Session of 1999
HOUSE BILL No. 2001
An Act relating to sales taxation;
providing local retailers' sales tax imposition authority for
certain cities and counties; amending K.S.A.
1998 Supp. 12-187, 12-188, 12-189 and 12-
192 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1998 Supp. 12-188
is hereby amended to read as
follows: 12-188. The following classes of cities are hereby
established for
the purpose of imposing limitations and prohibitions upon the
levying of
sales and excise taxes or taxes in the nature of an excise upon
sales or
transfers of personal or real property or the use thereof, or the
rendering
or furnishing of services by cities as authorized and provided by
article
12, section 5, of the constitution of the state of Kansas:
Class A cities. All cities in the state of
Kansas which have the authority
to levy and collect excise taxes or taxes in the nature of an
excise upon
the sales or transfers of personal or real property or the use
thereof, or
the rendering or furnishing of services by cities.
Class B cities. All cities in the state of
Kansas which have the authority
to levy and collect excise taxes or taxes in the nature of an
excise upon
the sales or transfers of personal or real property or the use
thereof, or
the rendering or furnishing of services for the purpose of
financing the
provision of health care services.
Class C cities. All cities in the state of
Kansas having a population of
more than 290,000 located in a county having a population of more
than
350,000 which has the authority to levy and collect excise taxes or
taxes
in the nature of an excise upon the sales or transfers of personal
or real
property or the use thereof, or the rendering or furnishing of
services.
Class D cities. All cities in the state of
Kansas located in Cowley, Ellis,
Ellsworth, Finney, Johnson, Labette or,
Lyon, Montgomery, Osage or
Reno county or in both Riley and Pottawatomie counties which
have the
authority to levy and collect excise taxes or taxes in the nature
of an excise
upon the sales or transfers of personal or real property or the use
thereof,
or the rendering or furnishing of services.
Sec. 2. K.S.A. 1998 Supp. 12-187 is
hereby amended to read as fol-
lows: 12-187. (a) (1) No city shall impose a retailers' sales tax
under the
provisions of this act without the governing body of such city
having first
submitted such proposition to and having received the approval of a
ma-
jority of the electors of the city voting thereon at an election
called and
held therefor. The governing body of any city may submit the
question
of imposing a retailers' sales tax and the governing body shall be
required
to submit the question upon submission of a petition signed by
electors
of such city equal in number to not less than 10% of the electors
of such
city.
(2) The governing body of any class B
city located in any county which
does not impose a countywide retailers' sales tax pursuant to
paragraph
(5) of subsection (b) may submit the question of imposing a
retailers' sales
tax at the rate of .25%, .5%, .75% or 1% and pledging the revenue
re-
ceived therefrom for the purpose of financing the provision of
health care
services, as enumerated in the question, to the electors at an
election
called and held thereon. The tax imposed pursuant to this paragraph
shall
be deemed to be in addition to the rate limitations prescribed in
K.S.A.
12-189, and amendments thereto. As used in this paragraph, health
care
services shall include but not be limited to the following: Local
health
departments, city, county or district hospitals, city or county
nursing
homes, preventive health care services including immunizations,
prenatal
care and the postponement of entry into nursing homes by home
health
care services, mental health services, indigent health care,
physician or
health care worker recruitment, health education, emergency
medical
services, rural health clinics, integration of health care
services, home
health services and rural health networks.
(b) (1) The board of county
commissioners of any county may submit
the question of imposing a countywide retailers' sales tax to the
electors
at an election called and held thereon, and any such board shall be
re-
quired to submit the question upon submission of a petition signed
by
electors of such county equal in number to not less than 10% of
the
electors of such county who voted at the last preceding general
election
for the office of secretary of state, or upon receiving resolutions
request-
ing such an election passed by not less than 2/3 of the membership
of the
governing body of each of one or more cities within such county
which
contains a population of not less than 25% of the entire population
of the
county, or upon receiving resolutions requesting such an election
passed
by 2/3 of the membership of the governing body of each of one or
more
taxing subdivisions within such county which levy not less than 25%
of
the property taxes levied by all taxing subdivisions within the
county.
(2) The board of county commissioners of
Atchison, Barton, Butler,
Cowley, Cherokee, Crawford, Ford, Jefferson, Lyon, Montgomery,
Ot-
tawa, Riley, Saline, Seward and Wyandotte counties may submit the
ques-
tion of imposing a countywide retailers' sales tax and pledging the
revenue
received therefrom for the purpose of financing the construction or
re-
modeling of a courthouse, jail, law enforcement center facility or
other
county administrative facility, to the electors at an election
called and
held thereon. The tax imposed pursuant to this paragraph shall
expire
when sales tax sufficient to pay all of the costs incurred in the
financing
of such facility has been collected by retailers as determined by
the sec-
retary of revenue. Nothing in this paragraph shall be construed to
allow
the rate of tax imposed by Butler, Cowley, Lyon, Montgomery or
Riley
county pursuant to this paragraph to exceed or be imposed at any
rate
other than the rates prescribed in K.S.A. 12-189, and
amendments
thereto.
(3) (A) Except as otherwise
provided in this paragraph, the result of
the election held on November 8, 1988, on the question submitted
by
the board of county commissioners of Jackson county for the purpose
of
increasing its countywide retailers' sales tax by 1% is hereby
declared
valid, and the revenue received therefrom by the county shall be
ex-
pended solely for the purpose of financing the Banner Creek
reservoir
project. The tax imposed pursuant to this paragraph shall take
effect on
the effective date of this act and shall expire not later than five
years after
such date.
(B) The result of the election held on
November 8, 1994, on the
question submitted by the board of county commissioners of
Ottawa
county for the purpose of increasing its countywide retailers'
sales tax by
1% is hereby declared valid, and the revenue received therefrom by
the
county shall be expended solely for the purpose of financing the
erection,
construction and furnishing of a law enforcement center and jail
facility.
(4) The board of county commissioners of
Finney and Ford counties
may submit the question of imposing a countywide retailers' sales
tax at
the rate of .25% and pledging the revenue received therefrom for
the
purpose of financing all or any portion of the cost to be paid by
Finney
or Ford county for construction of highway projects identified as
system
enhancements under the provisions of paragraph (5) of subsection
(b) of
K.S.A. 68-2314, and amendments thereto, to the electors at an
election
called and held thereon. Such election shall be called and held in
the
manner provided by the general bond law. The tax imposed pursuant
to
this paragraph shall expire upon the payment of all costs
authorized pur-
suant to this paragraph in the financing of such highway projects.
Nothing
in this paragraph shall be construed to allow the rate of tax
imposed by
Finney or Ford county pursuant to this paragraph to exceed the
maximum
rate prescribed in K.S.A. 12-189, and amendments thereto. If any
funds
remain upon the payment of all costs authorized pursuant to this
para-
graph in the financing of such highway projects in Finney county,
the
state treasurer shall remit such funds to the treasurer of Finney
county
and upon receipt of such moneys shall be deposited to the credit of
the
county road and bridge fund. If any funds remain upon the payment
of
all costs authorized pursuant to this paragraph in the financing of
such
highway projects in Ford county, the state treasurer shall remit
such funds
to the treasurer of Ford county and upon receipt of such moneys
shall
be deposited to the credit of the county road and bridge fund.
(5) The board of county commissioners of
any county may submit the
question of imposing a retailers' sales tax at the rate of .25%,
.5%, .75%
or 1% and pledging the revenue received therefrom for the purpose
of
financing the provision of health care services, as enumerated in
the ques-
tion, to the electors at an election called and held thereon.
Whenever any
county imposes a tax pursuant to this paragraph, any tax imposed
pursuant
to paragraph (2) of subsection (a) by any city located in such
county shall
expire upon the effective date of the imposition of the countywide
tax,
and thereafter the state treasurer shall remit to each such city
that portion
of the countywide tax revenue collected by retailers within such
city as
certified by the director of taxation. The tax imposed pursuant to
this
paragraph shall be deemed to be in addition to the rate limitations
pre-
scribed in K.S.A. 12-189, and amendments thereto. As used in this
par-
agraph, health care services shall include but not be limited to
the follow-
ing: Local health departments, city or county hospitals, city or
county
nursing homes, preventive health care services including
immunizations,
prenatal care and the postponement of entry into nursing homes by
home
care services, mental health services, indigent health care,
physician or
health care worker recruitment, health education, emergency
medical
services, rural health clinics, integration of health care
services, home
health services and rural health networks.
(6) The board of county commissioners of
Allen county may submit
the question of imposing a countywide retailers' sales tax at the
rate of
.5% and pledging the revenue received therefrom for the purpose
of
financing the costs of operation and construction of a solid waste
disposal
area or the modification of an existing landfill to comply with
federal
regulations to the electors at an election called and held thereon.
The tax
imposed pursuant to this paragraph shall expire upon the payment of
all
costs incurred in the financing of the project undertaken. Nothing
in this
paragraph shall be construed to allow the rate of tax imposed by
Allen
county pursuant to this paragraph to exceed or be imposed at any
rate
other than the rates prescribed in K.S.A. 12-189 and amendments
thereto.
(7) The board of county commissioners of
Dickinson county may sub-
mit the question of imposing a countywide retailers' sales tax at
the rate
of .50% and pledging the revenue received therefrom for the purpose
of
financing the costs of roadway construction and improvement to the
elec-
tors at an election called and held thereon. The tax imposed
pursuant to
this paragraph shall expire after five years from the date such tax
is first
collected.
(8) The board of county commissioners of
Sherman county may sub-
mit the question of imposing a countywide retailers' sales tax at
the rate
of .25%, .5% or .75% and pledging the revenue therefrom for the
purpose
of financing the costs of the county roads 64 and 65 construction
and
improvement project. The tax imposed pursuant to this paragraph
shall
expire upon payment of all costs authorized pursuant to this
paragraph
in the financing of such project.
(9) The board of county commissioners
of Cowley and Russell county
may submit the question of imposing a countywide retailers'
sales tax at
the rate of .5% in the case of Russell county and at a rate of
up to .25%,
in the case of Cowley county and pledging the revenue received
therefrom
for the purpose of financing economic development initiatives or
public
infrastructure projects. The tax imposed pursuant to this
paragraph shall
expire after five years from the date such tax is first
collected.
(c) The boards of county commissioners of
any two or more contig-
uous counties, upon adoption of a joint resolution by such boards,
may
submit the question of imposing a retailers' sales tax within such
counties
to the electors of such counties at an election called and held
thereon
and such boards of any two or more contiguous counties shall be
required
to submit such question upon submission of a petition in each of
such
counties, signed by a number of electors of each of such counties
where
submitted equal in number to not less than 10% of the electors of
each
of such counties who voted at the last preceding general election
for the
office of secretary of state, or upon receiving resolutions
requesting such
an election passed by not less than 2/3 of the membership of the
governing
body of each of one or more cities within each of such counties
which
contains a population of not less than 25% of the entire population
of
each of such counties, or upon receiving resolutions requesting
such an
election passed by 2/3 of the membership of the governing body of
each
of one or more taxing subdivisions within each of such counties
which
levy not less than 25% of the property taxes levied by all taxing
subdivi-
sions within each of such counties.
(d) Any city retailers' sales tax in the
amount of .5% being levied by
a city on July 1, 1990, shall continue in effect until repealed in
the manner
provided herein for the adoption and approval of such tax or until
re-
pealed by the adoption of an ordinance so providing. In addition to
any
city retailers' sales tax being levied by a city on July 1, 1990,
any such city
may adopt an additional city retailers' sales tax in the amount of
.25% or
.5%, provided that such additional tax is adopted and approved in
the
manner provided for the adoption and approval of a city retailers'
sales
tax. Any countywide retailers' sales tax in the amount of .5% or 1%
in
effect on July 1, 1990, shall continue in effect until repealed in
the manner
provided herein for the adoption and approval of such tax.
(e) A class D city shall have the same
power to levy and collect a city
retailers' sales tax that a class A city is authorized to levy and
collect and
in addition, the governing body of any class D city may submit the
ques-
tion of imposing an additional city retailers' sales tax in the
amount of
.125%, .25%, .5% or .75% and pledging the revenue received
therefrom
for economic development initiatives, strategic planning
initiatives or for
public infrastructure projects including buildings to the electors
at an
election called and held thereon. Any additional sales tax imposed
pur-
suant to this paragraph shall expire no later than five years from
the date
of imposition thereof.
(f) Any city or county 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 proposition, 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
governing body of any such city or county shall provide by
ordinance or
resolution, as the case may be, 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 K.S.A. 12-189, and amendments thereto, shall be
accom-
plished in the manner provided herein for the adoption and approval
of
such tax except that the repeal of any such city retailers' sales
tax may be
accomplished by the adoption of an ordinance so providing.
(g) The sufficiency of the number of
signers of any petition filed
under this section shall be determined by the county election
officer.
Every election held under this act shall be conducted by the county
elec-
tion officer.
(h) The governing body of the city or
county proposing to levy any
retailers' sales tax shall specify the purpose or purposes for
which the
revenue would be used, and a statement generally describing such
pur-
pose or purposes shall be included as a part of the ballot
proposition.
Sec. 3. K.S.A. 1998 Supp. 12-189 is
hereby amended to read as fol-
lows: 12-189. Except as otherwise provided by paragraph (2) of
subsection
(a) of K.S.A. 12-187, and amendments thereto, the rate of any class
A,
class B or class C city retailers' sales tax shall be fixed in the
amount of
.25%, .5%, .75% or 1% which amount shall be determined by the
gov-
erning body of the city. Except as otherwise provided by paragraph
(2)
of subsection (a) of K.S.A. 12-187, and amendments thereto, the
rate of
any class D city retailers' sales tax shall be fixed in the amount
of .25%,
.5%, .75%, 1%, 1.125%, 1.25%, 1.5% or 1.75%. The rate of any
county-
wide retailers' sales tax shall be fixed in an amount of either
.25%, .5%,
.75% or 1% which amount shall be determined by the board of
county
commissioners, except that:
(a) The board of county commissioners of
Cherokee, Crawford, Ford,
Saline, Seward or Wyandotte county, for the purposes of paragraph
(2)
of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix
such
rate at 1.5%, the board of county commissioners of Atchison county,
for
the purposes of paragraph (2) of subsection (b) of K.S.A. 12-187,
and
amendments thereto, may fix such rate at 1.5% or 1.75% and the
board
of county commissioners of Barton, Jefferson or Ottawa county, for
the
purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and
amend-
ments thereto, may fix such rate at 2%;
(b) the board of county commissioners of
Jackson county, for the
purposes of paragraph (3) of subsection (b) of K.S.A. 12-187, and
amend-
ments thereto, may fix such rate at 2%;
(c) the boards of county commissioners of
Finney and Ford counties,
for the purposes of paragraph (4) of subsection (b) of K.S.A.
12-187, and
amendments thereto, may fix such rate at .25%;
(d) the board of county commissioners of
any county for the purposes
of paragraph (5) of subsection (b) of K.S.A. 12-187, and
amendments
thereto, may fix such rate at a percentage which is equal to the
sum of
the rate allowed to be imposed by a board of county commissioners
on
the effective date of this act plus .25%, .5%, .75% or 1%, as the
case
requires;
(e) the board of county commissioners of
Dickinson county, for the
purposes of paragraph (7) of subsection (b) of K.S.A. 12-187, and
amend-
ments thereto, may fix such rate at 1.5%; or
(f) the board of county commissioners of
Sherman county, for the
purposes of paragraph (8) of subsection (b) of K.S.A. 12-187, and
amend-
ments thereto, may fix such rate at l.5%, 1.75% or
2%.; or
(g) the board of county commissioners
of Russell county for the pur-
poses of paragraph (9) of subsection (b) of K.S.A. 12-187, and
amend-
ments thereto, may fix such rate at 1.5%.
Any county or city levying a retailers' sales
tax is hereby prohibited
from administering or collecting such tax locally, but shall
utilize the serv-
ices of the state department of revenue to administer, enforce and
collect
such tax. Except as otherwise specifically provided in K.S.A.
12-189a, and
amendments thereto, 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
rev-
enue relating to the Kansas retailers' sales tax shall apply to
such local
sales tax insofar as such laws and rules and regulations may be
made
applicable. The state director of taxation is hereby authorized to
admin-
ister, enforce and collect such local sales taxes and to adopt such
rules
and regulations as may be necessary for the efficient and effective
ad-
ministration and enforcement thereof.
Upon receipt of a certified copy of an
ordinance or resolution author-
izing the levy of a local retailers' sales tax, the state director
of taxation
shall cause such taxes to be collected within or without the
boundaries 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 cred-
ited to a county and city retailers' sales tax fund which fund is
hereby
established in the state treasury. Any refund due on any county or
city
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 local retailers' sales tax revenue. All local
retailers' sales tax
revenue collected within any county or city 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
county
or city.
The director of taxation shall provide, upon
request by a city or county
clerk or treasurer of any city or county levying a local retailers'
sales tax,
a monthly report identifying each retailer having a place of
business in
such city or county and setting forth the amount of such tax
remitted by
each retailer during the preceding month. Such report shall be
made
available to the clerk or treasurer of such city or county within a
reason-
able 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 city or county
pur-
suant to this section shall be confidential, and it shall be
unlawful for any
officer or employee of such city or county to divulge any such
information
in any manner. Any violation of this paragraph by a city or county
officer
or employee is a class B misdemeanor, and such officer or employee
shall
be dismissed from office.
Sec. 4. K.S.A. 1998 Supp. 12-192 is
hereby amended to read as fol-
lows: 12-192. (a) Except as otherwise provided by subsection (b),
(d) or
(h), all revenue received by the director of taxation from a
countywide
retailers' sales tax shall be apportioned among the county and each
city
located in such county in the following manner: (1) One-half of all
reve-
nue received by the director of taxation shall be apportioned among
the
county and each city located in such county in the proportion that
the
total tangible property tax levies made in such county in the
preceding
year for all funds of each such governmental unit bear to the total
of all
such levies made in the preceding year, and (2) 1/2 of all revenue
received
by the director of taxation from such countywide retailers' sales
tax shall
be apportioned among the county and each city located in such
county,
first to the county that portion of the revenue equal to the
proportion
that the population of the county residing in the unincorporated
area of
the county bears to the total population of the county, and second
to the
cities in the proportion that the population of each city bears to
the total
population of the county, except that no persons residing within
the Fort
Riley military reservation shall be included in the determination
of the
population of any city located within Riley county. All revenue
appor-
tioned to a county shall be paid to its county treasurer and shall
be cred-
ited to the general fund of the county.
(b) (1) As an alternative and in
lieu of the apportionment formula
provided in subsection (a), all revenue received by the director of
taxation
from a countywide retailers' sales tax imposed within Johnson
county at
the rate of .75% or 1% after the effective date of this act may be
appor-
tioned among the county and each city located in such county in
the
following manner: (A) The revenue received from the first .5% rate
of
tax shall be apportioned in the manner prescribed by subsection (a)
and
(B) the revenue received from the rate of tax exceeding .5% shall
be
apportioned as follows: (i) One-fourth shall be apportioned among
the
county and each city located in such county in the proportion that
the
total tangible property tax levies made in such county in the
preceding
year for all funds of each such governmental unit bear to the total
of all
such levies made in the preceding year and (ii) one-fourth shall be
ap-
portioned among the county and each city located in such county,
first to
the county that portion of the revenue equal to the proportion that
the
population of the county residing in the unincorporated area of the
county
bears to the total population of the county, and second to the
cities in the
proportion that the population of each city bears to the total
population
of the county and (iii) one-half shall be retained by the county
for its sole
use and benefit.
(2) In lieu of the apportionment formula
provided in subsection (a),
all money received by the director of taxation from a countywide
sales tax
imposed within Montgomery county pursuant to the election held
on
November 8, 1994, shall be remitted to and shall be retained by
the
county and expended only for the purpose for which the revenue
received
from the tax was pledged. All revenue apportioned and paid from
the
imposition of such tax to the treasurer of any city prior to the
effective
date of this act shall be remitted to the county treasurer and
expended
only for the purpose for which the revenue received from the tax
was
pledged.
(c) (1) Except as otherwise
provided by paragraph (2) of this subsec-
tion, for purposes of subsections (a) and (b), the term ``total
tangible
property tax levies'' means the aggregate dollar amount of tax
revenue
derived from ad valorem tax levies applicable to all tangible
property
located within each such city or county. The ad valorem property
tax levy
of any county or city district entity or subdivision shall be
included within
this term if the levy of any such district entity or subdivision is
applicable
to all tangible property located within each such city or
county.
(2) For the purposes of subsections (a)
and (b), any ad valorem prop-
erty tax levied on property located in a city in Johnson county for
the
purpose of providing fire protection service in such city shall be
included
within the term ``total tangible property tax levies'' for such
city regardless
of its applicability to all tangible property located within each
such city.
If the tax is levied by a district which extends across city
boundaries, for
purposes of this computation, the amount of such levy shall be
appor-
tioned among each city in which such district extends in the
proportion
that such tax levied within each city bears to the total tax levied
by the
district.
(d) (1) All revenue received from a
countywide retailers' sales tax
imposed pursuant to paragraphs (2), (6), (7)
or, (8) or (9) of subsection
(b) of K.S.A. 12-187, and amendments thereto, shall be remitted to
and
shall be retained by the county and expended only for the purpose
for
which the revenue received from the tax was pledged.
(2) Except as otherwise provided in
paragraph (5) of subsection (b)
of K.S.A. 12-187, and amendments thereto, all revenues received
from a
countywide retailers' sales tax imposed pursuant to paragraph (5)
of sub-
section (b) of K.S.A. 12-187, and amendments thereto, shall be
remitted
to and shall be retained by the county and expended only for the
purpose
for which the revenue received from the tax was pledged.
(e) All revenue apportioned to the
several cities of the county shall
be paid to the respective treasurers thereof and deposited in the
general
fund of the city. Whenever the territory of any city is located in
two or
more counties and any one or more of such counties do not levy a
coun-
tywide retailers' sales tax, or whenever such counties do not levy
coun-
tywide retailers' sales taxes at a uniform rate, the revenue
received by
such city from the proceeds of the countywide retailers' sales tax,
as an
alternative to depositing the same in the general fund, may be used
for
the purpose of reducing the tax levies of such city upon the
taxable tan-
gible property located within the county levying such countywide
retail-
ers' sales tax.
(f) Prior to March 1 of each year, the
secretary of revenue shall advise
each county treasurer of the revenue collected in such county from
the
state retailers' sales tax for the preceding calendar year.
(g) Prior to December 31 of each year,
the clerk of every county
imposing a countywide retailers' sales tax shall provide such
information
deemed necessary by the secretary of revenue to apportion and
remit
revenue to the counties and cities pursuant to this section.
Sec. 5. K.S.A. 1998 Supp. 12-187, 12-188, 12-189 and
12-192 are
hereby repealed.
Sec. 6. This act shall take effect and be in force
from and after its
publication in the Kansas register.
I hereby certify that the above BILL originated in the
HOUSE, and passed that body
____________________________________
HOUSE concurred in
SENATE amendments ______________________________
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Passed the SENATE
as amended ______________________________
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APPROVED ______________________________
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