Kansas 2024 1st Special Session

Kansas House Bill HB2003 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Session of 2024
2	2	HOUSE BILL No. 2003
3	3	By Representatives Proctor, Buehler, Butler, Collins, Ellis, Johnson, Neelly, Turk
4	4	and Underhill
5	5	6-18
6	6	AN ACT concerning taxation; relating to income tax; establishing the
7	7	veterans' valor property tax relief act and providing for an income tax
8	8	credit or refund for eligible individuals; modifying the definition of
9	9	household income and increasing the appraised value threshold for
10	10	eligibility of seniors and disabled veterans related to increased property
11	11	tax claims and citing the section as the homeowners' property tax freeze
12	12	program; relating to property tax; providing exemptions for certain
13	13	personal property including watercraft, marine equipment, off-road
14	14	vehicles, motorized bicycles and certain trailers; excluding internal
15	15	revenue code section 1031 exchange transactions as indicators of fair
16	16	market value; providing for certain exclusions from the prohibition of
17	17	paying taxes under protest after a valuation notice appeal; providing
18	18	four prior years' values on the annual valuation notice; amending
19	19	K.S.A. 79-213, 79-503a and 79-5501 and K.S.A. 2023 Supp. 79-1460,
20	20	79-2005 and 79-4508a and repealing the existing sections.
21	21	Be it enacted by the Legislature of the State of Kansas:
22	22	New Section 1. (a) This act shall be known and may be cited as the
23	23	veterans' valor property tax relief act.
24	24	(b) There shall be allowed as a credit against the tax liability of a
25	25	taxpayer imposed under the Kansas income tax act for tax year 2024, and
26	26	all tax years thereafter, in an amount equal to 75% of the amount of
27	27	property and ad valorem taxes actually and timely paid by a taxpayer who
28	28	has been deemed to be totally disabled, permanently and totally disabled,
29	29	or unemployable pursuant to 38 C.F.R. § 3.340 if such taxes were paid
30	30	upon real or personal property used for residential purposes of such
31	31	taxpayer that is the taxpayer's principal place of residence for the tax year
32	32	in which the tax credit is claimed.
33	33	(c) The amount of any such credit for any such taxpayer shall not
34	34	exceed the amount of property and ad valorem taxes paid by such taxpayer
35	35	as specified in this section. A taxpayer shall not take the credit pursuant to
36	36	this section if such taxpayer has received a homestead property tax refund
37	37	pursuant to K.S.A. 79-4501 et seq., and amendments thereto, or a credit
38	38	pursuant to the selective assistance for effective senior relief pursuant to
39	39	K.S.A. 79-32,263, and amendments thereto, for such property for such tax
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75	75	year.
76	76	(d) Subject to the provisions of this section, if the amount of such tax
77	77	credit exceeds the taxpayer's income tax liability for the taxable year, the
78	78	amount of such excess credit that exceeds such tax liability shall be
79	79	refunded to the taxpayer.
80	80	(e) The secretary of revenue shall adopt rules and regulations
81	81	regarding the filing of documents that support the amount of the credit
82	82	claimed pursuant to this section.
83	83	(f) The provisions of this act shall be a part of and supplemental to
84	84	the homestead property tax refund act, except that the income or appraised
85	85	valuation limits set forth in the homestead property tax refund act shall not
86	86	apply to this section.
87	87	New Sec. 2. (a) The following described property, to the extent herein
88	88	specified, is hereby exempt from all property or ad valorem taxes levied
89	89	under the laws of the state of Kansas:
90	90	(1) Any off-road vehicle that is not operated upon any highway;
91	91	(2) any motorized bicycle, electric-assisted bicycle, electric-assisted
92	92	scooter, electric personal assistive mobility device and motorized
93	93	wheelchair as such terms are defined in K.S.A. 8-126, and amendments
94	94	thereto;
95	95	(3) any trailer having a gross weight of 15,000 pounds or less that is
96	96	used exclusively for personal use and not for the production of income;
97	97	and
98	98	(4) any marine equipment.
99	99	(b) For purposes of this section:
100	100	(1) "Marine equipment" means any watercraft trailer designed to
101	101	launch, retrieve, transport and store watercraft and any watercraft motor
102	102	designed to operate watercraft on the water;
103	103	(2) "off-road motorcycle" means any motorcycle as defined in K.S.A.
104	104	8-126, and amendments thereto, that has been manufactured for off-road
105	105	use only and is used exclusively off roads and highways; and
106	106	(3) "off-road vehicle" means:
107	107	(A) Any all-terrain vehicle, recreational off-highway vehicle and golf
108	108	cart as such terms are defined in K.S.A. 8-126, and amendments thereto;
109	109	and
110	110	(B) any off-road motorcycle and snowmobile.
111	111	(c) The provisions of this section shall apply to all taxable years
112	112	commencing after December 31, 2024.
113	113	Sec. 3. K.S.A. 79-213 is hereby amended to read as follows: 79-213.
114	114	(a) Any property owner requesting an exemption from the payment of ad
115	115	valorem property taxes assessed, or to be assessed, against their property
116	116	shall be required to file an initial request for exemption, on forms
117	117	approved by the state board of tax appeals and provided by the county
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161	161	appraiser.
162	162	(b) The initial exemption request shall identify the property for which
163	163	the exemption is requested and state, in detail, the legal and factual basis
164	164	for the exemption claimed.
165	165	(c) The request for exemption shall be filed with the county appraiser
166	166	of the county where such property is principally located.
167	167	(d) After a review of the exemption request, and after a preliminary
168	168	examination of the facts as alleged, the county appraiser shall recommend
169	169	that the exemption request either be granted or denied, and, if necessary,
170	170	that a hearing be held. If a denial is recommended, a statement of the
171	171	controlling facts and law relied upon shall be included on the form.
172	172	(e) The county appraiser, after making such written recommendation,
173	173	shall file the request for exemption and the recommendations of the county
174	174	appraiser with the state board of tax appeals. With regard to a request for
175	175	exemption from property tax pursuant to the provisions of K.S.A. 79-201g
176	176	and 82a-409, and amendments thereto, not filed with the board of tax
177	177	appeals by the county appraiser on or before the effective date of this act,
178	178	if the county appraiser recommends the exemption request be granted, the
179	179	exemption shall be provided in the amount recommended by the county
180	180	appraiser and the county appraiser shall not file the request for exemption
181	181	and recommendations of the county appraiser with the state board of tax
182	182	appeals. The county clerk or county assessor shall annually make such
183	183	adjustment in the taxes levied against the real property as the owner may
184	184	be entitled to receive under the provisions of K.S.A. 79-201g, and
185	185	amendments thereto, as recommended by the county appraiser, beginning
186	186	with the first period, following the date of issue of the certificate of
187	187	completion on which taxes are regularly levied, and during the years
188	188	which the landowner is entitled to such adjustment.
189	189	(f) Upon receipt of the request for exemption, the board shall docket
190	190	the same and notify the applicant and the county appraiser of such fact.
191	191	(g) After examination of the request for exemption and the county
192	192	appraiser's recommendation related thereto, the board may fix a time and
193	193	place for hearing, and shall notify the applicant and the county appraiser of
194	194	the time and place so fixed. A request for exemption pursuant to: (1)
195	195	Section 13 of article 11 of the constitution of the state of Kansas; or (2)
196	196	K.S.A. 79-201a Second, and amendments thereto, for property constructed
197	197	or purchased, in whole or in part, with the proceeds of revenue bonds
198	198	under the authority of K.S.A. 12-1740 through 12-1749, and amendments
199	199	thereto, prepared in accordance with instructions and assistance which
200	200	shall be provided by the department of commerce, shall be deemed
201	201	approved unless scheduled for hearing within 30 days after the date of
202	202	receipt of all required information and data relating to the request for
203	203	exemption, and such hearing shall be conducted within 90 days after such
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247	247	date. Such time periods shall be determined without regard to any
248	248	extension or continuance allowed to either party to such request. In any
249	249	case where a party to such request for exemption requests a hearing
250	250	thereon, the same shall be granted. Hearings shall be conducted in
251	251	accordance with the provisions of the Kansas administrative procedure act.
252	252	In all instances where the board sets a request for exemption for hearing,
253	253	the county shall be represented by its county attorney or county counselor.
254	254	(h) Except as otherwise provided by subsection (g), in the event of a
255	255	hearing, the same shall be originally set not later than 90 days after the
256	256	filing of the request for exemption with the board.
257	257	(i) During the pendency of a request for exemption, no person, firm,
258	258	unincorporated association, company or corporation charged with real
259	259	estate or personal property taxes pursuant to K.S.A. 79-2004 and 79-
260	260	2004a, and amendments thereto, on the tax books in the hands of the
261	261	county treasurer shall be required to pay the tax from the date the request
262	262	is filed with the county appraiser until the expiration of 30 days after the
263	263	board issued its order thereon and the same becomes a final order. In the
264	264	event that taxes have been assessed against the subject property, no interest
265	265	shall accrue on any unpaid tax for the year or years in question nor shall
266	266	the unpaid tax be considered delinquent from the date the request is filed
267	267	with the county appraiser until the expiration of 30 days after the board
268	268	issued its order thereon. In the event the board determines an application
269	269	for exemption is without merit and filed in bad faith to delay the due date
270	270	of the tax, the tax shall be considered delinquent as of the date the tax
271	271	would have been due pursuant to K.S.A. 79-2004 and 79-2004a, and
272	272	amendments thereto, and interest shall accrue as prescribed therein.
273	273	(j) In the event the board grants the initial request for exemption, the
274	274	same shall be effective beginning with the date of first exempt use except
275	275	that, with respect to property the construction of which commenced not to
276	276	exceed 24 months prior to the date of first exempt use, the same shall be
277	277	effective beginning with the date of commencement of construction.
278	278	(k) In conjunction with its authority to grant exemptions, the board
279	279	shall have the authority to abate all unpaid taxes that have accrued from
280	280	and since the effective date of the exemption. In the event that taxes have
281	281	been paid during the period where the subject property has been
282	282	determined to be exempt, the board shall have the authority to order a
283	283	refund of taxes for the year immediately preceding the year in which the
284	284	exemption application is filed in accordance with subsection (a).
285	285	(l) The provisions of this section shall not apply to: (1) Farm
286	286	machinery and equipment exempted from ad valorem taxation by K.S.A.
287	287	79-201j, and amendments thereto; (2) personal property exempted from ad
288	288	valorem taxation by K.S.A. 79-215, and amendments thereto; (3) wearing
289	289	apparel, household goods and personal effects exempted from ad valorem
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333	333	taxation by K.S.A. 79-201c, and amendments thereto; (4) livestock; (5) all
334	334	property exempted from ad valorem taxation by K.S.A. 79-201d, and
335	335	amendments thereto; (6) merchants' and manufacturers' inventories
336	336	exempted from ad valorem taxation by K.S.A. 79-201m, and amendments
337	337	thereto; (7) grain exempted from ad valorem taxation by K.S.A. 79-201n,
338	338	and amendments thereto; (8) property exempted from ad valorem taxation
339	339	by K.S.A. 79-201a Seventeenth, and amendments thereto, including all
340	340	property previously acquired by the secretary of transportation or a
341	341	predecessor in interest, which is used in the administration, construction,
342	342	maintenance or operation of the state system of highways. The secretary of
343	343	transportation shall at the time of acquisition of property notify the county
344	344	appraiser in the county in which the property is located that the acquisition
345	345	occurred and provide a legal description of the property acquired; (9)
346	346	property exempted from ad valorem taxation by K.S.A. 79-201a Ninth,
347	347	and amendments thereto, including all property previously acquired by the
348	348	Kansas turnpike authority which is used in the administration,
349	349	construction, maintenance or operation of the Kansas turnpike. The Kansas
350	350	turnpike authority shall at the time of acquisition of property notify the
351	351	county appraiser in the county in which the property is located that the
352	352	acquisition occurred and provide a legal description of the property
353	353	acquired; (10) aquaculture machinery and equipment exempted from ad
354	354	valorem taxation by K.S.A. 79-201j, and amendments thereto. As used in
355	355	this section, "aquaculture" has the same meaning ascribed thereto by
356	356	K.S.A. 47-1901, and amendments thereto; (11) Christmas tree machinery
357	357	and equipment exempted from ad valorem taxation by K.S.A. 79-201j, and
358	358	amendments thereto; (12) property used exclusively by the state or any
359	359	municipality or political subdivision of the state for right-of-way purposes.
360	360	The state agency or the governing body of the municipality or political
361	361	subdivision shall at the time of acquisition of property for right-of-way
362	362	purposes notify the county appraiser in the county in which the property is
363	363	located that the acquisition occurred and provide a legal description of the
364	364	property acquired; (13) machinery, equipment, materials and supplies
365	365	exempted from ad valorem taxation by K.S.A. 79-201w, and amendments
366	366	thereto; (14) vehicles owned by the state or by any political or taxing
367	367	subdivision thereof and used exclusively for governmental purposes; (15)
368	368	property used for residential purposes which is exempted pursuant to
369	369	K.S.A. 79-201x, and amendments thereto, from the property tax levied
370	370	pursuant to K.S.A. 72-5142, and amendments thereto; (16) from and after
371	371	July 1, 1998, vehicles which are owned by an organization having as one
372	372	of its purposes the assistance by the provision of transit services to the
373	373	elderly and to disabled persons and which are exempted pursuant to
374	374	K.S.A. 79-201 Ninth, and amendments thereto; (17) from and after July 1,
375	375	1998, motor vehicles exempted from taxation by K.S.A. 79-5107(e), and
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419	419	amendments thereto; (18) commercial and industrial machinery and
420	420	equipment exempted from property or ad valorem taxation by K.S.A. 79-
421	421	223, and amendments thereto; (19) telecommunications machinery and
422	422	equipment and railroad machinery and equipment exempted from property
423	423	or ad valorem taxation by K.S.A. 79-224, and amendments thereto; (20)
424	424	property exempted from property or ad valorem taxation by K.S.A. 79-
425	425	234, and amendments thereto; (21) recreational vehicles exempted from
426	426	property or ad valorem taxation by K.S.A. 79-5121(e), and amendments
427	427	thereto; (22) property acquired by a land bank exempt from property or ad
428	428	valorem taxation pursuant to K.S.A. 12-5909 or K.S.A. 19-26,111, and
429	429	amendments thereto; and (23) property belonging exclusively to the
430	430	United States and exempted from ad valorem taxation by K.S.A. 79-201a
431	431	First, and amendments thereto, except that the provisions of this
432	432	subsection (l)(23) shall not apply to any such property that the congress of
433	433	the United States has expressly declared to be subject to state and local
434	434	taxation; (24) watercraft exempted from property or ad valorem taxation
435	435	by K.S.A. 79-5501, and amendments thereto; and (25) property exempted
436	436	from property or ad valorem taxation by section 2, and amendments
437	437	thereto.
438	438	(m) The provisions of this section shall apply to property exempt
439	439	pursuant to the provisions of section 13 of article 11 of the constitution of
440	440	the state of Kansas.
441	441	(n) The provisions of subsection (k) as amended by this act shall be
442	442	applicable to all exemption applications filed in accordance with
443	443	subsection (a) after December 31, 2001.
444	444	(o) No exemption authorized by K.S.A. 79-227, and amendments
445	445	thereto, of property from the payment of ad valorem property taxes
446	446	assessed shall be granted unless the requesting property owner files an
447	447	initial request for exemption pursuant to this section within two years of
448	448	the date in which construction of a new qualifying pipeline property
449	449	began. The provisions of this subsection shall be applicable to all requests
450	450	for exemptions filed in accordance with subsection (a) after June 30, 2017.
451	451	Sec. 4. K.S.A. 79-503a is hereby amended to read as follows: 79-
452	452	503a. "Fair market value" means the amount in terms of money that a well
453	453	informed buyer is justified in paying and a well informed seller is justified
454	454	in accepting for property in an open and competitive market, assuming that
455	455	the parties are acting without undue compulsion. In the determination of
456	456	fair market value of any real property which is subject to any special
457	457	assessment, such value shall not be determined by adding the present value
458	458	of the special assessment to the sales price. For the purposes of this
459	459	definition it will be assumed that consummation of a sale occurs as of
460	460	January 1.
461	461	Sales in and of themselves shall not be the sole criteria of fair market
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505	505	value but shall be used in connection with cost, income and other factors
506	506	including but not by way of exclusion:
507	507	(a) The proper classification of lands and improvements;
508	508	(b) the size thereof;
509	509	(c) the effect of location on value;
510	510	(d) depreciation, including physical deterioration or functional,
511	511	economic or social obsolescence;
512	512	(e) cost of reproduction of improvements;
513	513	(f) productivity taking into account all restrictions imposed by the
514	514	state or federal government and local governing bodies, including, but not
515	515	limited to, restrictions on property rented or leased to low income
516	516	individuals and families as authorized by section 42 of the federal internal
517	517	revenue code of 1986, as amended;
518	518	(g) earning capacity as indicated by lease price, by capitalization of
519	519	net income or by absorption or sell-out period;
520	520	(h) rental or reasonable rental values or rental values restricted by the
521	521	state or federal government or local governing bodies, including, but not
522	522	limited to, restrictions on property rented or leased to low income
523	523	individuals and families, as authorized by section 42 of the federal internal
524	524	revenue code of 1986, as amended;
525	525	(i) sale value on open market with due allowance to abnormal
526	526	inflationary factors influencing such values;
527	527	(j) restrictions or requirements imposed upon the use of real estate by
528	528	the state or federal government or local governing bodies, including
529	529	zoning and planning boards or commissions, and including, but not limited
530	530	to, restrictions or requirements imposed upon the use of real estate rented
531	531	or leased to low income individuals and families, as authorized by section
532	532	42 of the federal internal revenue code of 1986, as amended; and
533	533	(k) comparison with values of other property of known or recognized
534	534	value. The assessment-sales ratio study shall not be used as an appraisal
535	535	for appraisal purposes.
536	536	The appraisal process utilized in the valuation of all real and tangible
537	537	personal property for ad valorem tax purposes shall conform to generally
538	538	accepted appraisal procedures and standards which are consistent with the
539	539	definition of fair market value unless otherwise specified by law.
540	540	The sale price or value at which a property sells or transfers ownership
541	541	in a federal internal revenue code section 1031 exchange shall not be
542	542	considered an indicator of fair market value nor as a factor in arriving at
543	543	fair market value. Federal internal revenue code section 1031 exchange
544	544	transactions shall not be used as comparable sales for valuation purposes
545	545	nor as valid sales for purposes of sales ratio studies conducted pursuant to
546	546	K.S.A. 79-1485 et seq., and amendments thereto.
547	547	Sec. 5. K.S.A. 2023 Supp. 79-1460 is hereby amended to read as
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591	591	follows: 79-1460. (a) The county appraiser shall notify each taxpayer in
592	592	the county annually on or before March 1 for real property and May 1 for
593	593	personal property, by mail directed to the taxpayer's last known address, of
594	594	the classification and appraised valuation of the taxpayer's property, except
595	595	that, the valuation for all real property shall not be increased unless the
596	596	record of the latest physical inspection was reviewed by the county or
597	597	district appraiser, and documentation exists to support such increase in
598	598	valuation in compliance with the directives and specifications of the
599	599	director of property valuation, and such record and documentation is
600	600	available to the affected taxpayer. Alternatively, the county appraiser may
601	601	transmit the classification and appraised valuation to the taxpayer by
602	602	electronic means if such taxpayer consented to service by electronic
603	603	means.
604	604	(b) The valuation for all real property also shall not be increased
605	605	solely as the result of normal repair, replacement or maintenance of
606	606	existing structures, equipment or improvements on the property. For the
607	607	next two taxable years following the taxable year that the valuation for
608	608	commercial real property has been reduced due to a final determination
609	609	made pursuant to the valuation appeals process, the county appraiser shall
610	610	review the computer-assisted mass-appraisal of the property and if, the
611	611	valuation in either of those two years exceeds the value of the previous
612	612	year by more than 5%, excluding new construction, change in use or
613	613	change in classification, the county appraiser shall either:
614	614	(1) Adjust the valuation of the property based on the information
615	615	provided in the previous appeal; or
616	616	(2) order an independent fee simple appraisal of the property to be
617	617	performed by a Kansas certified real property appraiser.
618	618	(c) When the valuation for real property has been reduced due to a
619	619	final determination made pursuant to the valuation appeals process for the
620	620	prior year, and the county appraiser has already certified the appraisal rolls
621	621	for the current year to the county clerk pursuant to K.S.A. 79-1466, and
622	622	amendments thereto, the county appraiser may amend the appraisal rolls
623	623	and certify the changes to the county clerk to implement the provisions of
624	624	this subsection and reduce the valuation of the real property to the prior
625	625	year's final determination, except that such changes shall not be made after
626	626	October 31 of the current year.
627	627	(d) (1) The notice provided under subsection (a) shall specify:
628	628	(A) Separately for the previous tax year and the current tax year, the
629	629	appraised and assessed values for each property class identified on the
630	630	parcel;
631	631	(B) the uniform parcel identification number prescribed by the
632	632	director of property valuation; and
633	633	(C) a statement of the taxpayer's right to appeal, the procedure to be
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676	676	43 HB 2003 9
677	677	followed in making such appeal and the availability without charge of the
678	678	guide devised pursuant to subsection (g); and
679	679	(D) a valuation history of the parcel that includes, at a minimum, a
680	680	statement or display of the total appraised values of the parcel for the
681	681	current tax year and the previous four tax years.
682	682	(2) Such notice may, and if the board of county commissioners so
683	683	require, shall provide the parcel identification number, address and the sale
684	684	date and amount of any or all sales utilized in the determination of
685	685	appraised value of residential real property.
686	686	(e) In any year in which no change in appraised valuation of any real
687	687	property from its appraised valuation in the next preceding year is
688	688	determined, an alternative form of notification which has been approved
689	689	by the director of property valuation may be utilized by a county.
690	690	(f) Failure to timely mail or receive such notice shall in no way
691	691	invalidate the classification or appraised valuation as changed. The
692	692	secretary of revenue shall adopt rules and regulations necessary to
693	693	implement the provisions of this section.
694	694	(g) There shall be provided to each taxpayer, upon request, a guide to
695	695	the property tax appeals process. The director of the division of property
696	696	valuation shall devise and publish such guide and shall provide sufficient
697	697	copies thereof to all county appraisers. Such guide shall include, but not be
698	698	limited to:
699	699	(1) A restatement of the law which pertains to the process and
700	700	practice of property appraisal methodology, including the contents of
701	701	K.S.A. 79-503a and 79-1460, and amendments thereto;
702	702	(2) the procedures of the appeals process, including the order and
703	703	burden of proof of each party and time frames required by law; and
704	704	(3) such other information deemed necessary to educate and enable a
705	705	taxpayer to properly and competently pursue an appraisal appeal.
706	706	(h) As used in this section:
707	707	(1) "New construction" means the construction of any new structure
708	708	or improvements or the remodeling or renovation of any existing
709	709	structures or improvements on real property.
710	710	(2) "Normal repair, replacement or maintenance" does not include
711	711	new construction.
712	712	(3) "Taxpayer" means the person in ownership of the property as
713	713	indicated on the records of the office of register of deeds or county clerk
714	714	and includes the lessee of such property if the lease agreement has been
715	715	recorded or filed in the office of the register of deeds and the real property
716	716	or improvement thereon is subject of a lease agreement.
717	717	Sec. 6. K.S.A. 2023 Supp. 79-2005 is hereby amended to read as
718	718	follows: 79-2005. (a) Any taxpayer, before protesting the payment of such
719	719	taxpayer's taxes, shall be required, either at the time of paying such taxes,
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763	763	or, if the whole or part of the taxes are paid prior to December 20, no later
764	764	than December 20, or, with respect to taxes paid in whole or in part in an
765	765	amount equal to at least
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767	767	/2 of such taxes on or before December 20 by an
768	768	escrow or tax service agent, no later than January 31 of the next year, to
769	769	file a written statement with the county treasurer, on forms approved by
770	770	the state board of tax appeals and provided by the county treasurer, clearly
771	771	stating the grounds on which the whole or any part of such taxes are
772	772	protested and citing any law, statute or facts on which such taxpayer relies
773	773	in protesting the whole or any part of such taxes. When the grounds of
774	774	such protest is an assessment of taxes made pursuant to K.S.A. 79-332a
775	775	and 79-1427a, and amendments thereto, the county treasurer may not
776	776	distribute the taxes paid under protest until such time as the appeal is final.
777	777	When the grounds of such protest is that the valuation or assessment of the
778	778	property upon which the taxes are levied is illegal or void, the county
779	779	treasurer shall forward a copy of the written statement of protest to the
780	780	county appraiser who shall within 15 days of the receipt thereof, schedule
781	781	an informal meeting with the taxpayer or such taxpayer's agent or attorney
782	782	with reference to the property in question. At the informal meeting, it shall
783	783	be the duty of the county appraiser or the county appraiser's designee to
784	784	initiate production of evidence to substantiate the valuation of such
785	785	property, including a summary of the reasons that the valuation of the
786	786	property has been increased over the preceding year, any assumptions used
787	787	by the county appraiser to determine the value of the property and a
788	788	description of the individual property characteristics, property specific
789	789	valuation records and conclusions. The taxpayer shall be provided with the
790	790	opportunity to review the data sheets applicable to the valuation approach
791	791	utilized for the subject property. The county appraiser shall take into
792	792	account any evidence provided by the taxpayer which relates to the
793	793	amount of deferred maintenance and depreciation of the property. The
794	794	county appraiser shall review the appraisal of the taxpayer's property with
795	795	the taxpayer or such taxpayer's agent or attorney and may change the
796	796	valuation of the taxpayer's property, if in the county appraiser's opinion a
797	797	change in the valuation of the taxpayer's property is required to assure that
798	798	the taxpayer's property is valued according to law, and shall, within 15
799	799	business days thereof, notify the taxpayer in the event the valuation of the
800	800	taxpayer's property is changed, in writing of the results of the meeting. The
801	801	county appraiser shall not increase the appraised valuation of the property
802	802	as a result of the informal meeting. In the event the valuation of the
803	803	taxpayer's property is changed and such change requires a refund of taxes
804	804	and interest thereon, the county treasurer shall process the refund in the
805	805	manner provided by subsection (l).
806	806	(b) No protest appealing the valuation or assessment of property shall
807	807	be filed pertaining to any year's valuation or assessment when an appeal of
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850	850	43 HB 2003 11
851	851	such valuation or assessment was commenced pursuant to K.S.A. 79-1448,
852	852	and amendments thereto, nor shall the second half payment of taxes be
853	853	protested when the first half payment of taxes has been protested.
854	854	Notwithstanding the foregoing, this provision shall not prevent any
855	855	subsequent owner from protesting taxes levied for the year in which such
856	856	property was acquired, nor shall it prevent any taxpayer from protesting
857	857	taxes when:
858	858	(1) The valuation or assessment of such taxpayer's property has been
859	859	changed pursuant to an order of the director of property valuation;
860	860	(2) the taxpayer withdrew such taxpayer's appeal commenced
861	861	pursuant to K.S.A. 79-1448, and amendments thereto; or
862	862	(3) the taxpayer wishes to present new evidence relating to the
863	863	valuation or assessment of such property.
864	864	(c) A protest shall not be necessary to protect the right to a refund of
865	865	taxes in the event a refund is required because the final resolution of an
866	866	appeal commenced pursuant to K.S.A. 79-1448, and amendments thereto,
867	867	occurs after the final date prescribed for the protest of taxes.
868	868	(d) If the grounds of such protest shall be that the valuation or
869	869	assessment of the property upon which the taxes so protested are levied is
870	870	illegal or void, such statement shall further state the exact amount of
871	871	valuation or assessment which the taxpayer admits to be valid and the
872	872	exact portion of such taxes which is being protested.
873	873	(e) If the grounds of such protest shall be that any tax levy, or any
874	874	part thereof, is illegal, such statement shall further state the exact portion
875	875	of such tax which is being protested.
876	876	(f) Upon the filing of a written statement of protest, the grounds of
877	877	which shall be that any tax levied, or any part thereof, is illegal, the county
878	878	treasurer shall mail a copy of such written statement of protest to the state
879	879	board of tax appeals and the governing body of the taxing district making
880	880	the levy being protested.
881	881	(g) Within 30 days after notification of the results of the informal
882	882	meeting with the county appraiser pursuant to subsection (a), the
883	883	protesting taxpayer may, if aggrieved by the results of the informal
884	884	meeting with the county appraiser, appeal such results to the state board of
885	885	tax appeals.
886	886	(h) After examination of the copy of the written statement of protest
887	887	and a copy of the written notification of the results of the informal meeting
888	888	with the county appraiser in cases where the grounds of such protest is that
889	889	the valuation or assessment of the property upon which the taxes are levied
890	890	is illegal or void, the board shall conduct a hearing in accordance with the
891	891	provisions of the Kansas administrative procedure act, unless waived by
892	892	the interested parties in writing. If the grounds of such protest is that the
893	893	valuation or assessment of the property is illegal or void the board shall
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936	936	43 HB 2003 12
937	937	notify the county appraiser thereof.
938	938	(i) In the event of a hearing, the same shall be originally set not later
939	939	than 90 days after the filing of the copy of the written statement of protest
940	940	and a copy, when applicable, of the written notification of the results of the
941	941	informal meeting with the county appraiser with the board. With regard to
942	942	any matter properly submitted to the board relating to the determination of
943	943	valuation of residential property or real property used for commercial and
944	944	industrial purposes for taxation purposes, it shall be the duty of the county
945	945	appraiser to initiate the production of evidence to demonstrate, by a
946	946	preponderance of the evidence, the validity and correctness of such
947	947	determination except that no such duty shall accrue to the county or
948	948	district appraiser with regard to leased commercial and industrial property
949	949	unless the property owner has furnished to the county or district appraiser
950	950	a complete income and expense statement for the property for the three
951	951	years next preceding the year of appeal. No presumption shall exist in
952	952	favor of the county appraiser with respect to the validity and correctness of
953	953	such determination. In all instances where the board sets a request for
954	954	hearing and requires the representation of the county by its attorney or
955	955	counselor at such hearing, the county shall be represented by its county
956	956	attorney or counselor. The board shall take into account any evidence
957	957	provided by the taxpayer which relates to the amount of deferred
958	958	maintenance and depreciation for the property. In any appeal from the
959	959	reclassification of property that was classified as land devoted to
960	960	agricultural use for the preceding year, the taxpayer's classification of the
961	961	property as land devoted to agricultural use shall be presumed to be valid
962	962	and correct if the taxpayer provides an executed lease agreement or other
963	963	documentation demonstrating a commitment to use the property for
964	964	agricultural use, if no other actual use is evident. With regard to any matter
965	965	properly submitted to the board relating to the determination of valuation
966	966	of property for taxation purposes, the board shall not increase the
967	967	appraised valuation of the property to an amount greater than the appraised
968	968	value reflected in the notification of the results of the informal meeting
969	969	with the county appraiser from which the taxpayer appealed.
970	970	(j) When a determination is made as to the merits of the tax protest,
971	971	the board shall render and serve its order thereon. The county treasurer
972	972	shall notify all affected taxing districts of the amount by which tax
973	973	revenues will be reduced as a result of a refund.
974	974	(k) If a protesting taxpayer fails to file a copy of the written statement
975	975	of protest and a copy, when applicable, of the written notification of the
976	976	results of the informal meeting with the county appraiser with the board
977	977	within the time limit prescribed, such protest shall become null and void
978	978	and of no effect whatsoever.
979	979	(l) (1) In the event the board orders that a refund be made pursuant to
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1022	1022	43 HB 2003 13
1023	1023	this section or the provisions of K.S.A. 79-1609, and amendments thereto,
1024	1024	or a court of competent jurisdiction orders that a refund be made, and no
1025	1025	appeal is taken from such order, or in the event a change in valuation
1026	1026	which results in a refund pursuant to subsection (a), the county treasurer
1027	1027	shall, as soon thereafter as reasonably practicable, refund to the taxpayer
1028	1028	such protested taxes and, with respect to protests or appeals commenced
1029	1029	after the effective date of this act, interest computed at the rate prescribed
1030	1030	by K.S.A. 79-2968, and amendments thereto, minus two percentage points,
1031	1031	per annum from the date of payment of such taxes from tax moneys
1032	1032	collected but not distributed. Upon making such refund, the county
1033	1033	treasurer shall charge the fund or funds having received such protested
1034	1034	taxes, except that, with respect to that portion of any such refund
1035	1035	attributable to interest the county treasurer shall charge the county general
1036	1036	fund. In the event that the state board of tax appeals or a court of
1037	1037	competent jurisdiction finds that any time delay in making its decision is
1038	1038	unreasonable and is attributable to the taxpayer, it may order that no
1039	1039	interest or only a portion thereof be added to such refund of taxes.
1040	1040	(2) No interest shall be allowed pursuant to paragraph (1) in any case
1041	1041	where the tax paid under protest was inclusive of delinquent taxes.
1042	1042	(m) Whenever, by reason of the refund of taxes previously received
1043	1043	or the reduction of taxes levied but not received as a result of decreases in
1044	1044	assessed valuation, it will be impossible to pay for imperative functions for
1045	1045	the current budget year, the governing body of the taxing district affected
1046	1046	may issue no-fund warrants in the amount necessary. Such warrants shall
1047	1047	conform to the requirements prescribed by K.S.A. 79-2940, and
1048	1048	amendments thereto, except they shall not bear the notation required by
1049	1049	such section and may be issued without the approval of the state board of
1050	1050	tax appeals. The governing body of such taxing district shall make a tax
1051	1051	levy at the time fixed for the certification of tax levies to the county clerk
1052	1052	next following the issuance of such warrants sufficient to pay such
1053	1053	warrants and the interest thereon. All such tax levies shall be in addition to
1054	1054	all other levies authorized by law.
1055	1055	(n) Whenever a taxpayer appeals to the board of tax appeals pursuant
1056	1056	to the provisions of K.S.A. 79-1609, and amendments thereto, or pays
1057	1057	taxes under protest related to one property whereby the assessed valuation
1058	1058	of such property exceeds 5% of the total county assessed valuation of all
1059	1059	property located within such county and the taxpayer receives a refund of
1060	1060	such taxes paid under protest or a refund made pursuant to the provisions
1061	1061	of K.S.A. 79-1609, and amendments thereto, the county treasurer or the
1062	1062	governing body of any taxing subdivision within a county may request the
1063	1063	pooled money investment board to make a loan to such county or taxing
1064	1064	subdivision as provided in this section. The pooled money investment
1065	1065	board is authorized and directed to loan to such county or taxing
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1108	1108	43 HB 2003 14
1109	1109	subdivision sufficient funds to enable the county or taxing subdivision to
1110	1110	refund such taxes to the taxpayer. The pooled money investment board is
1111	1111	authorized and directed to use any moneys in the operating accounts,
1112	1112	investment accounts or other investments of the state of Kansas to provide
1113	1113	the funds for such loan. Each loan shall bear interest at a rate equal to the
1114	1114	net earnings rate of the pooled money investment portfolio at the time of
1115	1115	the making of such loan. The total aggregate amount of loans under this
1116	1116	program shall not exceed $50,000,000 of unencumbered funds pursuant to
1117	1117	article 42 of chapter 75 of the Kansas Statutes Annotated, and amendments
1118	1118	thereto. Such loan shall not be deemed to be an indebtedness or debt of the
1119	1119	state of Kansas within the meaning of section 6 of article 11 of the
1120	1120	constitution of the state of Kansas. Upon certification to the pooled money
1121	1121	investment board by the county treasurer or governing body of the amount
1122	1122	of each loan authorized pursuant to this subsection, the pooled money
1123	1123	investment board shall transfer each such amount certified by the county
1124	1124	treasurer or governing body from the state bank account or accounts
1125	1125	prescribed in this subsection to the county treasurer who shall deposit such
1126	1126	amount in the county treasury. Any such loan authorized pursuant to this
1127	1127	subsection shall be repaid within four years. The county or taxing
1128	1128	subdivision shall make not more than four equal annual tax levies at the
1129	1129	time fixed for the certification of tax levies to the county clerk following
1130	1130	the making of such loan sufficient to pay such loan within the time period
1131	1131	required under such loan. All such tax levies shall be in addition to all
1132	1132	other levies authorized by law.
1133	1133	(o) The county treasurer shall disburse to the proper funds all portions
1134	1134	of taxes paid under protest and shall maintain a record of all portions of
1135	1135	such taxes which are so protested and shall notify the governing body of
1136	1136	the taxing district levying such taxes thereof and the director of accounts
1137	1137	and reports if any tax protested was levied by the state.
1138	1138	(p) This statute shall not apply to the valuation and assessment of
1139	1139	property assessed by the director of property valuation and it shall not be
1140	1140	necessary for any owner of state assessed property, who has an appeal
1141	1141	pending before the state board of tax appeals, to protest the payment of
1142	1142	taxes under this statute solely for the purpose of protecting the right to a
1143	1143	refund of taxes paid under protest should that owner be successful in that
1144	1144	appeal.
1145	1145	Sec. 7. K.S.A. 2023 Supp. 79-4508a is hereby amended to read as
1146	1146	follows: 79-4508a. (a) For tax year 2022, and all tax years thereafter, the
1147	1147	amount of any claim pursuant to this section shall be computed by
1148	1148	deducting the claimant's base year ad valorem tax amount for the
1149	1149	homestead from the claimant's homestead ad valorem tax amount for the
1150	1150	tax year for which the refund is sought. This section shall be known and
1151	1151	may be cited as the homeowners' property tax freeze program.
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1195	1195	(b) As used in this section:
1196	1196	(1) "Base year" means the year in which an individual becomes an
1197	1197	eligible claimant and who is also eligible for a claim for refund pursuant to
1198	1198	this section. For any individual who would otherwise be an eligible
1199	1199	claimant prior to 2021, such base year shall be deemed to be 2021 for the
1200	1200	purposes of this act.
1201	1201	(2) "Claimant" means a person who has filed a claim under the
1202	1202	provisions of this act and was, during the entire calendar year preceding
1203	1203	the year in which such claim was filed for refund under this act, except as
1204	1204	provided in K.S.A. 79-4503, and amendments thereto, both domiciled in
1205	1205	this state and was: (A) A person who is 65 years of age or older; or (B) a
1206	1206	disabled veteran. The surviving spouse of a person 65 years of age or older
1207	1207	or a disabled veteran who was receiving benefits pursuant to this section at
1208	1208	the time of the claimant's death shall be eligible to continue to receive
1209	1209	benefits until such time the surviving spouse remarries.
1210	1210	(3) "Household income" means the total Kansas adjusted gross
1211	1211	income of all persons of a household in a calendar year while members of
1212	1212	such household excluding any amounts received as benefits under the
1213	1213	federal social security act that are included in Kansas adjusted gross
1214	1214	income of such persons.
1215	1215	(c) A claimant shall only be eligible for a claim for refund under this
1216	1216	section if:
1217	1217	(1) The claimant's household income for the year in which the claim
1218	1218	is filed is $50,000 $80,000 or less; and
1219	1219	(2) the appraised value of the claimant's homestead for the base year
1220	1220	is $350,000 $500,000 or less.
1221	1221	The provisions of K.S.A. 79-4522, and amendments thereto, shall not
1222	1222	apply to a claim pursuant to this section. In the case of all tax years
1223	1223	commencing after December 31, 2022, the upper limit household income
1224	1224	threshold amount prescribed in this subsection shall be increased by an
1225	1225	amount equal to such threshold amount multiplied by the cost-of-living
1226	1226	adjustment determined under section 1(f)(3) of the federal internal revenue
1227	1227	code for the calendar year in which the taxable year commences.
1228	1228	(d) A taxpayer shall not be eligible for a homestead property tax
1229	1229	refund claim pursuant to this section if such taxpayer has received for such
1230	1230	property for such tax year either: (1) A homestead property tax refund
1231	1231	pursuant to K.S.A. 79-4508, and amendments thereto; or (2) the selective
1232	1232	assistance for effective senior relief (SAFESR) credit pursuant to K.S.A.
1233	1233	79-32,263, and amendments thereto.
1234	1234	(e) The amount of any claim shall be computed to the nearest $1.
1235	1235	(f) The household income and appraised value amendments made to
1236	1236	this section by this act shall apply retroactively, and the deadline to file
1237	1237	claims for tax years 2022 and 2023 shall be extended to on or before April
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1281	1281	15, 2025.
1282	1282	(g) The provisions of this section shall be a part of and supplemental
1283	1283	to the homestead property tax refund act.
1284	1284	Sec. 8. K.S.A. 79-5501 is hereby amended to read as follows: 79-
1285	1285	5501. (a) On and after Commencing July 1, 2013, and through December
1286	1286	31, 2024, watercraft shall be appraised at fair market value determined
1287	1287	therefor pursuant to K.S.A. 79-503a, and amendments thereto, and
1288	1288	assessed at the percentage of value as follows: (1) 11.5% in tax year 2014;
1289	1289	and (2) 5% in tax year years 2015 and all tax years thereafter through
1290	1290	2024. On and after January 1, 2014, the levy used to calculate the tax on
1291	1291	watercraft shall be the county average tax rate. In no case shall the
1292	1292	assessed value of any watercraft, as determined under the provisions of
1293	1293	this section, cause the tax upon such watercraft to be less than $12.
1294	1294	(b) As used in this section, the term "watercraft" means any
1295	1295	watercraft designed to be propelled by machinery, oars, paddles or wind
1296	1296	action upon a sail for navigation on the water which, if not for the
1297	1297	provisions of this section, would be properly classified under subclass 5 or
1298	1298	6 of class 2 of section 1 of article 11 of the Kansas constitution. This
1299	1299	section shall not be construed as taxing any watercraft which otherwise
1300	1300	would be exempt from property taxation under the laws of the state of
1301	1301	Kansas. Each watercraft may include one trailer which is designed to
1302	1302	launch, retrieve, transport and store such watercraft and any nonelectric
1303	1303	motor or motors which are necessary to operate such watercraft on the
1304	1304	water.
1305	1305	(c) Any watercraft which is designed to be propelled through the
1306	1306	water through human power alone shall be exempt from all property or ad
1307	1307	valorem taxes levied under the laws of the state of Kansas.
1308	1308	(d) The "county average tax rate" means the total amount of general
1309	1309	property taxes levied within the county by the state, county and all other
1310	1310	taxing subdivisions divided by the total assessed valuation of all taxable
1311	1311	property within the county as of November 1 of the year prior to the year
1312	1312	of valuation as certified by the secretary of revenue.
1313	1313	(e) On and after January 1, 2025, all watercraft shall be exempt from
1314	1314	all property or ad valorem taxes levied under the laws of the state of
1315	1315	Kansas.
1316	1316	Sec. 9. K.S.A. 79-213, 79-503a and 79-5501 and K.S.A. 2023 Supp.
1317	1317	79-1460, 79-2005 and 79-4508a are hereby repealed.
1318	1318	Sec. 10. This act shall take effect and be in force from and after its
1319	1319	publication in the statute book.
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