CHAPTER 11 HOUSE BILL No. 2707 (Amended by Chapter 188)
      An Act relating to sales taxation; authorizing Atchison county to impose a sales tax for jail
      construction purposes; amending K.S.A. 1997 Supp. 12-187 and 12-189 and repealing
      the existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1997 Supp. 12-187 is hereby amended to read as
follows: 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
majority of the electors of the city voting thereon at an election called
and held therefor. The governing body of any city may submit the ques-
tion 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 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 received
therefrom for the purpose of financing the provision of health care serv-
ices, 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, Jefferson, Lyon, Montgomery, Ottawa, Ri-
ley, Saline, Seward and Wyandotte counties may submit the question of
imposing a countywide retailers' sales tax and pledging the revenue re-
ceived 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 .25% and pledging the revenue received therefrom for the purpose of
financing the costs of renovating a building owned by the county to be
used for community purposes to the electors at an election called and
held thereon. The tax imposed pursuant to this paragraph shall expire
after three 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 B 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, in 1990, 1991 or 1992, the governing body of any class B city
may submit the question of imposing an additional city retailers' sales tax
in an amount not to exceed 1% and pledging the revenue received there-
from for flood control projects to the electors at an election called and
held thereon. Any additional sales tax imposed pursuant to this paragraph
shall expire upon the payment of all costs incurred in financing such flood
control projects.

(f) 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
.25%, .5% or .75% and pledging the revenue received therefrom for ec-
onomic 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 pursuant to this
paragraph shall expire no later than five years from the date of imposition
thereof.

(g) 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.

(h) 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.

(i) 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. 2. K.S.A. 1997 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 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 governing 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 B city
retailers' sales tax shall be fixed in the amount of .25%, .5%, .75%, 1%,
1.25%, 1.5%, 1.75% or 2%. 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%, 1.25%, 1.5% or 1.75%. The rate of any countywide re-
tailers' 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 commis-
sioners, except that:

(a) The board of county commissioners of Cherokee, Crawford, Sa-
line, 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; or

(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 1.25%.

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. 3. K.S.A. 1997 Supp. 12-187 and 12-189 are hereby repealed.

Sec. 4. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved February 16, 1998

Published in the Kansas Registers February 26, 1998

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