HOUSE BILL No. 2096
AN ACT concerning taxation; relating to income tax; establishing the veterans' valor
property tax relief act and providing for an income tax credit or refund for eligible
individuals; increasing the tax credit amount for household and dependent care
expenses; modifying the definition of household income and increasing the appraised
value threshold for eligibility of seniors and disabled veterans related to increased
property tax claims and citing the section as the homeowners' property tax freeze
program; relating to property tax; providing a rebate for certain business property
operated in competition with property owned or operated by a governmental entity;
providing exemptions for certain personal property including watercraft, marine
equipment, off-road vehicles, motorized bicycles and certain trailers; excluding
internal revenue code section 1031 exchange transactions as indicators of fair market
value; providing for certain exclusions from the prohibition of paying taxes under
protest after a valuation notice appeal; providing four prior years' values on the
annual valuation notice; amending K.S.A. 79-213, 79-503a, 79-32,111c and 79-5501
and K.S.A. 2023 Supp. 79-1460, 79-2005 and 79-4508a and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) This act shall be known and may be cited as
the veterans' valor property tax relief act.
(b) There shall be allowed as a credit against the tax liability of a
taxpayer imposed under the Kansas income tax act for tax year 2024,
and all tax years thereafter, in an amount equal to 75% of the amount of
property and ad valorem taxes actually and timely paid by a taxpayer
who has been deemed to be permanently and totally disabled or
unemployable pursuant to 38 C.F.R. § 3.340 if such taxes were paid
upon real or personal property used for residential purposes of such
taxpayer that is the taxpayer's principal place of residence for the tax
year in which the tax credit is claimed.
(c) The amount of any such credit for any such taxpayer shall not
exceed the amount of property and ad valorem taxes paid by such
taxpayer as specified in this section. A taxpayer shall not take the credit
pursuant to this section if such taxpayer has received a homestead
property tax refund pursuant to K.S.A. 79-4501 et seq., and
amendments thereto, or a credit pursuant to the selective assistance for
effective senior relief pursuant to K.S.A. 79-32,263, and amendments
thereto, for such property for such tax year.
(d) Subject to the provisions of this section, if the amount of such
tax credit exceeds the taxpayer's income tax liability for the taxable
year, the amount of such excess credit that exceeds such tax liability
shall be refunded to the taxpayer.
(e) The secretary of revenue shall adopt rules and regulations
regarding the filing of documents that support the amount of the credit
claimed pursuant to this section.
(f) The provisions of this act shall be a part of and supplemental to
the homestead property tax refund act, except that the income or
appraised valuation limits set forth in the homestead property tax
refund act shall not apply to this section.
New Sec. 2. (a) The owner of any real property and personal
property owned and operated by a business in the state of Kansas that is
used by the business predominantly for child care center, health club or
restaurant purposes and is located within the taxing jurisdiction of a
governmental entity where there is at least one facility owned or
operated by such governmental entity that competes against the
business and such competing facility owned or operated by the
governmental entity is exempt from property or ad valorem taxes levied
under any laws of the state of Kansas may make application to such
governmental entity for a rebate in an amount equal to the amount of ad
valorem property tax levied by such competing governmental entity
upon such property for the tax year during which such competition
occurred. The rebate shall only be granted if such competing activity by
the governmental entity began after the business claiming the rebate
began using the real and personal property for a qualifying purpose
pursuant to this section.
(b) To be eligible for the rebate authorized by this section, the
business owning and operating the described property herein shall be in
compliance with state law, city ordinances and county resolutions and
shall be current in the payment of state and local taxes. HOUSE BILL No. 2096—page 2
(c) The owner requesting a rebate pursuant to this section shall be
required to submit an application with any supporting documentation to
the governing body of such governmental entity on or before December
20 of the year following the tax year at issue.
(d) If the governing body of the governmental entity determines
that the owner is eligible for such rebate, such governmental entity
shall provide the rebate from the general fund of such governmental
entity.
(e) If the governing body of the governmental entity determines
that the owner is not eligible for such rebate, the governing body shall
provide a written final decision to the owner. The owner may appeal
such final decision to the state board of tax appeals within 30 days after
service of the final decision.
(f) For purposes of this section:
(1) "Competes against the business" means offering the same or
substantially the same goods or services to the public and receiving any
payment for those goods or services at least
1
/2 the number of days per
tax year as the business claiming the rebate and such facility owned or
operated by a governmental entity is used for the predominant purpose
of a child care center, health club or restaurant and is located within the
same city as or within five miles of the real property and personal
property owned and operated by the business. "Competes against the
business" does not include providing such goods or services without
receiving payment for those goods or services or providing such goods
or services predominantly to its own employees or students. "Competes
against the business" does not include restaurants used for educational
purposes.
(2) "Governmental entity" means any county or city. Any facility
owned or operated by a governmental entity that is to be funded as a
result of an election where voters of the governmental entity are asked
to approve the imposition of a tax or other funding for the facility, its
operations or the repayment of bonds related to such facility shall
include in the description of the ballot proposition that such
governmental facility may compete against businesses and cause
private business to be eligible for a rebate.
(3) "Predominant purpose" means the primary reason individuals
attend a facility owned or operated by a governmental entity and is not
merely incidental to the operation of the facility. The provision of food
at a facility owned or operated by a governmental entity shall not alone
constitute the predominate purpose of a facility if the predominate
purpose of the entire facility operates for reasons beyond restaurant
purposes.
(4) "Real property and personal property owned and operated by a
business" means any real property and personal property where the
owner of the property is a business enterprise that operates the business
and collects the payment of a fee entitling the buyer to use the facility
or sells goods or services to the buyer and such owner of the property
and operator of the business enterprise are the same business entity, a
parent or subsidiary of the same business entity or have any direct or
indirect common ownership.
(g) The provisions of this section shall be applicable for tax years
commencing after December 31, 2024.
New Sec. 3. (a) The following described property, to the extent
herein specified, is hereby exempt from all property or ad valorem
taxes levied under the laws of the state of Kansas:
(1) Any off-road vehicle that is not operated upon any highway;
(2) any motorized bicycle, electric-assisted bicycle, electric-
assisted scooter, electric personal assistive mobility device and
motorized wheelchair as such terms are defined in K.S.A. 8-126, and HOUSE BILL No. 2096—page 3
amendments thereto;
(3) any trailer having a gross weight of 15,000 pounds or less that
is used exclusively for personal use and not for the production of
income; and
(4) any marine equipment.
(b) For purposes of this section:
(1) "Marine equipment" means any watercraft trailer designed to
launch, retrieve, transport and store watercraft and any watercraft motor
designed to operate watercraft on the water;
(2) "off-road motorcycle" means any motorcycle as defined in
K.S.A. 8-126, and amendments thereto, that has been manufactured for
off-road use only and is used exclusively off roads and highways; and
(3) "off-road vehicle" means:
(A) Any all-terrain vehicle, recreational off-highway vehicle and
golf cart as such terms are defined in K.S.A. 8-126, and amendments
thereto; and
(B) any off-road motorcycle and snowmobile.
(c) The provisions of this section shall apply to all taxable years
commencing after December 31, 2024.
Sec. 4. K.S.A. 79-213 is hereby amended to read as follows: 79-
213. (a) Any property owner requesting an exemption from the
payment of ad valorem property taxes assessed, or to be assessed,
against their property shall be required to file an initial request for
exemption, on forms approved by the state board of tax appeals and
provided by the county appraiser.
(b) The initial exemption request shall identify the property for
which the exemption is requested and state, in detail, the legal and
factual basis for the exemption claimed.
(c) The request for exemption shall be filed with the county
appraiser of the county where such property is principally located.
(d) After a review of the exemption request, and after a
preliminary examination of the facts as alleged, the county appraiser
shall recommend that the exemption request either be granted or
denied, and, if necessary, that a hearing be held. If a denial is
recommended, a statement of the controlling facts and law relied upon
shall be included on the form.
(e) The county appraiser, after making such written
recommendation, shall file the request for exemption and the
recommendations of the county appraiser with the state board of tax
appeals. With regard to a request for exemption from property tax
pursuant to the provisions of K.S.A. 79-201g and 82a-409, and
amendments thereto, not filed with the board of tax appeals by the
county appraiser on or before the effective date of this act, if the county
appraiser recommends the exemption request be granted, the exemption
shall be provided in the amount recommended by the county appraiser
and the county appraiser shall not file the request for exemption and
recommendations of the county appraiser with the state board of tax
appeals. The county clerk or county assessor shall annually make such
adjustment in the taxes levied against the real property as the owner
may be entitled to receive under the provisions of K.S.A. 79-201g, and
amendments thereto, as recommended by the county appraiser,
beginning with the first period, following the date of issue of the
certificate of completion on which taxes are regularly levied, and
during the years which the landowner is entitled to such adjustment.
(f) Upon receipt of the request for exemption, the board shall
docket the same and notify the applicant and the county appraiser of
such fact.
(g) After examination of the request for exemption and the county
appraiser's recommendation related thereto, the board may fix a time HOUSE BILL No. 2096—page 4
and place for hearing, and shall notify the applicant and the county
appraiser of the time and place so fixed. A request for exemption
pursuant to: (1) Section 13 of article 11 of the constitution of the state
of Kansas; or (2) K.S.A. 79-201a Second, and amendments thereto, for
property constructed or purchased, in whole or in part, with the
proceeds of revenue bonds under the authority of K.S.A. 12-1740
through 12-1749, and amendments thereto, prepared in accordance with
instructions and assistance which shall be provided by the department
of commerce, shall be deemed approved unless scheduled for hearing
within 30 days after the date of receipt of all required information and
data relating to the request for exemption, and such hearing shall be
conducted within 90 days after such date. Such time periods shall be
determined without regard to any extension or continuance allowed to
either party to such request. In any case where a party to such request
for exemption requests a hearing thereon, the same shall be granted.
Hearings shall be conducted in accordance with the provisions of the
Kansas administrative procedure act. In all instances where the board
sets a request for exemption for hearing, the county shall be represented
by its county attorney or county counselor.
(h) Except as otherwise provided by subsection (g), in the event of
a hearing, the same shall be originally set not later than 90 days after
the filing of the request for exemption with the board.
(i) During the pendency of a request for exemption, no person,
firm, unincorporated association, company or corporation charged with
real estate or personal property taxes pursuant to K.S.A. 79-2004 and
79-2004a, and amendments thereto, on the tax books in the hands of the
county treasurer shall be required to pay the tax from the date the
request is filed with the county appraiser until the expiration of 30 days
after the board issued its order thereon and the same becomes a final
order. In the event that taxes have been assessed against the subject
property, no interest shall accrue on any unpaid tax for the year or years
in question nor shall the unpaid tax be considered delinquent from the
date the request is filed with the county appraiser until the expiration of
30 days after the board issued its order thereon. In the event the board
determines an application for exemption is without merit and filed in
bad faith to delay the due date of the tax, the tax shall be considered
delinquent as of the date the tax would have been due pursuant to
K.S.A. 79-2004 and 79-2004a, and amendments thereto, and interest
shall accrue as prescribed therein.
(j) In the event the board grants the initial request for exemption,
the same shall be effective beginning with the date of first exempt use
except that, with respect to property the construction of which
commenced not to exceed 24 months prior to the date of first exempt
use, the same shall be effective beginning with the date of
commencement of construction.
(k) In conjunction with its authority to grant exemptions, the board
shall have the authority to abate all unpaid taxes that have accrued from
and since the effective date of the exemption. In the event that taxes
have been paid during the period where the subject property has been
determined to be exempt, the board shall have the authority to order a
refund of taxes for the year immediately preceding the year in which
the exemption application is filed in accordance with subsection (a).
(l) The provisions of this section shall not apply to: (1) Farm
machinery and equipment exempted from ad valorem taxation by
K.S.A. 79-201j, and amendments thereto; (2) personal property
exempted from ad valorem taxation by K.S.A. 79-215, and
amendments thereto; (3) wearing apparel, household goods and
personal effects exempted from ad valorem taxation by K.S.A. 79-
201c, and amendments thereto; (4) livestock; (5) all property exempted HOUSE BILL No. 2096—page 5
from ad valorem taxation by K.S.A. 79-201d, and amendments thereto;
(6) merchants' and manufacturers' inventories exempted from ad
valorem taxation by K.S.A. 79-201m, and amendments thereto; (7)
grain exempted from ad valorem taxation by K.S.A. 79-201n, and
amendments thereto; (8) property exempted from ad valorem taxation
by K.S.A. 79-201a Seventeenth, and amendments thereto, including all
property previously acquired by the secretary of transportation or a
predecessor in interest, which is used in the administration,
construction, maintenance or operation of the state system of highways.
The secretary of transportation shall at the time of acquisition of
property notify the county appraiser in the county in which the property
is located that the acquisition occurred and provide a legal description
of the property acquired; (9) property exempted from ad valorem
taxation by K.S.A. 79-201a Ninth, and amendments thereto, including
all property previously acquired by the Kansas turnpike authority
which is used in the administration, construction, maintenance or
operation of the Kansas turnpike. The Kansas turnpike authority shall at
the time of acquisition of property notify the county appraiser in the
county in which the property is located that the acquisition occurred
and provide a legal description of the property acquired; (10)
aquaculture machinery and equipment exempted from ad valorem
taxation by K.S.A. 79-201j, and amendments thereto. As used in this
section, "aquaculture" has the same meaning ascribed thereto by K.S.A.
47-1901, and amendments thereto; (11) Christmas tree machinery and
equipment exempted from ad valorem taxation by K.S.A. 79-201j, and
amendments thereto; (12) property used exclusively by the state or any
municipality or political subdivision of the state for right-of-way
purposes. The state agency or the governing body of the municipality
or political subdivision shall at the time of acquisition of property for
right-of-way purposes notify the county appraiser in the county in
which the property is located that the acquisition occurred and provide
a legal description of the property acquired; (13) machinery, equipment,
materials and supplies exempted from ad valorem taxation by K.S.A.
79-201w, and amendments thereto; (14) vehicles owned by the state or
by any political or taxing subdivision thereof and used exclusively for
governmental purposes; (15) property used for residential purposes
which is exempted pursuant to K.S.A. 79-201x, and amendments
thereto, from the property tax levied pursuant to K.S.A. 72-5142, and
amendments thereto; (16) from and after July 1, 1998, vehicles which
are owned by an organization having as one of its purposes the
assistance by the provision of transit services to the elderly and to
disabled persons and which are exempted pursuant to K.S.A. 79-201
Ninth, and amendments thereto; (17) from and after July 1, 1998, motor
vehicles exempted from taxation by K.S.A. 79-5107(e), and
amendments thereto; (18) commercial and industrial machinery and
equipment exempted from property or ad valorem taxation by K.S.A.
79-223, and amendments thereto; (19) telecommunications machinery
and equipment and railroad machinery and equipment exempted from
property or ad valorem taxation by K.S.A. 79-224, and amendments
thereto; (20) property exempted from property or ad valorem taxation
by K.S.A. 79-234, and amendments thereto; (21) recreational vehicles
exempted from property or ad valorem taxation by K.S.A. 79-5121(e),
and amendments thereto; (22) property acquired by a land bank exempt
from property or ad valorem taxation pursuant to K.S.A. 12-5909 or
K.S.A. 19-26,111, and amendments thereto; and (23) property
belonging exclusively to the United States and exempted from ad
valorem taxation by K.S.A. 79-201a First, and amendments thereto,
except that the provisions of this subsection (l)(23) shall not apply to
any such property that the congress of the United States has expressly HOUSE BILL No. 2096—page 6
declared to be subject to state and local taxation; (24) watercraft
exempted from property or ad valorem taxation by K.S.A. 79-5501, and
amendments thereto; and (25) property exempted from property or ad
valorem taxation by section 3, and amendments thereto.
(m) The provisions of this section shall apply to property exempt
pursuant to the provisions of section 13 of article 11 of the constitution
of the state of Kansas.
(n) The provisions of subsection (k) as amended by this act shall
be applicable to all exemption applications filed in accordance with
subsection (a) after December 31, 2001.
(o) No exemption authorized by K.S.A. 79-227, and amendments
thereto, of property from the payment of ad valorem property taxes
assessed shall be granted unless the requesting property owner files an
initial request for exemption pursuant to this section within two years
of the date in which construction of a new qualifying pipeline property
began. The provisions of this subsection shall be applicable to all
requests for exemptions filed in accordance with subsection (a) after
June 30, 2017.
Sec. 5. K.S.A. 79-503a is hereby amended to read as follows: 79-
503a. "Fair market value" means the amount in terms of money that a
well informed buyer is justified in paying and a well informed seller is
justified in accepting for property in an open and competitive market,
assuming that the parties are acting without undue compulsion. In the
determination of fair market value of any real property which is subject
to any special assessment, such value shall not be determined by adding
the present value of the special assessment to the sales price. For the
purposes of this definition it will be assumed that consummation of a
sale occurs as of January 1.
Sales in and of themselves shall not be the sole criteria of fair
market value but shall be used in connection with cost, income and
other factors including but not by way of exclusion:
(a) The proper classification of lands and improvements;
(b) the size thereof;
(c) the effect of location on value;
(d) depreciation, including physical deterioration or functional,
economic or social obsolescence;
(e) cost of reproduction of improvements;
(f) productivity taking into account all restrictions imposed by the
state or federal government and local governing bodies, including, but
not limited to, restrictions on property rented or leased to low income
individuals and families as authorized by section 42 of the federal
internal revenue code of 1986, as amended;
(g) earning capacity as indicated by lease price, by capitalization
of net income or by absorption or sell-out period;
(h) rental or reasonable rental values or rental values restricted by
the state or federal government or local governing bodies, including,
but not limited to, restrictions on property rented or leased to low
income individuals and families, as authorized by section 42 of the
federal internal revenue code of 1986, as amended;
(i) sale value on open market with due allowance to abnormal
inflationary factors influencing such values;
(j) restrictions or requirements imposed upon the use of real estate
by the state or federal government or local governing bodies, including
zoning and planning boards or commissions, and including, but not
limited to, restrictions or requirements imposed upon the use of real
estate rented or leased to low income individuals and families, as
authorized by section 42 of the federal internal revenue code of 1986,
as amended; and
(k) comparison with values of other property of known or HOUSE BILL No. 2096—page 7
recognized value. The assessment-sales ratio study shall not be used as
an appraisal for appraisal purposes.
The appraisal process utilized in the valuation of all real and
tangible personal property for ad valorem tax purposes shall conform to
generally accepted appraisal procedures and standards which are
consistent with the definition of fair market value unless otherwise
specified by law.
The sale price or value at which a property sells or transfers
ownership in a federal internal revenue code section 1031 exchange
shall not be considered an indicator of fair market value nor as a
factor in arriving at fair market value. Federal internal revenue code
section 1031 exchange transactions shall not be used as comparable
sales for valuation purposes nor as valid sales for purposes of sales
ratio studies conducted pursuant to K.S.A. 79-1485 et seq., and
amendments thereto.
Sec. 6. K.S.A. 2023 Supp. 79-1460 is hereby amended to read as
follows: 79-1460. (a) The county appraiser shall notify each taxpayer in
the county annually on or before March 1 for real property and May 1
for personal property, by mail directed to the taxpayer's last known
address, of the classification and appraised valuation of the taxpayer's
property, except that, the valuation for all real property shall not be
increased unless the record of the latest physical inspection was
reviewed by the county or district appraiser, and documentation exists
to support such increase in valuation in compliance with the directives
and specifications of the director of property valuation, and such record
and documentation is available to the affected taxpayer. Alternatively,
the county appraiser may transmit the classification and appraised
valuation to the taxpayer by electronic means if such taxpayer
consented to service by electronic means.
(b) The valuation for all real property also shall not be increased
solely as the result of normal repair, replacement or maintenance of
existing structures, equipment or improvements on the property. For the
next two taxable years following the taxable year that the valuation for
commercial real property has been reduced due to a final determination
made pursuant to the valuation appeals process, the county appraiser
shall review the computer-assisted mass-appraisal of the property and
if, the valuation in either of those two years exceeds the value of the
previous year by more than 5%, excluding new construction, change in
use or change in classification, the county appraiser shall either:
(1) Adjust the valuation of the property based on the information
provided in the previous appeal; or
(2) order an independent fee simple appraisal of the property to be
performed by a Kansas certified real property appraiser.
(c) When the valuation for real property has been reduced due to a
final determination made pursuant to the valuation appeals process for
the prior year, and the county appraiser has already certified the
appraisal rolls for the current year to the county clerk pursuant to
K.S.A. 79-1466, and amendments thereto, the county appraiser may
amend the appraisal rolls and certify the changes to the county clerk to
implement the provisions of this subsection and reduce the valuation of
the real property to the prior year's final determination, except that such
changes shall not be made after October 31 of the current year.
(d) (1) The notice provided under subsection (a) shall specify:
(A) Separately for the previous tax year and the current tax year,
the appraised and assessed values for each property class identified on
the parcel;
(B) the uniform parcel identification number prescribed by the
director of property valuation; and
(C) a statement of the taxpayer's right to appeal, the procedure to HOUSE BILL No. 2096—page 8
be followed in making such appeal and the availability without charge
of the guide devised pursuant to subsection (g); and
(D) a valuation history of the parcel that includes, at a minimum,
a statement or display of the total appraised values of the parcel for the
current tax year and the previous four tax years.
(2) Such notice may, and if the board of county commissioners so
require, shall provide the parcel identification number, address and the
sale date and amount of any or all sales utilized in the determination of
appraised value of residential real property.
(e) In any year in which no change in appraised valuation of any
real property from its appraised valuation in the next preceding year is
determined, an alternative form of notification which has been
approved by the director of property valuation may be utilized by a
county.
(f) Failure to timely mail or receive such notice shall in no way
invalidate the classification or appraised valuation as changed. The
secretary of revenue shall adopt rules and regulations necessary to
implement the provisions of this section.
(g) There shall be provided to each taxpayer, upon request, a guide
to the property tax appeals process. The director of the division of
property valuation shall devise and publish such guide and shall
provide sufficient copies thereof to all county appraisers. Such guide
shall include, but not be limited to:
(1) A restatement of the law which pertains to the process and
practice of property appraisal methodology, including the contents of
K.S.A. 79-503a and 79-1460, and amendments thereto;
(2) the procedures of the appeals process, including the order and
burden of proof of each party and time frames required by law; and
(3) such other information deemed necessary to educate and
enable a taxpayer to properly and competently pursue an appraisal
appeal.
(h) As used in this section:
(1) "New construction" means the construction of any new
structure or improvements or the remodeling or renovation of any
existing structures or improvements on real property.
(2) "Normal repair, replacement or maintenance" does not include
new construction.
(3) "Taxpayer" means the person in ownership of the property as
indicated on the records of the office of register of deeds or county
clerk and includes the lessee of such property if the lease agreement has
been recorded or filed in the office of the register of deeds and the real
property or improvement thereon is subject of a lease agreement.
Sec. 7. K.S.A. 2023 Supp. 79-2005 is hereby amended to read as
follows: 79-2005. (a) Any taxpayer, before protesting the payment of
such taxpayer's taxes, shall be required, either at the time of paying
such taxes, or, if the whole or part of the taxes are paid prior to
December 20, no later than December 20, or, with respect to taxes paid
in whole or in part in an amount equal to at least
1
/2 of such taxes on or
before December 20 by an escrow or tax service agent, no later than
January 31 of the next year, to file a written statement with the county
treasurer, on forms approved by the state board of tax appeals and
provided by the county treasurer, clearly stating the grounds on which
the whole or any part of such taxes are protested and citing any law,
statute or facts on which such taxpayer relies in protesting the whole or
any part of such taxes. When the grounds of such protest is an
assessment of taxes made pursuant to K.S.A. 79-332a and 79-1427a,
and amendments thereto, the county treasurer may not distribute the
taxes paid under protest until such time as the appeal is final. When the
grounds of such protest is that the valuation or assessment of the HOUSE BILL No. 2096—page 9
property upon which the taxes are levied is illegal or void, the county
treasurer shall forward a copy of the written statement of protest to the
county appraiser who shall within 15 days of the receipt thereof,
schedule an informal meeting with the taxpayer or such taxpayer's
agent or attorney with reference to the property in question. At the
informal meeting, it shall be the duty of the county appraiser or the
county appraiser's designee to initiate production of evidence to
substantiate the valuation of such property, including a summary of the
reasons that the valuation of the property has been increased over the
preceding year, any assumptions used by the county appraiser to
determine the value of the property and a description of the individual
property characteristics, property specific valuation records and
conclusions. The taxpayer shall be provided with the opportunity to
review the data sheets applicable to the valuation approach utilized for
the subject property. The county appraiser shall take into account any
evidence provided by the taxpayer which relates to the amount of
deferred maintenance and depreciation of the property. The county
appraiser shall review the appraisal of the taxpayer's property with the
taxpayer or such taxpayer's agent or attorney and may change the
valuation of the taxpayer's property, if in the county appraiser's opinion
a change in the valuation of the taxpayer's property is required to assure
that the taxpayer's property is valued according to law, and shall, within
15 business days thereof, notify the taxpayer in the event the valuation
of the taxpayer's property is changed, in writing of the results of the
meeting. The county appraiser shall not increase the appraised
valuation of the property as a result of the informal meeting. In the
event the valuation of the taxpayer's property is changed and such
change requires a refund of taxes and interest thereon, the county
treasurer shall process the refund in the manner provided by subsection
(l).
(b) No protest appealing the valuation or assessment of property
shall be filed pertaining to any year's valuation or assessment when an
appeal of such valuation or assessment was commenced pursuant to
K.S.A. 79-1448, and amendments thereto, nor shall the second half
payment of taxes be protested when the first half payment of taxes has
been protested. Notwithstanding the foregoing, this provision shall not
prevent any subsequent owner from protesting taxes levied for the year
in which such property was acquired, nor shall it prevent any taxpayer
from protesting taxes when:
(1) The valuation or assessment of such taxpayer's property has
been changed pursuant to an order of the director of property valuation;
(2) the taxpayer withdrew such taxpayer's appeal commenced
pursuant to K.S.A. 79-1448, and amendments thereto; or
(3) the taxpayer wishes to present new evidence relating to the
valuation or assessment of such property.
(c) A protest shall not be necessary to protect the right to a refund
of taxes in the event a refund is required because the final resolution of
an appeal commenced pursuant to K.S.A. 79-1448, and amendments
thereto, occurs after the final date prescribed for the protest of taxes.
(d) If the grounds of such protest shall be that the valuation or
assessment of the property upon which the taxes so protested are levied
is illegal or void, such statement shall further state the exact amount of
valuation or assessment which the taxpayer admits to be valid and the
exact portion of such taxes which is being protested.
(e) If the grounds of such protest shall be that any tax levy, or any
part thereof, is illegal, such statement shall further state the exact
portion of such tax which is being protested.
(f) Upon the filing of a written statement of protest, the grounds of
which shall be that any tax levied, or any part thereof, is illegal, the HOUSE BILL No. 2096—page 10
county treasurer shall mail a copy of such written statement of protest
to the state board of tax appeals and the governing body of the taxing
district making the levy being protested.
(g) Within 30 days after notification of the results of the informal
meeting with the county appraiser pursuant to subsection (a), the
protesting taxpayer may, if aggrieved by the results of the informal
meeting with the county appraiser, appeal such results to the state board
of tax appeals.
(h) After examination of the copy of the written statement of
protest and a copy of the written notification of the results of the
informal meeting with the county appraiser in cases where the grounds
of such protest is that the valuation or assessment of the property upon
which the taxes are levied is illegal or void, the board shall conduct a
hearing in accordance with the provisions of the Kansas administrative
procedure act, unless waived by the interested parties in writing. If the
grounds of such protest is that the valuation or assessment of the
property is illegal or void the board shall notify the county appraiser
thereof.
(i) In the event of a hearing, the same shall be originally set not
later than 90 days after the filing of the copy of the written statement of
protest and a copy, when applicable, of the written notification of the
results of the informal meeting with the county appraiser with the
board. With regard to any matter properly submitted to the board
relating to the determination of valuation of residential property or real
property used for commercial and industrial purposes for taxation
purposes, it shall be the duty of the county appraiser to initiate the
production of evidence to demonstrate, by a preponderance of the
evidence, the validity and correctness of such determination except that
no such duty shall accrue to the county or district appraiser with regard
to leased commercial and industrial property unless the property owner
has furnished to the county or district appraiser a complete income and
expense statement for the property for the three years next preceding
the year of appeal. No presumption shall exist in favor of the county
appraiser with respect to the validity and correctness of such
determination. In all instances where the board sets a request for
hearing and requires the representation of the county by its attorney or
counselor at such hearing, the county shall be represented by its county
attorney or counselor. The board shall take into account any evidence
provided by the taxpayer which relates to the amount of deferred
maintenance and depreciation for the property. In any appeal from the
reclassification of property that was classified as land devoted to
agricultural use for the preceding year, the taxpayer's classification of
the property as land devoted to agricultural use shall be presumed to be
valid and correct if the taxpayer provides an executed lease agreement
or other documentation demonstrating a commitment to use the
property for agricultural use, if no other actual use is evident. With
regard to any matter properly submitted to the board relating to the
determination of valuation of property for taxation purposes, the board
shall not increase the appraised valuation of the property to an amount
greater than the appraised value reflected in the notification of the
results of the informal meeting with the county appraiser from which
the taxpayer appealed.
(j) When a determination is made as to the merits of the tax
protest, the board shall render and serve its order thereon. The county
treasurer shall notify all affected taxing districts of the amount by
which tax revenues will be reduced as a result of a refund.
(k) If a protesting taxpayer fails to file a copy of the written
statement of protest and a copy, when applicable, of the written
notification of the results of the informal meeting with the county HOUSE BILL No. 2096—page 11
appraiser with the board within the time limit prescribed, such protest
shall become null and void and of no effect whatsoever.
(l) (1) In the event the board orders that a refund be made pursuant
to this section or the provisions of K.S.A. 79-1609, and amendments
thereto, or a court of competent jurisdiction orders that a refund be
made, and no appeal is taken from such order, or in the event a change
in valuation which results in a refund pursuant to subsection (a), the
county treasurer shall, as soon thereafter as reasonably practicable,
refund to the taxpayer such protested taxes and, with respect to protests
or appeals commenced after the effective date of this act, interest
computed at the rate prescribed by K.S.A. 79-2968, and amendments
thereto, minus two percentage points, per annum from the date of
payment of such taxes from tax moneys collected but not distributed.
Upon making such refund, the county treasurer shall charge the fund or
funds having received such protested taxes, except that, with respect to
that portion of any such refund attributable to interest the county
treasurer shall charge the county general fund. In the event that the state
board of tax appeals or a court of competent jurisdiction finds that any
time delay in making its decision is unreasonable and is attributable to
the taxpayer, it may order that no interest or only a portion thereof be
added to such refund of taxes.
(2) No interest shall be allowed pursuant to paragraph (1) in any
case where the tax paid under protest was inclusive of delinquent taxes.
(m) Whenever, by reason of the refund of taxes previously
received or the reduction of taxes levied but not received as a result of
decreases in assessed valuation, it will be impossible to pay for
imperative functions for the current budget year, the governing body of
the taxing district affected may issue no-fund warrants in the amount
necessary. Such warrants shall conform to the requirements prescribed
by K.S.A. 79-2940, and amendments thereto, except they shall not bear
the notation required by such section and may be issued without the
approval of the state board of tax appeals. The governing body of such
taxing district shall make a tax levy at the time fixed for the
certification of tax levies to the county clerk next following the
issuance of such warrants sufficient to pay such warrants and the
interest thereon. All such tax levies shall be in addition to all other
levies authorized by law.
(n) Whenever a taxpayer appeals to the board of tax appeals
pursuant to the provisions of K.S.A. 79-1609, and amendments thereto,
or pays taxes under protest related to one property whereby the
assessed valuation of such property exceeds 5% of the total county
assessed valuation of all property located within such county and the
taxpayer receives a refund of such taxes paid under protest or a refund
made pursuant to the provisions of K.S.A. 79-1609, and amendments
thereto, the county treasurer or the governing body of any taxing
subdivision within a county may request the pooled money investment
board to make a loan to such county or taxing subdivision as provided
in this section. The pooled money investment board is authorized and
directed to loan to such county or taxing subdivision sufficient funds to
enable the county or taxing subdivision to refund such taxes to the
taxpayer. The pooled money investment board is authorized and
directed to use any moneys in the operating accounts, investment
accounts or other investments of the state of Kansas to provide the
funds for such loan. Each loan shall bear interest at a rate equal to the
net earnings rate of the pooled money investment portfolio at the time
of the making of such loan. The total aggregate amount of loans under
this program shall not exceed $50,000,000 of unencumbered funds
pursuant to article 42 of chapter 75 of the Kansas Statutes Annotated,
and amendments thereto. Such loan shall not be deemed to be an HOUSE BILL No. 2096—page 12
indebtedness or debt of the state of Kansas within the meaning of
section 6 of article 11 of the constitution of the state of Kansas. Upon
certification to the pooled money investment board by the county
treasurer or governing body of the amount of each loan authorized
pursuant to this subsection, the pooled money investment board shall
transfer each such amount certified by the county treasurer or
governing body from the state bank account or accounts prescribed in
this subsection to the county treasurer who shall deposit such amount in
the county treasury. Any such loan authorized pursuant to this
subsection shall be repaid within four years. The county or taxing
subdivision shall make not more than four equal annual tax levies at the
time fixed for the certification of tax levies to the county clerk
following the making of such loan sufficient to pay such loan within
the time period required under such loan. All such tax levies shall be in
addition to all other levies authorized by law.
(o) The county treasurer shall disburse to the proper funds all
portions of taxes paid under protest and shall maintain a record of all
portions of such taxes which are so protested and shall notify the
governing body of the taxing district levying such taxes thereof and the
director of accounts and reports if any tax protested was levied by the
state.
(p) This statute shall not apply to the valuation and assessment of
property assessed by the director of property valuation and it shall not
be necessary for any owner of state assessed property, who has an
appeal pending before the state board of tax appeals, to protest the
payment of taxes under this statute solely for the purpose of protecting
the right to a refund of taxes paid under protest should that owner be
successful in that appeal.
Sec. 8. K.S.A. 79-32,111c is hereby amended to read as follows:
79-32,111c. (a) There shall be allowed as a credit against the tax
liability of a resident individual imposed under the Kansas income tax
act an amount equal to 12.5% for tax year 2018; an amount equal to
18.75% for tax year 2019; and an amount equal to 25% for tax year
years 2020 through 2023; and an amount equal to 100% for tax year
2024, and all tax years thereafter, of the amount of the credit allowed
against such taxpayer's federal income tax liability pursuant to 26
U.S.C. § 21 for the taxable year in which such credit was claimed
against the taxpayer's federal income tax liability.
(b) The credit allowed by subsection (a) shall not exceed the
amount of the tax imposed by K.S.A. 79-32,110, and amendments
thereto, reduced by the sum of any other credits allowable pursuant to
law.
(c) No credit provided under this section shall be allowed to any
individual who fails to provide a valid social security number issued by
the social security administration, to such individual, the individual's
spouse and every dependent of the individual.
Sec. 9. K.S.A. 2023 Supp. 79-4508a is hereby amended to read as
follows: 79-4508a. (a) For tax year 2022, and all tax years thereafter,
the amount of any claim pursuant to this section shall be computed by
deducting the claimant's base year ad valorem tax amount for the
homestead from the claimant's homestead ad valorem tax amount for
the tax year for which the refund is sought. This section shall be known
and may be cited as the homeowners' property tax freeze program.
(b) As used in this section:
(1) "Base year" means the year in which an individual becomes an
eligible claimant and who is also eligible for a claim for refund
pursuant to this section. For any individual who would otherwise be an
eligible claimant prior to 2021, such base year shall be deemed to be
2021 for the purposes of this act. HOUSE BILL No. 2096—page 13
(2) "Claimant" means a person who has filed a claim under the
provisions of this act and was, during the entire calendar year preceding
the year in which such claim was filed for refund under this act, except
as provided in K.S.A. 79-4503, and amendments thereto, both
domiciled in this state and was: (A) A person who is 65 years of age or
older; or (B) a disabled veteran. The surviving spouse of a person 65
years of age or older or a disabled veteran who was receiving benefits
pursuant to this section at the time of the claimant's death shall be
eligible to continue to receive benefits until such time the surviving
spouse remarries.
(3) "Household income" means the total Kansas adjusted gross
income of all persons of a household in a calendar year while members
of such household excluding any amounts received as benefits under
the federal social security act that are included in Kansas adjusted
gross income of such persons.
(c) A claimant shall only be eligible for a claim for refund under
this section if:
(1) The claimant's household income for the year in which the
claim is filed is $50,000 $80,000 or less; and
(2) the appraised value of the claimant's homestead for the base
year is $350,000 $500,000 or less.
The provisions of K.S.A. 79-4522, and amendments thereto, shall
not apply to a claim pursuant to this section. In the case of all tax years
commencing after December 31, 2022, the upper limit household
income threshold amount prescribed in this subsection shall be
increased by an amount equal to such threshold amount multiplied by
the cost-of-living adjustment determined under section 1(f)(3) of the
federal internal revenue code for the calendar year in which the taxable
year commences.
(d) A taxpayer shall not be eligible for a homestead property tax
refund claim pursuant to this section if such taxpayer has received for
such property for such tax year either: (1) A homestead property tax
refund pursuant to K.S.A. 79-4508, and amendments thereto; or (2) the
selective assistance for effective senior relief (SAFESR) credit pursuant
to K.S.A. 79-32,263, and amendments thereto.
(e) The amount of any claim shall be computed to the nearest $1.
(f) The household income and appraised value amendments made
to this section by this act shall apply retroactively, and the deadline to
file claims for tax years 2022 and 2023 shall be extended to on or
before April 15, 2025.
(g) The provisions of this section shall be a part of and
supplemental to the homestead property tax refund act.
Sec. 10. K.S.A. 79-5501 is hereby amended to read as follows: 79-
5501. (a) On and after Commencing July 1, 2013, and through
December 31, 2024, watercraft shall be appraised at fair market value
determined therefor pursuant to K.S.A. 79-503a, and amendments
thereto, and assessed at the percentage of value as follows: (1) 11.5% in
tax year 2014; and (2) 5% in tax year years 2015 and all tax years
thereafter through 2024. On and after January 1, 2014, the levy used to
calculate the tax on watercraft shall be the county average tax rate. In
no case shall the assessed value of any watercraft, as determined under
the provisions of this section, cause the tax upon such watercraft to be
less than $12.
(b) As used in this section, the term "watercraft" means any
watercraft designed to be propelled by machinery, oars, paddles or
wind action upon a sail for navigation on the water which, if not for the
provisions of this section, would be properly classified under subclass 5
or 6 of class 2 of section 1 of article 11 of the Kansas constitution. This
section shall not be construed as taxing any watercraft which otherwise HOUSE BILL No. 2096—page 14
would be exempt from property taxation under the laws of the state of
Kansas. 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.
(c) Any watercraft which is designed to be propelled through the
water through human power alone shall be exempt from all property or
ad valorem taxes levied under the laws of the state of Kansas.
(d) The "county average tax rate" means the total amount of
general property taxes levied within the county by the state, county and
all other taxing subdivisions divided by the total assessed valuation of
all taxable property within the county as of November 1 of the year
prior to the year of valuation as certified by the secretary of revenue.
(e) On and after January 1, 2025, all watercraft shall be exempt
from all property or ad valorem taxes levied under the laws of the state
of Kansas.
Sec. 11. K.S.A. 79-213, 79-503a, 79-32,111c and 79-5501 and
K.S.A. 2023 Supp. 79-1460, 79-2005 and 79-4508a are hereby
repealed.
Sec. 12. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and was
adopted by that body
HOUSE adopted
Conference Committee Report
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
SENATE adopted
Conference Committee Report
President of the Senate.
Secretary of the Senate.
APPROVED
Governor.