SENATE BILL No. 410
AN ACT concerning taxation; relating to property taxation; reducing penalties for the late
filing of or the failure to file statements listing personal property for assessment and
the discovery of escaped personal property; reporting changes after initial statement;
allowing for filing of an appraisal by a certified residential real property appraiser for
appeal purposes; accounting for adverse influences in the valuation of agricultural
land; including properties used for registered agritourism activities as land devoted to
agricultural use for purposes of classification; providing a property tax exemption for
new electric generation facilities and new pollution control devices and additions
constructed or installed at electric generation facilities; discontinuing the current
property tax exemptions for certain existing electric generation facilities; relating to
tax levy rates; providing that county clerks are not required to send revenue neutral
rate notices to property owners of exempt property; modifying and prescribing the
contents of the revenue neutral rate public hearing notice; permitting a tax levy that
generates the same amount of revenue as the previous year when the final assessed
valuation decreases compared to the estimated assessed valuation; requiring that the
governing body's vote be conducted on the same day as the commencement of the
public hearing; extending reimbursement from the taxpayer notification costs fund
for printing and postage costs for county clerks for calendar year 2024; relating to
income taxation; providing subtraction modifications for certain federal credit
disallowances and the employee retention credit disallowance and to permit the
carryforward of certain net operating losses; clarifying the disallowed business
interest expense deduction; extending the time period for the single city port
authority tax credit; decreasing the penalties for failing to timely remit withholding
income taxes of employees by employers; relating to the salt parity act; clarifying the
determination of taxable income of an electing pass-through entity; providing for the
passing through of tax credits to electing pass-through entity owners; relating to sales
and compensating use tax; providing countywide retailers' sales tax authority for
Rawlins, Marshall and Neosho counties; relating to the state board of tax appeals;
authorizing teleconference or video conference hearings in the small claims and
expedited hearings division; amending K.S.A. 79-257, 79-258, 79-306, 79-332a, 79-
1422, 79-1427a, 79-1496 and 79-32,107 and K.S.A. 2023 Supp. 12-187, 12-189, 12-
192, 74-2433f, 79-1476, 79-2988, 79-2989, 79-32,117, 79-32,212, 79-32,284 and 79-
32,287 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. Adverse influences not sufficiently accounted for
in the agricultural use valuation formula for land devoted to agricultural
use shall be addressed by the director of property valuation and the
county appraiser. Adverse influences include, but are not limited to,
canopy cover, salinity and alkalinity, water table fluctuation and newly
constructed drainage and flood control areas. The county appraiser
shall address canopy cover, salinity and alkalinity, water table
fluctuation and newly constructed drainage and flood control areas as
follows:
(a) For canopy cover, the county appraiser shall:
(1) View the parcel;
(2) delineate the area impacted on a map;
(3) determine the appropriate reduction from actual inspection and
make the appropriate reduction as follows:
(A) 0 to 25% cover = no reduction;
(B) 25% to 50% cover = 20% reduction;
(C) 50% to 75% cover = 30% reduction; and
(D) 75% to 100% cover = 50% reduction; and
(4) establish an adverse influence file for the parcel;
(b) for salinity and alkalinity, the county appraiser shall:
(1) Request that the taxpayer provide soil analysis from a crop
consulting service;
(2) delineate the area impacted on a map;
(3) reduce the value as indicated by the report;
(4) establish an adverse influence file for the parcel; and
(5) notify the local United States department of agriculture natural
resources conservation service (NRCS) office of the change;
(c) for water table fluctuation, the county appraiser shall:
(1) Delineate the area impacted on a map;
(2) contact the local NRCS office and request verification;
(3) contact the division of property valuation for assistance; SENATE BILL No. 410—page 2
(4) obtain a temporary influence amount from the division of
property valuation to use until the NRCS review is complete; and
(5) establish an adverse influence file for the parcel; and
(d) for newly constructed drainage and flood control areas, the
county appraiser shall:
(1) View the parcel;
(2) delineate the area impacted on a map;
(3) contact the division of property valuation for assistance;
(4) receive an adverse influence amount from the division of
property valuation after the division contacts the responsible agency;
and
(5) establish an adverse influence file for the parcel.
New Sec. 2. (a) The following described property, to the extent
herein specified, shall be exempt from all property or ad valorem taxes
levied under the laws of the state of Kansas:
(1) Any new electric generation facility.
(2) Any new addition to a new or existing electric generation
facility.
(3) Any new pollution control device constructed or installed on
or after January 1, 2025, at a new or existing electric generation facility.
(b) The provisions of this section shall apply from and after
commencement of construction or installation of such property and for
the 10 taxable years immediately following the taxable year in which
construction or installation of such property is completed.
(c) As used in this section:
(1) "Existing electric generation facility" means an electric
generation facility described in K.S.A. 66-104(e) or 66-128(b)(2)(C),
and amendments thereto, that is in existence on December 31, 2024.
"Existing electric generation facility" does not include an electric
generation facility that converts wind, solar, biomass, landfill gas or
any other renewable source of energy to electricity.
(2) "New addition" means any real or tangible personal property
constructed or installed on or after January 1, 2025, for incorporation in
and use as part of a new or existing electric generation facility.
(3) "New electric generation facility" means an electric generation
facility described in K.S.A. 66-104(e) or 66-128(b)(2)(C), and
amendments thereto, and the commencement of construction of such
facility began on or after January 1, 2025. "New electric generation
facility" includes any electric generation facility that utilizes nuclear
energy for the generation of electricity. "New electric generation
facility" does not include any electric generation facility that converts
wind, solar, biomass, landfill gas or any other renewable source of
energy to electricity.
(d) The provisions of this section shall apply to all taxable years
commencing after December 31, 2024.
Sec. 3. K.S.A. 2023 Supp. 12-187 is hereby amended to read as
follows: 12-187. (a) No city shall impose a retailers' sales tax under the
provisions of this act without the governing body of such city having
first submitted such proposition to and having received the approval of
a majority of the electors of the city voting thereon at an election called
and held therefor. The governing body of any city may submit the
question of imposing a retailers' sales tax and the governing body shall
be required to submit the question upon submission of a petition signed
by electors of such city equal in number to not less than 10% of the
electors of such city.
(b) (1) The board of county commissioners of any county may
submit the question of imposing a countywide retailers' sales tax to the
electors at an election called and held thereon, and any such board shall
be required to submit the question upon submission of a petition signed SENATE BILL No. 410—page 3
by electors of such county equal in number to not less than 10% of the
electors of such county who voted at the last preceding general election
for the office of secretary of state, or upon receiving resolutions
requesting such an election passed by not less than
2
/3 of the
membership of the governing body of each of one or more cities within
such county that contains a population of not less than 25% of the
entire population of the county, or upon receiving resolutions
requesting such an election passed by
2
/3 of the membership of the
governing body of each of one or more taxing subdivisions within such
county that levy not less than 25% of the property taxes levied by all
taxing subdivisions within the county.
(2) The board of county commissioners of Anderson, Atchison,
Barton, Brown, Butler, Chase, Cowley, Cherokee, Crawford, Ford,
Franklin, Grant, Jefferson, Linn, Lyon, Marion, Miami, Montgomery,
Neosho, Osage, Ottawa, Reno, Riley, Saline, Seward, Sumner, Thomas,
Wabaunsee, Wilson and Wyandotte counties may submit the question
of imposing a countywide retailers' sales tax and pledging the revenue
received therefrom for the purpose of financing the construction or
remodeling of a courthouse, jail, law enforcement center facility or
other county administrative facility, to the electors at an election called
and held thereon. The tax imposed pursuant to this paragraph shall
expire when sales tax sufficient to pay all of the costs incurred in the
financing of such facility has been collected by retailers as determined
by the secretary of revenue. Nothing in this paragraph shall be
construed to allow the rate of tax imposed by Butler, Chase, Cowley,
Lyon, Montgomery, Neosho, Riley, Sumner or Wilson county pursuant
to this paragraph to exceed or be imposed at any rate other than the
rates prescribed in K.S.A. 12-189, and amendments thereto.
(3) (A) Except as otherwise provided in this paragraph, the result
of the election held on November 8, 1988, on the question submitted by
the board of county commissioners of Jackson county for the purpose
of increasing its countywide retailers' sales tax by 1% is hereby
declared valid, and the revenue received therefrom by the county shall
be expended solely for the purpose of financing the Banner Creek
reservoir project. The tax imposed pursuant to this paragraph shall take
effect on the effective date of this act and shall expire not later than five
years after such date.
(B) The result of the election held on November 8, 1994, on the
question submitted by the board of county commissioners of Ottawa
county for the purpose of increasing its countywide retailers' sales tax
by 1% is hereby declared valid, and the revenue received therefrom by
the county shall be expended solely for the purpose of financing the
erection, construction and furnishing of a law enforcement center and
jail facility.
(C) Except as otherwise provided in this paragraph, the result of
the election held on November 2, 2004, on the question submitted by
the board of county commissioners of Sedgwick county for the purpose
of increasing its countywide retailers' sales tax by 1% is hereby
declared valid, and the revenue received therefrom by the county shall
be used only to pay the costs of: (i) Acquisition of a site and
constructing and equipping thereon a new regional events center,
associated parking and infrastructure improvements and related
appurtenances thereto, to be located in the downtown area of the city of
Wichita, Kansas, (the "downtown arena"); (ii) design for the Kansas
coliseum complex and construction of improvements to the pavilions;
and (iii) establishing an operating and maintenance reserve for the
downtown arena and the Kansas coliseum complex. The tax imposed
pursuant to this paragraph shall commence on July 1, 2005, and shall
terminate not later than 30 months after the commencement thereof. SENATE BILL No. 410—page 4
(D) Except as otherwise provided in this paragraph, the result of
the election held on August 5, 2008, on the question submitted by the
board of county commissioners of Lyon county for the purpose of
increasing its countywide retailers' sales tax by 1% is hereby declared
valid, and the revenue received therefrom by the county shall be
expended for the purposes of ad valorem tax reduction and capital
outlay. The tax imposed pursuant to this paragraph shall terminate not
later than five years after the commencement thereof.
(E) Except as otherwise provided in this paragraph, the result of
the election held on August 5, 2008, on the question submitted by the
board of county commissioners of Rawlins county for the purpose of
increasing its countywide retailers' sales tax by 0.75% is hereby
declared valid, and the revenue received therefrom by the county shall
be expended for the purposes of financing the costs of a swimming
pool. The tax imposed pursuant to this paragraph shall terminate not
later than 15 years after the commencement thereof or upon payment of
all costs authorized pursuant to this paragraph in the financing of such
project.
(F) The result of the election held on December 1, 2009, on the
question submitted by the board of county commissioners of
Chautauqua county for the purpose of increasing its countywide
retailers' sales tax by 1% is hereby declared valid, and the revenue
received from such tax by the county shall be expended for the
purposes of financing the costs of constructing, furnishing and
equipping a county jail and law enforcement center and necessary
improvements appurtenant to such jail and law enforcement center. Any
tax imposed pursuant to authority granted in this paragraph shall
terminate upon payment of all costs authorized pursuant to this
paragraph incurred in the financing of the project described in this
paragraph.
(G) The result of the election held on April 7, 2015, on the
question submitted by the board of county commissioners of Bourbon
county for the purpose of increasing its retailers' sales tax by 0.4% is
hereby declared valid, and the revenue received therefrom by the
county shall be expended solely for the purpose of financing the costs
of constructing, furnishing and operating a courthouse, law
enforcement center or jail facility improvements. Any tax imposed
pursuant to authority granted in this paragraph shall terminate upon
payment of all costs authorized pursuant to this paragraph incurred in
the financing of the project described in this paragraph.
(H) The result of the election held on November 7, 2017, on the
question submitted by the board of county commissioners of Finney
county for the purpose of increasing its countywide retailers' sales tax
by 0.3% is hereby declared valid, and the revenues of such tax shall be
used by Finney county and the city of Garden City, Kansas, as agreed
in an interlocal cooperation agreement between the city and county, and
as detailed in the ballot question approved by voters. The tax imposed
pursuant to this subparagraph shall be levied for a period of 15 years
from the date it is first levied.
(I) The result of the election held on November 3, 2020, on the
question submitted by the board of county commissioners of Cherokee
county for the purpose of increasing its retailers' sales tax by 0.5% is
hereby declared valid, and the revenue received therefrom by the
county shall be expended solely for the purpose of financing: (i)
Ambulance services within the county; (ii) renovations and
maintenance of county buildings and facilities; or (iii) any other
projects within the county deemed necessary by the governing body of
Cherokee county. The tax imposed pursuant to this subparagraph shall
terminate prior to January 1, 2033. SENATE BILL No. 410—page 5
(4) The board of county commissioners of Finney and Ford
counties may submit the question of imposing a countywide retailers'
sales tax at the rate of 0.25% and pledging the revenue received
therefrom for the purpose of financing all or any portion of the cost to
be paid by Finney or Ford county for construction of highway projects
identified as system enhancements under the provisions of K.S.A. 68-
2314(b)(5), and amendments thereto, to the electors at an election
called and held thereon. Such election shall be called and held in the
manner provided by the general bond law. The tax imposed pursuant to
this paragraph shall expire upon the payment of all costs authorized
pursuant to this paragraph in the financing of such highway projects.
Nothing in this paragraph shall be construed to allow the rate of tax
imposed by Finney or Ford county pursuant to this paragraph to exceed
the maximum rate prescribed in K.S.A. 12-189, and amendments
thereto. If any funds remain upon the payment of all costs authorized
pursuant to this paragraph in the financing of such highway projects in
Finney county, the state treasurer shall remit such funds to the treasurer
of Finney county and upon receipt of such moneys shall be deposited to
the credit of the county road and bridge fund. If any funds remain upon
the payment of all costs authorized pursuant to this paragraph in the
financing of such highway projects in Ford county, the state treasurer
shall remit such funds to the treasurer of Ford county and upon receipt
of such moneys shall be deposited to the credit of the county road and
bridge fund.
(5) The board of county commissioners of any county may submit
the question of imposing a retailers' sales tax at the rate of 0.25%,
0.5%, 0.75% or 1% and pledging the revenue received therefrom for
the purpose of financing the provision of health care services, as
enumerated in the question, to the electors at an election called and held
thereon. Whenever any county imposes a tax pursuant to this
paragraph, any tax imposed pursuant to subsection (a)(2) by any city
located in such county shall expire upon the effective date of the
imposition of the countywide tax, and thereafter the state treasurer shall
remit to each such city that portion of the countywide tax revenue
collected by retailers within such city as certified by the director of
taxation. The tax imposed pursuant to this paragraph shall be deemed to
be in addition to the rate limitations prescribed in K.S.A. 12-189, and
amendments thereto. As used in this paragraph, health care services
shall include, but not be limited to, the following: Local health
departments, city or county hospitals, city or county nursing homes,
preventive health care services including immunizations, prenatal care
and the postponement of entry into nursing homes by home care
services, mental health services, indigent health care, physician or
health care worker recruitment, health education, emergency medical
services, rural health clinics, integration of health care services, home
health services and rural health networks.
(6) The board of county commissioners of Allen county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.5% and pledging the revenue received therefrom for the
purpose of financing the costs of operation and construction of a solid
waste disposal area or the modification of an existing landfill to comply
with federal regulations to the electors at an election called and held
thereon. The tax imposed pursuant to this paragraph shall expire upon
the payment of all costs incurred in the financing of the project
undertaken. Nothing in this paragraph shall be construed to allow the
rate of tax imposed by Allen county pursuant to this paragraph to
exceed or be imposed at any rate other than the rates prescribed in
K.S.A. 12-189, and amendments thereto.
(7) (A) The board of county commissioners of Clay and Miami SENATE BILL No. 410—page 6
county may submit the question of imposing a countywide retailers'
sales tax at the rate of 0.50% in the case of Clay county and at a rate of
up to 1% in the case of Miami county, and pledging the revenue
received therefrom for the purpose of financing the costs of roadway
construction and improvement to the electors at an election called and
held thereon. Except as otherwise provided, the tax imposed pursuant
to this subparagraph shall expire after five years from the date such tax
is first collected. The result of the election held on November 2, 2004,
on the question submitted by the board of county commissioners of
Miami county for the purpose of extending for an additional five-year
period the countywide retailers' sales tax imposed pursuant to this
subsection in Miami county is hereby declared valid. The countywide
retailers' sales tax imposed pursuant to this subsection in Clay and
Miami county may be extended or reenacted for additional five-year
periods upon the board of county commissioners of Clay and Miami
county submitting such question to the electors at an election called and
held thereon for each additional five-year period as provided by law.
(B) The board of county commissioners of Dickinson county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.5% and pledging the revenue received therefrom for the
purpose of financing the costs of roadway construction and
improvement to the electors at an election called and held thereon. The
tax imposed pursuant to this subparagraph shall expire after 10 years
from the date such tax is first collected.
(8) The board of county commissioners of Sherman county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 1% and pledging the revenue received therefrom for the purpose
of financing the costs of street and roadway improvements to the
electors at an election called and held thereon. The tax imposed
pursuant to this paragraph shall expire upon payment of all costs
authorized pursuant to this paragraph in the financing of such project.
(9) (A) The board of county commissioners of Cowley, Crawford
and Woodson county may submit the question of imposing a
countywide retailers' sales tax at the rate of 0.5% in the case of
Crawford and Woodson county and at a rate of up to 0.25%, in the case
of Cowley county and pledging the revenue received therefrom for the
purpose of financing economic development initiatives or public
infrastructure projects. The tax imposed pursuant to this subparagraph
shall expire after five years from the date such tax is first collected.
(B) The board of county commissioners of Russell county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.5% and pledging the revenue received therefrom for the
purpose of financing economic development initiatives or public
infrastructure projects. The tax imposed pursuant to this subparagraph
shall expire after 10 years from the date such tax is first collected.
(10) The board of county commissioners of Franklin county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.25% and pledging the revenue received therefrom for the
purpose of financing recreational facilities. The tax imposed pursuant
to this paragraph shall expire upon payment of all costs authorized in
financing such facilities.
(11) The board of county commissioners of Douglas county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.25% and pledging the revenue received therefrom for the
purposes of conservation, access and management of open space;
preservation of cultural heritage; and economic development projects
and activities.
(12) The board of county commissioners of Shawnee county may
submit the question of imposing a countywide retailers' sales tax at the SENATE BILL No. 410—page 7
rate of 0.25% and pledging the revenue received therefrom to the city
of Topeka for the purpose of financing the costs of rebuilding the
Topeka boulevard bridge and other public infrastructure improvements
associated with such project to the electors at an election called and
held thereon. The tax imposed pursuant to this paragraph shall expire
upon payment of all costs authorized in financing such project.
(13) The board of county commissioners of Jackson county may
submit the question of imposing a countywide retailers' sales tax at a
rate of 0.4% and pledging the revenue received therefrom for the
purpose of financing public infrastructure projects to the electors at an
election called and held thereon. Such tax shall expire after seven years
from the date such tax is first collected.
(14) The board of county commissioners of Neosho county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.5% and pledging the revenue received therefrom for the
purpose of financing the costs of roadway construction and
improvement to the electors at an election called and held thereon. The
tax imposed pursuant to this paragraph shall expire upon payment of all
costs authorized pursuant to this paragraph in the financing of such
project.
(15) The board of county commissioners of Saline county may
submit the question of imposing a countywide retailers' sales tax at the
rate of up to 0.5% and pledging the revenue received therefrom for the
purpose of financing the costs of construction and operation of an expo
center to the electors at an election called and held thereon. The tax
imposed pursuant to this paragraph shall expire after five years from
the date such tax is first collected.
(16) The board of county commissioners of Harvey county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 1.0% and pledging the revenue received therefrom for the
purpose of financing the costs of property tax relief, economic
development initiatives and public infrastructure improvements to the
electors at an election called and held thereon.
(17) The board of county commissioners of Atchison county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.25% and pledging the revenue received therefrom for the
purpose of financing the costs of construction and maintenance of
sports and recreational facilities to the electors at an election called and
held thereon. The tax imposed pursuant to this paragraph shall expire
upon payment of all costs authorized in financing such facilities.
(18) The board of county commissioners of Wabaunsee county
may submit the question of imposing a countywide retailers' sales tax at
the rate of 0.5% and pledging the revenue received therefrom for the
purpose of financing the costs of bridge and roadway construction and
improvement to the electors at an election called and held thereon. The
tax imposed pursuant to this paragraph shall expire after 15 years from
the date such tax is first collected. On and after July 1, 2019, the
countywide retailers' sales tax imposed pursuant to this paragraph may
be extended or reenacted for one additional period not to exceed 15
years upon the board of county commissioners of Wabaunsee county
submitting such question to the electors at an election called and held
thereon as provided by law. For any countywide retailers' sales tax that
is extended or reenacted pursuant to this paragraph, such tax shall
expire not later than 15 years from the date such tax is first collected.
(19) The board of county commissioners of Jefferson county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 1% and pledging the revenue received therefrom for the purpose
of financing the costs of roadway construction and improvement to the
electors at an election called and held thereon. The tax imposed SENATE BILL No. 410—page 8
pursuant to this paragraph shall expire after six years from the date
such tax is first collected. The countywide retailers' sales tax imposed
pursuant to this paragraph may be extended or reenacted for additional
six-year periods upon the board of county commissioners of Jefferson
county submitting such question to the electors at an election called and
held thereon for each additional six-year period as provided by law.
(20) The board of county commissioners of Riley county may
submit the question of imposing a countywide retailers' sales tax at the
rate of up to 1% and pledging the revenue received therefrom for the
purpose of financing the costs of bridge and roadway construction and
improvement to the electors at an election called and held thereon. The
tax imposed pursuant to this paragraph shall expire after five years
from the date such tax is first collected.
(21) The board of county commissioners of Johnson county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.25% and pledging the revenue received therefrom for the
purpose of financing the construction and operation costs of public
safety projects, including, but not limited to, a jail, detention center,
sheriff's resource center, crime lab or other county administrative or
operational facility dedicated to public safety, to the electors at an
election called and held thereon. The tax imposed pursuant to this
paragraph shall expire after 10 years from the date such tax is first
collected. The countywide retailers' sales tax imposed pursuant to this
subsection may be extended or reenacted for additional periods not
exceeding 10 years upon the board of county commissioners of
Johnson county submitting such question to the electors at an election
called and held thereon for each additional ten-year period as provided
by law.
(22) The board of county commissioners of Wilson county may
submit the question of imposing a countywide retailers' sales tax at the
rate of up to 1% and pledging the revenue received therefrom for the
purpose of financing the costs of roadway construction and
improvements to federal highways, the development of a new industrial
park and other public infrastructure improvements to the electors at an
election called and held thereon. The tax imposed pursuant to this
paragraph shall expire upon payment of all costs authorized pursuant to
this paragraph in the financing of such project or projects.
(23) The board of county commissioners of Butler county may
submit the question of imposing a countywide retailers' sales tax at the
rate of either 0.25%, 0.5%, 0.75% or 1% and pledging the revenue
received therefrom for the purpose of financing the costs of public
safety capital projects or bridge and roadway construction projects, or
both, to the electors at an election called and held thereon. The tax
imposed pursuant to this paragraph shall expire upon payment of all
costs authorized in financing such projects.
(24) The board of county commissioners of Barton county may
submit the question of imposing a countywide retailers' sales tax at the
rate of up to 0.5% and pledging the revenue received therefrom for the
purpose of financing the costs of roadway and bridge construction and
improvement and infrastructure development and improvement to the
electors at an election called and held thereon. The tax imposed
pursuant to this paragraph shall expire after 10 years from the date such
tax is first collected.
(25) The board of county commissioners of Jefferson county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.25% and pledging the revenue received therefrom for the
purpose of financing the costs of the county's obligation as participating
employer to make employer contributions and other required
contributions to the Kansas public employees retirement system for SENATE BILL No. 410—page 9
eligible employees of the county who are members of the Kansas police
and firemen's retirement system, to the electors at an election called and
held thereon. The tax imposed pursuant to this paragraph shall expire
upon payment of all costs authorized in financing such purpose.
(26) The board of county commissioners of Pottawatomie county
may submit the question of imposing a countywide retailers' sales tax at
the rate of up to 0.5% and pledging the revenue received therefrom for
the purpose of financing the costs of construction or remodeling of a
courthouse, jail, law enforcement center facility or other county
administrative facility, or public infrastructure improvements, or both,
to the electors at an election called and held thereon. The tax imposed
pursuant to this paragraph shall expire upon payment of all costs
authorized in financing such project or projects.
(27) The board of county commissioners of Kingman county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.25%, 0.5%, 0.75% or 1% and pledging the revenue received
therefrom for the purpose of financing the costs of constructing and
furnishing a law enforcement center and jail facility and the costs of
roadway and bridge improvements to the electors at an election called
and held thereon. The tax imposed pursuant to this paragraph shall
expire not later than 20 years from the date such tax is first collected.
(28) The board of county commissioners of Edwards county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.375% and pledging the revenue therefrom for the purpose of
financing the costs of economic development initiatives to the electors
at an election called and held thereon.
(29) The board of county commissioners of Rooks county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.5% and pledging the revenue therefrom for the purpose of
financing the costs of constructing or remodeling and furnishing a jail
facility to the electors at an election called and held thereon. The tax
imposed pursuant to this paragraph shall expire upon the payment of all
costs authorized in financing such project or projects.
(30) The board of county commissioners of Douglas county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.5% and pledging the revenue received therefrom for the
purpose of financing the construction or remodeling of a courthouse,
jail, law enforcement center facility, detention facility or other county
administrative facility, specifically including mental health and for the
operation thereof.
(31) The board of county commissioners of Bourbon county may
submit the question of imposing a countywide retailers' sales tax at the
rate of up to 1%, in increments of 0.05%, and pledging the revenue
received therefrom for the purpose of financing the costs of
constructing, furnishing and operating a courthouse, law enforcement
center or jail facility improvements to the electors at an election called
and held thereon.
(32) The board of county commissioners of Marion county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.5% and pledging the revenue received therefrom for the
purpose of financing the costs of property tax relief, economic
development initiatives and the construction of public infrastructure
improvements, including buildings, to the electors at an election called
and held thereon.
(33) The board of county commissioners of Wilson county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.25%, 0.5%, 0.75% or 1% and pledging the revenue received
therefrom for the purpose of supporting emergency medical and
ambulance services in the county to the electors at an election called SENATE BILL No. 410—page 10
and held thereon. The tax imposed pursuant to this paragraph shall
expire after 10 years from the date such tax is first collected. The
countywide retailers' sales tax imposed pursuant to this paragraph may
be extended or reenacted for additional periods not exceeding 10 years
per period upon the board of county commissioners of Wilson county
submitting such question to the electors at an election called and held
thereon for each additional period as provided by law. This paragraph
shall not be construed to cause the expiration, repeal or termination of
any existing city retailers' sales tax for health care services as defined in
paragraph (5).
(34) The board of county commissioners of Atchison county may
submit the question of imposing a countywide retailers' sales tax at the
rate of up to 1% and pledging the revenue received for the purpose of
joint law enforcement communications and solid waste disposal in
Atchison county to the electors at an election called and held thereon.
The tax imposed pursuant to this paragraph shall expire after 10 years
from the date such tax is first collected.
(35) The board of county commissioners of Dickinson county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.25% and pledging the revenue received therefrom for the
purpose of financing the costs of public safety capital projects to the
electors at an election called and held thereon. The tax imposed
pursuant to this paragraph shall expire after five years from the date
such tax is first collected. The countywide retailers' sales tax imposed
pursuant to this paragraph may be extended or reenacted for additional
five-year periods upon the board of county commissioners of
Dickinson county submitting such question to the electors at an election
called and held thereon for each additional five-year period as provided
by law.
(36) The board of county commissioners of Rawlins county may
submit the question of imposing a countywide retailers' sales tax at the
rate of up to 1% and pledging the revenue received therefrom for the
purpose of financing the costs of construction, remodeling, capital
improvements or maintenance of attendance centers or other district
facilities of any school district or school districts within the county. The
tax imposed pursuant to this paragraph shall expire upon payment of
all costs authorized in financing the costs of attendance centers or
other district facilities for U.S.D. No. 105.
(37) The board of county commissioners of Marshall county may
submit the question of imposing a countywide retailers' sales tax at the
rate of up to 1% and pledging the revenue therefrom for the purpose of
financing the costs of constructing or remodeling and furnishing a jail
facility to the electors at an election called and held thereon. The tax
imposed pursuant to this paragraph shall expire upon the payment of
all costs authorized in financing such project or projects.
(38) The board of county commissioners of Neosho county may
submit the question of imposing a countywide retailers' sales tax at the
rate of 0.5% and pledging the revenue received therefrom for the
purpose of financing the costs of roadway and bridge construction,
maintenance and improvement to the electors at an election called and
held thereon. The tax imposed pursuant to this paragraph shall expire
after 10 years from the date such tax is first collected.
(c) The boards of county commissioners of any two or more
contiguous counties, upon adoption of a joint resolution by such
boards, may submit the question of imposing a retailers' sales tax
within such counties to the electors of such counties at an election
called and held thereon and such boards of any two or more contiguous
counties shall be required to submit such question upon submission of a
petition in each of such counties, signed by a number of electors of SENATE BILL No. 410—page 11
each of such counties where submitted equal in number to not less than
10% of the electors of each of such counties who voted at the last
preceding general election for the office of secretary of state, or upon
receiving resolutions requesting such an election passed by not less
than
2
/3 of the membership of the governing body of each of one or
more cities within each of such counties that contains a population of
not less than 25% of the entire population of each of such counties, or
upon receiving resolutions requesting such an election passed by
2
/3 of
the membership of the governing body of each of one or more taxing
subdivisions within each of such counties that levy not less than 25% of
the property taxes levied by all taxing subdivisions within each of such
counties.
(d) Notwithstanding any provision of law to the contrary,
including subsection (b)(5), any city retailers' sales tax being levied by
a city prior to July 1, 2006, shall continue in effect until repealed in the
manner provided herein for the adoption and approval of such tax or
until repealed by the adoption of an ordinance for such repeal. Any
countywide retailers' sales tax in the amount of 0.5% or 1% in effect on
July 1, 1990, shall continue in effect until repealed in the manner
provided herein for the adoption and approval of such tax.
(e) Any city or county proposing to adopt a retailers' sales tax
shall give notice of its intention to submit such proposition for approval
by the electors in the manner required by K.S.A. 10-120, and
amendments thereto. The notices shall state the time of the election and
the rate and effective date of the proposed tax. If a majority of the
electors voting thereon at such election fail to approve the proposition,
such proposition may be resubmitted under the conditions and in the
manner provided in this act for submission of the proposition. If a
majority of the electors voting thereon at such election shall approve
the levying of such tax, the governing body of any such city or county
shall provide by ordinance or resolution, as the case may be, for the
levy of the tax. Any repeal of such tax or any reduction or increase in
the rate thereof, within the limits prescribed by K.S.A. 12-189, and
amendments thereto, shall be accomplished in the manner provided
herein for the adoption and approval of such tax except that the repeal
of any such city retailers' sales tax may be accomplished by the
adoption of an ordinance so providing.
(f) The sufficiency of the number of signers of any petition filed
under this section shall be determined by the county election officer.
Every election held under this act shall be conducted by the county
election officer.
(g) (1) The governing body of the city or county proposing to levy
any retailers' sales tax shall specify the purpose or purposes for which
the revenue would be used, and a statement generally describing such
purpose or purposes shall be included as a part of the ballot
proposition.
(2) In addition to the requirements set forth in paragraph (1), the
governing body of the county proposing to levy a countywide retailers'
sales tax shall include as a part of the ballot proposition whether:
(A) The apportionment formula provided in K.S.A. 12-192, and
amendments thereto, will apply to the revenue;
(B) an interlocal agreement was entered whereby the county will
retain either all or part of the revenue; or
(C) pursuant to law, the county retains the revenue in its entirety.
Sec. 4. K.S.A. 2023 Supp. 12-189 is hereby amended to read as
follows: 12-189. The rate of any city retailers' sales tax shall be fixed in
increments of 0.05% and in an amount not to exceed 2% for general
purposes and not to exceed 1% for special purposes, which shall be
determined by the governing body of the city. For any retailers' sales SENATE BILL No. 410—page 12
tax imposed by a city for special purposes, such city shall specify the
purposes for which such tax is imposed. All such special purpose
retailers' sales taxes imposed by a city shall expire after 10 years from
the date such tax is first collected. The rate of any countywide retailers'
sales tax shall be fixed in an amount not to exceed 1% and shall be
fixed in increments of 0.25%, and which amount shall be determined
by the board of county commissioners, except that:
(a) The board of county commissioners of Wabaunsee county, for
the purposes of K.S.A. 12-187(b)(2), and amendments thereto, may fix
such rate at 1.25%; the board of county commissioners of Osage or
Reno county, for the purposes of K.S.A. 12-187(b)(2), and amendments
thereto, may fix such rate at 1.25% or 1.5%; the board of county
commissioners of Cherokee, Crawford, Ford, Saline, Seward or
Wyandotte county, for the purposes of K.S.A. 12-187(b)(2), and
amendments thereto, may fix such rate at 1.5%; the board of county
commissioners of Atchison or Thomas county, for the purposes of
K.S.A. 12-187(b)(2), and amendments thereto, may fix such rate at
1.5% or 1.75%; the board of county commissioners of Anderson,
Barton, Jefferson or Ottawa county, for the purposes of K.S.A. 12-
187(b)(2), and amendments thereto, may fix such rate at 2%; the board
of county commissioners of Marion county, for the purposes of K.S.A.
12-187(b)(2), and amendments thereto, may fix such rate at 2.5%; the
board of county commissioners of Franklin, Linn and Miami counties,
for the purposes of K.S.A. 12-187(b)(2), and amendments thereto, may
fix such rate at a percentage that is equal to the sum of the rate allowed
to be imposed by the respective board of county commissioners on July
1, 2007, plus up to 1.0%; and the board of county commissioners of
Brown or Grant county, for the purposes of K.S.A. 12-187(b)(2), and
amendments thereto, may fix such rate at up to 2%;
(b) the board of county commissioners of Jackson county, for the
purposes of K.S.A. 12-187(b)(3), and amendments thereto, may fix
such rate at 2%;
(c) the boards of county commissioners of Finney and Ford
counties, for the purposes of K.S.A. 12-187(b)(4), and amendments
thereto, may fix such rate at 0.25%;
(d) the board of county commissioners of any county, for the
purposes of K.S.A. 12-187(b)(5), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate allowed to
be imposed by a board of county commissioners on the effective date
of this act plus 0.25%, 0.5%, 0.75% or 1%, as the case requires;
(e) the board of county commissioners of Dickinson county, for
the purposes of K.S.A. 12-187(b)(7), and amendments thereto, may fix
such rate at 1.5%, and the board of county commissioners of Miami
county, for the purposes of K.S.A. 12-187(b)(7), and amendments
thereto, may fix such rate at 1.25%, 1.5%, 1.75% or 2%;
(f) the board of county commissioners of Sherman county, for the
purposes of K.S.A. 12-187(b)(8), and amendments thereto, may fix
such rate at 2.25%;
(g) the board of county commissioners of Crawford or Russell
county for the purposes of K.S.A. 12-187(b)(9), and amendments
thereto, may fix such rate at 1.5%;
(h) the board of county commissioners of Franklin county, for the
purposes of K.S.A. 12-187(b)(10), and amendments thereto, may fix
such rate at 1.75%;
(i) the board of county commissioners of Douglas county, for the
purposes of K.S.A. 12-187(b)(11) and (b)(30), and amendments
thereto, may fix such rate at 1.75%;
(j) the board of county commissioners of Jackson county, for the
purposes of K.S.A. 12-187(b)(13), and amendments thereto, may fix SENATE BILL No. 410—page 13
such rate at 1.4%;
(k) the board of county commissioners of Sedgwick county, for
the purposes of K.S.A. 12-187(b)(3)(C), and amendments thereto, may
fix such rate at 2%;
(l) the board of county commissioners of Neosho county, for the
purposes of K.S.A. 12-187(b)(14), and amendments thereto, may fix
such rate at 1.0% or 1.5%;
(m) the board of county commissioners of Saline county, for the
purposes of K.S.A. 12-187(b)(15), and amendments thereto, may fix
such rate at up to 1.5%;
(n) the board of county commissioners of Harvey county, for the
purposes of K.S.A. 12-187(b)(16), and amendments thereto, may fix
such rate at 2.0%;
(o) the board of county commissioners of Atchison county, for the
purpose of K.S.A. 12-187(b)(17), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate allowed to
be imposed by the board of county commissioners of Atchison county
on the effective date of this act plus 0.25%;
(p) the board of county commissioners of Wabaunsee county, for
the purpose of K.S.A. 12-187(b)(18), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate allowed to
be imposed by the board of county commissioners of Wabaunsee
county on July 1, 2007, plus 0.5%;
(q) the board of county commissioners of Jefferson county, for the
purpose of K.S.A. 12-187(b)(19) and (25), and amendments thereto,
may fix such rate at 2.25%;
(r) the board of county commissioners of Riley county, for the
purpose of K.S.A. 12-187(b)(20), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate allowed to
be imposed by the board of county commissioners of Riley county on
July 1, 2007, plus up to 1%;
(s) the board of county commissioners of Johnson county, for the
purposes of K.S.A. 12-187(b)(21), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate allowed to
be imposed by the board of county commissioners of Johnson county
on July 1, 2007, plus 0.25%;
(t) the board of county commissioners of Wilson county, for the
purposes of K.S.A. 12-187(b)(22), and amendments thereto, may fix
such rate at up to 2%;
(u) the board of county commissioners of Butler county, for the
purposes of K.S.A. 12-187(b)(23), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate otherwise
allowed pursuant to this section, plus 0.25%, 0.5%, 0.75% or 1%;
(v) the board of county commissioners of Barton county, for the
purposes of K.S.A. 12-187(b)(24), and amendments thereto, may fix
such rate at up to 1.5%;
(w) the board of county commissioners of Lyon county, for the
purposes of K.S.A. 12-187(b)(3)(D), and amendments thereto, may fix
such rate at 1.5%;
(x) the board of county commissioners of Rawlins county, for the
purposes of K.S.A. 12-187(b)(3)(E), and amendments thereto, may fix
such rate at 1.75%;
(y) the board of county commissioners of Chautauqua county, for
the purposes of K.S.A. 12-187(b)(3)(F), and amendments thereto, may
fix such rate at 2.0%;
(z) the board of county commissioners of Pottawatomie county,
for the purposes of K.S.A. 12-187(b)(26), and amendments thereto,
may fix such rate at up to 1.5%;
(aa) the board of county commissioners of Kingman county, for SENATE BILL No. 410—page 14
the purposes of K.S.A. 12-187(b)(27), and amendments thereto, may
fix such rate at a percentage that is equal to the sum of the rate
otherwise allowed pursuant to this section, plus 0.25%, 0.5%, 0.75%,
or 1%;
(bb) the board of county commissioners of Edwards county, for
the purposes of K.S.A. 12-187(b)(28), and amendments thereto, may
fix such rate at 1.375%;
(cc) the board of county commissioners of Rooks county, for the
purposes of K.S.A. 12-187(b)(29), and amendments thereto, may fix
such rate at up to 1.5%;
(dd) the board of county commissioners of Bourbon county, for
the purposes of K.S.A. 12-187(b)(3)(G) and (b)(31), and amendments
thereto, may fix such rate at up to 2.0%;
(ee) the board of county commissioners of Marion county, for the
purposes of K.S.A. 12-187(b)(32), and amendments thereto, may fix
such rate at 2.5%;
(ff) the board of county commissioners of Finney county, for the
purposes of K.S.A. 12-187(b)(3)(H), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate otherwise
allowed pursuant to this section, plus 0.3%;
(gg) the board of county commissioners of Cherokee county, for
the purposes of K.S.A. 12-187(b)(3)(I), and amendments thereto, may
fix such rate at a percentage that is equal to the sum of the rate
otherwise allowed pursuant to this section, plus 0.5%;
(hh) the board of county commissioners of Wilson county, for the
purposes of K.S.A. 12-187(b)(33), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate otherwise
allowed pursuant to this section, plus 0.25%, 0.5%, 0.75% or 1%;
(ii) the board of county commissioners of Atchison county, for the
purposes of K.S.A. 12-187(b)(34), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate otherwise
allowed pursuant to this section, plus up to 1%; and
(jj) the board of county commissioners of Dickinson county, for
the purposes of K.S.A. 12-187(b)(35), and amendments thereto, may
fix such rate at a percentage that is equal to the sum of the rate
otherwise allowed pursuant to this section, plus 0.25%;
(kk) the board of county commissioners of Rawlins county, for the
purposes of K.S.A. 12-187(b)(36), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate otherwise
allowed pursuant to this section, plus up to 1%;
(ll) the board of county commissioners of Marshall county, for the
purposes of K.S.A. 12-187(b)(37), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate otherwise
allowed pursuant to this section, plus up to 1%; and
(mm) the board of county commissioners of Neosho county, for the
purposes of K.S.A. 12-187(b)(38), and amendments thereto, may fix
such rate at a percentage that is equal to the sum of the rate otherwise
allowed pursuant to this section, plus 0.5%.
Any county or city levying a retailers' sales tax is hereby prohibited
from administering or collecting such tax locally, but shall utilize the
services of the state department of revenue to administer, enforce and
collect such tax. Except as otherwise specifically provided in K.S.A.
12-189a, and amendments thereto, such tax shall be identical in its
application, and exemptions therefrom, to the Kansas retailers' sales tax
act and all laws and administrative rules and regulations of the state
department of revenue relating to the Kansas retailers' sales tax shall
apply to such local sales tax insofar as such laws and rules and
regulations may be made applicable. The state director of taxation is
hereby authorized to administer, enforce and collect such local sales SENATE BILL No. 410—page 15
taxes and to adopt such rules and regulations as may be necessary for
the efficient and effective administration and enforcement thereof.
Upon receipt of a certified copy of an ordinance or resolution
authorizing the levy of a local retailers' sales tax, the director of
taxation shall cause such taxes to be collected within or without the
boundaries of such taxing subdivision at the same time and in the same
manner provided for the collection of the state retailers' sales tax. Such
copy shall be submitted to the director of taxation within 30 days after
adoption of any such ordinance or resolution. The director of taxation
shall confirm that all provisions of law applicable to the authorization
of local sales tax have been followed prior to causing the collection. If
the director of taxation discovers that a city or county did not comply
with any provision of law applicable to the authorization of a local
sales tax after collection has commenced, the director shall
immediately notify the city or county and cease collection of such sales
tax until such noncompliance is remedied. All moneys collected by the
director of taxation under the provisions of this section shall be credited
to a county and city retailers' sales tax fund which fund is hereby
established in the state treasury, except that all moneys collected by the
director of taxation pursuant to the authority granted in K.S.A. 12-
187(b)(22), and amendments thereto, shall be credited to the Wilson
county capital improvements fund. Any refund due on any county or
city retailers' sales tax collected pursuant to this act shall be paid out of
the sales tax refund fund and reimbursed by the director of taxation
from collections of local retailers' sales tax revenue. Except for local
retailers' sales tax revenue required to be deposited in the
redevelopment bond fund established under K.S.A. 74-8927, and
amendments thereto, all local retailers' sales tax revenue collected
within any county or city pursuant to this act shall be apportioned and
remitted at least quarterly by the state treasurer, on instruction from the
director of taxation, to the treasurer of such county or city.
Revenue that is received from the imposition of a local retailers'
sales tax that exceeds the amount of revenue required to pay the costs
of a special project for which such revenue was pledged shall be
credited to the city or county general fund, as the case requires.
The director of taxation shall provide, upon request by a city or
county clerk or treasurer or finance officer of any city or county
levying a local retailers' sales tax, monthly reports identifying each
retailer doing business in such city or county or making taxable sales
sourced to such city or county, setting forth the tax liability and the
amount of such tax remitted by each retailer during the preceding
month and identifying each business location maintained by the retailer
and such retailer's sales or use tax registration or account number. Such
report shall be made available to the clerk or treasurer or finance officer
of such city or county within a reasonable time after it has been
requested from the director of taxation. The director of taxation shall be
allowed to assess a reasonable fee for the issuance of such report.
Information received by any city or county pursuant to this section shall
be confidential, and it shall be unlawful for any officer or employee of
such city or county to divulge any such information in any manner. Any
violation of this paragraph by a city or county officer or employee is a
class A misdemeanor, and such officer or employee shall be dismissed
from office. Reports of violations of this paragraph shall be
investigated by the attorney general. The district attorney or county
attorney and the attorney general shall have authority to prosecute
violations of this paragraph.
Sec. 5. K.S.A. 2023 Supp. 12-192 is hereby amended to read as
follows: 12-192. (a) Except as otherwise provided by subsection (b),
(d) or (h), all revenue received by the director of taxation from a SENATE BILL No. 410—page 16
countywide retailers' sales tax shall be apportioned among the county
and each city located in such county in the following manner:
(1)
1
/2 of all revenue received by the director of taxation shall be
apportioned among the county and each city located in such county in
the proportion that the total tangible property tax levies made in such
county in the preceding year for all funds of each such governmental
unit bear to the total of all such levies made in the preceding year; and
(2)
1
/2 of all revenue received by the director of taxation from such
countywide retailers' sales tax shall be apportioned among the county
and each city located in such county, first to the county that portion of
the revenue equal to the proportion that the population of the county
residing in the unincorporated area of the county bears to the total
population of the county, and second to the cities in the proportion that
the population of each city bears to the total population of the county,
except that no persons residing within the Fort Riley military
reservation shall be included in the determination of the population of
any city located within Riley county.
All revenue apportioned to a county shall be paid to its county
treasurer and shall be credited to the general fund of the county.
(b) (1) In lieu of the apportionment formula provided in
subsection (a), all revenue received by the director of taxation from a
countywide retailers' sales tax imposed within Johnson county at the
rate of 0.75%, 1% or 1.25% after July 1, 2007, shall be apportioned
among the county and each city located in such county in the following
manner:
(A) The revenue received from the first 0.5% rate of tax shall be
apportioned in the manner prescribed by subsection (a); and
(B) the revenue received from the rate of tax exceeding 0.5% shall
be apportioned as follows:
(i)
1
/4 shall be apportioned among the county and each city located
in such county in the proportion that the total tangible property tax
levies made in such county in the preceding year for all funds of each
such governmental unit bear to the total of all such levies made in the
preceding year;
(ii)
1
/4 shall be apportioned among the county and each city
located in such county, first to the county that portion of the revenue
equal to the proportion that the population of the county residing in the
unincorporated area of the county bears to the total population of the
county, and second to the cities in the proportion that the population of
each city bears to the total population of the county; and
(iii)
1
/2 shall be retained by the county for its sole use and benefit.
(2) In lieu of the apportionment formula provided in subsection
(a), all money received by the director of taxation from a countywide
sales tax imposed within Montgomery county pursuant to the election
held on November 8, 1994, shall be remitted to and shall be retained by
the county and expended only for the purpose for which the revenue
received from the tax was pledged. All revenue apportioned and paid
from the imposition of such tax to the treasurer of any city prior to the
effective date of this act shall be remitted to the county treasurer and
expended only for the purpose for which the revenue received from the
tax was pledged.
(3) In lieu of the apportionment formula provided in subsection
(a), on and after the effective date of this act, all moneys received by
the director of taxation from a countywide retailers' sales tax imposed
within Phillips county pursuant to the election held on September 20,
2005, shall be remitted to and shall be retained by the county and
expended only for the purpose for which the revenue received from the
tax was pledged.
(c) (1) Except as otherwise provided by paragraph (2) of this SENATE BILL No. 410—page 17
subsection, for purposes of subsections (a) and (b), the term "total
tangible property tax levies" means the aggregate dollar amount of tax
revenue derived from ad valorem tax levies applicable to all tangible
property located within each such city or county. The ad valorem
property tax levy of any county or city district entity or subdivision
shall be included within this term if the levy of any such district entity
or subdivision is applicable to all tangible property located within each
such city or county.
(2) For the purposes of subsections (a) and (b), any ad valorem
property tax levied on property located in a city in Johnson county for
the purpose of providing fire protection service in such city shall be
included within the term "total tangible property tax levies" for such
city regardless of its applicability to all tangible property located within
each such city. If the tax is levied by a district which extends across city
boundaries, for purposes of this computation, the amount of such levy
shall be apportioned among each city in which such district extends in
the proportion that such tax levied within each city bears to the total tax
levied by the district.
(d) (1) All revenue received from a countywide retailers' sales tax
imposed pursuant to K.S.A. 12-187(b)(2), (3)(C), (3)(F), (3)(G), (3)(I),
(6), (7), (8), (9), (12), (14), (15), (16), (17), (18), (19), (20), (22), (23),
(25), (27), (28), (29), (30), (31), (32), (33), (34) and, (35), (36), (37)
and (38), and amendments thereto, shall be remitted to and shall be
retained by the county and expended only for the purpose for which the
revenue received from the tax was pledged.
(2) Except as otherwise provided in K.S.A. 12-187(b)(5), and
amendments thereto, all revenues received from a countywide retailers'
sales tax imposed pursuant to K.S.A. 12-187(b)(5), and amendments
thereto, shall be remitted to and shall be retained by the county and
expended only for the purpose for which the revenue received from the
tax was pledged.
(3) All revenue received from a countywide retailers' sales tax
imposed pursuant to K.S.A. 12-187(b)(26), and amendments thereto,
shall be remitted to and shall be retained by the county and expended
only for the purpose for which the revenue received from the tax was
pledged unless the question of imposing a countywide retailers' sales
tax authorized by K.S.A. 12-187(b)(26), and amendments thereto,
includes the apportionment of revenue prescribed in subsection (a).
(e) All revenue apportioned to the several cities of the county shall
be paid to the respective treasurers thereof and deposited in the general
fund of the city. Whenever the territory of any city is located in two or
more counties and any one or more of such counties do not levy a
countywide retailers' sales tax, or whenever such counties do not levy
countywide retailers' sales taxes at a uniform rate, the revenue received
by such city from the proceeds of the countywide retailers' sales tax, as
an alternative to depositing the same in the general fund, may be used
for the purpose of reducing the tax levies of such city upon the taxable
tangible property located within the county levying such countywide
retailers' sales tax.
(f) Prior to March 1 of each year, the secretary of revenue shall
advise each county treasurer of the revenue collected in such county
from the state retailers' sales tax for the preceding calendar year.
(g) Prior to December 31 of each year, the clerk of every county
imposing a countywide retailers' sales tax shall provide such
information deemed necessary by the secretary of revenue to apportion
and remit revenue to the counties and cities pursuant to this section.
(h) The provisions of subsections (a) and (b) for the
apportionment of countywide retailers' sales tax shall not apply to any
revenues received pursuant to a county or countywide retailers' sales SENATE BILL No. 410—page 18
tax levied or collected under K.S.A. 74-8929, and amendments thereto.
All such revenue collected under K.S.A. 74-8929, and amendments
thereto, shall be deposited into the redevelopment bond fund
established by K.S.A. 74-8927, and amendments thereto, for the period
of time set forth in K.S.A. 74-8927, and amendments thereto.
Sec. 6. K.S.A. 2023 Supp. 74-2433f is hereby amended to read as
follows: 74-2433f. (a) There shall be a division of the state board of tax
appeals known as the small claims and expedited hearings division.
Hearing officers appointed by the chief hearing officer shall have
authority to hear and decide cases heard in the small claims and
expedited hearings division.
(b) The small claims and expedited hearings division shall have
jurisdiction over hearing and deciding applications for the refund of
protested taxes under the provisions of K.S.A. 79-2005, and
amendments thereto, and hearing and deciding appeals from decisions
rendered pursuant to the provisions of K.S.A. 79-1448, and
amendments thereto, and of article 16 of chapter 79 of the Kansas
Statutes Annotated, and amendments thereto, with regard to single-
family residential property. The filing of an appeal with the small
claims and expedited hearings division shall be a prerequisite for filing
an appeal with the state board of tax appeals for appeals involving
single-family residential property.
(c) At the election of the taxpayer, the small claims and expedited
hearings division shall have jurisdiction over: (1) Any appeal of a
decision, finding, order or ruling of the director of taxation, except an
appeal, finding, order or ruling relating to an assessment issued
pursuant to K.S.A. 79-5201 et seq., and amendments thereto, in which
the amount of tax in controversy does not exceed $15,000; (2) hearing
and deciding applications for the refund of protested taxes under the
provisions of K.S.A. 79-2005, and amendments thereto, where the
value of the property, other than property devoted to agricultural use, is
less than $3,000,000 as reflected on the valuation notice; and (3)
hearing and deciding appeals from decisions rendered pursuant to the
provisions of K.S.A. 79-1448, and amendments thereto, and of article
16 of chapter 79 of the Kansas Statutes Annotated, and amendments
thereto, other than those relating to land devoted to agricultural use,
wherein the value of the property is less than $3,000,000 as reflected on
the valuation notice.
(d) In accordance with the provisions of K.S.A. 74-2438, and
amendments thereto, any party may elect to appeal any application or
decision referenced in subsection (b) to the state board of tax appeals.
Except as provided in subsection (b) regarding single-family residential
property, the filing of an appeal with the small claims and expedited
hearings division shall not be a prerequisite for filing an appeal with the
state board of tax appeals under this section. Final decisions of the
small claims and expedited hearings division may be appealed to the
state board of tax appeals. An appeal of a decision of the small claims
and expedited hearings division to the state board of tax appeals shall
be de novo. The county bears the burden of proof in any appeal filed by
the county pursuant to this section. With regard to any matter properly
submitted to the board relating to the determination of valuation of
property for taxation purposes pursuant to this subsection, the board
shall not increase the appraised valuation of the property to an amount
greater than the final determination of appraised value by the county
appraiser from which the taxpayer appealed to the small claims and
expedited hearings division.
(e) A taxpayer shall commence a proceeding in the small claims
and expedited hearings division by filing a notice of appeal in the form
prescribed by the rules of the state board of tax appeals which shall SENATE BILL No. 410—page 19
state the nature of the taxpayer's claim. The notice of appeal may be
signed by the taxpayer, any person with an executed declaration of
representative form from the property valuation division of the
department of revenue or any person authorized to represent the
taxpayer in subsection (f). Notice of appeal shall be provided to the
appropriate unit of government named in the notice of appeal by the
taxpayer. In any valuation appeal or tax protest commenced pursuant to
articles 14 and 20 of chapter 79 of the Kansas Statutes Annotated, and
amendments thereto, the hearing shall be conducted in the county
where the property is located or a county adjacent thereto. In or any
appeal from a final determination by the secretary of revenue, the
hearing shall may be conducted in the county in which the taxpayer
resides or a county adjacent thereto by teleconference or video
conference as directed by the chief hearing officer or a designee.
(f) The hearing in the small claims and expedited hearings
division shall be informal. The hearing officer may hear any testimony
and receive any evidence the hearing officer deems necessary or
desirable for a just determination of the case. A hearing officer shall
have the authority to administer oaths in all matters before the hearing
officer. All testimony shall be given under oath. A party may appear
personally or may be represented by an attorney, a certified public
accountant, a certified general appraiser, a tax representative or agent, a
member of the taxpayer's immediate family or an authorized employee
of the taxpayer. A county or unified government may be represented by
the county appraiser, designee of the county appraiser, county attorney
or counselor or other representatives so designated. No transcript of the
proceedings shall be kept.
(g) The hearing in the small claims and expedited hearings
division shall be conducted within 60 days after the appeal is filed in
the small claims and expedited hearings division unless such time
period is waived by the taxpayer. A decision shall be rendered by the
hearing officer within 30 days after the hearing is concluded and, in
cases arising from appeals described by subsections (b) and (c)(2) and
(3), shall be accompanied by a written explanation of the reasoning
upon which such decision is based. Documents provided by a taxpayer
or county or district appraiser shall be returned to the taxpayer or the
county or district appraiser by the hearing officer and shall not become
a part of the board's permanent records. Documents provided to the
hearing officer shall be confidential and may not be disclosed, except
as otherwise specifically provided.
(h) With regard to any matter properly submitted to the division
relating to the determination of valuation of property 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. No
presumption shall exist in favor of the county appraiser with respect to
the validity and correctness of such determination. With regard to
leased commercial and industrial property, the burden of proof shall be
on the taxpayer unless the taxpayer has furnished the county or district
appraiser, within 30 calendar days following the informal meeting
required by K.S.A. 79-1448, and amendments thereto, or within 30
calendar days following the informal meeting required by K.S.A. 79-
2005, and amendments thereto, a complete income and expense
statement for the property for the three years next preceding the year of
appeal. Such income and expense statement shall be in such format that
is regularly maintained by the taxpayer in the ordinary course of the
taxpayer's business. If the taxpayer submits a single property appraisal
with an effective date of January 1 of the year appealed, the burden of
proof shall return to the county appraiser. With regard to any matter SENATE BILL No. 410—page 20
properly submitted to the division relating to the determination of
valuation of property for taxation purposes, the hearing officer shall not
increase the appraised valuation of the property to an amount greater
than the final determination of appraised value by the county appraiser
from which the taxpayer appealed.
Sec. 7. K.S.A. 79-257 is hereby amended to read as follows: 79-
257. The following described property, to the extent herein specified,
shall be exempt from all property or ad valorem taxes levied under the
laws of the state of Kansas:
(a) All electric generation facilities described in subsection (e) of
K.S.A. 66-104(e), and amendments thereto.
(b) The provisions of subsection (a) shall apply:
(1) Except as provided in paragraph (2), from and after
commencement of construction of such property and for the 12 taxable
years immediately following the taxable year in which construction of
such property is completed; or
(2) for peak load plants, from and after commencement of
construction of such property and for the six taxable years immediately
following the taxable year in which construction of such property is
completed.
(c) All pollution control devices purchased for or constructed or
installed at electric generation facilities described in subsection (e) of
K.S.A. 66-104(e), and amendments thereto.
(d) The provisions of subsection (c) shall apply:
(1) Except as provided in paragraph (2), from and after purchase
or commencement of construction or installation of such property and
for the 12 taxable years immediately following the taxable year in
which such property is purchased or construction or installation of such
property is completed; or
(2) for a peak load plant, from and after purchase or
commencement of construction or installation of such property and for
the six taxable years immediately following the taxable year in which
such property is purchased or construction or installation of such
property is completed.
(e) The provisions of this section shall apply to all taxable years
commencing after December 31, 2000, but only to property for which
the applicant filed an application for exemption pursuant to this
section on or before December 31, 2024. No application for exemption
pursuant to this section shall be filed after December 31, 2024.
Sec. 8. K.S.A. 79-258 is hereby amended to read as follows: 79-
258. The following described property, to the extent herein specified,
shall be exempt from all property taxes levied under the laws of the
state of Kansas:
(a) All electric generation facilities and additions to electric
generation facilities described in subsection (b)(2)(C) of K.S.A. 66-
128(b)(2)(C), and amendments thereto.
(b) The provisions of subsection (a) shall apply: (1) Except as
provided in paragraph (2), from and after commencement of
construction of such property and for the 10 taxable years immediately
following the taxable year in which construction of such property is
completed; or (2) for a peak load plant, from and after commencement
of construction of such peak load plant and for the four taxable years
immediately following the taxable year in which construction of such
property is completed.
(c) All pollution control devices purchased for or constructed or
installed at electric generation facilities described in subsection (b)(2)
(C) of K.S.A. 66-128(b)(2)(C), and amendments thereto.
(d) The provisions of subsection (c) shall apply:
(1) Except as provided in paragraph (2), from and after purchase SENATE BILL No. 410—page 21
or commencement of construction or installation of such property and
for the 10 taxable years immediately following the taxable year in
which such property is purchased or construction or installation of such
property is completed; or
(2) for a peak load plant, from and after purchase or
commencement of construction or installation of such property and for
the four taxable years immediately following the taxable year in which
such property is purchased or construction or installation of such
property is completed.
(e) As used in this section, "peak load plant" means an electric
generation facility used during maximum load periods.
(f) The provisions of this section shall apply to all taxable years
commencing after December 31, 2000, but only to property for which
the applicant filed an application for exemption pursuant to this
section on or before December 31, 2024. No application for exemption
pursuant to this section shall be filed after December 31, 2024.
Sec. 9. K.S.A. 79-306 is hereby amended to read as follows: 79-
306. On or before March 15 of each year, or the next following
business day if such date falls on a day other than a regular business
day, every person, association, company or corporation required by this
act to list property shall make and personally sign a statement listing all
tangible personal property which by this act such person is required to
list, either as the owner thereof, or as parent, guardian, trustee,
executor, administrator, receiver, accounting officer, partner or agent, as
the case may be, and deliver the same to the county appraiser of the
county where such property has its situs for the purpose of taxation. In
addition to the foregoing requirements, any such statement prepared by
a personal property tax rendition form preparer shall be certified as true
and correct by such preparer's signature. If a person has filed an initial
statement listing property with the county appraiser pursuant to this
section, no subsequent annual statement shall be required to be filed
with the county appraiser regarding such property unless there is a
change to report relating to the property previously listed or the
statement.
Sec. 10. K.S.A. 79-332a is hereby amended to read as follows: 79-
332a. (a) Any person, corporation or association owning oil and gas
leases or engaged in operating for oil or gas who fails to make and file
a statement of assessment on or before April 1 shall be subject to a
penalty as follows:
(1) The appraiser shall, after having ascertained the assessed value
of the property of such taxpayer, add 5% 2% thereto as a penalty for
late filing if the failure is not for more than one month, with an
additional 5% 2% for each additional month or fraction thereof during
which such failure continues, not exceeding 25% 10% in the aggregate.
(2) If the statement of assessment is filed more than one year from
April 1, the appraiser shall, after having ascertained the assessed value
of the property of such taxpayer, add 50% 12.5% thereto as a penalty
for late filing. The county treasurer may not distribute any taxes
assessed under this section and paid under protest by the taxpayer
pursuant to K.S.A. 79-2005, and amendments thereto, until such time
as the appeal is final.
(b) For good cause shown the county appraiser may extend the
time in which to make and file such statement. Such request for
extension of time shall be in writing and shall be received by the county
appraiser prior to the due date of the statement of assessment.
(c) Whenever any person, corporation or association owning oil
and gas leases or engaged in operating for oil or gas shall fail to make
and deliver to the county appraiser of every county wherein the
property to be assessed is located, a full and complete statement of SENATE BILL No. 410—page 22
assessment relative to such property as required by blank forms
prepared or approved for the purpose by the director of property
valuation to elicit the information necessary to fix the valuation of the
property, the appraiser shall ascertain the assessed value of the property
of such taxpayer, and shall add 50% 12.5% thereto as a penalty for
failing to file such statement.
(d) The state board of tax appeals shall have the authority to abate
any penalty imposed under the provisions of this section and order the
refund of the abated penalty, whenever excusable neglect on the part of
the person, corporation or association required to make and file the
statement of assessment is shown, or whenever the property for which a
statement of assessment was not filed as required by law is repossessed,
judicially or otherwise, by a secured creditor and such secured creditor
pays the taxes and interest due.
Sec. 11. K.S.A. 79-1422 is hereby amended to read as follows: 79-
1422. (a) Any person required to file a statement listing property for
assessment and taxation purposes under the provisions of this act who
fails to make and file such statement on or before the date prescribed by
K.S.A. 79-306, and amendments thereto, shall be subject to a penalty as
follows:
The appraiser shall, after having ascertained the assessed value of
the property of such taxpayer, add 5% 2% thereto as a penalty for late
filing if the failure is not for more than one month, with an additional
5% 2% for each additional month or fraction thereof during which such
failure continues, not exceeding 25% 10% in the aggregate.
For good cause shown the appraiser may shall extend the a
reasonable amount of time in which to make and file such statement.
Such request for extension of time must be in writing and shall state
just and adequate reasons on which the request may shall be granted.
The request must be received by the appraiser prior to the due date of
the statement. For purposes of this section, on and after January 1,
2022, good cause for granting an extension of time in which to make
and file a statement listing property for assessment and taxation
purposes shall include, but not be limited to, the previous classification
of the property as real property or as a fixture to real property. Such
previous classification shall specifically include, but not be limited to,
machinery and equipment used in the grain storage and processing
industry, ethanol processing industry or other biofuels processing
industry that had been previously classified as real property or fixtures
to real property.
(b) If, within one year following the date prescribed by K.S.A. 79-
306, and amendments thereto, any person shall fail to make and file the
statement listing property for assessment and taxation purposes or shall
fail to make and file a full and complete statement listing property for
such purposes, the appraiser shall proceed to ascertain the assessed
value of the property of such taxpayer, and for this purpose the
appraiser may examine under oath any person or persons whom the
appraiser deems to have knowledge thereof. The appraiser shall, after
having ascertained the assessed value of such property, add 50% 12.5%
thereto as a penalty for failure to file such statement or for failure to file
a full and complete statement.
(c) The state board of tax appeals or the county appraiser shall
have the authority to abate any penalty imposed under the provisions of
this section and order the refund of the abated penalty, whenever
excusable neglect on the part of the person required to make and file
the statement listing property for assessment and taxation purposes is
shown, or whenever the property for which a statement of assessment
was not filed as required by law is repossessed, judicially or otherwise,
by a secured creditor and such secured creditor pays the taxes and SENATE BILL No. 410—page 23
interest due. For purposes of this section, on and after January 1,
2022, excusable neglect for the failure to make and file a statement
listing property for assessment and taxation purposes shall include, but
not be limited to, the previous classification of the property as real
property or as a fixture to real property. Such previous classification
shall specifically include, but not be limited to, machinery and
equipment used in the grain storage and processing industry, ethanol
processing industry or other biofuels processing industry that had been
previously classified as real property or fixtures to real property.
Sec. 12. K.S.A. 79-1427a is hereby amended to read as follows:
79-1427a. (a) If, the county appraiser discovers, after the tax roll has
been certified to the county clerk, that any tangible personal property
subject to taxation has been omitted from the tax rolls, the county clerk
shall place such property on the tax roll as an added tax, or if, after one
year from the date prescribed by K.S.A. 79-306, and amendments
thereto, for the listing of tangible personal property, the county
appraiser discovers that any tangible personal property which that was
subject to taxation in any year or years within two years next preceding
January 1 of the calendar year in which it was discovered has not been
listed or has been underreported for whatever reason, such property
shall be deemed to have escaped taxation. In the case of property which
that has not been listed, it shall be the duty of the county appraiser to
list and appraise such property and, for an added tax, add penalties as
prescribed in K.S.A. 79-1422, and amendments thereto, and which that
shall be designated on the appraisal roll as an added appraisal for that
year. In the case of property which that has escaped taxation, it shall be
the duty of the county appraiser to list and appraise such property and
add 50% 12.5% thereto as a penalty for escaping taxation for each such
year during which such property was not listed, and it shall be
designated on the appraisal roll as "escaped appraisal" for each such
preceding year or years. In the case of property which that has been
listed but underreported, it shall be the duty of the county appraiser to
list and appraise the underreported portion of such property and add
50% 12.5% thereto as a penalty for escaping taxation for each such
year during which such property was underreported, and it shall be
designated on the appraisal roll as "escaped appraisal" for each such
preceding year or years. The county clerk, upon receipt of the valuation
for such property in either of the aforementioned cases, shall place such
property on the tax rolls and compute the amount of tax due based upon
the mill levy for the year or years in which such tax should have been
levied, and shall certify such amount to the county treasurer as an
added or escaped appraisal. The amount of such tax shall be due
immediately and payable within 45 days after the issuance of an
additional or escaped property tax bill by the county treasurer. The
county treasurer may not distribute any taxes assessed under this
section and paid under protest by the taxpayer pursuant to K.S.A. 79-
2005, and amendments thereto, until such time as the appeal is final.
No interest shall be imposed unless the tax remains unpaid after such
45-day period. Taxes levied pursuant to this section which that remain
unpaid after such 45-day period shall be deemed delinquent and the
county treasurer shall collect and distribute such tax in the same
manner as prescribed by law for the collection and distribution of other
taxes levied upon property which that are delinquent. If the owner of
such property is deceased, taxes charged as herein provided shall be
levied against the estate of such deceased person for only two calendar
years preceding death and shall be paid by the legal representative or
representatives of such estate. In the event that such escaped appraisal
is due to any willful or clerical error of the county appraiser, such
property shall be appraised at its fair market value and no penalty shall SENATE BILL No. 410—page 24
be added.
(b) A taxpayer with a grievance as to any penalty applied pursuant
to the provisions of this section, may appeal to the state board of tax
appeals on forms prepared by the state board of tax appeals and
provided by the county appraiser. The state board of tax appeals shall
have the authority to abate any penalty imposed under the provisions of
this section and order the refund of the abated penalty, whenever
excusable neglect on the part of the person required to make and file
the statement listing property for assessment and taxation purposes is
shown, or whenever the property which that has been deemed to have
escaped taxation is repossessed, judicially or otherwise, by a secured
creditor and such creditor pays the taxes and interest due. No interest
shall be assessed during the pendency of this appeal.
(c) The provisions of this section shall apply to any tangible
personal property discovered during the calendar years 1982, 1983,
1984 and any year thereafter to have escaped appraisal and taxation
during any such year or any year within two years next preceding any
such year.
Sec. 13. K.S.A. 2023 Supp. 79-1476 is hereby amended to read as
follows: 79-1476. (a) The director of property valuation is hereby
directed and empowered to administer and supervise a statewide
program of reappraisal of all real property located within the state.
Except as otherwise authorized by K.S.A. 19-428, and amendments
thereto, each county shall comprise a separate appraisal district under
such program, and the county appraiser shall have the duty of
reappraising all of the real property in the county pursuant to guidelines
and timetables prescribed by the director of property valuation and of
updating the same on an annual basis. In the case of multi-county
appraisal districts, the district appraiser shall have the duty of
reappraising all of the real property in each of the counties comprising
the district pursuant to such guidelines and timetables and of updating
the same on an annual basis. Commencing in 2000, every parcel of real
property shall be actually viewed and inspected by the county or district
appraiser once every six years.
Compilation of data for the initial preparation or updating of
inventories for each parcel of real property and entry thereof into the
state computer system as provided for in K.S.A. 79-1477, and
amendments thereto, shall be completed not later than January 1, 1989.
Whenever the director determines that reappraisal of all real property
within a county is complete, notification thereof shall be given to the
governor and to the state board of tax appeals.
(b) Valuations shall be established for each parcel of real property
at its fair market value in money in accordance with the provisions of
K.S.A. 79-503a, and amendments thereto.
In addition thereto, (c) (1) Valuations shall be established for each
parcel of land devoted to agricultural use upon the basis of the
agricultural income or productivity attributable to the inherent
capabilities of such land in its current usage under a degree of
management reflecting median production levels in the manner
hereinafter provided. A classification system for all land devoted to
agricultural use shall be adopted by the director of property valuation
using criteria established by the United States department of agriculture
natural resources conservation service.
(A) For all taxable years commencing after December 31, 1989,
all land devoted to agricultural use that is subject to the federal
conservation reserve program shall be classified as cultivated dry land
for the purpose of valuation for property tax purposes pursuant to this
section, except that for all taxable years commencing after December
31, 2022, all land devoted to agricultural use that is subject to the SENATE BILL No. 410—page 25
federal grassland conservation reserve program (CRP grasslands) shall
be classified as grassland for the purpose of valuation for property tax
purposes pursuant to this section.
(B) For all taxable years commencing after December 31, 1999,
all land devoted to agricultural use that is subject to the federal
wetlands reserve program shall be classified as native grassland for the
purpose of valuation for property tax purposes pursuant to this section.
(2) Productivity of land devoted to agricultural use shall be
determined for all land classes within each county or homogeneous
region based on an average of the eight calendar years immediately
preceding the calendar year that immediately precedes the year of
valuation, at a degree of management reflecting median production
levels. The director of property valuation shall determine median
production levels based on information available from state and federal
crop and livestock reporting services, the natural resources
conservation service, and any other sources of data that the director
considers appropriate.
(d) The share of net income from land in the various land classes
within each county or homogeneous region that is normally received by
the landlord shall be used as the basis for determining agricultural
income for all land devoted to agricultural use except pasture or
rangeland. The net income normally received by the landlord from such
land shall be determined by deducting expenses normally incurred by
the landlord from the share of the gross income normally received by
the landlord. The net rental income normally received by the landlord
from pasture or rangeland within each county or homogeneous region
shall be used as the basis for determining agricultural income from such
land. The net rental income from pasture and rangeland that is normally
received by the landlord shall be determined by deducting expenses
normally incurred from the gross income normally received by the
landlord. Commodity prices, crop yields and pasture and rangeland
rental rates and expenses shall be based on an average of the eight
calendar years immediately preceding the calendar year that
immediately precedes the year of valuation. Net income for every land
class within each county or homogeneous region shall be capitalized at
a rate determined to be the sum of the contract rate of interest on new
federal land bank loans in Kansas on July 1 of each year averaged over
a five-year period that includes the five years immediately preceding
the calendar year which immediately precedes the year of valuation,
plus a percentage not less than 0.75% nor more than 2.75%, as
determined by the director of property valuation, except that the
capitalization rate calculated for property tax year 2003, and all such
years thereafter, shall not be less than 11% nor more than 12%.
(e) Based on the foregoing procedures provided in this section, the
director of property valuation shall make an annual determination of
the value of land within each of the various classes of land devoted to
agricultural use within each county or homogeneous region and furnish
the same to the several county appraisers who shall classify such land
according to its current usage and apply the value applicable to such
class of land according to the valuation schedules prepared and adopted
by the director of property valuation under the provisions of this
section.
(f) It is the intent of the legislature that appraisal judgment and
appraisal standards be followed and incorporated throughout the
process of data collection and analysis and establishment of values
pursuant to this section.
For the purpose of the foregoing provisions of (g) As used in this
section, the phrase :
(1) (A) "Land devoted to agricultural use" shall mean means and SENATE BILL No. 410—page 26
include includes land, regardless of whether it is located in the
unincorporated area of the county or within the corporate limits of a
city, that is devoted to the production of plants, animals or horticultural
products, including, but not limited to: Forages; grains and feed crops;
dairy animals and dairy products; poultry and poultry products; beef
cattle, sheep, swine and horses; bees and apiary products; trees and
forest products; fruits, nuts and berries; vegetables; and nursery, floral,
ornamental and greenhouse products.
(B) "Land devoted to agricultural use" shall include includes land:
(i) Established as a controlled shooting area pursuant to K.S.A.
32-943, and amendments thereto, which shall be deemed to be land
devoted to agricultural use. "Land devoted to agricultural use" shall
include land ;
(ii) that is utilized by zoos that hold a valid class C exhibitor
license issued by the United States department of agriculture. "Land
devoted to agricultural use" shall include land ; and
(iii) for all taxable years commencing after December 31, 2020,
that is otherwise devoted to the production of plants, animals or
horticultural products that is incidentally used for agritourism activity
utilized as part of a registered agritourism activity at a registered
agritourism location by a registered agritourism operator pursuant to
K.S.A. 32-1432, and amendments thereto, including, but not limited to,
all land and buildings, whether permanent or temporary, that are
utilized for such agritourism activity. For purposes of this clause, the
selling of any items, products, services or merchandise associated with
the registered agritourism activity by a registered agritourism operator
that includes, but is not limited to, point of sales from either land or
buildings, shall not change the classification of the agricultural land or
buildings as a result of such sales. For purposes of this section,
(2) "Agritourism activity" means any activity that allows members
of the general public, for recreational, entertainment or educational
purposes, to view or enjoy rural activities, including, but not limited to,
farming activities, ranching activities or historic, cultural or natural
attractions. An activity may be an "agritourism activity" whether or not
the participant pays to participate in the activity. An activity is not an
"agritourism activity" if the participant is paid to participate in the
activity.
(h) If a parcel has land devoted to agricultural purposes and land
used for suburban residential acreages, rural home sites or farm home
sites, the county appraiser shall determine the amount of the parcel
used for agricultural purposes and value and assess it accordingly as
land devoted to agricultural purposes. The county appraiser shall then
determine the amount of the remaining land used for such other
purposes and value and assess that land according to its use.
(i) The term "expenses" shall mean means those expenses
typically incurred in producing the plants, animals and horticultural
products described above, including management fees, production
costs, maintenance and depreciation of fences, irrigation wells,
irrigation laterals and real estate taxes, but the term shall. "Expenses"
does not include those expenses incurred in providing temporary or
permanent buildings used in the production of such plants, animals and
horticultural products.
(j) The provisions of this act section shall not be construed to
conflict with any other provisions of law relating to the appraisal of
tangible property for taxation purposes including the equalization
processes of the county and state board of tax appeals.
Sec. 14. K.S.A. 79-1496 is hereby amended to read as follows: 79-
1496. Within 60 days after the date the notice of informal meeting
results or final determination is mailed to the taxpayer pursuant to SENATE BILL No. 410—page 27
K.S.A. 79-1448, and amendments thereto, any taxpayer aggrieved by
the final determination of the county appraiser, who has not filed an
appeal with the board of tax appeals pursuant to K.S.A. 74-2433f, 79-
1448, 79-1609 or 79-1611, and amendments thereto, may file with the
county appraiser a third-party fee simple appraisal performed by a
Kansas certified general real property appraiser that reflects the value
of the property as of January 1 for the same tax year being appealed.
For determinations and appeals relating to residential property
pursuant to this section, a taxpayer may file with the county appraiser
a third-party fee simple appraisal performed by either a Kansas
certified residential real property appraiser or a Kansas certified
general real property appraiser that reflects the value of the property
as of January 1 for the same tax year being appealed. Within 15 days
after receipt of the appraisal, the county appraiser shall review and
consider such appraisal in the determination of valuation or
classification of the taxpayer's property and mail a supplemental notice
of final determination. If the final determination is not in favor of the
taxpayer then the county appraiser shall notify the taxpayer that the
county is required to perform its own, or commission a fee simple
single property appraisal. The county appraiser shall then have 90 days
to furnish that appraisal along with a new supplemental notice of
determination and if not in favor of the taxpayer include an explanation
of the reasons the county appraiser did not rely upon the taxpayer's fee
simple single property appraisal. Whenever a taxpayer submits a fee
simple single property appraisal the burden of proof shall be on the
county appraiser to dispute the value of that appraisal. Any taxpayer
aggrieved by the final determination of the county appraiser may
appeal to the state board of tax appeals as provided in K.S.A. 79-1609,
and amendments thereto, within 30 days subsequent to the date of
mailing of the supplemental notice of final determination.
Sec. 15. K.S.A. 2023 Supp. 79-2988 is hereby amended to read as
follows: 79-2988. (a) On or before June 15 each year, the county clerk
shall calculate the revenue neutral rate for each taxing subdivision and
include such revenue neutral rate on the notice of the estimated
assessed valuation provided to each taxing subdivision for budget
purposes. The director of accounts and reports shall modify the
prescribed budget information form to show the revenue neutral rate.
(b) Except as otherwise provided in this section, no tax rate in
excess of the revenue neutral rate shall be levied by the governing body
of any taxing subdivision unless a resolution or ordinance has been
approved by the governing body according to the following procedure:
(1) At least 10 days in advance of the public hearing, the
governing body shall publish notice of its proposed intent to exceed the
revenue neutral rate by publishing notice:
(A) On the website of the governing body, if the governing body
maintains a website; and
(B) in a weekly or daily newspaper of the county having a general
circulation therein. The notice shall include, but not be limited to, its
proposed tax rate, its revenue neutral rate and the date, time and
location of the public hearing.
(2) On or before July 20, the governing body shall notify the
county clerk of its proposed intent to exceed the revenue neutral rate
and provide the date, time and location of the public hearing and its
proposed tax rate. For all tax years commencing after December 31,
2021, the county clerk shall notify each taxpayer with property in the
taxing subdivision, by mail directed to the taxpayer's last known
address, of the proposed intent to exceed the revenue neutral rate at
least 10 days in advance of the public hearing. Alternatively, the county
clerk may transmit the notice to the taxpayer by electronic means at SENATE BILL No. 410—page 28
least 10 days in advance of the public hearing, if such taxpayer and
county clerk have consented in writing to service by electronic means.
The county clerk is not required to send a notice to a property owner of
property that is exempt from ad valorem taxation. The county clerk
shall consolidate the required information for all taxing subdivisions
relevant to the taxpayer's property on one notice. The notice shall be in
a format prescribed by the director of accounts and reports. The notice
shall include, but not be limited to:
(A) The revenue neutral rate of each taxing subdivision relevant to
the taxpayer's property;
(B) the proposed property tax revenue needed to fund the
proposed budget of the taxing subdivision, if the taxing subdivision
notified the county clerk of its proposed intent to exceed its revenue
neutral rate;
(C) the proposed tax rate based upon the proposed budget and the
current year's total assessed valuation of the taxing subdivision, if the
taxing subdivision notified the county clerk of its proposed intent to
exceed its revenue neutral rate;
(D) the percentage by which the proposed tax rate exceeds the
revenue neutral rate;
(E) the tax rate and property tax of each taxing subdivision on the
taxpayer's property from the previous year's tax statement;
(F) the appraised value and assessed value of the taxpayer's
property for the current year;
(G) the estimates of the tax for the current tax year on the
taxpayer's property based on the revenue neutral rate of each taxing
subdivision and any proposed tax rates that exceed the revenue neutral
rates;
(H) the difference between the estimates of tax based on the
proposed tax rate and the revenue neutral rate on the taxpayer's
property described in subparagraph (G) for any taxing subdivision that
has a proposed tax rate that exceeds its revenue neutral rate; and
(I) the date, time and location of the public hearing of the taxing
subdivision, if the taxing subdivision notified the county clerk of its
proposed intent to exceed its revenue neutral rateThe following
heading:
"NOTICE OF PROPOSED PROPERTY TAX INCREASE AND
PUBLIC HEARINGS
[Current year] [County name] County Revenue Neutral Rate Notice
This is NOT a bill. Do not remit payment.";
(B) the following statement:
"This notice contains estimates of the tax on your property and
proposed property tax increases. THE ACTUAL TAX ON YOUR
PROPERTY MAY INCREASE OR DECREASE FROM THESE
ESTIMATES. Governing bodies of taxing subdivisions must vote in
order to exceed the Revenue Neutral Rate to increase the total property
taxes collected. Governing bodies will vote at public hearings at the
dates, times and locations listed. Taxpayers may attend and comment at
the hearings. Property tax statements will be issued after mill rates are
finalized and taxes are calculated.";
(C) the appraised value and assessed value of the taxpayer's
property for the current year and the previous year;
(D) the amount of property tax of each taxing subdivision on the
taxpayer's property from the previous year's tax statement in a column
titled: "[Previous year] Tax";
(E) the estimated amount of property tax for the current year of
each taxing subdivision on the taxpayer's property based on the
revenue neutral rate of each taxing subdivision in a column titled:
"[Current year] Tax at Revenue Neutral Rate"; SENATE BILL No. 410—page 29
(F) the estimated amount of property tax for the current year of
each taxing subdivision on the taxpayer's property based on either: (i)
The revenue neutral rate for a taxing subdivision that does not intend
to exceed its revenue neutral rate; or (ii) the proposed tax rate
provided by the taxing subdivision, if the taxing subdivision notified the
county clerk of its proposed intent to exceed its revenue neutral rate in
a column titled: "[Current year] Maximum Tax";
(G) the difference between the amount of the current year's
maximum tax and the previous year's tax, reflected in dollars and a
percentage, for each taxing subdivision in a column titled: "[Current
year] Maximum Tax Exceeding [Previous year] Tax";
(H) the date, time and location of the public hearing of each
taxing subdivision that notified the county clerk of its proposed intent
to exceed its revenue neutral rate in a column titled: "Date, Time and
Location of Public Hearing"; and
(I) for each taxing subdivision public hearing listed pursuant to
subparagraph (H), the difference between the current year's maximum
tax and the estimated amount of property tax based on the revenue
neutral rate of such taxing subdivision in a column titled: "[Current
year] Maximum Tax Exceeding Tax at Revenue Neutral Rate".
Although the state of Kansas is not a taxing subdivision for
purposes of this section, the notice shall include a statement of the
statutory mill levies imposed by the state the previous year's tax
amount and the estimate of the tax for the current year on the taxpayer's
property based on such the statutory mill levies.
(3) The public hearing to consider exceeding the revenue neutral
rate shall be held not sooner than August 20 and not later than
September 20. The governing body shall provide interested taxpayers
desiring to be heard an opportunity to present oral testimony within
reasonable time limits and without unreasonable restriction on the
number of individuals allowed to make public comment. The public
hearing may be conducted in conjunction with the proposed budget
hearing pursuant to K.S.A. 79-2929, and amendments thereto, if the
governing body otherwise complies with all requirements of this
section. Nothing in this section shall be construed to prohibit additional
public hearings that provide additional opportunities to present
testimony or public comment prior to the public hearing required by
this section.
(4) A majority vote of the governing body, by the adoption of a
resolution or ordinance to approve exceeding the revenue neutral rate,
shall be required prior to adoption of a proposed budget that will result
in a tax rate in excess of the revenue neutral rate. Such vote of the
governing body shall be conducted at the public hearing and on the
same day as the commencement of the public hearing after the
governing body has heard from interested taxpayers and shall be a roll
call vote. If the governing body approves exceeding the revenue neutral
rate, the governing body shall not adopt a budget that results in a tax
rate in excess of its proposed tax rate as stated in the notice provided
pursuant to this section. A copy of the resolution or ordinance to
approve exceeding the revenue neutral rate and a certified copy of any
roll call vote reporting, at a minimum, the name and vote of each
member of the governing body related to exceeding the revenue neutral
rate, whether approved or not, shall be included with the adopted
budget, budget certificate and other budget forms filed with the county
clerk and the director of accounts and reports and shall be published on
the website of the department of administration.
(c) (1) Any governing body subject to the provisions of this
section that does not comply with subsection (b) shall refund to
taxpayers any property taxes over-collected based on the amount of the SENATE BILL No. 410—page 30
levy that was in excess of the revenue neutral rate.
(2) Any taxpayer of the taxing subdivision that is the subject of
the complaint or such taxpayer's duly authorized representative may
file a complaint with the state board of tax appeals by filing a written
complaint, on a form prescribed by the board, that contains the facts
that the complaining party believes show that a governing body of a
taxing subdivision did not comply with the provisions of subsection (b)
and that a reduction or refund of taxes is appropriate. The complaining
party shall provide a copy of such complaint to the governing body of
the taxing subdivision making the levy that is the subject of the
complaint. Notwithstanding K.S.A. 74-2438a, and amendments thereto,
no filing fee shall be charged by the executive director of the state
board of tax appeals for a complaint filed pursuant to this paragraph.
The governing body of the taxing subdivision making the levy that is
the subject of the complaint shall be a party to the proceeding. Notice
of any summary proceeding or hearing shall be served upon such
governing body, the county clerk, the director of accounts and reports
and the complaining party. It shall be the duty of the governing body to
initiate the production of evidence to demonstrate, by a preponderance
of the evidence, the validity of such levy. If upon a summary
proceeding or hearing, it shall be made to appear to the satisfaction of
the board that the governing body of the taxing subdivision did not
comply with subsection (b), the state board of tax appeals shall order
such governing body to refund to taxpayers the amount of property
taxes over collected or reduce the taxes levied, if uncollected. The
provisions of this paragraph shall not be construed as prohibiting any
other remedies available under the law.
(d) On and after January 1, 2022, in the event that the 20 mills
levied by a school district pursuant to K.S.A. 72-5142, and
amendments thereto, increases the property tax revenue generated for
the purpose of calculating the revenue neutral rate from the previous
tax year and such amount of increase in revenue generated from the 20
mills is the only reason the school district would exceed the total
property tax revenue from the prior year, the school district shall be
deemed to not have exceeded the revenue neutral rate in levying a tax
rate in excess of the revenue neutral rate to take into account the
increase in revenue from only the 20 mills.
(e) (1) Notwithstanding any other provision of law to the contrary,
if the governing body of a taxing subdivision must conduct a public
hearing to approve exceeding the revenue neutral rate under this
section, the governing body of the taxing subdivision shall certify, on or
before October 1, to the proper county clerk the amount of ad valorem
tax to be levied.
(2) If a governing body of a taxing subdivision did not comply
with the provisions of subsection (b) and certifies to the county clerk an
amount of ad valorem tax to be levied that would result in a tax rate in
excess of its revenue neutral rate, the county clerk shall reduce the ad
valorem tax to be levied to the amount resulting from such taxing
subdivision's revenue neutral rate.
(f) As used in this section:
(1) "Taxing subdivision" means any political subdivision of the
state that levies an ad valorem tax on property.
(2) "Revenue neutral rate" means the tax rate for the current tax
year that would generate the same property tax revenue as levied the
previous tax year using the current tax year's total assessed valuation.
To calculate the revenue neutral rate, the county clerk shall divide the
property tax revenue for such taxing subdivision levied for the previous
tax year by the total of all taxable assessed valuation in such taxing
subdivision for the current tax year, and then multiply the quotient by SENATE BILL No. 410—page 31
1,000 to express the rate in mills. The revenue neutral rate shall be
expressed to the third decimal place.
(g) In the event that a county clerk incurred costs of printing and
postage that were not reimbursed pursuant to K.S.A. 2023 Supp. 79-
2989, and amendments thereto, such county clerk may seek
reimbursement from all taxing subdivisions required to send the notice.
Such costs shall be shared proportionately by all taxing subdivisions
that were included on the same notice based on the total property tax
levied by each taxing subdivision. Payment of such costs shall be due
to the county clerk by December 31.
(h) The department of administration or the director of accounts
and reports shall make copies of adopted budgets, budget certificates,
other budget documents and revenue neutral rate documents available
to the public on the department of administration's website on a
permanently accessible web page that may be accessed via a
conspicuous link to that web page placed on the front page of the
department's website. The department of administration or the director
of accounts and reports shall also make the following information for
each tax year available on such website:
(1) A list of taxing subdivisions by county;
(2) whether each taxing subdivision conducted a hearing to
consider exceeding its revenue neutral rate;
(3) the revenue neutral rate of each taxing subdivision;
(4) the tax rate resulting from the adopted budget of each taxing
subdivision; and
(5) the percent change between the revenue neutral rate and the
tax rate for each taxing subdivision.
(i) Notwithstanding any provisions to the contrary, in the event
any governing body does not comply with the provisions of subsection
(b) because such governing body did not intend to exceed its revenue
neutral rate but the final taxable assessed valuation of such taxing
subdivision used to calculate the actual tax levy is less than the
estimated assessed valuation used to calculate the revenue neutral rate,
such governing body shall be permitted to levy a tax rate that
generates the same amount of property tax revenue as levied the
previous year or less.
Sec. 16. K.S.A. 2023 Supp. 79-2989 is hereby amended to read as
follows: 79-2989. (a) For calendar years 2022 and 2023 and 2024, if a
county clerk has printing or postage costs pursuant to K.S.A. 2023
Supp. 79-2988, and amendments thereto, the county clerk shall notify
and provide documentation of such costs to the secretary of revenue.
The secretary of revenue shall certify the amount of moneys
attributable to such costs and shall transmit a copy of such certification
to the director of accounts and reports. Upon such receipt of such
certification, the director of accounts and reports shall transfer an
amount of moneys equal to such certified amount from the state general
fund to the taxpayer notification costs fund of the department of
revenue. The secretary of revenue shall transmit a copy of each such
certification to the director of legislative research and the director of the
budget.
(b) There is hereby established in the state treasury the taxpayer
notification costs fund that shall be administered by the secretary of
revenue. All expenditures from the taxpayer notification costs fund
shall be for the purpose of paying county printing and postage costs
pursuant to K.S.A. 2023 Supp. 79-2988, and amendments thereto. All
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 secretary of
revenue or the secretary's designee. SENATE BILL No. 410—page 32
Sec. 17. K.S.A. 79-32,107 is hereby amended to read as follows:
79-32,107. (a) All penalties and interest prescribed by K.S.A. 79-3228,
and amendments thereto, for noncompliance with the income tax laws
of Kansas shall be applicable for noncompliance with the provisions of
the Kansas withholding and declaration of estimated tax act relating to
withholding tax which shall be enforced in the same manner as the
Kansas income tax act. A penalty at the same rate per annum prescribed
by subsection (b) of K.S.A. 79-2968(b), and amendments thereto, for
interest upon delinquent or unpaid taxes shall be applied and added to a
taxpayer's amount of underpayment of estimated tax due from the date
the estimated tax payment was due until the same is paid or until the
15
th
day of the fourth month following the close of the taxable year for
which such estimated tax is a credit, whichever date is earlier, but such
penalty shall not be added if the total amount thereof does not exceed
$1. For purposes of this subsection, the amount of underpayment of
estimated tax shall be the excess of the amount of the installment which
would be required to be paid if the estimated tax were equal to 90% of
the tax shown on the return for the taxable year or, if no return was
filed, 90% of the tax for such year, over the amount, if any, of the
installment paid on or before the last date prescribed for payment.
Amounts due from any employer on account of withholding or from
any taxpayer for estimated tax may be collected by the director in the
manner provided for the collection of state income tax in K.S.A. 79-
3235, and amendments thereto. For purposes of this subsection,
"underpayment of tax" means the difference between the amount of tax
actually paid and the amount of tax which would have been required to
be paid to avoid penalty pursuant to subsection (b) or (c).
(b) No penalty or interest shall be imposed upon any individual
with respect to any underpayment of any installment if the total amount
of all payments of estimated tax made on or before the last date
prescribed for the payment of such installment equals or exceeds the
amount which would have been required to be paid on or before such
date if the estimated tax were whichever of the following is the least:
(1) The tax shown on the return of the individual for the preceding
taxable year, if a return showing a liability for tax was filed by the
individual for the preceding taxable year;
(2) zero if no return was required to be filed or if the tax liability
on the individual's return was less than $200 for the preceding taxable
year;
(3) an amount equal to 66
2
/3%, in the case of individuals referred
to in subsection (b) of K.S.A. 79-32,102(b), and amendments thereto,
and 90%, in the case of all other individuals, of the tax for the taxable
year computed by placing on an annualized basis, pursuant to rules and
regulations adopted by the secretary of revenue, the taxable income for
the months in the taxable year ending before the month in which the
installment is required to be made.
(c) No penalty or interest shall be imposed upon any corporation
with respect to any underpayment of any installment of estimated tax if
the total amount of all payments of estimated tax made on or before the
last date prescribed for the payment of such installment equals or
exceeds the amount which would have been required to be paid on or
before such date if the estimated tax were whichever of the following is
the least:
(1) The tax shown on the return of the corporation for the
preceding taxable year, if a return showing a liability for tax was filed
by the corporation for the preceding taxable year, or zero if no return
was required to be filed, or if the tax liability on the corporation's return
was less than $500 for the preceding taxable year; or
(2) (A) an amount equal to 90% of the tax for the taxable year SENATE BILL No. 410—page 33
computed by placing on an annualized basis the taxable income:
(i) For the first three months of the taxable year, in the case of the
installment required to be paid in the fourth month;
(ii) for the first three months or for the first five months of the
taxable year, in the case of the installment required to be paid in the
sixth month;
(iii) for the first six months or for the first eight months of the
taxable year in the case of the installment required to be paid in the
ninth month; and
(iv) for the first nine months or for the first 11 months of the
taxable year, in the case of the installment required to be paid in the 12
th
month of the taxable year.
(B) For purposes of this subsection paragraph (2), the taxable
income shall be placed on an annualized basis by:
(i) Multiplying by 12 the taxable income referred to in subsection
(2)(A), subparagraph (A); and
(ii) dividing the resulting amount by the number of months in the
taxable year (three, five, six, eight, nine, or 11, as the case may be)
referred to in subsection (2)(A) subparagraph (A).
(d) If the employer, in violation of the provisions of this act, fails
to deduct and withhold under this chapter, and thereafter the tax against
which such withholding may be credited is paid, the amount otherwise
required to be deducted and withheld shall not be collected from the
employer. This subsection shall in no case relieve the employer from
liability for any penalties or additions to the tax otherwise applicable in
respect of such failure to deduct and withhold.
(e) Any person required to collect, truthfully account for, and pay
over any tax imposed by this act, who willfully fails to collect such tax,
or truthfully account for and pay over such tax, or willfully attempts in
any manner to evade or defeat any such tax or the payment thereof,
shall in addition to the other penalties of this section be liable to a
penalty equal to the total amount of the tax evaded, or not collected, or
not accounted for and paid over. As used in this section, "willfully" has
the same meaning as such term has for federal tax purposes in 26
U.S.C. § 6672.
(f) (1) In case of failure by any employer required by subsection
(b) of K.S.A. 79-3298(b), and amendments thereto, to remit any
amount of withheld taxes by the date prescribed therefor, unless it is
shown that such failure is due to reasonable cause and not due to
willful neglect, there shall be imposed upon such person a penalty of
15% of the amount of the underpayment:
(A) 2% of the amount of the underpayment if remitted within one
to five days;
(B) 5% of the amount of the underpayment if remitted within six to
15 days;
(C) 10% of the amount of the underpayment if remitted after 15
days; and
(D) 15% of the amount of the underpayment if remitted after 15
days and the department has issued a notice to the person regarding
the underpayment but the amount of the underpayment was not
remitted within 10 days of issuance of the notice.
(2) For purposes of this subsection, the term "underpayment"
means the excess of the amount of the tax required to be withheld and
remitted over the amount, if any, remitted on or before the date
prescribed therefor. The failure to remit for any withholding period
shall be deemed not to continue beyond the last date prescribed for
filing the annual return as required by subsection (d) of K.S.A. 79-
3298(d), and amendments thereto. Penalty and interest as prescribed by
K.S.A. 79-3228, and amendments thereto, shall not begin to accrue SENATE BILL No. 410—page 34
under subsection (a) of this section on the amount of any such
underpayment until the due date of the annual return for the calendar
year in which such failure to remit occurs.
(g) Whenever the secretary or the secretary's designee determines
that the failure of the taxpayer to comply with the provisions of
subsections (a), (e), or (f) of this section was due to reasonable causes,
the secretary or the secretary's designee may waive or reduce any of
said such penalties and may reduce the interest rate to the
underpayment rate prescribed and determined for the applicable period
under section 6621 of the federal internal revenue code as in effect on
January 1, 1994, upon making a record of the reasons therefor.
Sec. 18. K.S.A. 2023 Supp. 79-32,117 is hereby amended to read
as follows: 79-32,117. (a) The Kansas adjusted gross income of an
individual means such individual's federal adjusted gross income for
the taxable year, with the modifications specified in this section.
(b) There shall be added to federal adjusted gross income:
(i) Interest income less any related expenses directly incurred in
the purchase of state or political subdivision obligations, to the extent
that the same is not included in federal adjusted gross income, on
obligations of any state or political subdivision thereof, but to the
extent that interest income on obligations of this state or a political
subdivision thereof issued prior to January 1, 1988, is specifically
exempt from income tax under the laws of this state authorizing the
issuance of such obligations, it shall be excluded from computation of
Kansas adjusted gross income whether or not included in federal
adjusted gross income. Interest income on obligations of this state or a
political subdivision thereof issued after December 31, 1987, shall be
excluded from computation of Kansas adjusted gross income whether
or not included in federal adjusted gross income.
(ii) Taxes on or measured by income or fees or payments in lieu of
income taxes imposed by this state or any other taxing jurisdiction to
the extent deductible in determining federal adjusted gross income and
not credited against federal income tax. This paragraph shall not apply
to taxes imposed under the provisions of K.S.A. 79-1107 or 79-1108,
and amendments thereto, for privilege tax year 1995, and all such years
thereafter.
(iii) The federal net operating loss deduction, except that the
federal net operating loss deduction shall not be added to an
individual's federal adjusted gross income for tax years beginning after
December 31, 2016.
(iv) Federal income tax refunds received by the taxpayer if the
deduction of the taxes being refunded resulted in a tax benefit for
Kansas income tax purposes during a prior taxable year. Such refunds
shall be included in income in the year actually received regardless of
the method of accounting used by the taxpayer. For purposes hereof, a
tax benefit shall be deemed to have resulted if the amount of the tax
had been deducted in determining income subject to a Kansas income
tax for a prior year regardless of the rate of taxation applied in such
prior year to the Kansas taxable income, but only that portion of the
refund shall be included as bears the same proportion to the total refund
received as the federal taxes deducted in the year to which such refund
is attributable bears to the total federal income taxes paid for such year.
For purposes of the foregoing sentence, federal taxes shall be
considered to have been deducted only to the extent such deduction
does not reduce Kansas taxable income below zero.
(v) The amount of any depreciation deduction or business expense
deduction claimed on the taxpayer's federal income tax return for any
capital expenditure in making any building or facility accessible to the
handicapped, for which expenditure the taxpayer claimed the credit SENATE BILL No. 410—page 35
allowed by K.S.A. 79-32,177, and amendments thereto.
(vi) Any amount of designated employee contributions picked up
by an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-
4965, and amendments thereto.
(vii) The amount of any charitable contribution made to the extent
the same is claimed as the basis for the credit allowed pursuant to
K.S.A. 79-32,196, and amendments thereto.
(viii) The amount of any costs incurred for improvements to a
swine facility, claimed for deduction in determining federal adjusted
gross income, to the extent the same is claimed as the basis for any
credit allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
(ix) The amount of any ad valorem taxes and assessments paid and
the amount of any costs incurred for habitat management or
construction and maintenance of improvements on real property,
claimed for deduction in determining federal adjusted gross income, to
the extent the same is claimed as the basis for any credit allowed
pursuant to K.S.A. 79-32,203, and amendments thereto.
(x) Amounts received as nonqualified withdrawals, as defined by
K.S.A. 75-643, and amendments thereto, if, at the time of contribution
to a family postsecondary education savings account, such amounts
were subtracted from the federal adjusted gross income pursuant to
subsection (c)(xv) or if such amounts are not already included in the
federal adjusted gross income.
(xi) The amount of any contribution made to the same extent the
same is claimed as the basis for the credit allowed pursuant to K.S.A.
74-50,154, and amendments thereto.
(xii) For taxable years commencing after December 31, 2004,
amounts received as withdrawals not in accordance with the provisions
of K.S.A. 74-50,204, and amendments thereto, if, at the time of
contribution to an individual development account, such amounts were
subtracted from the federal adjusted gross income pursuant to
subsection (c)(xiii), or if such amounts are not already included in the
federal adjusted gross income.
(xiii) The amount of any expenditures claimed for deduction in
determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-
32,217 through 79-32,220 or 79-32,222, and amendments thereto.
(xiv) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
thereto.
(xv) The amount of any expenditures claimed for deduction in
determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-
32,223 through 79-32,226, 79-32,228 through 79-32,231, 79-32,233
through 79-32,236, 79-32,238 through 79-32,241, 79-32,245 through
79-32,248 or 79-32,251 through 79-32,254, and amendments thereto.
(xvi) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
(xvii) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
thereto.
(xviii) For taxable years commencing after December 31, 2006,
the amount of any ad valorem or property taxes and assessments paid to
a state other than Kansas or local government located in a state other
than Kansas by a taxpayer who resides in a state other than Kansas, SENATE BILL No. 410—page 36
when the law of such state does not allow a resident of Kansas who
earns income in such other state to claim a deduction for ad valorem or
property taxes or assessments paid to a political subdivision of the state
of Kansas in determining taxable income for income tax purposes in
such other state, to the extent that such taxes and assessments are
claimed as an itemized deduction for federal income tax purposes.
(xix) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any: (1) Loss from
business as determined under the federal internal revenue code and
reported from schedule C and on line 12 of the taxpayer's form 1040
federal individual income tax return; (2) loss from rental real estate,
royalties, partnerships, S corporations, except those with wholly owned
subsidiaries subject to the Kansas privilege tax, estates, trusts, residual
interest in real estate mortgage investment conduits and net farm rental
as determined under the federal internal revenue code and reported
from schedule E and on line 17 of the taxpayer's form 1040 federal
individual income tax return; and (3) farm loss as determined under the
federal internal revenue code and reported from schedule F and on line
18 of the taxpayer's form 1040 federal income tax return; all to the
extent deducted or subtracted in determining the taxpayer's federal
adjusted gross income. For purposes of this subsection, references to
the federal form 1040 and federal schedule C, schedule E, and schedule
F, shall be to such form and schedules as they existed for tax year 2011,
and as revised thereafter by the internal revenue service.
(xx) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for self-
employment taxes under section 164(f) of the federal internal revenue
code as in effect on January 1, 2012, and amendments thereto, in
determining the federal adjusted gross income of an individual
taxpayer, to the extent the deduction is attributable to income reported
on schedule C, E or F and on line 12, 17 or 18 of the taxpayer's form
1040 federal income tax return.
(xxi) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for
pension, profit sharing, and annuity plans of self-employed individuals
under section 62(a)(6) of the federal internal revenue code as in effect
on January 1, 2012, and amendments thereto, in determining the federal
adjusted gross income of an individual taxpayer.
(xxii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for health
insurance under section 162(l) of the federal internal revenue code as in
effect on January 1, 2012, and amendments thereto, in determining the
federal adjusted gross income of an individual taxpayer.
(xxiii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for
domestic production activities under section 199 of the federal internal
revenue code as in effect on January 1, 2012, and amendments thereto,
in determining the federal adjusted gross income of an individual
taxpayer.
(xxiv) For taxable years commencing after December 31, 2013,
that portion of the amount of any expenditure deduction claimed in
determining federal adjusted gross income for expenses paid for
medical care of the taxpayer or the taxpayer's spouse or dependents
when such expenses were paid or incurred for an abortion, or for a
health benefit plan, as defined in K.S.A. 65-6731, and amendments
thereto, for the purchase of an optional rider for coverage of abortion in
accordance with K.S.A. 40-2,190, and amendments thereto, to the
extent that such taxes and assessments are claimed as an itemized
deduction for federal income tax purposes. SENATE BILL No. 410—page 37
(xxv) For taxable years commencing after December 31, 2013,
that portion of the amount of any expenditure deduction claimed in
determining federal adjusted gross income for expenses paid by a
taxpayer for health care when such expenses were paid or incurred for
abortion coverage, a health benefit plan, as defined in K.S.A. 65-6731,
and amendments thereto, when such expenses were paid or incurred for
abortion coverage or amounts contributed to health savings accounts
for such taxpayer's employees for the purchase of an optional rider for
coverage of abortion in accordance with K.S.A. 40-2,190, and
amendments thereto, to the extent that such taxes and assessments are
claimed as a deduction for federal income tax purposes.
(xxvi) For all taxable years beginning after December 31, 2016,
the amount of any charitable contribution made to the extent the same
is claimed as the basis for the credit allowed pursuant to K.S.A. 72-
4357, and amendments thereto, and is also claimed as an itemized
deduction for federal income tax purposes.
(xxvii) For all taxable years commencing after December 31,
2020, the amount deducted by reason of a of any interest expense paid
or accrued in a previous taxable year but allowed as a deduction
pursuant to section 163 of the federal internal revenue code in the
current taxable year by reason of the carryforward of disallowed
business interest pursuant to section 163(j) of the federal internal
revenue code of 1986, as in effect on January 1, 2018. For purposes of
this paragraph, an interest expense is considered paid or accrued only
in the first taxable year the deduction would have been allowable
pursuant to section 163 of the federal internal revenue code if the
limitation pursuant to section 163(j) of the federal internal revenue
code did not exist.
(xxviii) For all taxable years beginning after December 31, 2021,
the amount of any contributions to, or earnings from, a first-time home
buyer savings account if distributions from the account were not used
to pay for expenses or transactions authorized pursuant to K.S.A. 2023
Supp. 58-4904, and amendments thereto, or were not held for the
minimum length of time required pursuant to K.S.A. 2023 Supp. 58-
4904, and amendments thereto. Contributions to, or earnings from,
such account shall also include any amount resulting from the account
holder not designating a surviving payable on death beneficiary
pursuant to K.S.A. 2023 Supp. 58-4904(e), and amendments thereto.
(c) There shall be subtracted from federal adjusted gross income:
(i) Interest or dividend income on obligations or securities of any
authority, commission or instrumentality of the United States and its
possessions less any related expenses directly incurred in the purchase
of such obligations or securities, to the extent included in federal
adjusted gross income but exempt from state income taxes under the
laws of the United States.
(ii) Any amounts received which are included in federal adjusted
gross income but which are specifically exempt from Kansas income
taxation under the laws of the state of Kansas.
(iii) The portion of any gain or loss from the sale or other
disposition of property having a higher adjusted basis for Kansas
income tax purposes than for federal income tax purposes on the date
such property was sold or disposed of in a transaction in which gain or
loss was recognized for purposes of federal income tax that does not
exceed such difference in basis, but if a gain is considered a long-term
capital gain for federal income tax purposes, the modification shall be
limited to that portion of such gain which is included in federal
adjusted gross income.
(iv) The amount necessary to prevent the taxation under this act of
any annuity or other amount of income or gain which was properly SENATE BILL No. 410—page 38
included in income or gain and was taxed under the laws of this state
for a taxable year prior to the effective date of this act, as amended, to
the taxpayer, or to a decedent by reason of whose death the taxpayer
acquired the right to receive the income or gain, or to a trust or estate
from which the taxpayer received the income or gain.
(v) The amount of any refund or credit for overpayment of taxes
on or measured by income or fees or payments in lieu of income taxes
imposed by this state, or any taxing jurisdiction, to the extent included
in gross income for federal income tax purposes.
(vi) Accumulation distributions received by a taxpayer as a
beneficiary of a trust to the extent that the same are included in federal
adjusted gross income.
(vii) Amounts received as annuities under the federal civil service
retirement system from the civil service retirement and disability fund
and other amounts received as retirement benefits in whatever form
which were earned for being employed by the federal government or
for service in the armed forces of the United States.
(viii) Amounts received by retired railroad employees as a
supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
228c(a)(1) et seq.
(ix) Amounts received by retired employees of a city and by
retired employees of any board of such city as retirement allowances
pursuant to K.S.A. 13-14,106, and amendments thereto, or pursuant to
any charter ordinance exempting a city from the provisions of K.S.A.
13-14,106, and amendments thereto.
(x) (1) For taxable years beginning after December 31, 1976 2021,
the amount of the any federal tentative jobs tax credit disallowance
under the provisions of 26 U.S.C. § 280C(a). For taxable years ending
after December 31, 1978, the amount of the targeted jobs tax credit and
work incentive credit disallowances under 26 U.S.C. § 280C.
(2) For taxable years beginning after December 31, 2019, and
ending before January 1, 2022, 50% of the amount of the federal
employee retention credit disallowance under rules similar to the rules
of 26 U.S.C. § 280C(a). The taxpayer shall be required to prove that
such taxpayer previously filed Kansas income tax returns and paid
Kansas income tax on the disallowed amount. Notwithstanding any
other provision of law to the contrary, any claim for refund or amended
return relating to this subparagraph shall be allowed to be filed on or
before April 15, 2025, and no claim for refund or amended return shall
be allowed or filed after April 15, 2025.
(xi) For taxable years beginning after December 31, 1986,
dividend income on stock issued by Kansas venture capital, inc.
(xii) For taxable years beginning after December 31, 1989,
amounts received by retired employees of a board of public utilities as
pension and retirement benefits pursuant to K.S.A. 13-1246, 13-1246a
and 13-1249, and amendments thereto.
(xiii) For taxable years beginning after December 31, 2004,
amounts contributed to and the amount of income earned on
contributions deposited to an individual development account under
K.S.A. 74-50,201 et seq., and amendments thereto.
(xiv) For all taxable years commencing after December 31, 1996,
that portion of any income of a bank organized under the laws of this
state or any other state, a national banking association organized under
the laws of the United States, an association organized under the
savings and loan code of this state or any other state, or a federal
savings association organized under the laws of the United States, for
which an election as an S corporation under subchapter S of the federal
internal revenue code is in effect, which accrues to the taxpayer who is
a stockholder of such corporation and which is not distributed to the SENATE BILL No. 410—page 39
stockholders as dividends of the corporation. For taxable years
beginning after December 31, 2012, and ending before January 1, 2017,
the amount of modification under this subsection shall exclude the
portion of income or loss reported on schedule E and included on line
17 of the taxpayer's form 1040 federal individual income tax return.
(xv) For all taxable years beginning after December 31, 2017, the
cumulative amounts not exceeding $3,000, or $6,000 for a married
couple filing a joint return, for each designated beneficiary that are
contributed to: (1) A family postsecondary education savings account
established under the Kansas postsecondary education savings program
or a qualified tuition program established and maintained by another
state or agency or instrumentality thereof pursuant to section 529 of the
internal revenue code of 1986, as amended, for the purpose of paying
the qualified higher education expenses of a designated beneficiary; or
(2) an achieving a better life experience (ABLE) account established
under the Kansas ABLE savings program or a qualified ABLE program
established and maintained by another state or agency or
instrumentality thereof pursuant to section 529A of the internal revenue
code of 1986, as amended, for the purpose of saving private funds to
support an individual with a disability. The terms and phrases used in
this paragraph shall have the meaning respectively ascribed thereto by
the provisions of K.S.A. 75-643 and 75-652, and amendments thereto,
and the provisions of such sections are hereby incorporated by
reference for all purposes thereof.
(xvi) For all taxable years beginning after December 31, 2004,
amounts received by taxpayers who are or were members of the armed
forces of the United States, including service in the Kansas army and
air national guard, as a recruitment, sign up or retention bonus received
by such taxpayer as an incentive to join, enlist or remain in the armed
services of the United States, including service in the Kansas army and
air national guard, and amounts received for repayment of educational
or student loans incurred by or obligated to such taxpayer and received
by such taxpayer as a result of such taxpayer's service in the armed
forces of the United States, including service in the Kansas army and
air national guard.
(xvii) For all taxable years beginning after December 31, 2004,
amounts received by taxpayers who are eligible members of the Kansas
army and air national guard as a reimbursement pursuant to K.S.A. 48-
281, and amendments thereto, and amounts received for death benefits
pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
such death benefits are included in federal adjusted gross income of the
taxpayer.
(xviii) For the taxable year beginning after December 31, 2006,
amounts received as benefits under the federal social security act which
are included in federal adjusted gross income of a taxpayer with federal
adjusted gross income of $50,000 or less, whether such taxpayer's filing
status is single, head of household, married filing separate or married
filing jointly; and for all taxable years beginning after December 31,
2007, amounts received as benefits under the federal social security act
which are included in federal adjusted gross income of a taxpayer with
federal adjusted gross income of $75,000 or less, whether such
taxpayer's filing status is single, head of household, married filing
separate or married filing jointly.
(xix) Amounts received by retired employees of Washburn
university as retirement and pension benefits under the university's
retirement plan.
(xx) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any: (1) Net profit from
business as determined under the federal internal revenue code and SENATE BILL No. 410—page 40
reported from schedule C and on line 12 of the taxpayer's form 1040
federal individual income tax return; (2) net income, not including
guaranteed payments as defined in section 707(c) of the federal internal
revenue code and as reported to the taxpayer from federal schedule K-
1, (form 1065-B), in box 9, code F or as reported to the taxpayer from
federal schedule K-1, (form 1065) in box 4, from rental real estate,
royalties, partnerships, S corporations, estates, trusts, residual interest
in real estate mortgage investment conduits and net farm rental as
determined under the federal internal revenue code and reported from
schedule E and on line 17 of the taxpayer's form 1040 federal
individual income tax return; and (3) net farm profit as determined
under the federal internal revenue code and reported from schedule F
and on line 18 of the taxpayer's form 1040 federal income tax return;
all to the extent included in the taxpayer's federal adjusted gross
income. For purposes of this subsection, references to the federal form
1040 and federal schedule C, schedule E, and schedule F, shall be to
such form and schedules as they existed for tax year 2011 and as
revised thereafter by the internal revenue service.
(xxi) For all taxable years beginning after December 31, 2013,
amounts equal to the unreimbursed travel, lodging and medical
expenditures directly incurred by a taxpayer while living, or a
dependent of the taxpayer while living, for the donation of one or more
human organs of the taxpayer, or a dependent of the taxpayer, to
another person for human organ transplantation. The expenses may be
claimed as a subtraction modification provided for in this section to the
extent the expenses are not already subtracted from the taxpayer's
federal adjusted gross income. In no circumstances shall the subtraction
modification provided for in this section for any individual, or a
dependent, exceed $5,000. As used in this section, "human organ"
means all or part of a liver, pancreas, kidney, intestine, lung or bone
marrow. The provisions of this paragraph shall take effect on the day
the secretary of revenue certifies to the director of the budget that the
cost for the department of revenue of modifications to the automated
tax system for the purpose of implementing this paragraph will not
exceed $20,000.
(xxii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of net gain from the sale of:
(1) Cattle and horses, regardless of age, held by the taxpayer for draft,
breeding, dairy or sporting purposes, and held by such taxpayer for 24
months or more from the date of acquisition; and (2) other livestock,
regardless of age, held by the taxpayer for draft, breeding, dairy or
sporting purposes, and held by such taxpayer for 12 months or more
from the date of acquisition. The subtraction from federal adjusted
gross income shall be limited to the amount of the additions recognized
under the provisions of subsection (b)(xix) attributable to the business
in which the livestock sold had been used. As used in this paragraph,
the term "livestock" shall not include poultry.
(xxiii) For all taxable years beginning after December 31, 2012,
amounts received under either the Overland Park, Kansas police
department retirement plan or the Overland Park, Kansas fire
department retirement plan, both as established by the city of Overland
Park, pursuant to the city's home rule authority.
(xxiv) For taxable years beginning after December 31, 2013, and
ending before January 1, 2017, the net gain from the sale from
Christmas trees grown in Kansas and held by the taxpayer for six years
or more.
(xxv) For all taxable years commencing after December 31, 2020,
100% of global intangible low-taxed income under section 951A of the
federal internal revenue code of 1986, before any deductions allowed SENATE BILL No. 410—page 41
under section 250(a)(1)(B) of such code.
(xxvi) (1) For all taxable years commencing after December 31,
2020, the amount of any interest expense paid or accrued in the current
taxable year and disallowed as a deduction pursuant to section 163(j)
of the federal internal revenue code of 1986, as in effect on January 1,
2018.
(2) For purposes of this paragraph, an interest expense is
considered paid or accrued only in the first taxable year the deduction
would have been allowable pursuant to section 163 of the federal
internal revenue code if the limitation pursuant to section 163(j) of the
federal internal revenue code did not exist.
(3) For tax year 2021, an amount equal to the sum of any interest
expenses paid or accrued in tax years 2018, 2019 and 2020 less the
sum of amounts allowed as a deduction pursuant to section 163 of the
federal internal revenue code in tax years 2018, 2019 and 2020.
(xxvii) For taxable years commencing after December 31, 2020,
the amount disallowed as a deduction pursuant to section 274 of the
federal internal revenue code of 1986 for meal expenditures shall be
allowed to the extent such expense was deductible for determining
federal income tax and was allowed and in effect on December 31,
2017.
(xxviii) For all taxable years beginning after December 31, 2021:
(1) The amount contributed to a first-time home buyer savings account
pursuant to K.S.A. 2023 Supp. 58-4903, and amendments thereto, in an
amount not to exceed $3,000 for an individual or $6,000 for a married
couple filing a joint return; or (2) amounts received as income earned
from assets in a first-time home buyer savings account.
(xxix) For taxable years beginning after December 31, 2017, for
an individual taxpayer who carried back federal net operating losses
arising in a taxable year beginning after December 31, 2017, and
before January 1, 2021, pursuant to section 172(b)(1) of the federal
internal revenue code as amended by the coronavirus aid, relief, and
economic security act (CARES act), the amount of such federal net
operating loss carryback for each applicable year. If the amount of
such federal net operating loss carryback exceeds the taxpayer's
Kansas adjusted gross income for such taxable year, the amount
thereof that exceeds such Kansas adjusted gross income may be carried
forward as a subtraction modification in the following taxable year or
years until the total amount of such federal net operating loss
carryback has been deducted, except that no such unused amount shall
be carried forward for deduction as a subtraction modification after
the 20
th
taxable year following the taxable year of the net operating
loss. Notwithstanding any other provision of law to the contrary, an
extension of time shall be allowed for a claim for refund or amended
return for tax years 2018, 2019 or 2020 limited to the application of
the provisions of this paragraph and such claim for refund or amended
return must be filed on or before April 15, 2025.
(d) There shall be added to or subtracted from federal adjusted
gross income the taxpayer's share, as beneficiary of an estate or trust, of
the Kansas fiduciary adjustment determined under K.S.A. 79-32,135,
and amendments thereto.
(e) The amount of modifications required to be made under this
section by a partner which relates to items of income, gain, loss,
deduction or credit of a partnership shall be determined under K.S.A.
79-32,131, and amendments thereto, to the extent that such items affect
federal adjusted gross income of the partner.
Sec. 19. K.S.A. 2023 Supp. 79-32,212 is hereby amended to read
as follows: 79-32,212. (a) For taxable years 2002 through 2024 2029,
there shall be allowed as a credit against the tax liability of a taxpayer SENATE BILL No. 410—page 42
imposed under the Kansas income tax act, an amount equal to 100% of
the amount attributable to the retirement of indebtedness authorized by
a single city port authority established before January 1, 2002. In no
event shall the total amount of the credits allowed under this section
exceed $500,000 for any one fiscal year.
(b) Upon certification by the secretary of revenue of the amount of
any such credit, the director of accounts and reports shall issue to such
taxpayer a warrant for such amount which shall be deemed to be a
capital contribution.
(c) For tax years 2013 through 2021, the income tax credit
provided by this section shall only be available to taxpayers subject to
the income tax on corporations imposed pursuant to K.S.A. 79-
32,110(c), and amendments thereto, and shall be applied only against
such taxpayer's corporate income tax liability.
(d) For tax years 2022 through 2024 2029, the income tax credit
provided by this section shall be available to all taxpayers subject to the
income tax imposed pursuant to K.S.A. 79-32,110, and amendments
thereto, and shall be applied only against such taxpayer's income tax
liability.
Sec. 20. K.S.A. 2023 Supp. 79-32,284 is hereby amended to read
as follows: 79-32,284. (a) K.S.A. 2023 Supp. 79-32,284 through 79-
32,289, and amendments thereto, shall be known and may be cited as
the salt parity act.
(b) The legislature finds and declares that:
(1) The deductibility of state income taxes should be the same for
C corporations, S corporations and partnerships; and
(2) the purpose of the tax credit in K.S.A. 2023 Supp. 79-32,288,
and amendments thereto, is to avoid double taxation of income on
electing pass-through entity owners.
(c) The provisions of this act shall be a part of and supplemental to
the Kansas income tax act.
Sec. 21. K.S.A. 2023 Supp. 79-32,287 is hereby amended to read
as follows: 79-32,287. (a) With respect to any taxable period for which
it has made the election under K.S.A. 2023 Supp. 79-32,286, and
amendments thereto, an electing pass-through entity shall be subject to
a tax in an amount equal to 5.7% of the highest rate of tax for the
applicable income tax year under K.S.A. 79-32,110(a), and
amendments thereto, multiplied by the sum of:
(1) Each resident nonresident electing pass-through entity owner's
pro rata or distributive share of the electing pass-through entity's
income and each nonresident electing pass-through entity owner's
distributive share of income attributable to the state, all as; and
(2) each resident electing pass-through entity owner's pro rata or
distributive share of the electing pass-through entity's income
calculated as either: (A) The sum of income attributable to the state
and income not attributable to the state; or (B) income attributable to
the state. The electing pass-through entity must use the same method of
calculation for all resident electing pass-through entity owners. The
provisions of paragraphs (1) and (2) shall be determined pursuant to
K.S.A. 79-32,130, 79-32,131, 79-32,133 and 79-32,139, and
amendments thereto.
(b) An electing pass-through entity shall be treated as a
corporation under K.S.A. 79-32,101, and amendments thereto, with
respect to the tax imposed under this act, except that K.S.A. 79-32,107,
and amendments thereto, shall not apply during the first taxable period
for which this act is applicable.
(c) Any credit allowed pursuant to article 32 of chapter 79 of the
Kansas Statutes Annotated, and amendments thereto, except K.S.A. 79-
32,111(a), and amendments thereto, that is attributable to the activities SENATE BILL No. 410—page 43
of an electing pass-through entity in the taxable year shall be passed
through to and claimed by the entity and not passed through to or
claimed by the electing pass-through entity owner only for taxable
periods when the election is allowed and made by an electing pass-
through entity under K.S.A. 2023 Supp. 79-32,286, and amendments
thereto. Notwithstanding any provision to the contrary in article 32 of
chapter 79 of the Kansas Statutes Annotated, and amendments thereto,
any excess income tax credit, net operating loss or other modification
may be carried forward on the electing pass-through entity's return but
may only be utilized in a year in which the electing pass-through entity
has made the election allowed in K.S.A. 2023 Supp. 79-32,286, and
amendments thereto, except that any limitation specified in the specific
section for an income tax credit, the net operating loss or any other
modification shall apply to the electing pass-through entity. If in a
taxable period subsequent to a period in which an election under K.S.A.
2023 Supp. 79-32,286, and amendments thereto, was made, an election
under K.S.A. 2023 Supp. 79-32,286, and amendments thereto, is not
allowed or not made by an electing pass-through entity, any excess
income tax credits may be transferred to the electing pass-through
entity owners. Any excess income tax credits shall be available to each
electing pass-through owner in the same proportion and manner as
would have applied without the election under K.S.A. 2023 Supp. 79-
32,286, and amendments thereto, for the taxable period in which each
respective income tax credit was generated. All other rights and
obligations pertaining to the excess income tax credits shall be
transferred to the electing pass-through entity owners.
(d) Any modification to federal taxable income pursuant to K.S.A.
79-32,117 or 79-32,138, and amendments thereto, and any expensing
deduction allowed pursuant to K.S.A. 79-32,143a, and amendments
thereto, that is attributable to the activities of an electing pass-through
entity in the taxable year shall be claimed on:
(1) The electing pass-through entity's return; and
(2) each electing pass-through entity owner's individual return, in
the same proportion and manner as would have applied without the
election under K.S.A. 2023 Supp. 79-32,286, and amendments thereto.
(e) The provisions of article 32 of chapter 79 of the Kansas
Statutes Annotated, and amendments thereto, regarding the collection,
administration and enforcement of tax shall be applicable to the tax due
under this section, and notwithstanding the provisions of K.S.A. 79-
32,129 and 79-32,139, and amendments thereto, an electing pass-
through entity shall be a taxpayer.
(f) The provisions of this section shall apply to taxable years
commencing on or after January 1, 2022.
Sec. 22. K.S.A. 79-257, 79-258, 79-306, 79-332a, 79-1422, 79-
1427a, 79-1496 and 79-32,107 and K.S.A. 2023 Supp. 12-187, 12-189,
12-192, 74-2433f, 79-1476, 79-2988, 79-2989, 79-32,117, 79-32,212,
79-32,284 and 79-32,287 are hereby repealed. SENATE BILL No. 410—page 44
Sec. 23. 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
SENATE, and passed that body
__________________________
SENATE adopted
Conference Committee Report ________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.
Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED _____________________________
_________________________
Governor.