Recent Legislation

Recent Legislation regarding the Extension of the State School Levy Assessment Exemption

The 20-mill levy for schools was extended for the 2013-2014 and 2014-2015 school years. Senate Bill 23 § 2, amending K.S.A. 72-6431. 
$20,000 Residential Property Exemption The $20,000 exemption from the school mill levy for residential property was extended for tax years 2013 and 2014. Senate Bill 23 § 9, amending K.S.A. 79-201x.

Destroyed or Substantially Destroyed Homestead Tax Abatement or Tax Credit

The owner of any taxable homestead which is destroyed or substantially destroyed due to an earthquake, flood, tornado, fire, storm, or other destructive event which the Kansas governor has declared a disaster may make application to the board of county commissioners for the abatement of property taxes levied or a credit against property taxes payable during any or all of the next three (3) years.

"Destroyed or substantially destroyed" means damage sustained by a homestead by the above mentioned natural occurrences which the Kansas governor has declared a disaster and the cost of restoring the structure to its before damaged condition would equal or exceed 50% of the market value of the structure before the damage occurred.

"Homestead" means the dwelling, owned or rented, which is occupied as a residence and the home site land. Homestead may also consist of multi-dwellings, multi-purpose building or manufactured or mobile homes including the land which they are situated.

If the homestead was destroyed or substantially destroyed between January 1 and prior to August 15, the owner may make application for relief to the county commissioners for the granting of an abatement of the property tax levied. If property taxes have been paid or partially paid, the owner may make application for the granting of a credit against property taxes payable during any or all of the next succeeding three (3) taxable years.

If the homestead was destroyed or substantially destroyed on August 15 through the end of that year, application for relief may be made to the county commissioners for the granting of a credit against property taxes payable during any or all of the next succeeding three (3) taxable years.

Subject to budgetary restraints of the county or taxing subdivision arising from the declared disaster, the county commissioners shall inquire into and make findings regarding, among other things: *Whether the property is a homestead as defined by this act

*Whether the homestead was destroyed or substantially destroyed as defined by this act and

*The assessed valuation of the homestead

If it is determined that the owner is entitled to an abatement of all or any portion of the taxes levied or is entitled to a credit against property taxes payable by the owner during any or all of the next succeeding three (3) taxable years, the county commissioners may so order.

The county commissioners shall not grant an application for relief to an owner who has received: 1.) Funds from a public or private buyout

or

2.) Insurance proceeds in an amount equal to or greater than 50% of the entire pre-disaster value

The county clerk and county treasurer shall in each case of abatement or credit correct their records in accordance with the county commissioner's order. The county clerk shall notify the governing body of any taxing district affected by the county commissioner's order.

 The provisions of this section shall be applicable to all taxable years after December 31, 2011, and ending before January 1, 2014. House Bill 2059 New § 8.

Recent Legislation for Watercraft valuation and assessment Starting in 2014

Watercraft valuation and taxation Starting in tax year 2014 "watercraft" is defined as any vessel requiring numbering by the federally approved system (K.S.A. 32-1110) administered by the Kansas Department of Wildlife, Parks and Tourism. Each watercraft may include one trailer which is designed to launch, retrieve, transport and store such watercraft and any nonelectric motor or motors which are necessary to operate such watercraft on the water.

The county appraiser will determine the fair market value, or also called the appraised value, of each watercraft as of January first of each year. The following assessment rates will be applied to the appraised value to achieve the assessed value when calculating tax: 11.5% for tax year 2014 and for tax year 2015 and all years after, 5%.

For tax years 2014 and all years after, any calculated tax amount for watercraft of less than $12 will not be less than $12. The $750 exemption (K.S.A. 79-234) will not apply to watercraft. House Substitute for Senate Bill 83 New § 10

Recent Legislation regarding Commercial and Industrial property appeals

Appealing the value of leased commercial and industrial property The county appraiser's value of leased commercial and industrial property shall be presumed to be valid and correct unless the taxpayer has furnished the county appraiser with a complete income and expense statement for the property for the three (3) preceding years. This complete income and expense information must be furnished to the county appraiser within 30 calendar days following the informal meeting of either the notice of value appeals (K.S.A. 79-1448) or payment under protest appeals (K.S.A. 79-2005). This would apply to appeals proceeding to the small claims and expedited hearings division of the Kansas Court of Tax Appeals (K.S.A. 74-2433f) or the Kansas Court of Tax Appeals (K.S.A. 79-1609). House Substitute for Senate Bill 83 § 11, 13, and 14, amending K.S.A. 74-2433f, K.S.A. 79-1448, K.S.A. 79-1609.

Recent Legislation regarding Fire District Property Tax Refund

Amendments to existing law would permit a landowner to receive a property tax refund for fire services for any year when the property was not detached from a fire district by the end of the tax year after the property had been annexed by a city.

The refund would be paid by either the city or the fire district, whichever entity levied the tax for fire services but did not provide the service.

Property taxes paid for general obligation bonds issued by a fire district prior to annexation would not be eligible for refund. House Bill 2249 § 3, amending K.S.A. 12-546.

Recent Legislation regarding the expansion for Clerical Errors

The following clerical errors may be corrected by the county commissioners for the current and two (2) preceding tax years and an additional assessment or tax bill or both issued: 

• Description or quantity of real estate
• Improvements located upon one tract or lot have been assessed as being on another tract or lot
• Real or personal property assigned to a taxing district in which the property did not have taxable situs

Mathematical miscomputation The Kansas Court of Tax Appeals was also given the authority to order additional assessments or tax bills to be issued relative to the findings of such errors. The Court of Tax Appeals has the authority to go back four (4) years. House Substitute for Senate Bill 83 § 15, 16, amending K.S.A. 79-1701a and K.S.A. 79-1702

Recent Legislation regarding Automobile Manufacturing Property tax Exemption

New automobile manufacturing property purchased or constructed after December 31, 2012 may be eligible for an exemption for 10 years following the year in which construction is complete. There are two qualifiers for this exemption: 1.) The property includes a building or addition constructed after December 31, 2011 of not less than 50,000 square feet of floor space

and

Was purchased or constructed after December 31, 2011 for a total cost of not less than $10,000,000 including both land and buildings.

This bill also provides for the property owners to make payments in lieu of tax which were mutually agreed to with local taxing subdivisions. House Substitute for Senate Bill 83 New § 8.

Recent Legislation regarding Industrial Revenue Bond Exemptions

 Background – Industrial Revenue Bonds (IRBs) are one of the economic development tools available to Kansas cities and counties. When IRBs are issued as financing for a particular facility or for personal property, the city or county who issued the bonds, holds legal title to the facility or personal property while the bonds are outstanding and the facility is exempt from property taxation for that period or up to 10 years. In order to qualify, the property in question must be deeded to the governmental entity that issued the IRB's, which in turn seeks the ad valorem tax exemption. Such property is currently exempt pursuant to subsection, Second, which pertains to property used exclusively by the state or any municipality or political subdivision of the state. (K.S.A. 2012 Supp. 79-201a Second) A new subsection was created, Twenty Fourth, which provides that for all taxable years commencing after December 31, 2012, any property constructed or purchased in part with the proceeds of IRBs issued on or after July 1, 2013, shall be exempt from taxation for the value of that portion of the property financed by the IRBs and only for a period of 10 years after the calendar year in which the bonds are issued. In this new subsection, the property does not have to be used exclusively by the state or any municipality