Session of 2024
HOUSE BILL No. 2003
By Representatives Proctor, Buehler, Butler, Collins, Ellis, Johnson, Neelly, Turk
and Underhill
6-18
AN ACT concerning taxation; relating to income tax; establishing the
veterans' valor property tax relief act and providing for an income tax
credit or refund for eligible individuals; modifying the definition of
household income and increasing the appraised value threshold for
eligibility of seniors and disabled veterans related to increased property
tax claims and citing the section as the homeowners' property tax freeze
program; relating to property tax; providing exemptions for certain
personal property including watercraft, marine equipment, off-road
vehicles, motorized bicycles and certain trailers; excluding internal
revenue code section 1031 exchange transactions as indicators of fair
market value; providing for certain exclusions from the prohibition of
paying taxes under protest after a valuation notice appeal; providing
four prior years' values on the annual valuation notice; amending
K.S.A. 79-213, 79-503a and 79-5501 and K.S.A. 2023 Supp. 79-1460,
79-2005 and 79-4508a and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) This act shall be known and may be cited as the
veterans' valor property tax relief act.
(b) There shall be allowed as a credit against the tax liability of a
taxpayer imposed under the Kansas income tax act for tax year 2024, and
all tax years thereafter, in an amount equal to 75% of the amount of
property and ad valorem taxes actually and timely paid by a taxpayer who
has been deemed to be totally disabled, permanently and totally disabled,
or unemployable pursuant to 38 C.F.R. § 3.340 if such taxes were paid
upon real or personal property used for residential purposes of such
taxpayer that is the taxpayer's principal place of residence for the tax year
in which the tax credit is claimed.
(c) The amount of any such credit for any such taxpayer shall not
exceed the amount of property and ad valorem taxes paid by such taxpayer
as specified in this section. A taxpayer shall not take the credit pursuant to
this section if such taxpayer has received a homestead property tax refund
pursuant to K.S.A. 79-4501 et seq., and amendments thereto, or a credit
pursuant to the selective assistance for effective senior relief pursuant to
K.S.A. 79-32,263, and amendments thereto, for such property for such tax
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35 HB 2003 2
year.
(d) Subject to the provisions of this section, if the amount of such tax
credit exceeds the taxpayer's income tax liability for the taxable year, the
amount of such excess credit that exceeds such tax liability shall be
refunded to the taxpayer.
(e) The secretary of revenue shall adopt rules and regulations
regarding the filing of documents that support the amount of the credit
claimed pursuant to this section.
(f) The provisions of this act shall be a part of and supplemental to
the homestead property tax refund act, except that the income or appraised
valuation limits set forth in the homestead property tax refund act shall not
apply to this section.
New Sec. 2. (a) The following described property, to the extent herein
specified, is hereby exempt from all property or ad valorem taxes levied
under the laws of the state of Kansas:
(1) Any off-road vehicle that is not operated upon any highway;
(2) any motorized bicycle, electric-assisted bicycle, electric-assisted
scooter, electric personal assistive mobility device and motorized
wheelchair as such terms are defined in K.S.A. 8-126, and amendments
thereto;
(3) any trailer having a gross weight of 15,000 pounds or less that is
used exclusively for personal use and not for the production of income;
and
(4) any marine equipment.
(b) For purposes of this section:
(1) "Marine equipment" means any watercraft trailer designed to
launch, retrieve, transport and store watercraft and any watercraft motor
designed to operate watercraft on the water;
(2) "off-road motorcycle" means any motorcycle as defined in K.S.A.
8-126, and amendments thereto, that has been manufactured for off-road
use only and is used exclusively off roads and highways; and
(3) "off-road vehicle" means:
(A) Any all-terrain vehicle, recreational off-highway vehicle and golf
cart as such terms are defined in K.S.A. 8-126, and amendments thereto;
and
(B) any off-road motorcycle and snowmobile.
(c) The provisions of this section shall apply to all taxable years
commencing after December 31, 2024.
Sec. 3. K.S.A. 79-213 is hereby amended to read as follows: 79-213.
(a) Any property owner requesting an exemption from the payment of ad
valorem property taxes assessed, or to be assessed, against their property
shall be required to file an initial request for exemption, on forms
approved by the state board of tax appeals and provided by the county
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43 HB 2003 3
appraiser.
(b) The initial exemption request shall identify the property for which
the exemption is requested and state, in detail, the legal and factual basis
for the exemption claimed.
(c) The request for exemption shall be filed with the county appraiser
of the county where such property is principally located.
(d) After a review of the exemption request, and after a preliminary
examination of the facts as alleged, the county appraiser shall recommend
that the exemption request either be granted or denied, and, if necessary,
that a hearing be held. If a denial is recommended, a statement of the
controlling facts and law relied upon shall be included on the form.
(e) The county appraiser, after making such written recommendation,
shall file the request for exemption and the recommendations of the county
appraiser with the state board of tax appeals. With regard to a request for
exemption from property tax pursuant to the provisions of K.S.A. 79-201g
and 82a-409, and amendments thereto, not filed with the board of tax
appeals by the county appraiser on or before the effective date of this act,
if the county appraiser recommends the exemption request be granted, the
exemption shall be provided in the amount recommended by the county
appraiser and the county appraiser shall not file the request for exemption
and recommendations of the county appraiser with the state board of tax
appeals. The county clerk or county assessor shall annually make such
adjustment in the taxes levied against the real property as the owner may
be entitled to receive under the provisions of K.S.A. 79-201g, and
amendments thereto, as recommended by the county appraiser, beginning
with the first period, following the date of issue of the certificate of
completion on which taxes are regularly levied, and during the years
which the landowner is entitled to such adjustment.
(f) Upon receipt of the request for exemption, the board shall docket
the same and notify the applicant and the county appraiser of such fact.
(g) After examination of the request for exemption and the county
appraiser's recommendation related thereto, the board may fix a time and
place for hearing, and shall notify the applicant and the county appraiser of
the time and place so fixed. A request for exemption pursuant to: (1)
Section 13 of article 11 of the constitution of the state of Kansas; or (2)
K.S.A. 79-201a Second, and amendments thereto, for property constructed
or purchased, in whole or in part, with the proceeds of revenue bonds
under the authority of K.S.A. 12-1740 through 12-1749, and amendments
thereto, prepared in accordance with instructions and assistance which
shall be provided by the department of commerce, shall be deemed
approved unless scheduled for hearing within 30 days after the date of
receipt of all required information and data relating to the request for
exemption, and such hearing shall be conducted within 90 days after such
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43 HB 2003 4
date. Such time periods shall be determined without regard to any
extension or continuance allowed to either party to such request. In any
case where a party to such request for exemption requests a hearing
thereon, the same shall be granted. Hearings shall be conducted in
accordance with the provisions of the Kansas administrative procedure act.
In all instances where the board sets a request for exemption for hearing,
the county shall be represented by its county attorney or county counselor.
(h) Except as otherwise provided by subsection (g), in the event of a
hearing, the same shall be originally set not later than 90 days after the
filing of the request for exemption with the board.
(i) During the pendency of a request for exemption, no person, firm,
unincorporated association, company or corporation charged with real
estate or personal property taxes pursuant to K.S.A. 79-2004 and 79-
2004a, and amendments thereto, on the tax books in the hands of the
county treasurer shall be required to pay the tax from the date the request
is filed with the county appraiser until the expiration of 30 days after the
board issued its order thereon and the same becomes a final order. In the
event that taxes have been assessed against the subject property, no interest
shall accrue on any unpaid tax for the year or years in question nor shall
the unpaid tax be considered delinquent from the date the request is filed
with the county appraiser until the expiration of 30 days after the board
issued its order thereon. In the event the board determines an application
for exemption is without merit and filed in bad faith to delay the due date
of the tax, the tax shall be considered delinquent as of the date the tax
would have been due pursuant to K.S.A. 79-2004 and 79-2004a, and
amendments thereto, and interest shall accrue as prescribed therein.
(j) In the event the board grants the initial request for exemption, the
same shall be effective beginning with the date of first exempt use except
that, with respect to property the construction of which commenced not to
exceed 24 months prior to the date of first exempt use, the same shall be
effective beginning with the date of commencement of construction.
(k) In conjunction with its authority to grant exemptions, the board
shall have the authority to abate all unpaid taxes that have accrued from
and since the effective date of the exemption. In the event that taxes have
been paid during the period where the subject property has been
determined to be exempt, the board shall have the authority to order a
refund of taxes for the year immediately preceding the year in which the
exemption application is filed in accordance with subsection (a).
(l) The provisions of this section shall not apply to: (1) Farm
machinery and equipment exempted from ad valorem taxation by K.S.A.
79-201j, and amendments thereto; (2) personal property exempted from ad
valorem taxation by K.S.A. 79-215, and amendments thereto; (3) wearing
apparel, household goods and personal effects exempted from ad valorem
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taxation by K.S.A. 79-201c, and amendments thereto; (4) livestock; (5) all
property exempted from ad valorem taxation by K.S.A. 79-201d, and
amendments thereto; (6) merchants' and manufacturers' inventories
exempted from ad valorem taxation by K.S.A. 79-201m, and amendments
thereto; (7) grain exempted from ad valorem taxation by K.S.A. 79-201n,
and amendments thereto; (8) property exempted from ad valorem taxation
by K.S.A. 79-201a Seventeenth, and amendments thereto, including all
property previously acquired by the secretary of transportation or a
predecessor in interest, which is used in the administration, construction,
maintenance or operation of the state system of highways. The secretary of
transportation shall at the time of acquisition of property notify the county
appraiser in the county in which the property is located that the acquisition
occurred and provide a legal description of the property acquired; (9)
property exempted from ad valorem taxation by K.S.A. 79-201a Ninth,
and amendments thereto, including all property previously acquired by the
Kansas turnpike authority which is used in the administration,
construction, maintenance or operation of the Kansas turnpike. The Kansas
turnpike authority shall at the time of acquisition of property notify the
county appraiser in the county in which the property is located that the
acquisition occurred and provide a legal description of the property
acquired; (10) aquaculture machinery and equipment exempted from ad
valorem taxation by K.S.A. 79-201j, and amendments thereto. As used in
this section, "aquaculture" has the same meaning ascribed thereto by
K.S.A. 47-1901, and amendments thereto; (11) Christmas tree machinery
and equipment exempted from ad valorem taxation by K.S.A. 79-201j, and
amendments thereto; (12) property used exclusively by the state or any
municipality or political subdivision of the state for right-of-way purposes.
The state agency or the governing body of the municipality or political
subdivision shall at the time of acquisition of property for right-of-way
purposes notify the county appraiser in the county in which the property is
located that the acquisition occurred and provide a legal description of the
property acquired; (13) machinery, equipment, materials and supplies
exempted from ad valorem taxation by K.S.A. 79-201w, and amendments
thereto; (14) vehicles owned by the state or by any political or taxing
subdivision thereof and used exclusively for governmental purposes; (15)
property used for residential purposes which is exempted pursuant to
K.S.A. 79-201x, and amendments thereto, from the property tax levied
pursuant to K.S.A. 72-5142, and amendments thereto; (16) from and after
July 1, 1998, vehicles which are owned by an organization having as one
of its purposes the assistance by the provision of transit services to the
elderly and to disabled persons and which are exempted pursuant to
K.S.A. 79-201 Ninth, and amendments thereto; (17) from and after July 1,
1998, motor vehicles exempted from taxation by K.S.A. 79-5107(e), and
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amendments thereto; (18) commercial and industrial machinery and
equipment exempted from property or ad valorem taxation by K.S.A. 79-
223, and amendments thereto; (19) telecommunications machinery and
equipment and railroad machinery and equipment exempted from property
or ad valorem taxation by K.S.A. 79-224, and amendments thereto; (20)
property exempted from property or ad valorem taxation by K.S.A. 79-
234, and amendments thereto; (21) recreational vehicles exempted from
property or ad valorem taxation by K.S.A. 79-5121(e), and amendments
thereto; (22) property acquired by a land bank exempt from property or ad
valorem taxation pursuant to K.S.A. 12-5909 or K.S.A. 19-26,111, and
amendments thereto; and (23) property belonging exclusively to the
United States and exempted from ad valorem taxation by K.S.A. 79-201a
First, and amendments thereto, except that the provisions of this
subsection (l)(23) shall not apply to any such property that the congress of
the United States has expressly declared to be subject to state and local
taxation; (24) watercraft exempted from property or ad valorem taxation
by K.S.A. 79-5501, and amendments thereto; and (25) property exempted
from property or ad valorem taxation by section 2, and amendments
thereto.
(m) The provisions of this section shall apply to property exempt
pursuant to the provisions of section 13 of article 11 of the constitution of
the state of Kansas.
(n) The provisions of subsection (k) as amended by this act shall be
applicable to all exemption applications filed in accordance with
subsection (a) after December 31, 2001.
(o) No exemption authorized by K.S.A. 79-227, and amendments
thereto, of property from the payment of ad valorem property taxes
assessed shall be granted unless the requesting property owner files an
initial request for exemption pursuant to this section within two years of
the date in which construction of a new qualifying pipeline property
began. The provisions of this subsection shall be applicable to all requests
for exemptions filed in accordance with subsection (a) after June 30, 2017.
Sec. 4. K.S.A. 79-503a is hereby amended to read as follows: 79-
503a. "Fair market value" means the amount in terms of money that a well
informed buyer is justified in paying and a well informed seller is justified
in accepting for property in an open and competitive market, assuming that
the parties are acting without undue compulsion. In the determination of
fair market value of any real property which is subject to any special
assessment, such value shall not be determined by adding the present value
of the special assessment to the sales price. For the purposes of this
definition it will be assumed that consummation of a sale occurs as of
January 1.
Sales in and of themselves shall not be the sole criteria of fair market
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43 HB 2003 7
value but shall be used in connection with cost, income and other factors
including but not by way of exclusion:
(a) The proper classification of lands and improvements;
(b) the size thereof;
(c) the effect of location on value;
(d) depreciation, including physical deterioration or functional,
economic or social obsolescence;
(e) cost of reproduction of improvements;
(f) productivity taking into account all restrictions imposed by the
state or federal government and local governing bodies, including, but not
limited to, restrictions on property rented or leased to low income
individuals and families as authorized by section 42 of the federal internal
revenue code of 1986, as amended;
(g) earning capacity as indicated by lease price, by capitalization of
net income or by absorption or sell-out period;
(h) rental or reasonable rental values or rental values restricted by the
state or federal government or local governing bodies, including, but not
limited to, restrictions on property rented or leased to low income
individuals and families, as authorized by section 42 of the federal internal
revenue code of 1986, as amended;
(i) sale value on open market with due allowance to abnormal
inflationary factors influencing such values;
(j) restrictions or requirements imposed upon the use of real estate by
the state or federal government or local governing bodies, including
zoning and planning boards or commissions, and including, but not limited
to, restrictions or requirements imposed upon the use of real estate rented
or leased to low income individuals and families, as authorized by section
42 of the federal internal revenue code of 1986, as amended; and
(k) comparison with values of other property of known or recognized
value. The assessment-sales ratio study shall not be used as an appraisal
for appraisal purposes.
The appraisal process utilized in the valuation of all real and tangible
personal property for ad valorem tax purposes shall conform to generally
accepted appraisal procedures and standards which are consistent with the
definition of fair market value unless otherwise specified by law.
The sale price or value at which a property sells or transfers ownership
in a federal internal revenue code section 1031 exchange shall not be
considered an indicator of fair market value nor as a factor in arriving at
fair market value. Federal internal revenue code section 1031 exchange
transactions shall not be used as comparable sales for valuation purposes
nor as valid sales for purposes of sales ratio studies conducted pursuant to
K.S.A. 79-1485 et seq., and amendments thereto.
Sec. 5. K.S.A. 2023 Supp. 79-1460 is hereby amended to read as
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follows: 79-1460. (a) The county appraiser shall notify each taxpayer in
the county annually on or before March 1 for real property and May 1 for
personal property, by mail directed to the taxpayer's last known address, of
the classification and appraised valuation of the taxpayer's property, except
that, the valuation for all real property shall not be increased unless the
record of the latest physical inspection was reviewed by the county or
district appraiser, and documentation exists to support such increase in
valuation in compliance with the directives and specifications of the
director of property valuation, and such record and documentation is
available to the affected taxpayer. Alternatively, the county appraiser may
transmit the classification and appraised valuation to the taxpayer by
electronic means if such taxpayer consented to service by electronic
means.
(b) The valuation for all real property also shall not be increased
solely as the result of normal repair, replacement or maintenance of
existing structures, equipment or improvements on the property. For the
next two taxable years following the taxable year that the valuation for
commercial real property has been reduced due to a final determination
made pursuant to the valuation appeals process, the county appraiser shall
review the computer-assisted mass-appraisal of the property and if, the
valuation in either of those two years exceeds the value of the previous
year by more than 5%, excluding new construction, change in use or
change in classification, the county appraiser shall either:
(1) Adjust the valuation of the property based on the information
provided in the previous appeal; or
(2) order an independent fee simple appraisal of the property to be
performed by a Kansas certified real property appraiser.
(c) When the valuation for real property has been reduced due to a
final determination made pursuant to the valuation appeals process for the
prior year, and the county appraiser has already certified the appraisal rolls
for the current year to the county clerk pursuant to K.S.A. 79-1466, and
amendments thereto, the county appraiser may amend the appraisal rolls
and certify the changes to the county clerk to implement the provisions of
this subsection and reduce the valuation of the real property to the prior
year's final determination, except that such changes shall not be made after
October 31 of the current year.
(d) (1) The notice provided under subsection (a) shall specify:
(A) Separately for the previous tax year and the current tax year, the
appraised and assessed values for each property class identified on the
parcel;
(B) the uniform parcel identification number prescribed by the
director of property valuation; and
(C) a statement of the taxpayer's right to appeal, the procedure to be
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43 HB 2003 9
followed in making such appeal and the availability without charge of the
guide devised pursuant to subsection (g); and
(D) a valuation history of the parcel that includes, at a minimum, a
statement or display of the total appraised values of the parcel for the
current tax year and the previous four tax years.
(2) Such notice may, and if the board of county commissioners so
require, shall provide the parcel identification number, address and the sale
date and amount of any or all sales utilized in the determination of
appraised value of residential real property.
(e) In any year in which no change in appraised valuation of any real
property from its appraised valuation in the next preceding year is
determined, an alternative form of notification which has been approved
by the director of property valuation may be utilized by a county.
(f) Failure to timely mail or receive such notice shall in no way
invalidate the classification or appraised valuation as changed. The
secretary of revenue shall adopt rules and regulations necessary to
implement the provisions of this section.
(g) There shall be provided to each taxpayer, upon request, a guide to
the property tax appeals process. The director of the division of property
valuation shall devise and publish such guide and shall provide sufficient
copies thereof to all county appraisers. Such guide shall include, but not be
limited to:
(1) A restatement of the law which pertains to the process and
practice of property appraisal methodology, including the contents of
K.S.A. 79-503a and 79-1460, and amendments thereto;
(2) the procedures of the appeals process, including the order and
burden of proof of each party and time frames required by law; and
(3) such other information deemed necessary to educate and enable a
taxpayer to properly and competently pursue an appraisal appeal.
(h) As used in this section:
(1) "New construction" means the construction of any new structure
or improvements or the remodeling or renovation of any existing
structures or improvements on real property.
(2) "Normal repair, replacement or maintenance" does not include
new construction.
(3) "Taxpayer" means the person in ownership of the property as
indicated on the records of the office of register of deeds or county clerk
and includes the lessee of such property if the lease agreement has been
recorded or filed in the office of the register of deeds and the real property
or improvement thereon is subject of a lease agreement.
Sec. 6. K.S.A. 2023 Supp. 79-2005 is hereby amended to read as
follows: 79-2005. (a) Any taxpayer, before protesting the payment of such
taxpayer's taxes, shall be required, either at the time of paying such taxes,
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43 HB 2003 10
or, if the whole or part of the taxes are paid prior to December 20, no later
than December 20, or, with respect to taxes paid in whole or in part in an
amount equal to at least
1
/2 of such taxes on or before December 20 by an
escrow or tax service agent, no later than January 31 of the next year, to
file a written statement with the county treasurer, on forms approved by
the state board of tax appeals and provided by the county treasurer, clearly
stating the grounds on which the whole or any part of such taxes are
protested and citing any law, statute or facts on which such taxpayer relies
in protesting the whole or any part of such taxes. When the grounds of
such protest is an assessment of taxes made pursuant to K.S.A. 79-332a
and 79-1427a, and amendments thereto, the county treasurer may not
distribute the taxes paid under protest until such time as the appeal is final.
When the grounds of such protest is that the valuation or assessment of the
property upon which the taxes are levied is illegal or void, the county
treasurer shall forward a copy of the written statement of protest to the
county appraiser who shall within 15 days of the receipt thereof, schedule
an informal meeting with the taxpayer or such taxpayer's agent or attorney
with reference to the property in question. At the informal meeting, it shall
be the duty of the county appraiser or the county appraiser's designee to
initiate production of evidence to substantiate the valuation of such
property, including a summary of the reasons that the valuation of the
property has been increased over the preceding year, any assumptions used
by the county appraiser to determine the value of the property and a
description of the individual property characteristics, property specific
valuation records and conclusions. The taxpayer shall be provided with the
opportunity to review the data sheets applicable to the valuation approach
utilized for the subject property. The county appraiser shall take into
account any evidence provided by the taxpayer which relates to the
amount of deferred maintenance and depreciation of the property. The
county appraiser shall review the appraisal of the taxpayer's property with
the taxpayer or such taxpayer's agent or attorney and may change the
valuation of the taxpayer's property, if in the county appraiser's opinion a
change in the valuation of the taxpayer's property is required to assure that
the taxpayer's property is valued according to law, and shall, within 15
business days thereof, notify the taxpayer in the event the valuation of the
taxpayer's property is changed, in writing of the results of the meeting. The
county appraiser shall not increase the appraised valuation of the property
as a result of the informal meeting. In the event the valuation of the
taxpayer's property is changed and such change requires a refund of taxes
and interest thereon, the county treasurer shall process the refund in the
manner provided by subsection (l).
(b) No protest appealing the valuation or assessment of property shall
be filed pertaining to any year's valuation or assessment when an appeal of
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43 HB 2003 11
such valuation or assessment was commenced pursuant to K.S.A. 79-1448,
and amendments thereto, nor shall the second half payment of taxes be
protested when the first half payment of taxes has been protested.
Notwithstanding the foregoing, this provision shall not prevent any
subsequent owner from protesting taxes levied for the year in which such
property was acquired, nor shall it prevent any taxpayer from protesting
taxes when:
(1) The valuation or assessment of such taxpayer's property has been
changed pursuant to an order of the director of property valuation;
(2) the taxpayer withdrew such taxpayer's appeal commenced
pursuant to K.S.A. 79-1448, and amendments thereto; or
(3) the taxpayer wishes to present new evidence relating to the
valuation or assessment of such property.
(c) A protest shall not be necessary to protect the right to a refund of
taxes in the event a refund is required because the final resolution of an
appeal commenced pursuant to K.S.A. 79-1448, and amendments thereto,
occurs after the final date prescribed for the protest of taxes.
(d) If the grounds of such protest shall be that the valuation or
assessment of the property upon which the taxes so protested are levied is
illegal or void, such statement shall further state the exact amount of
valuation or assessment which the taxpayer admits to be valid and the
exact portion of such taxes which is being protested.
(e) If the grounds of such protest shall be that any tax levy, or any
part thereof, is illegal, such statement shall further state the exact portion
of such tax which is being protested.
(f) Upon the filing of a written statement of protest, the grounds of
which shall be that any tax levied, or any part thereof, is illegal, the county
treasurer shall mail a copy of such written statement of protest to the state
board of tax appeals and the governing body of the taxing district making
the levy being protested.
(g) Within 30 days after notification of the results of the informal
meeting with the county appraiser pursuant to subsection (a), the
protesting taxpayer may, if aggrieved by the results of the informal
meeting with the county appraiser, appeal such results to the state board of
tax appeals.
(h) After examination of the copy of the written statement of protest
and a copy of the written notification of the results of the informal meeting
with the county appraiser in cases where the grounds of such protest is that
the valuation or assessment of the property upon which the taxes are levied
is illegal or void, the board shall conduct a hearing in accordance with the
provisions of the Kansas administrative procedure act, unless waived by
the interested parties in writing. If the grounds of such protest is that the
valuation or assessment of the property is illegal or void the board shall
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notify the county appraiser thereof.
(i) In the event of a hearing, the same shall be originally set not later
than 90 days after the filing of the copy of the written statement of protest
and a copy, when applicable, of the written notification of the results of the
informal meeting with the county appraiser with the board. With regard to
any matter properly submitted to the board relating to the determination of
valuation of residential property or real property used for commercial and
industrial purposes for taxation purposes, it shall be the duty of the county
appraiser to initiate the production of evidence to demonstrate, by a
preponderance of the evidence, the validity and correctness of such
determination except that no such duty shall accrue to the county or
district appraiser with regard to leased commercial and industrial property
unless the property owner has furnished to the county or district appraiser
a complete income and expense statement for the property for the three
years next preceding the year of appeal. No presumption shall exist in
favor of the county appraiser with respect to the validity and correctness of
such determination. In all instances where the board sets a request for
hearing and requires the representation of the county by its attorney or
counselor at such hearing, the county shall be represented by its county
attorney or counselor. The board shall take into account any evidence
provided by the taxpayer which relates to the amount of deferred
maintenance and depreciation for the property. In any appeal from the
reclassification of property that was classified as land devoted to
agricultural use for the preceding year, the taxpayer's classification of the
property as land devoted to agricultural use shall be presumed to be valid
and correct if the taxpayer provides an executed lease agreement or other
documentation demonstrating a commitment to use the property for
agricultural use, if no other actual use is evident. With regard to any matter
properly submitted to the board relating to the determination of valuation
of property for taxation purposes, the board shall not increase the
appraised valuation of the property to an amount greater than the appraised
value reflected in the notification of the results of the informal meeting
with the county appraiser from which the taxpayer appealed.
(j) When a determination is made as to the merits of the tax protest,
the board shall render and serve its order thereon. The county treasurer
shall notify all affected taxing districts of the amount by which tax
revenues will be reduced as a result of a refund.
(k) If a protesting taxpayer fails to file a copy of the written statement
of protest and a copy, when applicable, of the written notification of the
results of the informal meeting with the county appraiser with the board
within the time limit prescribed, such protest shall become null and void
and of no effect whatsoever.
(l) (1) In the event the board orders that a refund be made pursuant to
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this section or the provisions of K.S.A. 79-1609, and amendments thereto,
or a court of competent jurisdiction orders that a refund be made, and no
appeal is taken from such order, or in the event a change in valuation
which results in a refund pursuant to subsection (a), the county treasurer
shall, as soon thereafter as reasonably practicable, refund to the taxpayer
such protested taxes and, with respect to protests or appeals commenced
after the effective date of this act, interest computed at the rate prescribed
by K.S.A. 79-2968, and amendments thereto, minus two percentage points,
per annum from the date of payment of such taxes from tax moneys
collected but not distributed. Upon making such refund, the county
treasurer shall charge the fund or funds having received such protested
taxes, except that, with respect to that portion of any such refund
attributable to interest the county treasurer shall charge the county general
fund. In the event that the state board of tax appeals or a court of
competent jurisdiction finds that any time delay in making its decision is
unreasonable and is attributable to the taxpayer, it may order that no
interest or only a portion thereof be added to such refund of taxes.
(2) No interest shall be allowed pursuant to paragraph (1) in any case
where the tax paid under protest was inclusive of delinquent taxes.
(m) Whenever, by reason of the refund of taxes previously received
or the reduction of taxes levied but not received as a result of decreases in
assessed valuation, it will be impossible to pay for imperative functions for
the current budget year, the governing body of the taxing district affected
may issue no-fund warrants in the amount necessary. Such warrants shall
conform to the requirements prescribed by K.S.A. 79-2940, and
amendments thereto, except they shall not bear the notation required by
such section and may be issued without the approval of the state board of
tax appeals. The governing body of such taxing district shall make a tax
levy at the time fixed for the certification of tax levies to the county clerk
next following the issuance of such warrants sufficient to pay such
warrants and the interest thereon. All such tax levies shall be in addition to
all other levies authorized by law.
(n) Whenever a taxpayer appeals to the board of tax appeals pursuant
to the provisions of K.S.A. 79-1609, and amendments thereto, or pays
taxes under protest related to one property whereby the assessed valuation
of such property exceeds 5% of the total county assessed valuation of all
property located within such county and the taxpayer receives a refund of
such taxes paid under protest or a refund made pursuant to the provisions
of K.S.A. 79-1609, and amendments thereto, the county treasurer or the
governing body of any taxing subdivision within a county may request the
pooled money investment board to make a loan to such county or taxing
subdivision as provided in this section. The pooled money investment
board is authorized and directed to loan to such county or taxing
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subdivision sufficient funds to enable the county or taxing subdivision to
refund such taxes to the taxpayer. The pooled money investment board is
authorized and directed to use any moneys in the operating accounts,
investment accounts or other investments of the state of Kansas to provide
the funds for such loan. Each loan shall bear interest at a rate equal to the
net earnings rate of the pooled money investment portfolio at the time of
the making of such loan. The total aggregate amount of loans under this
program shall not exceed $50,000,000 of unencumbered funds pursuant to
article 42 of chapter 75 of the Kansas Statutes Annotated, and amendments
thereto. Such loan shall not be deemed to be an indebtedness or debt of the
state of Kansas within the meaning of section 6 of article 11 of the
constitution of the state of Kansas. Upon certification to the pooled money
investment board by the county treasurer or governing body of the amount
of each loan authorized pursuant to this subsection, the pooled money
investment board shall transfer each such amount certified by the county
treasurer or governing body from the state bank account or accounts
prescribed in this subsection to the county treasurer who shall deposit such
amount in the county treasury. Any such loan authorized pursuant to this
subsection shall be repaid within four years. The county or taxing
subdivision shall make not more than four equal annual tax levies at the
time fixed for the certification of tax levies to the county clerk following
the making of such loan sufficient to pay such loan within the time period
required under such loan. All such tax levies shall be in addition to all
other levies authorized by law.
(o) The county treasurer shall disburse to the proper funds all portions
of taxes paid under protest and shall maintain a record of all portions of
such taxes which are so protested and shall notify the governing body of
the taxing district levying such taxes thereof and the director of accounts
and reports if any tax protested was levied by the state.
(p) This statute shall not apply to the valuation and assessment of
property assessed by the director of property valuation and it shall not be
necessary for any owner of state assessed property, who has an appeal
pending before the state board of tax appeals, to protest the payment of
taxes under this statute solely for the purpose of protecting the right to a
refund of taxes paid under protest should that owner be successful in that
appeal.
Sec. 7. K.S.A. 2023 Supp. 79-4508a is hereby amended to read as
follows: 79-4508a. (a) For tax year 2022, and all tax years thereafter, the
amount of any claim pursuant to this section shall be computed by
deducting the claimant's base year ad valorem tax amount for the
homestead from the claimant's homestead ad valorem tax amount for the
tax year for which the refund is sought. This section shall be known and
may be cited as the homeowners' property tax freeze program.
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(b) As used in this section:
(1) "Base year" means the year in which an individual becomes an
eligible claimant and who is also eligible for a claim for refund pursuant to
this section. For any individual who would otherwise be an eligible
claimant prior to 2021, such base year shall be deemed to be 2021 for the
purposes of this act.
(2) "Claimant" means a person who has filed a claim under the
provisions of this act and was, during the entire calendar year preceding
the year in which such claim was filed for refund under this act, except as
provided in K.S.A. 79-4503, and amendments thereto, both domiciled in
this state and was: (A) A person who is 65 years of age or older; or (B) a
disabled veteran. The surviving spouse of a person 65 years of age or older
or a disabled veteran who was receiving benefits pursuant to this section at
the time of the claimant's death shall be eligible to continue to receive
benefits until such time the surviving spouse remarries.
(3) "Household income" means the total Kansas adjusted gross
income of all persons of a household in a calendar year while members of
such household excluding any amounts received as benefits under the
federal social security act that are included in Kansas adjusted gross
income of such persons.
(c) A claimant shall only be eligible for a claim for refund under this
section if:
(1) The claimant's household income for the year in which the claim
is filed is $50,000 $80,000 or less; and
(2) the appraised value of the claimant's homestead for the base year
is $350,000 $500,000 or less.
The provisions of K.S.A. 79-4522, and amendments thereto, shall not
apply to a claim pursuant to this section. In the case of all tax years
commencing after December 31, 2022, the upper limit household income
threshold amount prescribed in this subsection shall be increased by an
amount equal to such threshold amount multiplied by the cost-of-living
adjustment determined under section 1(f)(3) of the federal internal revenue
code for the calendar year in which the taxable year commences.
(d) A taxpayer shall not be eligible for a homestead property tax
refund claim pursuant to this section if such taxpayer has received for such
property for such tax year either: (1) A homestead property tax refund
pursuant to K.S.A. 79-4508, and amendments thereto; or (2) the selective
assistance for effective senior relief (SAFESR) credit pursuant to K.S.A.
79-32,263, and amendments thereto.
(e) The amount of any claim shall be computed to the nearest $1.
(f) The household income and appraised value amendments made to
this section by this act shall apply retroactively, and the deadline to file
claims for tax years 2022 and 2023 shall be extended to on or before April
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15, 2025.
(g) The provisions of this section shall be a part of and supplemental
to the homestead property tax refund act.
Sec. 8. K.S.A. 79-5501 is hereby amended to read as follows: 79-
5501. (a) On and after Commencing July 1, 2013, and through December
31, 2024, watercraft shall be appraised at fair market value determined
therefor pursuant to K.S.A. 79-503a, and amendments thereto, and
assessed at the percentage of value as follows: (1) 11.5% in tax year 2014;
and (2) 5% in tax year years 2015 and all tax years thereafter through
2024. On and after January 1, 2014, the levy used to calculate the tax on
watercraft shall be the county average tax rate. In no case shall the
assessed value of any watercraft, as determined under the provisions of
this section, cause the tax upon such watercraft to be less than $12.
(b) As used in this section, the term "watercraft" means any
watercraft designed to be propelled by machinery, oars, paddles or wind
action upon a sail for navigation on the water which, if not for the
provisions of this section, would be properly classified under subclass 5 or
6 of class 2 of section 1 of article 11 of the Kansas constitution. This
section shall not be construed as taxing any watercraft which otherwise
would be exempt from property taxation under the laws of the state of
Kansas. Each watercraft may include one trailer which is designed to
launch, retrieve, transport and store such watercraft and any nonelectric
motor or motors which are necessary to operate such watercraft on the
water.
(c) Any watercraft which is designed to be propelled through the
water through human power alone shall be exempt from all property or ad
valorem taxes levied under the laws of the state of Kansas.
(d) The "county average tax rate" means the total amount of general
property taxes levied within the county by the state, county and all other
taxing subdivisions divided by the total assessed valuation of all taxable
property within the county as of November 1 of the year prior to the year
of valuation as certified by the secretary of revenue.
(e) On and after January 1, 2025, all watercraft shall be exempt from
all property or ad valorem taxes levied under the laws of the state of
Kansas.
Sec. 9. K.S.A. 79-213, 79-503a and 79-5501 and K.S.A. 2023 Supp.
79-1460, 79-2005 and 79-4508a are hereby repealed.
Sec. 10. This act shall take effect and be in force from and after its
publication in the statute book.
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