the tax was pledged.
  4           (2) Except as otherwise provided in paragraph (5) of subsection (b)
  5       of K.S.A. 12-187, and amendments thereto, all revenues received from a
  6       countywide retailers' sales tax imposed pursuant to paragraph (5) of sub-
  7       section (b) of K.S.A. 12-187, and amendments thereto, shall be remitted
  8       to and shall be retained by the county and expended only for the purpose
  9       for which the revenue received from the tax was pledged.
10           (e) All revenue apportioned to the several cities of the county shall
11       be paid to the respective treasurers thereof and deposited in the general
12       fund of the city. Whenever the territory of any city is located in two or
13       more counties and any one or more of such counties do not levy a coun-
14       tywide retailers' sales tax, or whenever such counties do not levy coun-
15       tywide retailers' sales taxes at a uniform rate, the revenue received by
16       such city from the proceeds of the countywide retailers' sales tax, as an
17       alternative to depositing the same in the general fund, may be used for
18       the purpose of reducing the tax levies of such city upon the taxable tan-
19       gible property located within the county levying such countywide retail-
20       ers' sales tax.
21           (f) Prior to March 1 of each year, the secretary of revenue shall advise
22       each county treasurer of the revenue collected in such county from the
23       state retailers' sales tax for the preceding calendar year.
24           (g) Prior to December 31 of each year, the clerk of every county
25       imposing a countywide retailers' sales tax shall provide such information
26       deemed necessary by the secretary of revenue to apportion and remit
27       revenue to the counties and cities pursuant to this section.
28           Sec. 4. K.S.A. 1997 Supp. 12-187, 12-189 and 12-192 are hereby re-
29       pealed.
30           Sec. 5. This act shall take effect and be in force from and after its
31       publication in the statute book.
32