Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Sales Tax Exemption Custom Meat topic
No spam. Unsubscribe anytime.
Committee substitutes bill to remove exemption-certificate requirement for custom meat processors
Summary
Senate substitute for SB33 would preserve an existing sales-tax exemption for custom meat-processing services while removing the statutory requirement that sellers retain exemption certificates; the committee adopted the substitute and voted to pass the substitute bill out of committee by voice vote.
The Senate Assessment and Taxation Committee moved a substitute for Senate Bill 33 that amends the sales-tax statutes to remove the requirement that purchasers and sellers provide and retain exemption certificates for certain custom meat-processing transactions.
Committee staff said custom meat-processing services were already exempt under statute (identified in committee materials as K.S.A. 79-3606), but an exemption-certificate requirement in the Retailer Sales Tax Act created compliance concerns for small processors. The substitute would add language to the certificate statute clarifying that purchasers and sellers involved in the exempt transactions are not required to provide or maintain exemption certificates.
"The proposal is to amend ... by providing that the purchasers and sellers involved in this exempt transaction are not required to provide or maintain the exemption certificates anymore," the committee staff said.
Members clarified that the change applies only to custom, small processors who process meat owned by the customer and return it to the same owner; it does not apply to large commercial processors. One senator noted the substitute would be easier to administer than amending multiple sections of the tax code.
Senator Tyson moved to strike the contents of Senate Bill 33 and insert the substitute; the motion was seconded by Senator Schallenberger and carried on a voice vote. Senator Peck then moved that the committee pass favorably the Senate substitute for Senate Bill 33; the motion was seconded by Senator Owens and carried on a voice vote. The committee recorded no roll-call tally in the transcript; the chair stated the motions carried.
