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 9  AN ACT relating to property taxation; concerning political subdivision
10    exemption therefrom; amending K.S.A. 1996 Supp. 79-201a and re-
11    pealing the existing section.
12
13  Be it enacted by the Legislature of the State of Kansas:
14    Section 1.  K.S.A. 1996 Supp. 79-201a is hereby amended to read as
15  follows: 79-201a. The following described property, to the extent herein
16  specified, shall be exempt from all property or ad valorem taxes levied
17  under the laws of the state of Kansas:
18    First. All property belonging exclusively to the United States, except
19  property which congress has expressly declared to be subject to state and
20  local taxation.
21    Second. All property used exclusively by the state or any municipality
22  or political subdivision of the state. All property owned, being acquired
23  pursuant to a lease-purchase agreement or operated by the state or any
24  municipality or political subdivision of the state, including property which
25  is vacant or lying dormant, which is used or is to be used for any govern-
26  mental or proprietary function and for which bonds may be issued or
27  taxes levied to finance the same, shall be considered to be ``used exclu-
28  sively'' by the state, municipality or political subdivision for the purposes
29  of this section. The lease by a municipality or political subdivision of the
30  state of any real property owned or being acquired pursuant to a lease-
31  purchase agreement for the purpose of providing office space necessary
32  for the performance of medical: (a) Medical services by a person licensed
33  to practice medicine and surgery or osteopathic medicine by the board
34  of healing arts pursuant to K.S.A. 65-2801 et seq., and amendments
35  thereto,; (b) dentistry services by a person licensed by the Kansas dental
36  board pursuant to K.S.A. 65-1401 et seq., and amendments thereto; (c)
37  optometry services by a person licensed by the board of examiners in
38  optometry pursuant to K.S.A. 65-1501 et seq., and amendments thereto,
39  or K.S.A. 74-1501 et seq., and amendments thereto; or (d) podiatry serv-
40  ices by a person licensed by the board of healing arts pursuant to K.S.A.
41  65-2001 et seq., and amendments thereto, shall be construed to be a gov-
42  ernmental function, and such property actually and regularly used for
43  such purpose shall be deemed to be used exclusively for the purposes of
HB 2277
                                     

 1  this paragraph. The lease by a municipality or political subdivision of the
 2  state of any real property, or portion thereof, owned or being acquired
 3  pursuant to a lease-purchase agreement to any entity for the exclusive
 4  use by it for an exempt purpose, including the purpose of displaying or
 5  exhibiting personal property by a museum or historical society, if no por-
 6  tion of the lease payments include compensation for return on the in-
 7  vestment in such leased property shall be deemed to be used exclusively
 8  for the purposes of this paragraph.  All property leased, other than prop-
 9  erty being acquired pursuant to a lease-purchase agreement, to the state
10  or any municipality or political subdivision of the state by any private
11  entity shall not be considered to be used exclusively by the state or any
12  municipality or political subdivision of the state for the purposes of this
13  section except that the provisions of this sentence shall not apply to any
14  such property subject to lease on the effective date of this act until the
15  term of such lease expires but property taxes levied upon any such prop-
16  erty prior to tax year 1989, shall not be abated or refunded. Any property
17  constructed or purchased with the proceeds of industrial revenue bonds
18  issued prior to July 1, 1963, as authorized by K.S.A. 12-1740 to 12-1749,
19  or purchased with proceeds of improvement district bonds issued prior
20  to July 1, 1963, as authorized by K.S.A. 19-2776, or with proceeds of
21  bonds issued prior to July 1, 1963, as authorized by K.S.A. 19-3815a and
22  19-3815b, or any property improved, purchased, constructed, recon-
23  structed or repaired with the proceeds of revenue bonds issued prior to
24  July 1, 1963, as authorized by K.S.A. 13-1238 to 13-1245, inclusive, or
25  any property improved, reimproved, reconstructed or repaired with the
26  proceeds of revenue bonds issued after July 1, 1963, under the authority
27  of K.S.A. 13-1238 to 13-1245, inclusive, which had previously been im-
28  proved, reconstructed or repaired with the proceeds of revenue bonds
29  issued under such act on or before July 1, 1963, shall be exempt from
30  taxation for so long as any of the revenue bonds issued to finance such
31  construction, reconstruction, improvement, repair or purchase shall be
32  outstanding and unpaid. Any property constructed or purchased with the
33  proceeds of any revenue bonds authorized by K.S.A. 13-1238 to 13-1245,
34  inclusive, 19-2776, 19-3815a and 19-3815b, and amendments thereto,
35  issued on or after July 1, 1963, shall be exempt from taxation only for a
36  period of 10 calendar years after the calendar year in which the bonds
37  were issued. Any property, all or any portion of which is constructed or
38  purchased with the proceeds of revenue bonds authorized by K.S.A. 12-
39  1740 to 12-1749, inclusive, and amendments thereto, issued on or after
40  July 1, 1963 and prior to July 1, 1981, shall be exempt from taxation only
41  for a period of 10 calendar years after the calendar year in which the
42  bonds were issued. Except as hereinafter provided, any property con-
43  structed or purchased wholly with the proceeds of revenue bonds issued
HB 2277
                                     

 1  on or after July 1, 1981, under the authority of K.S.A. 12-1740 to 12-
 2  1749, inclusive, and amendments thereto, shall be exempt from taxation
 3  only for a period of 10 calendar years after the calendar year in which the
 4  bonds were issued. Except as hereinafter provided, any property con-
 5  structed or purchased in part with the proceeds of revenue bonds issued
 6  on or after July 1, 1981, under the authority of K.S.A. 12-1740 to 12-
 7  1749, inclusive, and amendments thereto, shall be exempt from taxation
 8  to the extent of the value of that portion of the property financed by the
 9  revenue bonds and only for a period of 10 calendar years after the cal-
10  endar year in which the bonds were issued. The exemption of that portion
11  of the property constructed or purchased with the proceeds of revenue
12  bonds shall terminate upon the failure to pay all taxes levied on that
13  portion of the property which is not exempt and the entire property shall
14  be subject to sale in the manner prescribed by K.S.A. 79-2301 et seq.,
15  and amendments thereto. Property constructed or purchased in whole or
16  in part with the proceeds of revenue bonds issued on or after January 1,
17  1995, under the authority of K.S.A. 12-1740 to 12-1749, inclusive, and
18  amendments thereto, and used in any retail enterprise identified under
19  the standard industrial classification codes, major groups 52 through 59,
20  inclusive, except facilities used exclusively to house the headquarters or
21  back office operations of such retail enterprises identified thereunder,
22  shall not be exempt from taxation. For the purposes of the preceding
23  provision ``standard industrial classification code'' means a standard in-
24  dustrial classification code published in the Standard Industrial Classifi-
25  cation manual, 1987, as prepared by the statistical policy division of the
26  office of management and budget of the office of the president of the
27  United States. ``Headquarters or back office operations'' means a facility
28  from which the enterprise is provided direction, management, adminis-
29  trative services, or distribution or warehousing functions in support of
30  transactions made by the enterprise. Property purchased, constructed,
31  reconstructed, equipped, maintained or repaired with the proceeds of
32  industrial revenue bonds issued under the authority of K.S.A. 12-1740 et
33  seq., and amendments thereto, which is located in a redevelopment pro-
34  ject area established under the authority of K.S.A. 12-1770 et seq. shall
35  not be exempt from taxation. Property purchased, acquired, constructed,
36  reconstructed, improved, equipped, furnished, repaired, enlarged or re-
37  modeled with all or any part of the proceeds of revenue bonds issued
38  under authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amend-
39  ments thereto for any poultry confinement facility on agricultural land
40  which is owned, acquired, obtained or leased by a corporation, as such
41  terms are defined by K.S.A. 17-5903 and amendments thereto, shall not
42  be exempt from such taxation. Property purchased, acquired, constructed,
43  reconstructed, improved, equipped, furnished, repaired, enlarged or re-
HB 2277
                                     

 1  modeled with all or any part of the proceeds of revenue bonds issued
 2  under the authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amend-
 3  ments thereto, for a rabbit confinement facility on agricultural land which
 4  is owned, acquired, obtained or leased by a corporation, as such terms
 5  are defined by K.S.A. 17-5903 and amendments thereto, shall not be
 6  exempt from such taxation.
 7    Third. All works, machinery and fixtures used exclusively by any rural
 8  water district or township water district for conveying or production of
 9  potable water in such rural water district or township water district.
10    Fourth. All fire engines and other implements used for the extinguish-
11  ment of fires, with the buildings used exclusively for the safekeeping
12  thereof, and for the meeting of fire companies, whether belonging to any
13  rural fire district, township fire district, town, city or village, or to any fire
14  company organized therein or therefor.
15    Fifth. All property, real and personal, owned by county fair associations
16  organized and operating under the provisions of K.S.A. 2-125 et seq. and
17  amendments thereto.
18    Sixth. Property acquired and held by any municipality under the mu-
19  nicipal housing law (K.S.A. 17-2337 et seq.) and amendments thereto,
20  except that such exemption shall not apply to any portion of the project
21  used by a nondwelling facility for profit making enterprise.
22    Seventh. All property of a municipality, acquired or held under and for
23  the purposes of the urban renewal law (K.S.A. 17-4742 et seq.) and
24  amendments thereto except that such tax exemption shall terminate when
25  the municipality sells, leases or otherwise disposes of such property in an
26  urban renewal area to a purchaser or lessee which is not a public body
27  entitled to tax exemption with respect to such property.
28    Eighth. All property acquired and held by the Kansas armory board for
29  armory purposes under the provisions of K.S.A. 48-317, and amendments
30  thereto.
31    Ninth. All property acquired and used by the Kansas turnpike authority
32  under the authority of K.S.A. 68-2001 et seq., and amendments thereto,
33  K.S.A. 68-2030 et seq., and amendments thereto, K.S.A. 68-2051 et seq.,
34  and amendments thereto, and K.S.A. 68-2070 et seq., and amendments
35  thereto.
36    Tenth. All property acquired and used for state park purposes by the
37  Kansas department of wildlife and parks.
38    Eleventh. The state office building constructed under authority of
39  K.S.A. 75-3607 et seq., and amendments thereto, and the site upon which
40  such building is located.
41    Twelfth. All buildings erected under the authority of K.S.A. 76-6a01 et
42  seq., and amendments thereto, and all other student union buildings and
43  student dormitories erected upon the campus of any institution men-
HB 2277
                                     

 1  tioned in K.S.A. 76-6a01, and amendments thereto, by any other non-
 2  profit corporation.
 3    Thirteenth. All buildings, as the same is defined in subsection (c) of
 4  K.S.A. 76-6a13, and amendments thereto, which are erected, constructed
 5  or acquired under the authority of K.S.A. 76-6a13 et seq., and amend-
 6  ments thereto, and building sites acquired therefor.
 7    Fourteenth. All that portion of the waterworks plant and system of the
 8  city of Kansas City, Missouri, now or hereafter located within the territory
 9  of the state of Kansas pursuant to the compact and agreement adopted
10  by chapter 304 of the 1921 Session Laws of the state of Kansas. [See
11  K.S.A. 79-205].
12    Fifteenth. All property, real and personal, owned by a groundwater
13  management district organized and operating pursuant to K.S.A. 82a-
14  1020, and amendments thereto.
15    Sixteenth. All property, real and personal, owned by the joint water
16  district organized and operating pursuant to K.S.A. 80-1616 et seq., and
17  amendments thereto.
18    Seventeenth. All property, including interests less than fee ownership,
19  acquired for the state of Kansas by the secretary of transportation or a
20  predecessor in interest which is used in the administration, construction,
21  maintenance or operation of the state system of highways, regardless of
22  how or when acquired.
23    The provisions of this section shall apply to all taxable years commenc-
24  ing after December 31, 1994 1995.
25    Sec. 2.  K.S.A. 1996 Supp. 79-201a is hereby repealed.
26    Sec. 3.  This act shall take effect and be in force from and after its
27  publication in the statute book.