Session of 1999
HOUSE BILL No. 2363
By Representative Boston
(By request)
2-9
10 AN ACT concerning property taxation; relating to exemptions therefrom;
11 amending K.S.A. 1998 Supp. 79-201b and repealing the existing
12 section.
13
14 Be it enacted by the Legislature of the State of Kansas:
15 Section 1. K.S.A. 1998 Supp. 79-201b is hereby amended to read as
16 follows: 79-201b. The following described property, to the extent herein
17 specified, shall be and is hereby exempt from all property or ad valorem
18 taxes levied under the laws of the state of Kansas:
19 First. All real property, and tangible personal property, actually and
20 regularly used exclusively for hospital purposes by a hospital as the same
21 is defined by K.S.A. 65-425, and amendments thereto, or a psychiatric
22 hospital as the same was defined by K.S.A. 59-2902, and amendments
23 thereto, as in effect on January 1, 1976, which hospital or psychiatric
24 hospital is operated by a corporation organized not for profit under the
25 laws of the state of Kansas or by a corporation organized not for profit
26 under the laws of another state and duly admitted to engage in business
27 in this state as a foreign, not-for-profit corporation, or a public hospital
28 authority; and all intangible property including moneys, notes and other
29 evidences of debt, and the income therefrom, belonging exclusively to
30 such a corporation and used exclusively for hospital, psychiatric hospital
31 or public hospital authority purposes. This exemption shall not be deemed
32 inapplicable to property which would otherwise be exempt pursuant to
33 this paragraph because any such hospital, psychiatric hospital or public
34 hospital authority: (a) Uses such property for a nonexempt purpose which
35 is minimal in scope and insubstantial in nature if such use is incidental to
36 the exempt purpose enumerated in this paragraph; or (b) is reimbursed
37 for the actual expense of using such property for the exempt purposes
38 enumerated in this paragraph or paragraph second of K.S.A. 79-201, and
39 amendments thereto; or (c) permits the use of such property for the
40 exempt purposes enumerated in this paragraph or paragraph second of
41 K.S.A. 79-201, and amendments thereto, by more than one agency or
42 organization for one or more of such purposes.
43 Second. All real property, and tangible personal property, actually and
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1 regularly used exclusively for adult care home purposes by an adult care
2 home as the same is defined by K.S.A. 39-923, and amendments thereto,
3 which is operated by a corporation organized not for profit under the laws
4 of the state of Kansas or by a corporation organized not for profit under
5 the laws of another state and duly admitted to engage in business in this
6 state as a foreign, not-for-profit corporation, charges to residents for serv-
7 ices of which produce an amount which in the aggregate is less than the
8 actual cost of operation of the home or the services of which are provided
9 to residents at the lowest feasible cost, taking into consideration such
10 items as reasonable depreciation, interest on indebtedness, acquisition
11 costs, interest and other expenses of financing acquisition costs, lease
12 expenses and costs of services provided by a parent corporation at its
13 costs, contributions to which are deductible under the Kansas income tax
14 act; and all intangible property including moneys, notes and other evi-
15 dences of debt, and the income therefrom, belonging exclusively to such
16 corporation and used exclusively for adult care home purposes. The fact
17 that real property or real or tangible personal property may be leased
18 from a not-for-profit corporation, which is exempt from federal income
19 taxation pursuant to section 501(c)(3) of the internal revenue code of
20 1986, and amendments thereto, and which is the parent corporation to
21 the not-for-profit operator of an adult care home, shall not be grounds to
22 deny exemption or deny that such property is actually and regularly used
23 exclusively for adult care home purposes by an adult care home, nor shall
24 the terms of any such lease be grounds for any such denial.
25 Third. All real property, and tangible personal property, actually and
26 regularly used exclusively for private children's home purposes by a pri-
27 vate children's home as the same is defined by K.S.A. 75-3329, and
28 amendments thereto, which is operated by a corporation organized not
29 for profit under the laws of the state of Kansas or by a corporation or-
30 ganized not for profit under the laws of another state and duly admitted
31 to engage in business in this state as a foreign, not-for-profit corporation,
32 charges to residents for services of which produce an amount which in
33 the aggregate is less than the actual cost of operation of the home or the
34 services of which are provided to residents at the lowest feasible cost,
35 taking into consideration such items as reasonable depreciation and in-
36 terest on indebtedness, and contributions to which are deductible under
37 the Kansas income tax act; and all intangible property including moneys,
38 notes and other evidences of debt, and the income therefrom, belonging
39 exclusively to such a corporation and used exclusively for children's home
40 purposes.
41 Fourth. All real property and tangible personal property, actually and
42 regularly used exclusively for housing for elderly and handicapped per-
43 sons having a limited or lower income, or used exclusively for cooperative
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1 housing for persons having a limited or low income, assistance for the
2 financing of which was received under 12 U.S.C.A. 1701 et seq., or under
3 42 U.S.C.A. 1437 et seq., which is operated by a corporation organized
4 not for profit under the laws of the state of Kansas or by a corporation
5 organized not for profit under the laws of another state and duly admitted
6 to engage in business in this state as a foreign, not-for-profit corporation;
7 and all intangible property including moneys, notes and other evidences
8 of debt, and the income therefrom, belonging exclusively to such a cor-
9 poration and used exclusively for the purposes of such housing. For the
10 purposes of this subsection, cooperative housing shall mean those not-
11 for-profit cooperative housing projects operating pursuant to sections 236
12 or 221(d)(3), or both, of the national housing act and which have been
13 approved as a cooperative housing project pursuant to applicable federal
14 housing administration and U.S. Department of Housing and Urban De-
15 velopment statutes, and rules and regulations, during such time as the
16 use of such properties are restricted pursuant to such act, statutes or rules
17 and regulations.
18 Fifth. All real property and tangible personal property, actually and
19 regularly used exclusively for housing for elderly persons, which is oper-
20 ated by a corporation organized not for profit under the laws of the state
21 of Kansas or by a corporation organized not for profit under the laws of
22 another state and duly admitted to engage in business in this state as a
23 foreign, not-for-profit corporation, in which charges to residents produce
24 an amount which in the aggregate is less than the actual cost of operation
25 of the housing facility or the services of which are provided to residents
26 at the lowest feasible cost, taking into consideration such items as rea-
27 sonable depreciation and interest on indebtedness and contributions to
28 which are deductible under the Kansas income tax act; and all intangible
29 property including moneys, notes and other evidences of debt, and the
30 income therefrom, belonging exclusively to such corporation and used
31 exclusively for the purpose of such housing.
32 Sixth. Fifth. All real property and tangible personal property actually
33 and regularly used exclusively for the purpose of group housing of men-
34 tally ill or retarded and other handicapped persons which is operated by
35 a corporation organized not for profit under the laws of the state of Kansas
36 or by a corporation organized not for profit under the laws of another
37 state and duly admitted to engage in business in this state as a foreign,
38 not-for-profit corporation, in which charges to residents produce an
39 amount which in the aggregate is less than the actual cost of operation of
40 the housing facility or the services of which are provided to residents at
41 the lowest feasible cost, taking into consideration such items as reasonable
42 depreciation and interest on indebtedness and contributions to which are
43 deductible under the Kansas income tax act, and which is licensed as a
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1 facility for the housing of mentally ill or retarded and other handicapped
2 persons under the provisions of K.S.A. 75-3307b, and amendments
3 thereto, or as a rooming or boarding house used as a facility for the
4 housing of mentally retarded and other handicapped persons which is
5 licensed as a lodging establishment under the provisions of K.S.A. 36-501
6 et seq., and amendments thereto.
7 The provisions of this section shall apply to all taxable years commenc-
8 ing after December 31, 1995.
9 Sec. 2. K.S.A. 1998 Supp. 79-201b is hereby repealed.
10 Sec. 3. This act shall take effect and be in force from and after Jan-
11 uary 1, 2000, and its publication in the statute book.