9 AN ACT concerning taxation; related to equipment used in manufactur-
10 ing advanced technology; amending K.S.A. 79-1439 and repealing the
11 existing section.
12
13 Be it enacted by the Legislature of the State of Kansas:
14 Section 1. K.S.A. 79-1439 is hereby amended to read as follows: 79-
15 1439. (a) All real and tangible personal property which is subject to gen-
16 eral ad valorem taxation shall be appraised uniformly and equally as to
17 class and, unless otherwise specified herein, shall be appraised at its fair
18 market value, as defined in K.S.A. 79-503a, and amendments thereto.
19 (b) Property shall be classified into the following classes and assessed
20 at the percentage of value prescribed therefor:
21 (1) Real property shall be assessed as to subclass at the following
22 percentages of value:
23 (A) Real property used for residential purposes including multi-fam-
24 ily residential real property, real property necessary to accommodate a
25 residential community of mobile or manufactured homes including the
26 real property upon which such homes are located and residential real
27 property used partially for day care home purposes if such home has been
28 registered or licensed pursuant to K.S.A. 65-501 et seq., and amendments
29 thereto at 11.5%;
30 (B) land devoted to agricultural use valued pursuant to K.S.A. 79-
31 1476, and amendments thereto, at 30%;
32 (C) vacant lots at 12%;
33 (D) real property which is owned and operated by a not-for-profit
34 organization not subject to federal income taxation pursuant to section
35 501 of the federal internal revenue code and included herein pursuant to
36 K.S.A. 79-1439a, and amendments thereto, at 12%;
37 (E) public utility real property, except railroad property which shall
38 be assessed at the average rate all other commercial and industrial prop-
39 erty is assessed, at 33%. As used in this paragraph, "public utility" shall
40 have the meaning ascribed thereto by K.S.A. 79-5a01, and amendments
41 thereto;
42 (F) real property used for commercial and industrial purposes and
43 buildings and other improvements located upon land devoted to agricul-
44 tural use at 25%; and
45 (G) all other urban and rural real property not otherwise specifically
46 subclassed at 30%.
47 (2) Personal property shall be classified into the following classes and
48 assessed at the percentage of value prescribed therefor:
49 (A) Mobile homes used for residential purposes at 11.5%;
50 (B) mineral leasehold interests, except oil leasehold interests the av-
51 erage daily production from which is five barrels or less, and natural gas
52 leasehold interests, the average daily production from which is 100 mcf
53 or less, which shall be assessed at 25%, at 30%;
54 (C) public utility tangible personal property including inventories
55 thereof, except railroad personal property including inventories thereof,
56 which shall be assessed at the average rate all other commercial and in-
57 dustrial property is assessed, at 33%. As used in this paragraph, "public
58 utility" shall have the meaning ascribed thereto by K.S.A. 79-5a01, and
59 amendments thereto;
60 (D) all categories of motor vehicles listed and taxed pursuant to
61 K.S.A. 79-306d, and amendments thereto, and over-the-road motor ve-
62 hicles defined pursuant to K.S.A. 79-6a01, and amendments thereto, at
63 30%;
64 (E) commercial and industrial machinery and equipment, excluding
65 equipment used in the manufacture of advanced technology as defined by
66 the standard industrial classification number 3674 or North American
67 industry classification system number 334413, but including rolling
68 equipment defined pursuant to K.S.A. 79-6a01, and amendments thereto,
69 which, if its economic life is seven years or more, shall be valued at its
70 retail cost when new less seven-year straight-line depreciation, or which,
71 if its economic life is less than seven years, shall be valued at its retail cost
72 when new less straight-line depreciation over its economic life, except
73 that, the value so obtained for such property as long as it is being used
74 shall not be less than 20% of the retail cost when new of such property
75 at 25%; and
76 (F) equipment used in the manufacture of advanced technology as
77 defined by the standard industrial classification number 3674 or North
78 American industry classification system number 334413 shall be valued
79 at its retail cost multiplied by the respective percentages listed in the
80 following table:
81
Years in service of equipment
Percentage
82
0-1
67
83
1-2
46
84
2-3
29
85
3-4
16
86
5 and older
10
87 (F)(G) all other tangible personal property not otherwise specifically
88 classified at 30%.
89 Sec. 2. K.S.A. 79-1439 is hereby repealed.
90 Sec. 3. This act shall take effect and be in force from and after its
91 publication in the statute book.