All Roll Calls
Yes: 255 • No: 63
KansasSB 982025–2026 Regular SessionSenateWALLET
Providing a sales tax exemption for the construction or remodeling of a qualified data center in Kansas and the purchase of data center equipment, eligible data center costs and certain labor costs to qualified firms that commit to a minimum investment of at least $250,000,000 and meet new Kansas jobs and other requirements.
Sponsored By: Tim Shallenburger (Republican)
Signed by Governor
transportation
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Bill Overview
Analyzed Economic Effects
12 provisions identified: 10 benefits, 0 costs, 2 mixed.
20-year sales tax break for data centers
Beginning July 1, 2025, a company can get a Kansas sales tax exemption on eligible data center costs and related labor. To qualify, it must invest at least $250,000,000 by year five and create at least 20 new jobs within two years. The firm must apply, sign an agreement, start construction within 10 years, buy electricity for 10 years from the local utility, and follow water‑conservation practices. Electricity itself is not exempt. The exemption lasts 20 years after operations begin. Before any public aid, a security review board must approve the project; it can require changes or deny it. Qualified data centers cannot also get the special utility rate discount under K.S.A. 66‑101j. The Secretary of Commerce can review compliance every five years, require records or audits, and, after 120 days to fix issues, order repayment or suspend/terminate benefits. Review information stays confidential until July 1, 2030.
No sales tax for big projects
A qualified firm or supplier approved by the Secretary of Commerce does not pay Kansas sales tax on items and services to build, expand, or remodel a qualified business facility. Sales and installation of machinery and equipment are also exempt. Contractors must get a project exemption certificate, give the number to suppliers, keep invoices five years, and provide a sworn statement at the end. Misusing tax‑free materials or disposing of them without paying tax is a misdemeanor.
Libraries and museums save on sales tax
Public libraries and their not‑for‑profit supporters do not pay Kansas sales tax on qualifying purchases or sales. County law libraries and groups buying on their behalf are also exempt. Starting January 1, 2024, Exploration Place and Kansas Children's Discovery Center do not pay sales tax on specified construction and equipment; they can get refunds for tax paid on or after January 1, 2024 but before the law’s effective date, after filing the required claim. The West Sedgwick County‑Sunrise Rotary Club and Sunrise Charitable Fund are exempt on purchases to build a boundless, barrier‑free playground. An older airport project exemption in Quinter expired on July 1, 2019.
No sales tax on bullion
Kansas does not charge sales tax on qualifying gold or silver coins and on palladium, platinum, gold, or silver bullion. Bullion means bars, ingots, or commemorative medallions valued by metal content, not form.
Prescription supplements are sales tax-free
Dietary supplements dispensed by prescription are exempt from Kansas sales tax. A licensed practitioner must write the prescription. The product must meet the legal definition and labeling rules for a dietary supplement.
Special Olympics buys are tax-free
Special Olympics Kansas does not pay Kansas sales tax on items and services it buys for year‑round sports training and competitions. Sales by or for the organization are also exempt.
Tax break for prison self-help
Reaching Out From Within does not pay Kansas sales tax on items and services used to sponsor self‑help programs for incarcerated people. The exemption applies only to purchases used for those program activities.
Tax breaks for hospice and aging groups
Friends of Hospice of Jefferson County does not pay Kansas sales tax on items or services to support the county hospice agency, and its fundraising entry or ticket fees are tax‑exempt. Not‑for‑profit area agencies on aging and their contractors are exempt on items and services to run or build senior‑service facilities, with certificate and recordkeeping rules and misdemeanor penalties for misuse. Kansas Suicide Prevention HQ also does not pay sales tax on purchases used for statewide training and awareness.
Tax relief for child and family services
Several child and family nonprofits do not pay Kansas sales tax on qualifying purchases. This includes Wichita Children's Home, Marillac Center, Kansas Children's Service League, TLC for Children and Families, Catholic Charities, and Youthville. Contractors on these facilities can also buy materials tax‑free with an exemption certificate and must keep invoices five years and provide a sworn statement; misuse is a misdemeanor. Nonprofit pregnancy resource centers and residential maternity facilities organized in Kansas and qualifying as 501(c)(3) are also exempt.
Tax-free purchases for homeless aid groups
The Beacon, Doorstep Inc., and 501(c)(3) homeless shelters do not pay Kansas sales tax on qualifying purchases. Covered uses include food, clothing, rent help, medicine, transportation, utilities, emergency aid, and transitional housing. This lowers operating costs and can help groups serve more people in need.
No tax on custom meat processing
Kansas does not charge sales tax for slaughtering, butchering, cutting, processing, or packaging an animal if you provide the animal you own and will use the meat yourself. The exemption applies only when the customer supplies the animal and keeps the meat for personal use.
Repeals to tax and utility statutes
The law repeals K.S.A. 2024 Supp. 66‑101j and K.S.A. 79‑3606. These sections are removed from the Kansas statutes when the law takes effect.
Sponsors & Cosponsors
Sponsor
Tim Shallenburger
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/23/2026
Yea: 85 Nay: 37
Yes: 85 • No: 37
Senate vote • 4/23/2026
Yea: 26 Nay: 8
Yes: 26 • No: 8
Senate vote • 4/23/2026
Yea: 39 Nay: 1
Yes: 39 • No: 1
Senate vote • 4/23/2026
Yea: 105 Nay: 17
Yes: 105 • No: 17
Actions Timeline
Representative Tarwater, Representative Turk, and Representative Sawyer Clayton are appointed to replace Representative Francis, Representative Essex, and Representative Helgerson on the Conference Committee
4/11/2025HouseSenator Alley, Senator Owens, and Senator Ware are appointed to replace Senator Petersen, Senator Kloos, and Senator Corson on the Conference Committee
4/11/2025SenateConference committee report now available
4/11/2025HouseMotion to suspend Joint Rule 4 (k) to allow consideration adopted;
4/11/2025HouseConference Committee Report was adopted; Yea: 85 Nay: 37
4/11/2025HouseMotion to suspend Joint Rule 4 (k) to allow consideration adopted;
4/11/2025SenateConference Committee Report was adopted; Yea: 26 Nay: 8
4/11/2025SenateEnrolled and presented to Governor on Friday, April 18, 2025
4/11/2025SenateApproved by Governor on Thursday, April 24, 2025
4/11/2025SenateMotion to accede adopted; Representative Francis, Representative Essex and Representative Helgerson appointed as conferees
3/14/2025HouseFinal Action - Passed as amended; Yea: 105 Nay: 17
3/13/2025HouseNonconcurred with amendments; Conference Committee requested; appointed Senator Petersen , Senator Kloos and Senator Corson as conferees
3/13/2025SenateCommittee of the Whole - Committee Report be adopted
3/12/2025HouseCommittee of the Whole - Be passed as amended
3/12/2025HouseCommittee Report recommending bill be passed as amended by Committee on Transportation
3/7/2025HouseHearing: Wednesday, March 5, 2025, 1:30 PM Room 582-N
3/5/2025HouseFinal Action - Passed; Yea: 39 Nay: 1
2/19/2025SenateReceived and Introduced
2/19/2025HouseReferred to Committee on Transportation
2/19/2025HouseCommittee of the Whole - Be passed
2/18/2025SenateCommittee Report recommending bill be passed by Committee on Transportation
2/13/2025SenateHearing: Wednesday, February 12, 2025, 8:30 AM Room 546-S
2/12/2025SenateReferred to Committee on Transportation
1/30/2025SenateIntroduced
1/29/2025Senate
Bill Text
As Amended by House Committee
As introduced
Enrolled
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