Kansas 2023-2024 Regular Session

Kansas Senate Bill SB484 Compare Versions

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1	1	Session of 2024
2	2	SENATE BILL No. 484
3	3	By Committee on Ways and Means
4	4	2-7
5	5	AN ACT concerning property taxation; relating to exemptions; providing
6	6	exemptions for certain personal property including watercraft, marine
7	7	equipment, off-road vehicles, motorized bicycles and certain trailers;
8	8	amending K.S.A. 79-213 and 79-5501 and repealing the existing
9	9	sections.
10	10	Be it enacted by the Legislature of the State of Kansas:
11	11	New Section 1. (a) The following described property, to the extent
12	12	herein specified, is hereby exempt from all property or ad valorem taxes
13	13	levied under the laws of the state of Kansas:
14	14	(1) Any off-road vehicle that is not operated upon any highway;
15	15	(2) any motorized bicycle, electric-assisted bicycle, electric-assisted
16	16	scooter, electric personal assistive mobility device and motorized
17	17	wheelchair as such terms are defined in K.S.A. 8-126, and amendments
18	18	thereto;
19	19	(3) any trailer having a gross weight of 2,000 pounds or less that is
20	20	used exclusively for personal use and not for the production of income;
21	21	and
22	22	(4) any marine equipment.
23	23	(b) For purposes of this section:
24	24	(1) "Marine equipment" means any watercraft trailer designed to
25	25	launch, retrieve, transport and store watercraft and any watercraft motor
26	26	designed to operate watercraft on the water;
27	27	(2) "off-road motorcycle" means any motorcycle as defined in K.S.A.
28	28	8-126, and amendments thereto, that has been manufactured for off-road
29	29	use only and is used exclusively off roads and highways; and
30	30	(3) "off-road vehicle" means:
31	31	(A) Any all-terrain vehicle, recreational off-highway vehicle and golf
32	32	cart as such terms are defined in K.S.A. 8-126, and amendments thereto;
33	33	and
34	34	(B) any off-road motorcycle and snowmobile.
35	35	(c) The provisions of this section shall apply to all taxable years
36	36	commencing after December 31, 2024.
37	37	Sec. 2. K.S.A. 79-213 is hereby amended to read as follows: 79-213.
38	38	(a) Any property owner requesting an exemption from the payment of ad
39	39	valorem property taxes assessed, or to be assessed, against their property
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76	76	shall be required to file an initial request for exemption, on forms
77	77	approved by the state board of tax appeals and provided by the county
78	78	appraiser.
79	79	(b) The initial exemption request shall identify the property for which
80	80	the exemption is requested and state, in detail, the legal and factual basis
81	81	for the exemption claimed.
82	82	(c) The request for exemption shall be filed with the county appraiser
83	83	of the county where such property is principally located.
84	84	(d) After a review of the exemption request, and after a preliminary
85	85	examination of the facts as alleged, the county appraiser shall recommend
86	86	that the exemption request either be granted or denied, and, if necessary,
87	87	that a hearing be held. If a denial is recommended, a statement of the
88	88	controlling facts and law relied upon shall be included on the form.
89	89	(e) The county appraiser, after making such written recommendation,
90	90	shall file the request for exemption and the recommendations of the county
91	91	appraiser with the state board of tax appeals. With regard to a request for
92	92	exemption from property tax pursuant to the provisions of K.S.A. 79-201g
93	93	and 82a-409, and amendments thereto, not filed with the board of tax
94	94	appeals by the county appraiser on or before the effective date of this act,
95	95	if the county appraiser recommends the exemption request be granted, the
96	96	exemption shall be provided in the amount recommended by the county
97	97	appraiser and the county appraiser shall not file the request for exemption
98	98	and recommendations of the county appraiser with the state board of tax
99	99	appeals. The county clerk or county assessor shall annually make such
100	100	adjustment in the taxes levied against the real property as the owner may
101	101	be entitled to receive under the provisions of K.S.A. 79-201g, and
102	102	amendments thereto, as recommended by the county appraiser, beginning
103	103	with the first period, following the date of issue of the certificate of
104	104	completion on which taxes are regularly levied, and during the years
105	105	which the landowner is entitled to such adjustment.
106	106	(f) Upon receipt of the request for exemption, the board shall docket
107	107	the same and notify the applicant and the county appraiser of such fact.
108	108	(g) After examination of the request for exemption and the county
109	109	appraiser's recommendation related thereto, the board may fix a time and
110	110	place for hearing, and shall notify the applicant and the county appraiser of
111	111	the time and place so fixed. A request for exemption pursuant to: (1)
112	112	Section 13 of article 11 of the constitution of the state of Kansas; or (2)
113	113	K.S.A. 79-201a Second, and amendments thereto, for property constructed
114	114	or purchased, in whole or in part, with the proceeds of revenue bonds
115	115	under the authority of K.S.A. 12-1740 through 12-1749, and amendments
116	116	thereto, prepared in accordance with instructions and assistance which
117	117	shall be provided by the department of commerce, shall be deemed
118	118	approved unless scheduled for hearing within 30 days after the date of
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162	162	receipt of all required information and data relating to the request for
163	163	exemption, and such hearing shall be conducted within 90 days after such
164	164	date. Such time periods shall be determined without regard to any
165	165	extension or continuance allowed to either party to such request. In any
166	166	case where a party to such request for exemption requests a hearing
167	167	thereon, the same shall be granted. Hearings shall be conducted in
168	168	accordance with the provisions of the Kansas administrative procedure act.
169	169	In all instances where the board sets a request for exemption for hearing,
170	170	the county shall be represented by its county attorney or county counselor.
171	171	(h) Except as otherwise provided by subsection (g), in the event of a
172	172	hearing, the same shall be originally set not later than 90 days after the
173	173	filing of the request for exemption with the board.
174	174	(i) During the pendency of a request for exemption, no person, firm,
175	175	unincorporated association, company or corporation charged with real
176	176	estate or personal property taxes pursuant to K.S.A. 79-2004 and 79-
177	177	2004a, and amendments thereto, on the tax books in the hands of the
178	178	county treasurer shall be required to pay the tax from the date the request
179	179	is filed with the county appraiser until the expiration of 30 days after the
180	180	board issued its order thereon and the same becomes a final order. In the
181	181	event that taxes have been assessed against the subject property, no interest
182	182	shall accrue on any unpaid tax for the year or years in question nor shall
183	183	the unpaid tax be considered delinquent from the date the request is filed
184	184	with the county appraiser until the expiration of 30 days after the board
185	185	issued its order thereon. In the event the board determines an application
186	186	for exemption is without merit and filed in bad faith to delay the due date
187	187	of the tax, the tax shall be considered delinquent as of the date the tax
188	188	would have been due pursuant to K.S.A. 79-2004 and 79-2004a, and
189	189	amendments thereto, and interest shall accrue as prescribed therein.
190	190	(j) In the event the board grants the initial request for exemption, the
191	191	same shall be effective beginning with the date of first exempt use except
192	192	that, with respect to property the construction of which commenced not to
193	193	exceed 24 months prior to the date of first exempt use, the same shall be
194	194	effective beginning with the date of commencement of construction.
195	195	(k) In conjunction with its authority to grant exemptions, the board
196	196	shall have the authority to abate all unpaid taxes that have accrued from
197	197	and since the effective date of the exemption. In the event that taxes have
198	198	been paid during the period where the subject property has been
199	199	determined to be exempt, the board shall have the authority to order a
200	200	refund of taxes for the year immediately preceding the year in which the
201	201	exemption application is filed in accordance with subsection (a).
202	202	(l) The provisions of this section shall not apply to: (1) Farm
203	203	machinery and equipment exempted from ad valorem taxation by K.S.A.
204	204	79-201j, and amendments thereto; (2) personal property exempted from ad
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248	248	valorem taxation by K.S.A. 79-215, and amendments thereto; (3) wearing
249	249	apparel, household goods and personal effects exempted from ad valorem
250	250	taxation by K.S.A. 79-201c, and amendments thereto; (4) livestock; (5) all
251	251	property exempted from ad valorem taxation by K.S.A. 79-201d, and
252	252	amendments thereto; (6) merchants' and manufacturers' inventories
253	253	exempted from ad valorem taxation by K.S.A. 79-201m, and amendments
254	254	thereto; (7) grain exempted from ad valorem taxation by K.S.A. 79-201n,
255	255	and amendments thereto; (8) property exempted from ad valorem taxation
256	256	by K.S.A. 79-201a Seventeenth, and amendments thereto, including all
257	257	property previously acquired by the secretary of transportation or a
258	258	predecessor in interest, which is used in the administration, construction,
259	259	maintenance or operation of the state system of highways. The secretary of
260	260	transportation shall at the time of acquisition of property notify the county
261	261	appraiser in the county in which the property is located that the acquisition
262	262	occurred and provide a legal description of the property acquired; (9)
263	263	property exempted from ad valorem taxation by K.S.A. 79-201a Ninth,
264	264	and amendments thereto, including all property previously acquired by the
265	265	Kansas turnpike authority which is used in the administration,
266	266	construction, maintenance or operation of the Kansas turnpike. The Kansas
267	267	turnpike authority shall at the time of acquisition of property notify the
268	268	county appraiser in the county in which the property is located that the
269	269	acquisition occurred and provide a legal description of the property
270	270	acquired; (10) aquaculture machinery and equipment exempted from ad
271	271	valorem taxation by K.S.A. 79-201j, and amendments thereto. As used in
272	272	this section, "aquaculture" has the same meaning ascribed thereto by
273	273	K.S.A. 47-1901, and amendments thereto; (11) Christmas tree machinery
274	274	and equipment exempted from ad valorem taxation by K.S.A. 79-201j, and
275	275	amendments thereto; (12) property used exclusively by the state or any
276	276	municipality or political subdivision of the state for right-of-way purposes.
277	277	The state agency or the governing body of the municipality or political
278	278	subdivision shall at the time of acquisition of property for right-of-way
279	279	purposes notify the county appraiser in the county in which the property is
280	280	located that the acquisition occurred and provide a legal description of the
281	281	property acquired; (13) machinery, equipment, materials and supplies
282	282	exempted from ad valorem taxation by K.S.A. 79-201w, and amendments
283	283	thereto; (14) vehicles owned by the state or by any political or taxing
284	284	subdivision thereof and used exclusively for governmental purposes; (15)
285	285	property used for residential purposes which is exempted pursuant to
286	286	K.S.A. 79-201x, and amendments thereto, from the property tax levied
287	287	pursuant to K.S.A. 72-5142, and amendments thereto; (16) from and after
288	288	July 1, 1998, vehicles which are owned by an organization having as one
289	289	of its purposes the assistance by the provision of transit services to the
290	290	elderly and to disabled persons and which are exempted pursuant to
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334	334	K.S.A. 79-201 Ninth, and amendments thereto; (17) from and after July 1,
335	335	1998, motor vehicles exempted from taxation by K.S.A. 79-5107(e), and
336	336	amendments thereto; (18) commercial and industrial machinery and
337	337	equipment exempted from property or ad valorem taxation by K.S.A. 79-
338	338	223, and amendments thereto; (19) telecommunications machinery and
339	339	equipment and railroad machinery and equipment exempted from property
340	340	or ad valorem taxation by K.S.A. 79-224, and amendments thereto; (20)
341	341	property exempted from property or ad valorem taxation by K.S.A. 79-
342	342	234, and amendments thereto; (21) recreational vehicles exempted from
343	343	property or ad valorem taxation by K.S.A. 79-5121(e), and amendments
344	344	thereto; (22) property acquired by a land bank exempt from property or ad
345	345	valorem taxation pursuant to K.S.A. 12-5909 or K.S.A. 19-26,111, and
346	346	amendments thereto; and (23) property belonging exclusively to the
347	347	United States and exempted from ad valorem taxation by K.S.A. 79-201a
348	348	First, and amendments thereto, except that the provisions of this
349	349	subsection (l)(23) shall not apply to any such property that the congress of
350	350	the United States has expressly declared to be subject to state and local
351	351	taxation; (24) watercraft exempted from property or ad valorem taxation
352	352	by K.S.A. 79-5501, and amendments thereto; and (25) property exempted
353	353	from property or ad valorem taxation by section 1, and amendments
354	354	thereto.
355	355	(m) The provisions of this section shall apply to property exempt
356	356	pursuant to the provisions of section 13 of article 11 of the constitution of
357	357	the state of Kansas.
358	358	(n) The provisions of subsection (k) as amended by this act shall be
359	359	applicable to all exemption applications filed in accordance with
360	360	subsection (a) after December 31, 2001.
361	361	(o) No exemption authorized by K.S.A. 79-227, and amendments
362	362	thereto, of property from the payment of ad valorem property taxes
363	363	assessed shall be granted unless the requesting property owner files an
364	364	initial request for exemption pursuant to this section within two years of
365	365	the date in which construction of a new qualifying pipeline property
366	366	began. The provisions of this subsection shall be applicable to all requests
367	367	for exemptions filed in accordance with subsection (a) after June 30, 2017.
368	368	Sec. 3. K.S.A. 79-5501 is hereby amended to read as follows: 79-
369	369	5501. (a) On and after Commencing July 1, 2013, and through December
370	370	31, 2024, watercraft shall be appraised at fair market value determined
371	371	therefor pursuant to K.S.A. 79-503a, and amendments thereto, and
372	372	assessed at the percentage of value as follows: (1) 11.5% in tax year 2014;
373	373	and (2) 5% in tax year years 2015 and all tax years thereafter through
374	374	2024. On and after January 1, 2014, the levy used to calculate the tax on
375	375	watercraft shall be the county average tax rate. In no case shall the
376	376	assessed value of any watercraft, as determined under the provisions of
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420	420	this section, cause the tax upon such watercraft to be less than $12.
421	421	(b) As used in this section, the term "watercraft" means any
422	422	watercraft designed to be propelled by machinery, oars, paddles or wind
423	423	action upon a sail for navigation on the water which, if not for the
424	424	provisions of this section, would be properly classified under subclass 5 or
425	425	6 of class 2 of section 1 of article 11 of the Kansas constitution. This
426	426	section shall not be construed as taxing any watercraft which otherwise
427	427	would be exempt from property taxation under the laws of the state of
428	428	Kansas. Each watercraft may include one trailer which is designed to
429	429	launch, retrieve, transport and store such watercraft and any nonelectric
430	430	motor or motors which are necessary to operate such watercraft on the
431	431	water.
432	432	(c) Any watercraft which is designed to be propelled through the
433	433	water through human power alone shall be exempt from all property or ad
434	434	valorem taxes levied under the laws of the state of Kansas.
435	435	(d) The "county average tax rate" means the total amount of general
436	436	property taxes levied within the county by the state, county and all other
437	437	taxing subdivisions divided by the total assessed valuation of all taxable
438	438	property within the county as of November 1 of the year prior to the year
439	439	of valuation as certified by the secretary of revenue.
440	440	(e) On and after January 1, 2025, all watercraft shall be exempt from
441	441	all property or ad valorem taxes levied under the laws of the state of
442	442	Kansas.
443	443	Sec. 4. K.S.A. 79-213 and 79-5501 are hereby repealed.
444	444	Sec. 5. This act shall take effect and be in force from and after its
445	445	publication in the statute book.
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