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Session of 2026
HOUSE BILL No. 2791
By Committee on Taxation
Requested by Representative Awerkamp
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AN ACT concerning gaming; relating to sports wagering; imposing an
excise tax on all sports wagers at a rate of 3% of the amount wagered;
creating the public education fund and the sports wagering privilege tax
refund fund; transferring the proceeds of such tax to the state school
district finance fund; decreasing the statewide property tax levy for
school districts by 1.5 mills; amending K.S.A. 72-5133 and K.S.A.
2025 Supp. 72-5142 and 74-8733 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) For the privilege of placing sports wagers in this
state, there is hereby imposed on each sports wager placed with a lottery
gaming facility manager a privilege tax at a rate of 3% upon the total
amount wagered.
(b) The privilege tax imposed by this section shall be paid by the
person placing the sports wager to the lottery gaming facility manager.
Each lottery gaming facility manager shall collect from the person placing
the sports wager the full amount of such tax and remit such tax to the
department of revenue in the manner prescribed by subsection (c). The
department of revenue shall administer and enforce the payment of such
tax.
(c) The tax levied and collected pursuant to this section shall become
due and payable by the lottery gaming facility manager monthly, on or
before the 25th day of the following month from when such tax is
collected. Each lottery gaming facility manager shall make a true report to
the department of revenue, on a form prescribed by the secretary of
revenue, providing such information as may be necessary to determine the
amounts to which any such tax shall apply for all sports wagers accepted
by the lottery gaming facility manager for the applicable month or months.
Such report shall be accompanied by the tax disclosed by such report.
(d) All taxes collected under the provisions of this section shall be
remitted by the secretary of revenue to the state treasurer in accordance
with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
receipt of each such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of the public education fund
established by section 2, and amendments thereto. Any refund due on
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privilege tax collected pursuant to this section shall be paid out of the
sports wagering privilege tax refund fund, which is hereby established in
the state treasury and reimbursed by the director of taxation from
collections of the privilege tax authorized by this section.
(e) The director of taxation shall have the power to require any lottery
gaming facility manager to furnish additional information deemed
necessary for the purpose of computing the amount of the taxes due
pursuant to this section and, for such purpose, examine all books, records
and files of such persons or entities and issue subpoenas and examine
witnesses under oath. If any witness fails or refuses to appear at the
request of the director, or refuse access to books, records and files, the
district court of the proper county, or the judge thereof, on application of
the director, shall compel obedience by proceedings for contempt, as in the
case of disobedience of the requirements of a subpoena issued from such
court or a refusal to testify therein. The provisions of K.S.A. 75-5133, 79-
3610, 79-3611, 79-3612, 79-3613, 79-3615 and 79-3617, and amendments
thereto, relating to the assessment, collection, appeal and administration of
the retailers' sales tax, insofar as practicable, shall have full force and
effect with respect to the taxes, interest, penalties and fines imposed by
this section.
New Sec. 2. (a) There is hereby established in the state treasury the
public education fund. The public education fund shall be administered by
the executive director. Expenditures from such fund shall be made in
accordance with appropriations acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the
executive director or executive director's designee.
(b) Moneys in the public education fund shall only be used for
purposes of the state school district finance fund established by K.S.A. 72-
5133, and amendments thereto, and for the payment of sports wagering
privilege tax refunds. The director of accounts and reports shall transfer
moneys in the public education fund to the state school district finance
fund and the sports wagering privilege tax refund fund on or before the
15th day of each month to each respective fund in such amounts as certified
by the director of taxation.
Sec. 3. K.S.A. 72-5133 is hereby amended to read as follows: 72-
5133. (a) The state school district finance fund, established by K.S.A. 1991
Supp. 72-7081, prior to its repeal, is hereby continued in existence and
shall consist of: (1) All moneys credited to such fund under K.S.A. 2017
Supp. 72-6463 through 72-6481, prior to July 1, 2017; and (2) all amounts
transferred to such fund under K.S.A. 72-5136, 72-5142, 72-5143, 72-
5158, 72-5159 and 72-5160, and amendments thereto , and section 2, and
amendments thereto.
(b) The state school district finance fund shall be used for the purpose
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of school district finance and for no other governmental purpose. It is the
intent of the legislature that the fund shall remain intact and inviolate for
such purpose, and moneys in the fund shall not be subject to the provisions
of K.S.A. 75-3722, 75-3725a and 75-3726a, and amendments thereto.
(c) Amounts in the state school district finance fund shall be allocated
and distributed to school districts as a portion of state foundation aid
provided for under this act.
Sec. 4. K.S.A. 2025 Supp. 72-5142 is hereby amended to read as
follows: 72-5142. (a) The board of education of each school district shall
levy an ad valorem tax upon the taxable tangible property of the school
district in the school years specified in subsection (b) for the purpose of:
(1) Financing that portion of the school district's general fund budget
that is not financed from any other source provided by law;
(2) paying a portion of the costs of operating and maintaining public
schools in partial fulfillment of the constitutional obligation of the
legislature to finance the educational interests of the state; and
(3) with respect to any redevelopment school district established prior
to July 1, 1997, pursuant to K.S.A. 12-1771, and amendments thereto,
paying a portion of the principal and interest on bonds issued by cities
under authority of K.S.A. 12-1774, and amendments thereto, for the
financing of redevelopment projects upon property located within the
school district.
(b) The tax required under subsection (a) shall be levied at a rate of
20 mills in the school years year 2025-2026 and at a rate of 18.5 mills in
the school year 2026-2027.
(c) The proceeds from the tax levied by a district under authority of
this section, except the proceeds of such tax levied for the purpose
described in subsection (a)(3), shall be remitted to the state treasurer in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the state
school district finance fund.
(d) No school district shall proceed under K.S.A. 79-1964, 79-1964a
or 79-1964b, and amendments thereto.
Sec. 5. K.S.A. 2025 Supp. 74-8733 is hereby amended to read as
follows: 74-8733. (a) K.S.A. 74-8733 through 74-8773, and amendments
thereto, and K.S.A. 2025 Supp. 74-8781 through 74-8794 and sections 1
and 2, and amendments thereto, shall be known and may be cited as the
Kansas expanded lottery act. The Kansas expanded lottery act shall be a
part of and supplemental to the Kansas lottery act.
(b) If any provision of this act or the application thereof to any person
or circumstance is held invalid, the invalidity shall not affect any other
provision or application of the act which can be given effect without the
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invalid provision or application.
(c) Any action challenging the constitutionality of or arising out of
any provision of this act, any lottery gaming facility management contract
or any racetrack gaming facility management contract entered into
pursuant to this act shall be brought in the district court of Shawnee
county.
Sec. 6. K.S.A. 72-5133 and K.S.A. 2025 Supp. 72-5142 and 74-8733
are hereby repealed.
Sec. 7. This act shall take effect and be in force from and after its
publication in the statute book.
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