Session of 1999
HOUSE BILL No. 2020
By Representative Sloan
1-11
9 AN ACT relating to property taxation; concerning certain appeals pro-
10 cedure; amending K.S.A. 79-1609 and 79-2005 and K.S.A. 1998 Supp.
11 74-2438 and repealing the existing sections.
12
13 Be it enacted by the Legislature of the State of Kansas:
14 Section 1. K.S.A. 1998 Supp. 74-2438 is hereby amended to read as
15 follows: 74-2438. An appeal may be taken to the state board of tax appeals
16 from any finding, ruling, order, decision, final determination or other final
17 action, including action relating to abatement or reduction of penalty and
18 interest, on any case of the secretary of revenue or the secretary's des-
19 ignee by any person aggrieved thereby. Notice of such appeal shall be
20 filed with the secretary of the board within 30 days after such finding,
21 ruling, order, decision, final determination or other action on a case, and
22 a copy served upon the secretary of revenue or the secretary's designee.
23 Upon receipt of a timely appeal, the board shall conduct a hearing in
24 accordance with the provisions of the Kansas administrative procedure
25 act. The hearing before the board shall be a de novo hearing unless the
26 parties agree to submit the case on the record made before the secretary
27 of revenue or the secretary's designee. With regard to any matter properly
28 submitted to the board relating to the determination of valuation of res-
29 idential property or real property used for commercial and industrial
30 purposes for taxation purposes, it shall be the duty of the county or district
31 appraiser to initiate the production of evidence to demonstrate, by a pre-
32 ponderance of the evidence, the validity and correctness of such deter-
33 mination. No presumption shall exist in favor of the county or district
34 appraiser with respect to the validity and correctness of such determi-
35 nation. No interest shall accrue on the amount of the assessment of tax
36 subject to any such appeal beyond 120 days after the date the matter was
37 fully submitted, except that, if a final order is issued within such time
38 period, interest shall continue to accrue until such time as the tax liability
39 is fully satisfied, and if a final order is issued beyond such time period,
40 interest shall recommence to accrue from the date of such order until
41 such time as the tax liability is fully satisfied.
42 Sec. 2. K.S.A. 79-1609 is hereby amended to read as follows: 79-
43 1609. Any person aggrieved by any order of the hearing officer or panel
HB 2020
2
1 may appeal to the state board of tax appeals by filing a written notice of
2 appeal, on forms approved by the state board of tax appeals and provided
3 by the county clerk for such purpose, stating the grounds thereof and a
4 description of any comparable property or properties and the appraisal
5 thereof upon which they rely as evidence of inequality of the appraisal of
6 their property, if that be a ground of the appeal, with the board of tax
7 appeals and by filing a copy thereof with the county clerk within 30 days
8 after the date of the order from which the appeal is taken. A county or
9 district appraiser may appeal to the state board of tax appeals from any
10 order of the hearing officer or panel. With regard to any matter properly
11 submitted to the board relating to the determination of valuation of res-
12 idential property or real property used for commercial and industrial
13 purposes for taxation purposes, it shall be the duty of the county appraiser
14 to initiate the production of evidence to demonstrate, by a preponderance
15 of the evidence, the validity and correctness of such determination. No
16 presumption shall exist in favor of the county appraiser with respect to
17 the validity and correctness of such determination.
18 Sec. 3. K.S.A. 79-2005 is hereby amended to read as follows: 79-
19 2005. (a) Any taxpayer, before protesting the payment of such taxpayer's
20 taxes, shall be required, either at the time of paying such taxes, or, if the
21 whole or part of the taxes are paid prior to December 20, no later than
22 December 20, or, with respect to taxes paid in whole on or before De-
23 cember 20 by an escrow or tax service agent, no later than January 31 of
24 the next year, to file a written statement with the county treasurer, on
25 forms approved by the state board of tax appeals and provided by the
26 county treasurer, clearly stating the grounds on which the whole or any
27 part of such taxes are protested and citing any law, statute or facts on
28 which such taxpayer relies in protesting the whole or any part of such
29 taxes. When the grounds of such protest is that the valuation or assess-
30 ment of the property upon which the taxes are levied is illegal or void,
31 the county treasurer shall forward a copy of the written statement of
32 protest to the county appraiser who shall within 15 days of the receipt
33 thereof, schedule an informal meeting with the taxpayer or such tax-
34 payer's agent or attorney with reference to the property in question. The
35 county appraiser shall review the appraisal of the taxpayer's property with
36 the taxpayer or such taxpayer's agent or attorney and may change the
37 valuation of the taxpayer's property, if in the county appraiser's opinion
38 a change in the valuation of the taxpayer's property is required to assure
39 that the taxpayer's property is valued according to law, and shall, within
40 15 business days thereof, notify the taxpayer in the event the valuation of
41 the taxpayer's property is changed, in writing of the results of the meeting.
42 In the event the valuation of the taxpayer's property is changed and such
43 change requires a refund of taxes and interest thereon, the county trea-
HB 2020
3
1 surer shall process the refund in the manner provided by subsection (l).
2 (b) No protest appealing the valuation or assessment of property shall
3 be filed pertaining to any year's valuation or assessment when an appeal
4 of such valuation or assessment was commenced pursuant to K.S.A. 79-
5 1448, and amendments thereto, nor shall the second half payment of taxes
6 be protested when the first half payment of taxes has been protested.
7 Notwithstanding the foregoing, this provision shall not prevent any sub-
8 sequent owner from protesting taxes levied for the year in which such
9 property was acquired, nor shall it prevent any taxpayer from protesting
10 taxes when the valuation or assessment of such taxpayer's property has
11 been changed pursuant to an order of the director of property valuation.
12 (c) A protest shall not be necessary to protect the right to a refund
13 of taxes in the event a refund is required because the final resolution of
14 an appeal commenced pursuant to K.S.A. 79-1448, and amendments
15 thereto, occurs after the final date prescribed for the protest of taxes.
16 (d) If the grounds of such protest shall be that the valuation or as-
17 sessment of the property upon which the taxes so protested are levied is
18 illegal or void, such statement shall further state the exact amount of
19 valuation or assessment which the taxpayer admits to be valid and the
20 exact portion of such taxes which is being protested.
21 (e) If the grounds of such protest shall be that any tax levy, or any
22 part thereof, is illegal, such statement shall further state the exact portion
23 of such tax which is being protested.
24 (f) Upon the filing of a written statement of protest, the grounds of
25 which shall be that any tax levied, or any part thereof, is illegal, the county
26 treasurer shall mail a copy of such written statement of protest to the
27 state board of tax appeals and the governing body of the taxing district
28 making the levy being protested.
29 (g) Within 30 days after notification of the results of the informal
30 meeting with the county appraiser pursuant to subsection (a), the pro-
31 testing taxpayer may, if aggrieved by the results of the informal meeting
32 with the county appraiser, appeal such results to the state board of tax
33 appeals.
34 (h) After examination of the copy of the written statement of protest
35 and a copy of the written notification of the results of the informal meet-
36 ing with the county appraiser in cases where the grounds of such protest
37 is that the valuation or assessment of the property upon which the taxes
38 are levied is illegal or void, the board shall conduct a hearing in accord-
39 ance with the provisions of the Kansas administrative procedure act, un-
40 less waived by the interested parties in writing. If the grounds of such
41 protest is that the valuation or assessment of the property is illegal or void
42 the board shall notify the county appraiser thereof.
43 (i) In the event of a hearing, the same shall be originally set not later
HB 2020
4
1 than 90 days after the filing of the copy of the written statement of protest
2 and a copy, when applicable, of the written notification of the results of
3 the informal meeting with the county appraiser with the board. With
4 regard to any matter properly submitted to the board relating to the
5 determination of valuation of residential property or real property used
6 for commercial and industrial purposes for taxation purposes, it shall be
7 the duty of the county appraiser to initiate the production of evidence to
8 demonstrate, by a preponderance of the evidence, the validity and cor-
9 rectness of such determination. No presumption shall exist in favor of the
10 county appraiser with respect to the validity and correctness of such de-
11 termination. In all instances where the board sets a request for hearing
12 and requires the representation of the county by its attorney or counselor
13 at such hearing, the county shall be represented by its county attorney or
14 counselor.
15 (j) When a determination is made as to the merits of the tax protest,
16 the board shall render and serve its order thereon. The county treasurer
17 shall notify all affected taxing districts of the amount by which tax reve-
18 nues will be reduced as a result of a refund.
19 (k) If a protesting taxpayer fails to file a copy of the written statement
20 of protest and a copy, when applicable, of the written notification of the
21 results of the informal meeting with the county appraiser with the board
22 within the time limit prescribed, such protest shall become null and void
23 and of no effect whatsoever.
24 (l) (1) In the event the board orders that a refund be made pursuant
25 to this section or the provisions of K.S.A. 79-1609, and amendments
26 thereto, or a court of competent jurisdiction orders that a refund be made,
27 and no appeal is taken from such order, or in the event a change in
28 valuation which results in a refund pursuant to subsection (a), the county
29 treasurer shall, as soon thereafter as reasonably practicable, refund to the
30 taxpayer such protested taxes and, with respect to protests or appeals
31 commenced after the effective date of this act, interest computed at the
32 rate prescribed by K.S.A. 79-2968, and amendments thereto, minus two
33 percentage points, per annum from the date of payment of such taxes
34 from tax moneys collected but not distributed. Upon making such refund,
35 the county treasurer shall charge the fund or funds having received such
36 protested taxes, except that, with respect to that portion of any such re-
37 fund attributable to interest the county treasurer shall charge the county
38 general fund. In the event that the board or court finds that any time
39 delay in making its decision is unreasonable and is attributable to the
40 taxpayer, it may order that no interest or only a portion thereof be added
41 to such refund of taxes.
42 (2) No interest shall be allowed pursuant to paragraph (1) in any case
43 where the tax paid under protest was inclusive of delinquent taxes.
HB 2020
5
1 (m) Whenever, by reason of the refund of taxes previously received
2 or the reduction of taxes levied but not received as a result of decreases
3 in assessed valuation, it will be impossible to pay for imperative functions
4 for the current budget year, the governing body of the taxing district
5 affected may issue no-fund warrants in the amount necessary. Such war-
6 rants shall conform to the requirements prescribed by K.S.A. 79-2940,
7 and amendments thereto, except they shall not bear the notation required
8 by such section and may be issued without the approval of the state board
9 of tax appeals. The governing body of such taxing district shall make a tax
10 levy at the time fixed for the certification of tax levies to the county clerk
11 next following the issuance of such warrants sufficient to pay such war-
12 rants and the interest thereon. All such tax levies shall be in addition to
13 all other levies authorized by law.
14 (n) The county treasurer shall disburse to the proper funds all por-
15 tions of taxes paid under protest and shall maintain a record of all portions
16 of such taxes which are so protested and shall notify the governing body
17 of the taxing district levying such taxes thereof and the director of ac-
18 counts and reports if any tax protested was levied by the state.
19 (o) This statute shall not apply to the valuation and assessment of
20 property assessed by the director of property valuation and it shall not be
21 necessary for any owner of state assessed property, who has an appeal
22 pending before the board of tax appeals, to protest the payment of taxes
23 under this statute solely for the purpose of protecting the right to a refund
24 of taxes paid under protest should that owner be successful in that appeal.
25 Sec. 4. K.S.A. 79-1609 and 79-2005 and K.S.A. 1998 Supp. 74-2438
26 are hereby repealed.
27 Sec. 5. This act shall take effect and be in force from and after its
28 publication in the statute book.