21 April 2010, Kansas sales and use tax provisions have been amended to conform with recent changes in the Streamlined Sales and Use Tax Agreement (SSUTA).  Some of the changing provisions include those governing exemption certificates, rate changes, and the provisions governing direct mail sourcing.

In an effort to soften the blow of the expected $400 million budget shortfall for the fiscal year starting 1 July 2010, the Kansas House Taxation Committee will work for two weeks, starting Monday, 8 February 2010, reviewing two bills that would eliminate different state sales tax exemptions.  Between the two bills, some of the proposals would eliminate the exemption for churches and other nonprofit organizations, and another proposal would require the 5.3% state sales tax to be paid on Kansas Lottery tickets, which are currently exempt.

On Monday 11 January 2010, Kansas Governor Mark Parkinson proposed, during his State of the State address,  a statewide, three year, one percent general sales tax increase, and a tax increase of 55 cents per pack on cigarettes, to aid the state  in these hard times.   Last year, state spending was reduced by $1 billion, which caused layoffs at schools, waiting lists for social services programs, delayed road projects, and increased university tuition.  The proposed tax increases are expected to raise approximately $380 million, of which, some of the money would go to schools, universities, and prisons.  While neither party is excited about this proposal, no other proposals have been made to help stop the increasing state deficit.

Legislature has decided not to extend the taxability exemption regarding manufacturer’s rebates, and beginning 1 July 2009 retailers sales tax and compensating use tax will be owed to the state for all manufacturer’s cash rebates for purchases or leases of motor vehicles.

On 23 April 2009 Kansas Governor Kathleen Sabelius signed HB 2324 into effect which makes several changes to the law regarding the sales tax exemption associated with enterprise zones. This bill also creates a new law called the Community Improvement District Act, which increases some local sales tax authority by allowing local government the ability to create special districts that can levy up to a 2% sales tax to promote economic development.

The Kansas House has approved a bill (HB 2325) 20 March 2009 which would clarify the current law on local sales tax authorities to ensure that no county could allow its general sales tax rate to exceed 1.0%, with the exception of legislative approval.

On 20 February 2009 Kansas Gov. Kathleen Sebelius signed into law HB 2026, retroactively validating the results of local sales tax elections held in Lyon and Rawlins counties in August 2008; although voters had approved both ballot questions, neither county at the time had authority to levy a sales tax in an amount over 1% due to the county sales tax cap. The new county rate will be increased to 1.5%.

Lyon County approved a county-wide 1% sales tax 5 August 2008, meant to begin 1 October 2008.  Despite overwhelming approval, this bill was negated shortly after because it exceeds the 1% county sales tax cap, due to the current ½% rate already in effect.  On 29 January 2009 legislature will decide whether to increase the county tax cap or to re-vote to stay within the cap of 1%.

Lyon County approved a county-wide 1% sales tax 5 August 2008, meant to begin 1 October 2008.  Despite overwhelming approval, this bill was negated shortly after because it exceeds the 1% county sales tax cap, due to the current ½% rate already in effect.  On 29 January 2009 legislature will decide whether to increase the county tax cap or to re-vote to stay within the cap of 1%.