Session of 2000
HOUSE BILL No. 2946
By Representatives Phill Kline and Jennison
2-9
9 AN ACT
concerning school district finance; authorizing the adoption of
10 special needs local
enhancement budgets by boards of education and
11 providing for the
financing of such budgets.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 Section
1. (a) In each school year, the board of any district may
adopt
15 a special needs local enhancement budget in
an amount not to exceed
16 10% of the amount of state financial aid
determined for the district in
17 the school year, subject to any one or more
of the following conditions:
18 (1) Enrollment in
the district in the school year has declined from
19 enrollment in the preceding school year;
or
20 (2) the board has
adopted a local option budget and has budgeted
21 therein the total amount authorized for the
school year; or
22 (3) the board has
determined that the amounts budgeted for oper-
23 ating expenses in the general fund and the
supplemental general fund are
24 insufficient to provide for any one or more
of the following special needs
25 of the district:
26
(A) Implementation and maintenance of innovative programs
and
27 school reform efforts;
28 (B) maintenance
of classes having a pupil/teacher ratio of not more
29 than 17:1 for pupils enrolled in and
attending kindergarten or any of the
30 grades one through three;
31 (C) maintenance
of early childhood education programs for prekin-
32 dergarten-aged pupils;
33
(D) implementation and maintenance of excellence academies
in
34 mathematics, science, and language
arts.
35 (b) No district
may adopt a special needs local enhancement budget
36 unless the question of adoption of such a
budget has been submitted to
37 and approved by the electors of the
district at a general or primary elec-
38 tion or at a special election called for
the purpose. The election shall be
39 held in the manner provided by K.S.A.
10-120, and amendments thereto,
40 for elections on the question of issuing
bonds under the general bond
41 law.
42 Sec.
2. There is hereby established in every district that adopts
a
43 special needs local enhancement budget a
fund which shall be called the
2
1 special needs fund. The fund shall
consist of all amounts deposited therein
2 or credited thereto according to law.
Amounts in the special needs fund
3 may be expended for any purpose for
which expenditures from the gen-
4 eral fund are authorized or may be
transferred to any program weighted
5 fund or categorical fund of the
district. Any unexpended and unencum-
6 bered cash balance remaining in the
special needs fund of a district at
7 the conclusion of any school year in
which a special needs local enhance-
8 ment budget is adopted may be
maintained in such fund until budgeted
9 and expended in a succeeding school
year or may be transferred to the
10 general fund or any program weighted fund
or categorical fund of the
11 district.
12 Sec. 3. (a)
In each school year, each district that has adopted a special
13 needs local enhancement budget is eligible
for entitlement to an amount
14 of special needs state aid. Entitlement of
a district to special needs state
15 aid shall be determined by the state board
as provided in this subsection.
16 The state board shall:
17 (1) Determine the
amount of the assessed valuation per pupil in the
18 preceding school year of each district in
the state;
19 (2) rank the
districts from low to high on the basis of the amounts of
20 assessed valuation per pupil determined
under (1);
21 (3) identify the
amount of the assessed valuation per pupil located at
22 the 75th percentile of the amounts ranked
under (2);
23 (4) divide the
assessed valuation per pupil of the district in the pre-
24 ceding school year by the amount identified
under (3);
25 (5) subtract the
ratio obtained under (4) from 1.0. If the resulting
26 ratio equals or exceeds 1.0, the
eligibility of the district for entitlement
27 to special needs state aid shall lapse. If
the resulting ratio is less than 1.0,
28 the district is entitled to receive special
needs state aid in an amount
29 which shall be determined by the state
board by multiplying the amount
30 of the special needs local enhancement
budget of the district by such
31 ratio. The product is the amount of special
needs state aid the district is
32 entitled to receive for the school
year.
33 (b) If the amount
of appropriations for special needs state aid is less
34 than the amount each district is entitled
to receive for the school year,
35 the state board shall prorate the amount
appropriated among the districts
36 in proportion to the amount each district
is entitled to receive.
37 (c) Payments of
special needs state aid shall be distributed to districts
38 at a time to be determined by the state
board. The state board shall certify
39 to the director of accounts and reports the
amount due each district, and
40 the director of accounts and reports shall
draw a warrant on the state
41 treasurer payable to the treasurer of the
district. Upon receipt of the
42 warrant, the treasurer of the district
shall credit the amount thereof to
43 the special needs fund of the district to
be used for the purposes of such
3
1 fund.
2 Sec.
4. (a) In each school year, the board of every district that
has
3 adopted a special needs local
enhancement budget may levy an ad valo-
4 rem tax on the taxable tangible
property of the district for the purpose of
5 financing that portion of the
district's special needs local enhancement
6 budget which is not financed from any
other source provided by law and
7 for the purpose of paying a portion
of the principal and interest on bonds
8 issued by cities under authority of
K.S.A. 12-1774, and amendments
9 thereto, for the financing of
redevelopment projects upon property lo-
10 cated within the district.
11 (b) The proceeds
from the tax levied by a district under authority of
12 this section, except the proceeds of such
tax levied for the purpose of
13 paying a portion of the principal and
interest on bonds issued by cities
14 under authority of K.S.A. 12-1774, and
amendments thereto, for the fi-
15 nancing of redevelopment projects upon
property located within the dis-
16 trict, shall be deposited in the special
needs fund of the district.
17 (c) No district
shall proceed under K.S.A. 79-1964, 79-1964a or 79-
18 1964b, and amendments to such sections.
19 Sec. 5. (a)
(1) For the purpose of financing all or a portion of a dis-
20 trict's special needs local enhancement
budget in order to reduce or elim-
21 inate reliance of the district upon revenue
received from property taxa-
22 tion, the board of any district that has
adopted a special needs local
23 enhancement budget may submit the question
of imposing a school dis-
24 trict retailers' sales tax to the electors
of such district at an election called
25 and held thereon.
26 (2) The board of
any district proposing to adopt a retailers' sales tax
27 shall give notice of its intention to
submit such proposition for approval
28 by the electors in the manner required by
K.S.A. 10-120, and amend-
29 ments thereto. The notices shall state the
time of the election and the
30 rate and effective date of the proposed
tax. If a majority of the electors
31 voting thereon at such election fail to
approve the proposition, such prop-
32 osition may be resubmitted under the
conditions and in the manner pro-
33 vided in this section for submission of the
proposition. If a majority of
34 the electors voting thereon at such
election shall approve the levying of
35 such tax, the board of such district shall
provide by resolution for the levy
36 of the tax. Any repeal of such tax or any
reduction or increase in the rate
37 thereof, within the limits prescribed by
subsection (b) shall be accom-
38 plished in the manner provided herein for
the adoption and approval of
39 such tax except that the repeal of any such
retailers' sales tax may be
40 accomplished by the adoption of a
resolution so providing.
41 (b) (1) The
rate of any school district retailers' sales tax shall be fixed
42 in the amount of .125%, .25%, .5%, .75% or
1% which amount shall be
43 determined by the board of the
district.
4
1 (2) The
board of a district levying a retailers' sales tax is hereby
pro-
2 hibited from administering or
collecting such tax locally, but shall utilize
3 the services of the state department
of revenue to administer, enforce
4 and collect such tax. Such tax shall
be identical in its application, and
5 exemptions therefrom, to the Kansas
retailers' sales tax act and all laws
6 and administrative rules and
regulations of the state department of rev-
7 enue relating to the Kansas
retailers' sales tax shall apply to such school
8 district sales tax insofar as such
laws and rules and regulations may be
9 made applicable. The state director
of taxation is hereby authorized to
10 administer, enforce and collect such school
district sales taxes and to
11 adopt such rules and regulations as may be
necessary for the efficient and
12 effective administration and enforcement
thereof.
13 (3) Upon receipt
of a certified copy of a resolution authorizing the
14 levy of a school district retailers' sales
tax, the state director of taxation
15 shall cause such taxes to be collected
within or outside the boundaries of
16 such district at the same time and in the
same manner provided for the
17 collection of the state retailers' sales
tax. All moneys collected by the
18 director of taxation under the provisions
of this section shall be credited
19 to a school district retailers' sales tax
fund which fund is hereby estab-
20 lished in the state treasury. Any refund
due on any school district retailers'
21 sales tax collected pursuant to this
section shall be paid out of the sales
22 tax refund fund and reimbursed by the
director of taxation from collec-
23 tions of school district retailers' sales
tax revenue. All school district re-
24 tailers' sales tax revenue collected within
any school district pursuant to
25 this section shall be apportioned and
remitted at least quarterly by the
26 state treasurer, on instruction from the
director of taxation, to the trea-
27 surer of such school district.
28 (4) The director
of taxation shall provide, upon request by the board
29 of a district levying a school district
retailers' sales tax, a monthly report
30 identifying each retailer having a place of
business in the district and
31 setting forth the amount of such tax
remitted by each retailer during the
32 preceding month. Such report shall be made
available to the board within
33 a reasonable time after it has been
requested from the director of taxation.
34 The director of taxation shall be allowed
to assess a reasonable fee for the
35 issuance of such report. Information
received by any such board pursuant
36 to this provision shall be confidential,
and it shall be unlawful for any
37 member or employee of such board to divulge
any such information in
38 any manner. Any violation of this provision
by any such member or em-
39 ployee is a class B misdemeanor, and such
member or employee shall be
40 dismissed from office.
41 (c) For the
purpose of levying taxes pursuant to this section, there is
42 hereby specifically conferred upon the
board of any district the power
43 and authority to impose taxes upon services
rendered outside the bound-
5
1 aries of the district by retailers
having a place of business located within
2 such district.
3 (d) All
retail transactions consummated within a district having a re-
4 tailers' sales tax, which
transactions are subject to the Kansas retailers'
5 sales tax, shall also be subject to a
school district retailers' sales tax. Except
6 as hereinafter provided, all retail
sales, for the purpose of this section,
7 shall be considered to have been
consummated at the place of business
8 of the retailer. In the event the
place of business of a retailer is doubtful
9 the place or places at which the
retail sales are consummated for the
10 purposes of this section shall be
determined under rules and regulations
11 adopted by the secretary of revenue which
rules and regulations shall be
12 considered with state and federal law
insofar as applicable. Retail sales
13 involving the use, consumption, or
furnishing of gas, water, electricity and
14 heat, for the purposes of this section,
shall be considered to have been
15 consummated at the situs of the user or
recipient thereof, and retail sales
16 involving the use or furnishing of
telephone service or services taxed un-
17 der subsection (k) of K.S.A. 79-3603, and
amendments thereto, shall be
18 considered to have been consummated at the
situs of the subscriber billed
19 therefor. Retail sales involving the
leasing of telecommunication or data
20 processing equipment commonly used in
connection with telephone serv-
21 ices shall be considered to have been
consummated at the situs of the
22 lessee. Retail sales involving the
furnishing of services taxable under sub-
23 sections (p), (q) and (r) of K.S.A.
79-3603, and amendments thereto,
24 pursuant to a contract under which the sale
of such services and the
25 furnishing of tangible personal property
exceeds $10,000 per contract per
26 contractor shall be considered to have been
consummated at the situs
27 where such services are performed. The
director of taxation is hereby
28 authorized to request and receive from any
retailer or from any board
29 levying the tax such information as may be
reasonably necessary to de-
30 termine the liability of retailers for any
school district sales tax. The col-
31 lection of any school district sales tax
authorized at a primary or general
32 election shall commence on the first day of
the calendar quarter next
33 following the 30th day after the date of
the election authorizing the levy
34 of such tax. The collection of any sales
tax of a school district approved
35 at any other election shall commence on the
first day of the calendar
36 quarter next following the 60th day after
the date of the election author-
37 izing the levy of such tax.
38 (e) For the
purpose of determining the situs of installation, mainte-
39 nance, servicing and repair services
taxable under the provisions of this
40 section, the place of business of the
retailer of such services shall be the
41 office or other location from which such
retailer does business. Such
42 location may be established by determining
the location where sales or
43 service personnel report or at which mail
is received, orders are taken,
6
1 telephone service is listed or the
consideration of any other relevant fac-
2 tors established by rules and
regulations of the secretary of revenue. If
3 the place of business of a retailer
of services is located within the bound-
4 aries of a district imposing a
retailers' sales tax, services performed by
5 such retailer are subject to the tax
regardless of whether the service is
6 performed within or outside the
boundaries of the district. If there is no
7 fixed or determinable place of
business for any retailer, other than a re-
8 tailer having its only place or
places of business in another state, the place
9 of business of such retailer shall be
deemed to be the place where the
10 services are performed.
11 (f) All revenue
received from a school district retailers' sales tax im-
12 posed pursuant to this section shall be
expended only for the purposes
13 for which a property tax may be levied
pursuant to section 4, and amend-
14 ments thereto. Any such tax levy imposed by
the board of a school district
15 upon taxable tangible property located
within the district shall be reduced
16 by an amount equivalent to the amount of
revenue distributed for use by
17 the board pursuant to this
section.
18 Sec. 6. This act shall
take effect and be in force from and after its
19 publication in the statute book.