Session of 2025
HOUSE BILL No. 2400
By Committee on Taxation
Requested by Representative Proctor on behalf of Tonya Theis of the Watkins "C"
Ranch
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AN ACT concerning agritourism; including trail rides as a ranching
activity to qualify as an agritourism activity; classifying such land as
used for agritourism for purposes of property tax valuation as
agricultural land; amending K.S.A. 2024 Supp. 32-1432 and 79-1476
and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 32-1432 is hereby amended to read as
follows: 32-1432. As used in K.S.A. 32-1430 through 32-1438, and
amendments thereto:
(a) "Agritourism activity" means any activity which allows members
of the general public, for recreational, entertainment or educational
purposes, to view or enjoy rural activities, including, but not limited to,
farming activities, ranching activities to include trail rides or historic,
cultural or natural attractions. An activity may be an agritourism activity
whether or not the participant pays to participate in the activity. An activity
is not an agritourism activity if the participant is paid to participate in the
activity.
(b) "Inherent risks of a registered agritourism activity" means those
dangers or conditions which are an integral part of such agritourism
activity including, but not limited to, certain hazards such as surface and
subsurface conditions; natural conditions of land, vegetation, and waters;
the behavior of wild or domestic animals; and ordinary dangers of
structures or equipment ordinarily used in farming or ranching operations.
"Inherent risks of a registered agritourism activity" also includes the
potential of a participant to act in a negligent manner that may contribute
to injury to the participant or others, such as failing to follow instructions
given by the registered agritourism operator or failing to exercise
reasonable caution while engaging in the registered agritourism activity.
(c) "Participant" means any person who engages in a registered
agritourism activity.
(d) "Registered agritourism activity" means any agritourism activity
registered with the secretary pursuant to K.S.A. 32-1433, and amendments
thereto.
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(e) "Registered agritourism location" means a specific parcel of land
which is registered with the secretary pursuant to K.S.A. 32-1433, and
amendments thereto, and where a registered agritourism operator engages
in registered agritourism activities.
(f) "Registered agritourism operator" means any person who is
engaged in the business of providing one or more agritourism activities
and is registered with the secretary pursuant to K.S.A. 32-1433, and
amendments thereto.
(g) "Secretary" means the secretary of commerce.
Sec. 2. K.S.A. 2024 Supp. 79-1476 is hereby amended to read as
follows: 79-1476. (a) The director of property valuation is hereby directed
and empowered to administer and supervise a statewide program of
reappraisal of all real property located within the state. Except as
otherwise authorized by K.S.A. 19-428, and amendments thereto, each
county shall comprise a separate appraisal district under such program, and
the county appraiser shall have the duty of reappraising all of the real
property in the county pursuant to guidelines and timetables prescribed by
the director of property valuation and of updating the same on an annual
basis. In the case of multi-county appraisal districts, the district appraiser
shall have the duty of reappraising all of the real property in each of the
counties comprising the district pursuant to such guidelines and timetables
and of updating the same on an annual basis. Commencing in 2000, every
parcel of real property shall be actually viewed and inspected by the
county or district appraiser once every six years.
(b) Valuations shall be established for each parcel of real property at
its fair market value in money in accordance with the provisions of K.S.A.
79-503a, and amendments thereto.
(c) (1) Valuations shall be established for each parcel of land devoted
to agricultural use upon the basis of the agricultural income or productivity
attributable to the inherent capabilities of such land in its current usage
under a degree of management reflecting median production levels in the
manner hereinafter provided. A classification system for all land devoted
to agricultural use shall be adopted by the director of property valuation
using criteria established by the United States department of agriculture
natural resources conservation service.
(A) For all taxable years commencing after December 31, 1989, all
land devoted to agricultural use that is subject to the federal conservation
reserve program shall be classified as cultivated dry land for the purpose
of valuation for property tax purposes pursuant to this section, except that
for all taxable years commencing after December 31, 2022, all land
devoted to agricultural use that is subject to the federal grassland
conservation reserve program (CRP grasslands) shall be classified as
grassland for the purpose of valuation for property tax purposes pursuant
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to this section.
(B) For all taxable years commencing after December 31, 1999, all
land devoted to agricultural use that is subject to the federal wetlands
reserve program shall be classified as native grassland for the purpose of
valuation for property tax purposes pursuant to this section.
(2) Productivity of land devoted to agricultural use shall be
determined for all land classes within each county or homogeneous region
based on an average of the eight calendar years immediately preceding the
calendar year that immediately precedes the year of valuation, at a degree
of management reflecting median production levels. The director of
property valuation shall determine median production levels based on
information available from state and federal crop and livestock reporting
services, the natural resources conservation service, and any other sources
of data that the director considers appropriate.
(d) The share of net income from land in the various land classes
within each county or homogeneous region that is normally received by
the landlord shall be used as the basis for determining agricultural income
for all land devoted to agricultural use except pasture or rangeland. The net
income normally received by the landlord from such land shall be
determined by deducting expenses normally incurred by the landlord from
the share of the gross income normally received by the landlord. The net
rental income normally received by the landlord from pasture or rangeland
within each county or homogeneous region shall be used as the basis for
determining agricultural income from such land. The net rental income
from pasture and rangeland that is normally received by the landlord shall
be determined by deducting expenses normally incurred from the gross
income normally received by the landlord. Commodity prices, crop yields
and pasture and rangeland rental rates and expenses shall be based on an
average of the eight calendar years immediately preceding the calendar
year that immediately precedes the year of valuation. Net income for every
land class within each county or homogeneous region shall be capitalized
at a rate determined to be the sum of the contract rate of interest on new
federal land bank loans in Kansas on July 1 of each year averaged over a
five-year period that includes the five years immediately preceding the
calendar year which immediately precedes the year of valuation, plus a
percentage not less than 0.75% nor more than 2.75%, as determined by the
director of property valuation, except that the capitalization rate calculated
for property tax year 2003, and all such years thereafter, shall not be less
than 11% nor more than 12%.
(e) Based on the procedures provided in this section, the director of
property valuation shall make an annual determination of the value of land
within each of the various classes of land devoted to agricultural use
within each county or homogeneous region and furnish the same to the
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several county appraisers who shall classify such land according to its
current usage and apply the value applicable to such class of land
according to the valuation schedules prepared and adopted by the director
of property valuation under the provisions of this section.
(f) It is the intent of the legislature that appraisal judgment and
appraisal standards be followed and incorporated throughout the process of
data collection and analysis and establishment of values pursuant to this
section.
(g) As used in this section:
(1) (A) "Land devoted to agricultural use" means and includes land,
regardless of whether it is located in the unincorporated area of the county
or within the corporate limits of a city, that is devoted to the production of
plants, animals or horticultural products, including, but not limited to:
Forages; grains and feed crops; dairy animals and dairy products; poultry
and poultry products; beef cattle, sheep, swine and horses; bees and apiary
products; trees and forest products; fruits, nuts and berries; vegetables; and
nursery, floral, ornamental and greenhouse products.
(B) "Land devoted to agricultural use" includes land:
(i) Established as a controlled shooting area pursuant to K.S.A. 32-
943, and amendments thereto, which shall be deemed to be land devoted to
agricultural use;
(ii) that is utilized by zoos that hold a valid class C exhibitor license
issued by the United States department of agriculture; and
(iii) for all taxable years commencing after December 31, 2020, that
is otherwise devoted to the production of plants, animals or horticultural
products that is utilized as part of a registered agritourism activity at a
registered agritourism location by a registered agritourism operator
pursuant to K.S.A. 32-1432, and amendments thereto, including, but not
limited to, all land and buildings, whether permanent or temporary, that are
utilized for such agritourism activity. For purposes of this clause, the
selling of any items, products, services or merchandise associated with the
registered agritourism activity by a registered agritourism operator that
includes, but is not limited to, point of sales from either land or buildings,
shall not change the classification of the agricultural land or buildings as a
result of such sales.
(2) "Agritourism activity" means any activity that allows members of
the general public, for recreational, entertainment or educational purposes,
to view or enjoy rural activities, including, but not limited to, farming
activities, ranching activities to include trail rides or historic, cultural or
natural attractions. An activity may be an "agritourism activity" whether or
not the participant pays to participate in the activity. An activity is not an
"agritourism activity" if the participant is paid to participate in the activity.
(h) If a parcel has land devoted to agricultural purposes and land used
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for suburban residential acreages, rural home sites or farm home sites, the
county appraiser shall determine the amount of the parcel used for
agricultural purposes and value and assess it accordingly as land devoted
to agricultural purposes. The county appraiser shall then determine the
amount of the remaining land used for such other purposes and value and
assess that land according to its use.
(i) The term "expenses" means those expenses typically incurred in
producing the plants, animals and horticultural products described above,
including management fees, production costs, maintenance and
depreciation of fences, irrigation wells, irrigation laterals and real estate
taxes. "Expenses" does not include those expenses incurred in providing
temporary or permanent buildings used in the production of such plants,
animals and horticultural products.
(j) The provisions of this section shall not be construed to conflict
with any other provisions of law relating to the appraisal of tangible
property for taxation purposes including the equalization processes of the
county and state board of tax appeals.
Sec. 3. K.S.A. 2024 Supp. 32-1432 and 79-1476 are hereby repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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