Brief ⁽¹⁾

HB 2458, as amended, would provide a sales tax exemption for the gross receipts received from the rental of rooms by hotels and accommodations brokers to the federal government and its officers and employees when such rentals are made in association with the performance of official government duties.

The bill also would provide an exemption for sales of tangible personal property and services to hospices as described by KSA 2000 Supp. 65-6202.

Background

The original bill also would have exempted from the tax room rental services sold to the state government, its agencies, and political subdivisions when such rentals were in association with the performance of official duties. The House Taxation Committee removed those provisions.

The House Committee of the Whole added the exemption for hospices. The fiscal impact of that amendment is unknown at this time.

Based on the latest information available from the Department of Revenue, the House Taxation Committee version of the bill would be expected to reduce receipts as follows:

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi