As Amended by Senate Committee
Session of 2023
SENATE BILL No. 138
By Committee on Assessment and Taxation
2-2
AN ACT concerning property taxation; relating to exemptions; expanding
and clarifying the exemption for Strother field airport property;
increasing the extent of exemption for residential property from the
statewide school levy; relating to tax levies; discontinuing the state
tax levies for the Kansas educational building fund and the state
institutions building fund; providing financing therefor from the
state general fund; amending K.S.A. 76-6b01, 76-6b02, 76-6b04, 76-
6b05, 76-6b11 and 79-201r and K.S.A. 2022 Supp. 79-201x and
repealing the existing section sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 76-6b01 is hereby amended to read as follows: 76-
6b01. (a) There is hereby levied an annual permanent state tax in the year
2023 a state tax of 1 mill upon all tangible property in this state which
that is subject to ad valorem taxation. The tax levy shall be .6 mill in the
year 2003 and 1 mill in the year 2004 and each year thereafter until
changed by statute. Such tax levy shall be in addition to all other state
tax levies authorized by law. Such tax levy shall be for the use and
benefit of the state institutions of higher education. The proceeds of
such tax levy shall be apportioned in accordance with this act.
(b) The county treasurer of each county shall make the proceeds of
the tax levy provided for in this section available to the state treasurer
immediately upon collection. When available the state treasurer shall
withdraw from each county the proceeds of the taxes raised by such tax
levy. Upon such withdrawal the state treasurer shall deposit the same in
the state treasury and shall credit the same as provided in K.S.A. 76-
6b02, and amendments thereto.
Sec. 2. K.S.A. 76-6b02 is hereby amended to read as follows: 76-
6b02. (a) All moneys received by the state treasurer under K.S.A. 76-
6b01, and amendments thereto, and pursuant to subsection (c) shall be
credited to the Kansas educational building fund to be used for the
construction, reconstruction, equipment and repair of buildings and
grounds at the state educational institutions under the control and
supervision of the state board of regents and for payment of debt service
on revenue bonds issued to finance such projects, all subject to
appropriation by the legislature.
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(b) Subject to any restrictions imposed by appropriation acts, the
state board of regents is authorized to pledge funds appropriated to it
from the Kansas educational building fund or from any other source
and transferred to a special revenue fund of the state board of regents
specified by statute for the payment of debt service on revenue bonds
issued for the purposes set forth in subsection (a). Subject to any
restrictions imposed by appropriation acts, the state board of regents is
also authorized to pledge any funds appropriated to it from the Kansas
educational building fund or from any other source and transferred to a
special revenue fund of the state board of regents specified by statute as
a priority for the payment of debt service on such revenue bonds.
Neither the state or the state board of regents shall have the power to
pledge the faith and credit or taxing power of the state of Kansas for
such purposes and any payment by the state board of regents for such
purposes shall be subject to and dependent on appropriations being
made from time to time by the legislature. Any obligation of the state
board of regents for payment of debt service on revenue bonds and any
such revenue bonds issued for the purposes set forth in subsection (a)
shall not be considered a debt or obligation of the state for the purpose
of section 6 of article 11 of the constitution of the state of Kansas.
(c) On July 1, 2024, or as soon thereafter as moneys are available,
$41,800,000 shall be transferred by the director of accounts and reports
from the state general fund to the Kansas educational building fund. On
July 1, 2025, and on July 1 each year thereafter, or as soon thereafter as
moneys are available, an amount equal to the amount pursuant to this
subsection for the immediately preceding year plus 2% shall be
transferred by the director of accounts and reports from the state general
fund to the Kansas educational building fund.
Sec. 3. K.S.A. 76-6b04 is hereby amended to read as follows: 76-
6b04. (a) There is hereby levied an annual permanent state tax in the year
2023 a state tax of 0.5 mill upon all tangible property in this state which
that is subject to ad valorem taxation. The tax levy shall be .3 mill in the
year 2003 and .5 mill in the year 2004 and each year thereafter until
changed by statute. The tax levy shall be in addition to all other state tax
levies authorized by law. The tax levy shall be for the use and benefit of
state institutions caring for persons who are mentally ill, retarded,
visually handicapped, with a handicapping hearing loss or tubercular or
state institutions caring for children who are deprived, wayward,
miscreant, delinquent, children in need of care or juvenile offenders and
who are in need of residential care or treatment, or institutions designed
primarily to provide vocational rehabilitation for handicapped persons.
As used in this section, "state institutions" shall include, but not be
limited to, those institutions under the authority of the commissioner of
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juvenile justice. The proceeds of such tax levy shall be apportioned in
accordance with this act.
(b) The county treasurer of each county shall make the proceeds of
the tax levy provided for in this section available to the state treasurer
immediately upon collection. When available, the state treasurer shall
withdraw from each county the proceeds of the taxes raised by such tax
levy. Upon such withdrawal the state treasurer shall deposit the same in
the state treasury and shall credit the same as provided in K.S.A. 76-
6b05, and amendments thereto.
Sec. 4. K.S.A. 76-6b05 is hereby amended to read as follows: 76-
6b05. (a) All moneys received by the state treasurer under K.S.A. 76-
6b04, and amendments thereto, and pursuant to subsection (e) shall be
credited to the state institutions building fund, which is hereby created in
the state treasury, to be used for the construction, reconstruction,
equipment and repair of buildings and grounds at institutions specified
in K.S.A. 76-6b04, and amendments thereto, and for payment of debt
service on revenue bonds issued to finance such projects, all subject to
appropriation by the legislature.
(b) Subject to any restrictions imposed by appropriation acts, the
juvenile justice authority is authorized to pledge funds appropriated to it
from the state institutions building fund or from any other source and
transferred to a special revenue fund of the juvenile justice authority
specified by statute for the payment of debt service on revenue bonds
issued for the purposes set forth in subsection (a). Subject to any
restrictions imposed by appropriation acts, the juvenile justice authority
is also authorized to pledge any funds appropriated to it from the state
institutions building fund or from any other source and transferred to a
special revenue fund of the juvenile justice authority specified by statute
as a priority for the payment of debt service on such revenue bonds.
Neither the state or the juvenile justice authority shall have the power to
pledge the faith and credit or taxing power of the state of Kansas for
such purposes and any payment by the juvenile justice authority for
such purposes shall be subject to and dependent on appropriations being
made from time to time by the legislature. Any obligation of the juvenile
justice authority for payment of debt service on revenue bonds and any
such revenue bonds issued for the purposes set forth in subsection (a)
shall not be considered a debt or obligation of the state for the purpose
of section 6 of article 11 of the constitution of the state of Kansas.
(c) Subject to any restrictions imposed by appropriation acts, the
Kansas department for aging and disability services is authorized to
pledge funds appropriated to it from the state institutions building fund
or from any other source and transferred to a special revenue fund of
the Kansas department for aging and disability services specified by
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statute for the payment of debt service on revenue bonds issued for a
new state security hospital on the Larned state hospital grounds or any
other capital improvement projects at any other institution or facility of
the Kansas department for aging and disability services. Subject to any
restrictions imposed by appropriation acts, the Kansas department for
aging and disability services is also authorized to pledge any funds
appropriated to it from the state institutions building fund or from any
other source and transferred to a special revenue fund of the Kansas
department for aging and disability services specified by statute as a
priority for the payment of debt service on such revenue bonds. Neither
the state or the Kansas department for aging and disability services shall
have the power to pledge the faith and credit or taxing power of the state
of Kansas for such purposes and any payment by the Kansas department
for aging and disability services for such purposes shall be subject to
and dependent on appropriations being made from time to time by the
legislature. Any obligation of the Kansas department for aging and
disability services for payment of debt service on revenue bonds and any
such revenue bonds issued for a new state security hospital on the
Larned state hospital grounds or any other capital improvement projects
at any other institution or facility of the Kansas department for aging
and disability services shall not be considered a debt or obligation of the
state for the purpose of section 6 of article 11 of the constitution of the
state of Kansas.
(d) Subject to any restrictions imposed by appropriation acts, the
director of the Kansas commission on veterans affairs office is
authorized to pledge funds appropriated to it from the state institutions
building fund or from any other source and transferred to a special
revenue fund of the Kansas commission on veterans affairs office
specified by statute for the payment of debt service on revenue bonds
issued for veterans' home HVAC system replacement. Subject to any
restrictions imposed by appropriation acts, the director of the Kansas
commission on veterans affairs office is also authorized to pledge any
funds appropriated to it from the state institutions building fund or from
any other source and transferred to a special revenue fund of the
Kansas commission on veterans affairs office specified by statute as a
priority for the payment of debt service on such revenue bonds. Neither
the state nor the director of the Kansas commission on veterans affairs
office shall have the power to pledge the faith and credit or taxing power
of the state of Kansas for such purposes and any payment by the Kansas
commission on veterans affairs office for such purposes shall be subject
to and dependent on appropriations being made from time to time by the
legislature. Any obligation of the Kansas commission on veterans affairs
office for payment of debt service on revenue bonds and any such
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revenue bonds issued for veterans' home HVAC system replacement
shall not be considered a debt or obligation of the state for the purpose
of section 6 of article 11 of the constitution of the state of Kansas.
(e) On July 1, 2024, or as soon thereafter as moneys are available,
$20,900,000 shall be transferred by the director of accounts and reports
from the state general fund to the state institutions building fund. On July
1, 2025, and on July 1 each year thereafter, or as soon thereafter as
moneys are available, an amount equal to the amount pursuant to this
subsection for the immediately preceding year plus 2% shall be
transferred by the director of accounts and reports from the state general
fund to the state institutions building fund.
Sec. 5. K.S.A. 76-6b11 is hereby amended to read as follows: 76-
6b11. (a) Except as provided in subsection (e), On July 1 of each year, the
director of accounts and reports shall record a debit to the state
treasurer's receivables for the Kansas educational building fund, the
state institutions building fund and the state general fund and shall
record a corresponding credit to each such fund in an amount equal to
95% of the amount credited respectively to each such fund during the
immediately preceding fiscal year, except that such amount shall be
proportionally adjusted with respect to any such fund in any fiscal year
for any change in the tax levy rate for any such fund.
(b) All taxes received by the state treasurer under K.S.A. 76-6b01,
and 76-6b04 and section 15 [L. 2003, ch. 146, § 15], and amendments
thereto, and the provisions of section 15 of chapter 146 of the 2003
Session Laws of Kansas during the current fiscal year shall be deposited
in the state treasury to the credit of the Kansas educational building
fund, the state institutions building fund and the state general fund,
respectively, and shall reduce the amount debited and credited to such
funds under subsection (a).
(c) On June 30 of each year, the director of accounts and reports
shall adjust the amounts debited and credited to the state treasurer's
receivables and to the Kansas educational building fund, the state
institutions building fund and the state general fund pursuant to this
section, to reflect the taxes actually received by the state treasurer and
deposited during the fiscal year in the state treasury to the credit of each
such fund.
(d) The director of accounts and reports shall notify the state
treasurer of all amounts debited and credited to the Kansas educational
building fund, the state institutions building fund and the state general
fund pursuant to this section and all reductions and adjustments thereto
made pursuant to this section. The state treasurer shall enter all such
amounts debited and credited and shall make reductions and
adjustments thereto on the books and records kept and maintained for
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such funds by the state treasurer in accordance with the notice thereof.
(e) On October 1, 2003, the director of accounts and reports shall
make such adjustments and amendments as may be required to reflect and
account for the property tax imposed by K.S.A. 79-2976 as if such tax had
been in effect on July 1, 2003. The provisions of this section shall expire
on June 30, 2024.
Section 1. Sec. 6. K.S.A. 79-201r is hereby amended to read as
follows: 79-201r. For all taxable years commencing after December 31,
1991, the Strother field airport commission and the political subdivisions
comprising the Strother field airport commission shall be exempt from the
payment of ad valorem taxes levied by the state and any other political or
taxing subdivision of the state on property owned by it prior to and on
January 1, 1992 the Strother field airport commission or the political
subdivisions comprising the Strother field airport commission and
depicted on the airport's federally approved airport layout plan whether
used for aviation related purposes, to promote aviation commerce or to
provide revenue to operate all Strother field components and activities.
Such property shall be and is hereby exempt from all property or ad
valorem taxes levied under the laws of the state of Kansas. All property
taxes, including any penalties and interest accrued thereon, imposed upon
any property herein described for all taxable years commencing prior to
January 1, 1992 2023, are hereby declared to be cancelled but any such
amounts paid in any such year shall not be refunded.
Sec. 7. K.S.A. 2022 Supp. 79-201x is hereby amended to read as
follows: 79-201x. (a) For taxable year 2022 2023, and all taxable years
thereafter, the following described property, to the extent herein
specified, shall be and is hereby exempt from the property tax levied
pursuant to the provisions of K.S.A. 72-5142, and amendments thereto:
Property used for residential purposes to the extent of $40,000 $65,000
of its appraised valuation.
(b) For taxable year 2023 2024, and all taxable years thereafter, the
dollar amount of the extent of appraised valuation that is exempt
pursuant to subsection (a) shall be adjusted to reflect the average
percentage change in statewide residential valuation of all residential
real property for the preceding 10 years. Such average percentage
change shall not be less than zero. The director of property valuation
shall calculate the average percentage change for purposes of this
annual adjustment and calculate the dollar amount of the extent of
appraised valuation that is exempt pursuant to this section each year.
Sec. 2. 8. K.S.A. 76-6b01, 76-6b02, 76-6b04, 76-6b05, 76-6b11 and
79-201r is and K.S.A. 2022 Supp. 79-201x are hereby repealed.
Sec. 3. 9. This act shall take effect and be in force from and after its
publication in the statute book.
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