642 1997 Session Laws of Kansas Ch. 126
An Act relating to taxation; enacting the Kansas tax equity and
fairness act of 1997; amend-
ing K.S.A. 12-1678a, 19-430, 75-5105a, 77-548, 79-1701a, 79-1702,
79-2002, 79-2969,
79-3230, 79-3268, 79-32,111, 79-3635 and 79-4225 and K.S.A. 1996
Supp. 45-221, 74-
2438, 75-5133, 77-549, 77-550, 79-201a, 79-213, 79-412, 79-503a,
79-1439, 79-1448,
79-1460, 79-1476, 79-1575, 79-2001, 79-2004, 79-2004a, 79-2005,
79-2968, 79-3226, 79-
3234, 79-32,105, 79-32,107, 79-3420, 79-3606, 79-3609, 79-3610,
79-3614, 79-3615, 79-
4216, 79-4226 and 79-5109 and repealing the existing
sections.
Be it enacted by the Legislature of the State of
Kansas:
Section 1. K.S.A. 1996 Supp. 79-2968 is hereby amended to read
as
follows: 79-2968. Except as otherwise specifically provided by law,
when-
ever interest is charged under any law of this state upon any
delinquent
or unpaid taxes levied or imposed by the state of Kansas or any
taxing
subdivision thereof, or whenever interest is allowed under any
law of this
state upon any overpayment of taxes levied or imposed by the state
of
Kansas or any taxing subdivision thereof, the rate thereof
shall be: (a)
One and one-half percent per month for any period prior to January
1,
1995, 1% per month for the period commencing on January 1, 1995,
and
ending on December 31, 1997, and 1/12 of the annual rate prescribed
in
subsection (b) thereafter, if computed monthly; and (b) eighteen
percent
per annum for any period prior to January 1, 1995, 12% per annum
for
the period commencing on January 1, 1995, and ending on
December
31, 1997, and for any period thereafter, the underpayment rate
per an-
num prescribed and determined under paragraph (2) of
subsection (a) of
section 6621, without regard to subsection (c) thereof, of
the federal in-
ternal revenue code, as in effect on January 1,
1994 September 1, 1996,
and which rate is in effect thereunder on July 1 of the year
immediately
preceding the calendar year for which the rate is being annually
fixed
hereunder, plus 1% plus one percentage
point, if computed annually.
In the event the interest rate prescribed under this section
cannot be
determined by reference to section 6621 of the federal internal
revenue
code, as in effect on January 1, 1994 September
1, 1996, the rate at which
interest shall be collected on underpayments shall be the rate
prescribed
by K.S.A. 16-204, and amendments thereto, for interest on judgments
for
the applicable period.
Sec. 2. K.S.A. 1996 Supp. 79-3609 is hereby amended to read
as
follows: 79-3609. (a) Every person engaged in the business
of selling
Ch. 126 1997 Session Laws of Kansas 643
tangible personal property at retail or furnishing services
taxable in this
state, shall keep records and books of all such sales, together
with invoices,
bills of lading, sales records, copies of bills of sale and other
pertinent
papers and documents. Such books and records and other papers
and
documents shall, at all times during business hours of the day, be
available
for and subject to inspection by the director, or the director's
duly au-
thorized agents and employees, for a period of three years from the
last
day of the calendar year or of the fiscal year of the retailer,
whichever
comes later, to which the records pertain. Such records shall be
preserved
during the entire period during which they are subject to
inspection by
the director, unless the director in writing previously authorizes
their
disposal. Any person selling tangible personal property or
furnishing tax-
able services shall be prohibited from asserting that any sales are
exempt
from taxation unless the retailer has in the retailer's possession
a properly
executed exemption certificate provided by the consumer claiming
the
exemption. Any retailer asserting a claim that certain sales are
exempt
who does not have the required exemption certificates in possession
shall
acquire such certificates within 60 days after receiving notice
from the
director that such certificates are required. If such certificates
are not
obtained within the period set forth herein, the sales shall be
deemed to
be taxable sales under this act.
(b) The amount of tax imposed by this act is to be
assessed within
three years after the return is filed, and no proceedings in court
for the
collection of such taxes shall be begun after the expiration of
such period.
In the case of a false or fraudulent return with intent to evade
tax, the
tax may be assessed or a proceeding in court for collection of such
tax
may be begun at any time, within two years from the discovery of
such
fraud. No assessment shall be made for any period preceding the
date of
registration of the retailer by more than three years except in
cases of
fraud. No refund or credit shall be allowed by the director after
three
years from the date of payment of the tax as provided in this act
unless
before the expiration of such period a claim therefor is filed by
the tax-
payer, and no suit or action to recover on any claim for refund
shall be
commenced until after the expiration of six months from the date of
filing
a claim therefor with the director.
(c) Before the expiration of time prescribed in this
section for the
assessment of additional tax or the filing of a claim for refund,
the director
is hereby authorized to enter into an agreement in writing with the
tax-
payer consenting to the extension of the periods of limitations for
the
assessment of tax or for the filing of a claim for refund, at any
time prior
to the expiration of the period of limitations. The period so
agreed upon
may be extended by subsequent agreements in writing made before
the
expiration of the period previously agreed upon. In consideration
of such
agreement or agreements, interest due in excess of 48 months on
any
additional tax shall be waived.
644 1997 Session Laws of Kansas Ch. 126
(d) For all taxable periods subject to assessment on January
1, 1998,
including periods subject to an agreement to extend the statute of
limi-
tations, and for all taxable periods commencing after December 31,
1997,
interest at the rate prescribed by K.S.A. 79-2968, and
amendments
thereto, shall be allowed on any overpayment of tax computed from
the
due date of the return if it was timely filed and accompanied by
the tax
due or, if the return was not timely filed, from the date of
payment, except
that no interest shall be allowed on any such refund if the same is
paid
within 60 days after the date of the return or the date of payment,
as the
case requires.
Sec. 3. K.S.A. 1996 Supp. 79-32,105 is hereby amended to read
as
follows: 79-32,105. (a) The director shall pay to the treasurer of
the state
daily the entire amount collected during the preceding day, under
the
provisions of this act and from the income tax imposed upon
individuals,
corporations, estates or trusts pursuant to the ``Kansas income tax
act''
less amounts withheld as provided in subsection (b) and any
amounts
credited to the IMPACT program repayment fund or the IMPACT
pro-
gram services fund under K.S.A. 74-50,107 and amendments
thereto,
which amounts shall be credited to the state general fund.
(b) A revolving fund, designated as ``income tax refund fund''
not to
exceed $4,000,000 shall be set apart and maintained by the director
from
income tax collections, withholding tax collections, and estimated
tax col-
lections and held by the state treasurer for prompt payment of all
income
tax refunds and for the payment of interest as provided in
subsection (e).
The fund shall be in such amount, within the limit set by this
section, as
the director determines is necessary to meet current refunding
require-
ments under this act.
(c) If the director discovers from the examination of the
return, or
upon claim duly filed by the taxpayer or upon final judgment of the
court
that the income tax, withholding tax, declaration of estimated tax
or any
penalty or interest paid by or credited to any taxpayer is in
excess of the
amount legally due, the director shall certify to the director of
accounts
and reports the name of the taxpayer, the amount of refund and
such
other information as the director may require. Upon receipt of such
cer-
tification the director of accounts and reports shall issue a
warrant on the
state treasurer for the payment to the taxpayer out of the fund
provided
in subsection (b), except that no refund shall be made for a sum
less than
$5, but such amount may be claimed by the taxpayer as a credit
against
the taxpayer's tax liability in the taxpayer's next succeeding
taxable year.
(d) When a resident taxpayer dies, and the director determines
that
a refund is due the claimant not in excess of $100, the director
shall certify
to the director of accounts and reports the name and address of
the
claimant entitled to the refund and the amount of the refund. A
refund
may be made upon a claim duly made on behalf of the estate of
the
Ch. 126 1997 Session Laws of Kansas 645
deceased or in the absence of any such claim upon a claim by a
surviving
spouse and if none upon the claim by any heir at law. Upon receipt
of
such certification the director of accounts and reports shall issue
a warrant
on the state treasurer for the payment to the claimant out of the
fund
provided in subsection (b).
(e) Interest shall be allowed and paid at the rate of 12% per
annum
upon any overpayment of the income tax imposed upon individuals,
cor-
porations, estates or trusts pursuant to the Kansas income tax act
for any
period prior to January 1, 1995, 6% per annum for the period
commenc-
ing on January 1, 1995, and ending on December 31, 1997, and at
the
overpayment rate prescribed and determined
under section 6621 of the
pursuant to K.S.A. 79-
federal internal revenue code, as in effect on January 1, 1994, and
which
rate is in effect on July 1 of the year immediately preceding the
calendar
year for which the rate is being annually fixed,
2968, and amendments thereto, for any period
thereafter.
For the purposes of this subsection:
(1) Any return filed before the last day prescribed for the
filing
thereof shall be considered as filed on such last day, determined
without
regard to any extension of time granted the taxpayer;
(2) any tax paid by the taxpayer before the last day prescribed
for its
payment, any income tax withheld from the taxpayer during any
calendar
year and any amount paid by the taxpayer as estimated income tax
for a
taxable year shall be deemed to have been paid on the last day
prescribed
for filing the return for the taxable year to which such amount
constitutes
a credit or payment, determined without regard to any extension of
time
granted the taxpayer;
(3) if any overpayment of tax results from a carryback of a net
oper-
ating loss or net capital loss, such overpayment shall be deemed
not to
have been made prior to the close of the taxable year in which such
net
operating loss or net capital loss arises. For purposes of this
paragraph,
the return for the loss year shall not be deemed to be filed before
claim
for such overpayment is filed;
(4) in the case of a credit, interest shall be allowed and paid
from the
date of the overpayment to the due date of the amount against which
the
credit is taken, except that if any overpayment of income tax is
claimed
as a credit against estimated tax for the succeeding taxable year,
such
amount shall be considered as a payment of the income tax for the
suc-
ceeding taxable year, whether or not claimed as a credit in the
return of
estimated tax for such succeeding taxable year, and no interest
shall be
allowed or paid in such overpayment for the taxable year in which
the
overpayment arises;
(5) in the case of a tax return which is filed after the last
date pre-
scribed for filing such return, determined with regard to
extensions, no
interest shall be allowed or paid for any period before the date on
which
the return is filed;
646 1997 Session Laws of Kansas Ch. 126
(6) in the case of a refund, interest shall be allowed and paid
from
the date of the overpayment to a date preceding the date of the
refund
check by not more than 30 days, as determined by the director,
whether
or not such refund check is accepted by the taxpayer after tender
of such
check to the taxpayer, but acceptance of such check shall be
without
prejudice to any right of the taxpayer to claim any additional
overpayment
and interest thereon; and
(7) if any overpayment is refunded within two months after the
last
date prescribed, or permitted by extension of time, for filing the
return
of such tax, or within two months after the return was filed,
whichever is
later, no interest shall be allowed or paid. For the purposes of
this section,
an overpayment shall be deemed to have been refunded at the time
the
refund check in the amount of the overpayment, plus any interest
due
thereon, is deposited in the United States mail.
New Sec. 4. On and after January 1, 1998, the secretary of
revenue
shall make available in a medium readily accessible to taxpayers
all ad-
ministrative rulings of the department of revenue which affect the
duties
and responsibilities of taxpayers pursuant to any law administered
by the
department of revenue. Private letter rulings shall be provided in
such a
manner as to conceal the identity of the specific taxpayer for whom
the
private letter ruling was issued. The secretary shall cause to be
published
in the Kansas register a description of each such administrative
ruling
within 30 days of such ruling together with specific instructions
as to how
the complete text of the administrative ruling may be obtained. As
used
in this section, administrative rulings shall include revenue
notices, rev-
enue rulings, information guides, policy directives, private letter
rulings
and directives of the division of property valuation or its
director.
Sec. 5. K.S.A. 1996 Supp. 74-2438 is hereby amended to read
as
follows: 74-2438. An appeal may be taken to the state board of tax
appeals
from any finding, ruling, order, decision, final
determination or other final
action, including action relating to abatement or reduction of
penalty and
interest, on any case of the director of taxation or
director of property secretary of revenue or the secretary's
designee by any person
valuation
aggrieved thereby. Notice of such appeal shall be filed with the
secretary
of the board within 30 days after such finding, ruling, order,
decision,
final determination or other action on a case, and a copy
served upon the
director concerned secretary of revenue or the
secretary's designee. Upon
receipt of a timely appeal, the board shall conduct a hearing in
accordance
with the provisions of the Kansas administrative procedure act. The
hear-
ing before the board shall be a de novo hearing unless the parties
agree
to submit the case on the record made before the
director secretary of
revenue or the secretary's designee. With regard to any matter
properly
submitted to the board relating to the determination of valuation
of res-
idential property for taxation purposes, it shall be the duty of
the county
Ch. 126 1997 Session Laws of Kansas 647
or district appraiser to initiate the production of evidence to
demonstrate,
by a preponderance of the evidence, the validity and correctness of
such
determination. No presumption shall exist in favor of the county or
district
appraiser with respect to the validity and correctness of such
determi-
nation. No interest shall accrue on the amount of the assessment of
tax
subject to any such appeal beyond 120 days after the date the
matter was
fully submitted, except that, if a final order is issued within
such time
period, interest shall continue to accrue until such time as the
tax liability
is fully satisfied, and if a final order is issued beyond such time
period,
interest shall recommence to accrue from the date of such order
until
such time as the tax liability is fully satisfied.
Sec. 6. K.S.A. 77-548 is hereby amended to read as follows:
77-548.
(a) This section applies to adjudicative proceedings before the
director of
taxation. Informal conferences held pursuant to K.S.A. 79-3226,
and
amendments thereto, shall not be deemed to be adjudicative
proceedings
for the purposes of this act.
(b) (1) After the director has determined and announced that a
hear-
ing should be held, and prior to the issuance of a final order, no
parties
to the proceeding, or their counsel, shall discuss the merits of
the matter
or proceeding with the presiding officer unless reasonable notice
is given
to all parties who have appeared to enable the parties to be
present at
the conference.
(2) After the director has determined and announced that a
hearing
should be held, prior to the issuance of a final order, copies of
any written
communications from any party regarding the proceeding that are
di-
rected to the presiding officer shall be mailed to all parties of
record and
proof of service shall be furnished to the director. Communications
re-
quested by the director's staff from any party and any written
commu-
nication received by the director's staff from any party shall be
made a
part of the file and the docket and shall be made available to all
persons
who desire to use them, provided that the director's requests for
infor-
mation from a party shall be mailed to all parties of
record.
(3) The person or persons to whom any ex parte
communication has
been made shall promptly and fully inform the director of the
substance
of the communication, and the circumstances thereof, to enable the
di-
rector of any division within the department to take appropriate
action.
(c) For purposes of this section, no member of the director's
technical
staff shall be considered a party to any proceeding before the
director,
regardless of participation in staff investigations with respect to
the pro-
ceeding or of participation in the proceeding as a witness. Since
the pur-
pose of the staff is to aid the director in the proper discharge of
the
director's duties, the presiding officer shall be free at all times
to confer
with any staff member with respect to any proceeding. However, no
facts
that are outside the record, and that reasonably could be expected
to
648 1997 Session Laws of Kansas Ch. 126
influence the decision in any matter pending before the
director, shall be
furnished to any presiding officer unless all parties to the
proceeding are
likewise informed and afforded a reasonable opportunity to respond.
Sub-
section (b) shall apply to staff counsel who have participated in
the pro-
ceeding in regard to any adjudicatory proceeding before the
director.
(d) All letters and written communications that are received by
the
presiding officer from members of the general public, and that are
in the
nature of ex parte communications, shall be made a part of
the file in the
docket and shall be made available to all persons who desire to see
them.
The deposit of such written communications and letters in the file
shall
not make them a part of the official record of the case.
Sec. 7. K.S.A. 1996 Supp. 77-549 is hereby amended to read as
fol-
lows: 77-549. (a) The filing of a return with the director of
taxation under
article 15, 32, 33, 34, 36, 37, 41, 42 or 47 of chapter 79
of the Kansas
Statutes Annotated, and amendments thereto, shall not be deemed
an
application for an order under the Kansas administrative procedure
act.
(b) A determination by the division of taxation or the audit
services
bureau of the department of revenue concerning tax liability under
article
15, 32, 33, 34, 36, 37, 41, 42 or 47 of chapter 79 of the
Kansas Statutes
Annotated, and amendments thereto, which is made prior to the
oppor-
tunity for a hearing before the director of
taxation or prior to the oppor-
tunity for an informal conference before the secretary or the
secretary's
designee on such tax liability, shall not require an
adjudicative proceeding
under the Kansas administrative procedure act.
(c) For purposes of the Kansas administrative procedure act, the
di- secretary of revenue
may designate the
rector of taxation shall be deemed the agency head in regard to
orders
rendered by the director under chapter 79 of the Kansas Statutes
An-
notated, and amendments thereto
director of the division of taxation or other designee as agency
head.
(d) Final orders of the director of taxation pursuant to K.S.A.
77-526,
and amendments thereto, shall be rendered in writing and served
within
120 days after conclusion of the hearing or after submission of
proposed
findings in accordance with subsection (f) of K.S.A. 77-526, and
amend-
ments thereto, unless this period is waived or extended with the
written
consent of all parties or for good cause shown. If extended for
good cause,
such good cause shall be set forth in writing on or before the
expiration
of the 120 days.
Sec. 8. K.S.A. 1996 Supp. 77-550 is hereby amended to read as
fol-
lows: 77-550. For purposes of administrative proceedings of the
division
of property valuation under the Kansas administrative procedure
act,
``agency head'' means the director of property valuation or
the director's the secretary of revenue may designate the
director of the di-
designee
vision of property valuation or other designee as agency
head.
Sec. 9. K.S.A. 1996 Supp. 79-1575 is hereby amended to read
as
Ch. 126 1997 Session Laws of Kansas 649
follows: 79-1575. As soon as practicable after the return or
affidavit is
filed, the director shall make an examination thereof and
determine the shall issue final
determinations of tax
correct amount of the tax liability
liability hereunder in the manner prescribed by K.S.A. 79-3226,
and
amendments thereto. If the tax found due is less than the
amount paid,
the excess paid shall be refunded to the personal representative
who paid
the tax. If the tax found due shall be greater than the amount
theretoforepreviously paid, or if a
claim for a refund is denied, notice shall be mailed
to the person filing the return by registered or certified mail.
Within 30 An order
finding addi-
days after the mailing of the notice any personal representative
aggrieved
by any such determination of the director may request a hearing of
the
director relating to the tax liability by filing a written request
with the
director. The hearing shall be conducted in accordance with the
provi-
sions of the Kansas administrative procedure act.
tional tax shall be accompanied by a notice and demand for payment.
The
tax shall be paid within 30 days thereafter, together with interest
on the
additional tax from the date the tax was due unless an appeal is
taken in
the manner provided by K.S.A. 74-2438, and amendments thereto.
No
additional tax shall be assessed for less than $25.
Sec. 10. K.S.A. 1996 Supp. 79-3226 is hereby amended to read
as
follows: 79-3226. (a) As soon as practicable after the
return is filed, the
director of taxation shall examine it and shall determine the
correct
amount of the tax. If the tax found due shall be greater than the
amount
theretofore paid, or if a claim for a refund is denied, notice
shall be mailed
to the taxpayer. Within 60 days after the mailing of such notice
the tax-
payer may request a hearing of the director relating to the
tax liability by an informal conference with the secretary
of revenue or the
filing a written request with the director. The hearing shall be
conducted
in accordance with the provisions of the Kansas administrative
procedure
act. An order
secretary's designee relating to the tax liability or denial of
refund by filing
a written request with the secretary of revenue or the secretary's
designee
which sets forth the objections to the proposed liability or
proposed denial
of refund. The purpose of such conference shall be to review and
recon-
sider all facts and issues that underlie the proposed liability or
proposed
denial of refund. The secretary of revenue or the secretary's
designee shall
hold an informal conference with the taxpayer and shall issue a
written
final determination thereon. The informal conference shall not
constitute
an adjudicative proceeding under the Kansas administrative
procedure
act. Informal conferences held pursuant to this section may be
conducted
by the secretary of revenue or the secretary's designee. The rules
of evi-
dence shall not apply to an informal conference and no record shall
be
made, except at the request and expense of the secretary of revenue
or the
secretary's designee or taxpayer. The taxpayer may bring to the
informal
conference an attorney, certified public accountant and any other
person
650 1997 Session Laws of Kansas Ch. 126
to represent the taxpayer or to provide information. Because
the purpose
of the department staff is to aid the secretary or secretary's
designee in
the proper discharge of the secretary's or secretary's designee's
duties, the
secretary or secretary's designee may confer at any time with any
staff
member with respect to the case under reconsideration. The
secretary of
revenue or the secretary's designee shall issue a written final
determina-
tion within 270 days of the date of the request for informal
conference
unless the parties agree in writing to extend the time for issuing
such final
determination. A final determination constitutes final agency
action sub-
ject to administrative review by the state board of tax appeals. In
the
event that a written final determination is not rendered within 270
days,
the taxpayer may appeal to the state board of tax
appeals.
(b) A final determination finding additional tax shall be
accompanied
by a notice and demand for payment. Notice under this section shall
be
sent by first-class mail in the case of individual taxpayers and by
registered
or certified mail in the case of all other taxpayers. The tax shall
be paid
within 20 days thereafter, together with interest at the rate per
month
prescribed by subsection (a) of K.S.A. 79-2968, and amendments
thereto,
on the additional tax from the date the tax was due unless an
appeal is
taken in the manner provided by K.S.A. 74-2438 and amendments
thereto, but no additional tax shall be assessed for less than $5.
Interest
at such rate shall continue to accrue on any additional tax
liability during
the course of any appeal.
Sec. 11. K.S.A. 1996 Supp. 79-3420 is hereby amended to read
as
follows: 79-3420. The director, or any deputy or agent appointed in
writ-
ing by the director, is hereby authorized to examine the books,
papers,
records, storage tanks, tank wagons, trucks and any other equipment
of
any distributor, dealer, transporter, manufacturer, importer,
exporter, re-
tailer, user or any other person, pertaining to the use, storage,
transpor-
tation or sale and delivery of liquid fuels, motor-vehicle fuels or
special
fuels, to verify the accuracy of any report, statement or payment
made
under the provisions of this act, or to ascertain whether or not
all reports
and tax payments required by this act have been made. Any
information
gained by the director, the director's deputies or agents, as the
result of
the reports, investigations and verifications herein required to be
made,
shall be confidential, and shall not be divulged by any person
except as
herein provided. Every distributor, dealer, transporter,
manufacturer, im-
porter, exporter, retailer or user and every person handling or
possessing
any liquid fuels, motor-vehicle fuels or special fuels shall give
the director,
or the director's deputy or agent appointed in writing, full and
free access
during reasonable business hours to all the papers, records and
property
mentioned, with full opportunity to examine the same. The director,
or
any deputy or agent appointed in writing by the director, shall
examine
returns and shall determine the correct amount of the tax. If the
tax found
Ch. 126 1997 Session Laws of Kansas 651
due shall be greater than the amount paid, or if a claim for a
refund is
denied, notice shall be mailed to the taxpayer. Within 60 days
after the
mailing of such notice, the taxpayer may request a hearing
of an informal
conference with the director secretary of
revenue or the secretary's des-
ignee relating to the tax liability by filing a written request
with the di- secretary of revenue or the secretary's
designee. Based on the ev-
rector
idence presented at such hearing, the director
informal conference, the
secretary of revenue or the secretary's designee shall make a
final deter-
mination within a reasonable time the period
prescribed by K.S.A. 79-
3226, and amendments thereto, and shall notify the taxpayer of
such de-
cision and, if additional amounts are found to be due, such
decision shall
be accompanied by a notice and demand for payment. Notice under
this
section shall be sent by first-class mail. The tax shall be paid
within 20
days thereafter, together with interest at the rate per month
prescribed
by subsection (a) of K.S.A. 79-2968, and amendments thereto, on
the
additional tax from the date the tax was due unless an appeal is
taken in
the manner provided by law, but no additional tax shall be assessed
for
less than $5. Interest at such rate shall continue to accrue on any
addi-
tional tax liability during the course of any appeal.
Whenever the director of taxation has reason to believe that a
person
liable for tax under any provisions of the motor-fuel tax law is
about to
depart from the state or to remove such person's property
therefrom, or
to conceal oneself or such person's property therein, or to do any
other
act tending to prejudice, jeopardize or render wholly or partly
ineffectual
the collection of such motor-fuel tax unless proceedings be brought
with-
out delay, the director shall immediately make an assessment for
all mo-
tor-fuel tax due from such taxpayer, noting such finding on the
assess-
ment. The assessment shall be made on the basis of emergency
proceedings in accordance with the provisions of K.S.A. 77-536,
and
amendments thereto. Thereupon, a warrant shall be issued for the
col-
lection of the tax as provided in K.S.A. 79-3412, and amendments
thereto,
except that there shall be no 10-day waiting period before
assessment is
issued. The taxpayer, within 15 days from the date of filing of
such war-
rant, may request a hearing by an informal
conference with the directorsecretary
of revenue or the secretary's designee on the correctness of
the
assessment. Hearings under this section shall be conducted
in accordance The di-
with the provisions of the Kansas administrative procedure
act.
rector may publish the gallons received by each licensed
motor-vehicle
fuel or special fuel distributor and the deductions claimed by such
dis-
tributor and such publication shall be an exception to the
confidentiality
provisions of K.S.A. 75-5133, and amendments thereto. The director
may
also make available or furnish information to the taxing officials
of any
other state or of the federal government, or the director of
property val-
uation, in the manner as provided in K.S.A. 74-2424, and
amendments
thereto.
652 1997 Session Laws of Kansas Ch. 126
Sec. 12. K.S.A. 1996 Supp. 79-3610 is hereby amended to read
as
follows: 79-3610. The director of taxation shall examine all
returns filed
under the provisions of this act, and shall issue final
determinations of tax
liability hereunder in the manner prescribed by K.S.A. 79-3226,
and
amendments thereto, relating to income taxes. Any determination
may
be made on the basis of a generally recognized valid and reliable
sampling
technique, whether or not the person being audited has complete
records
of transactions and whether or not such person consents. In any
such
case, the director shall notify the taxpayer in writing of the
sampling
technique to be utilized, including the design and population of
such
sample. If the taxpayer demonstrates that any such technique used
was
not in accordance with generally recognized sampling techniques,
the
audit shall be dismissed with respect to that portion of the audit
based
upon such technique, and a new audit shall be performed. Within 60
days
after the mailing of notice of the director's determination any
taxpayer
may request a hearing of an informal conference
with the director sec-
retary of revenue or the secretary's designee relating to such
taxpayer's
tax liability, including the issue of whether the use of a
generally recog-
nized sampling technique achieved a result that was reflective of
the tax-
payer's actual tax liability, and a hearing an
informal conference thereon
shall be had conducted and the
director secretary of revenue or the sec-
retary's designee shall make a final determination and give the
taxpayer
notice thereof. In case any person required by the provisions of
this act
to make a return fails or refuses to do so, the
director secretary of revenue
or the secretary's designee, after notice to such person,
and a hearing shall make a final determination of the amount of
such tax ac-
thereon,
cording to the director's best judgment and
information of the secretary
of revenue or the secretary's designee.
Whenever the director of taxation has reason to believe that a
person
liable for tax under any provisions of the Kansas retailers' sales
tax act is
about to depart from the state or to remove such person's property
there-
from, or to conceal oneself or such person's property therein, or
to do
any other act tending to prejudice, jeopardize or render wholly or
partly
ineffectual the collection of such sales tax unless proceedings be
brought
without delay, the director shall immediately make an assessment
for all
sales taxes due from such taxpayer, noting such finding on the
assessment.
The assessment shall be made on the basis of emergency proceedings
in
accordance with the provisions of K.S.A. 77-536 and amendments
thereto. Thereupon a warrant shall forthwith be issued for the
collection
of the tax as provided in K.S.A. 79-3235, and amendments thereto.
The
taxpayer may within 15 days from the date of filing of such warrant
re-
quest a hearing by an informal conference
with the director secretary or
the secretary's designee on the correctness of the jeopardy
assessment.
Hearings under this section shall be conducted in
accordance with the
provisions of the Kansas administrative procedure
act.
Ch. 126 1997 Session Laws of Kansas 653
Sec. 13. K.S.A. 1996 Supp. 79-4226 is hereby amended to read
as
follows: 79-4226. Every operator shall make and keep a complete
and
accurate record in the form required by the director showing the
gross
quantity of coal, oil or gas severed and removed from each lease,
pro-
duction unit or mine, the names of the purchasers of such products,
the
price paid therefor and the date of purchase. Every purchaser of
coal, oil
or gas severed in this state who is required to collect and remit
the tax
on the same shall make and keep a complete and accurate record in
the
form required by the director showing the gross quantity of coal,
oil or
gas purchased from each lease, production unit or mine, the price
paid
therefor, the name of the operator and the date of purchase. Such
records
shall at all times during business hours of the day be available
for and
subject to inspection by the director, or the director's duly
authorized
agents and employees, for a period of three years from the last day
of the
calendar year to which the records pertain. Such records shall be
pre-
served during the entire period during which they are subject to
inspec-
tion by the director, unless the director in writing previously
authorized
their disposal.
The amount of taxes imposed by this act is to be assessed within
three
years after the return is filed, and no proceedings in
court for the collec-. In
tion of such taxes shall be begun after the expiration of such
period
the case of a false or fraudulent return with intent to evade tax,
the tax
may be assessed or a proceeding in court for collection of such tax
may
be begun at any time, within two years from the discovery of such
fraud.
The provisions of K.S.A. 79-3226, and amendments thereto,
relating to
procedures for contesting a proposed assessment of additional tax
or the
denial of a refund shall apply as if set forth in this section.
No refund
shall be allowed by the director after three years from the date
the return
was filed, or one year after the assessment is made, whichever is
the later
date unless before the expiration of such period a claim therefor
is filed
by the taxpayer. No suit or action to recover on any claim for
refund shall
be commenced until after the expiration of six months from the date
of
filing a claim therefor with the director.
Before the expiration of time prescribed in this section for the
assess-
ment of additional tax or the filing of a claim for refund, the
director is
hereby authorized to enter into an agreement in writing with the
taxpayer
consenting to the extension of the periods of limitations for the
assess-
ment of tax or for the filing of a claim for refund, at any time
prior to the
expiration of the periods of limitations. The periods so agreed
upon may
be extended by subsequent agreements in writing made before the
ex-
piration of the periods previously agreed upon. In consideration of
such
agreement or agreements, interest due in excess of 48 months on
any
additional tax shall be waived.
New Sec. 14. The secretary of revenue or the secretary's
designee
654 1997 Session Laws of Kansas Ch. 126
shall issue a written final determination for any appeal which
is pending
before the director on the effective date of this act on or before
October
1, 1998. In the event a taxpayer has timely requested a hearing
before
the director of taxation pursuant to K.S.A. 79-3226, as in effect
prior to
the effective date of this act, and whether or not such hearing was
con-
ducted, the taxpayer shall be deemed to have requested an informal
con-
ference pursuant to K.S.A. 79-3226, and amendments thereto.
Sec. 15. K.S.A. 79-2969 is hereby amended to read as follows:
79-
2969. From and after July 1, 1984 1997,
whenever any statute requiring
the remittance of an excise or income tax prescribes a due date
therefor,
such due date shall be deemed to be complied with, and no
penalties
shall be imposed for late payment, if such payment is mailed on
the
statutorily prescribed due date as reflected by the postmark on the
en-
velope containing the payment. The use of private delivery
services shall
be allowed by the secretary of revenue, and the determination of
timely
filing regarding such services shall be made, in the same manner
and to
the same extent as provided by section 7502 of the federal internal
revenue
code of 1986, as in effect on September 1, 1996.
Sec. 16. K.S.A. 79-3268 is hereby amended to read as follows:
79-
3268. Any taxpayer subject to the provisions of Chapter 79 of the
Kansas
Statutes Annotated shall be afforded the rights and privileges set
forth in
this section. Unless specifically provided otherwise, the
provisions of this
section shall apply to all taxes administered by the director of
taxation.
(a) The director shall inform all taxpayers against whom an
assess-
ment of additional tax has been issued of the taxpayer's right to
appeal.
Such written notification shall accompany each notice of assessment
and
shall set forth the time period within which the taxpayer must file
an
appeal.
(b) Any taxpayer who has received written advice from the
depart-
ment of revenue concerning the taxability of transactions shall be
allowed
to rely on such advice when filing tax returns. The department
shall not
maintain a position against a taxpayer which is inconsistent with a
prior
written opinion issued to the same taxpayer which has not been
rescinded.
(c) It shall be unlawful to base a performance evaluation for
any em-
ployee of the director of taxation department
of revenue on a production
quota system based on the total amount of assessments issued by
such
employee or on the total amount or percentage of taxes collected
from a
taxpayer through settlements or other means made by such
employee
prior to final judgment.
(d) The director shall waive any interest assessed against a
taxpayer
when it is determined by the director that the negligence of an
employee
of the department resulted in undue delay in either assessing tax
or no-
tifying the taxpayer of the liability owed.
(e) The department shall release any lien upon the property of
a
Ch. 126 1997 Session Laws of Kansas 655
taxpayer upon payment of all tax, penalty and interest within 30
days of
payment. Liens filed in error shall be so noted on the satisfaction
of
judgment. The department shall be liable for any court costs
associated
with the release of such erroneous liens.
(f) Attorney fees and related expenses may be awarded to a
taxpayer
if it can be proved that an assessment or claim asserted by the
department
is without a reasonable basis in law or fact. A taxpayer must first
exhaust
its administrative remedies before an award of attorney fees may be
made
under this section.
Sec. 17. K.S.A. 79-3230 is hereby amended to read as follows:
79-
3230. (a) The amount of income taxes imposed by this act shall be
as-
sessed within three years after the return was filed or the tax as
shown to
be due on the return was paid, whichever is the later date, and no
pro-
ceedings in court for the collection of such taxes shall be begun
after the
expiration of such period. For purposes of this act any return
filed before
the 15th day of the fourth month following the close of the taxable
year
shall be considered as being filed on the 15th day of the fourth
month
following the close of the taxable year, and any tax shown to be
due on
the return and paid before the 15th day of the fourth month
following
the close of the taxable year shall be deemed to have been paid on
the
15th day of the fourth month following the close of the taxable
year.
(b) In the case of a false or fraudulent return with intent to
evade
tax, the tax may be assessed, or a proceeding in court for
collection of
such tax may be begun at any time.
(c) No refund or credit shall be allowed by the director of
taxation
after three years from the date prescribed by law for filing the
return,
provided it was filed before the due date, unless before the
expiration of
such period a claim therefor is filed by the taxpayer. If the
return was
filed after the due date, a refund claim must be filed not later
than three
years from the time the return was actually filed, or two years
from the
date the tax was paid, whichever of such periods expires later.
Where the
assessment of any income tax imposed by this act has been made
within
the period of limitation properly applicable thereto, such tax may
be col-
lected by distraint or by a proceeding in court, but only if begun
within
one year after the period of limitation as defined in this
act.
(d) In case a taxpayer has made claim for a refund, the taxpayer
shall
have the right to commence a suit for the recovery of the refund at
the
expiration of six months after the filing of the claim for refund,
if no action
has been taken by the director of taxation.
(e) Before the expiration of time prescribed in this section for
the
assessment of additional tax or the filing of a claim for a refund,
the
director of taxation is authorized to enter into an agreement in
writing
with the taxpayer consenting to the extension of the periods of
limitations
as defined in this act for the assessment of tax or for the filing
of a claim
656 1997 Session Laws of Kansas Ch. 126
for refund, at any time prior to the expiration of the period of
limitations.
The period so agreed upon may be extended by subsequent
agreements
in writing made before the expiration of the period previously
agreed
upon. An agreement between the taxpayer and the internal
revenue serv- A copy of all such
agreements and extensions
ice providing for the extension of the period for assessment of
federal
income taxes shall constitute an agreement with the director of
taxation
to extend the period for assessment of income taxes under the
provisions
of the Kansas income tax act.
thereof shall be filed with the director of taxation within 30 days
after
their execution.
(f) Any taxpayer whose income has been adjusted by the federal
in-
ternal revenue service is required to report such adjustments to
the Kan-
sas department of revenue by mail within 180 days of the date the
federal
adjustments are paid, agreed to or become final, whichever is
earlier.
Such adjustments shall be reported by filing an amended return for
the
applicable taxable year and a copy of the revenue agent's report
detailing
such adjustments. In the event such taxpayer is a corporation, such
report
shall be by certified or registered mail.
Notwithstanding the provisions of subsection (a) or (c) of this
section,
additional income taxes may be assessed and proceedings in court
for
collection of such taxes may be commenced and any refund or credit
may
be allowed by the director of taxation within 180 days following
receipt
of any such report of adjustments by the Kansas department of
revenue.
No assessment shall be made nor any refund or credit shall be
allowable
under the provisions of this paragraph except to the extent the
same is
attributable to changes in the taxpayer's income due to adjustments
in-
dicated by such report.
(g) In the event of failure to comply with the provisions of
this section,
the statute of limitations shall be tolled.
New Sec. 18. (a) A refund request may be filed directly by a
con-
sumer or purchaser if the consumer or purchaser: (1) paid the tax
directly
to the department; (2) provides evidence that the retailer refused
or was
unavailable to refund the tax; (3) provides evidence that the
retailer did
not act upon its refund request in a timely manner as provided in
sub-
section (b), or; (4) submits such a refund request pursuant to
subsection
(c).
(b) If the director of taxation finds upon proper showing that a
con-
sumer or purchaser submitted a refund request to a retailer that
was not
acted upon by the retailer in a timely manner, the director shall
extend
the time for filing the request with the department beyond the
three year
limitation period that is otherwise provided by the time attributed
to the
delay caused by the retailer.
(c) If, during the course of an audit examination of a business
as a
purchaser or consumer, it is determined that a vendor has collected
Kan-
Ch. 126 1997 Session Laws of Kansas 657
sas tax from the purchaser on a transaction that is not subject
to tax
imposed under this act, the purchaser may apply directly to the
director
for an offset or refund of the tax, notwithstanding subsection (a),
if: (1)
the purchaser is currently registered to collect and remit tax, and
(2) the
purchaser provides the director with an affidavit or other
acceptable doc-
umentation that assures the purchaser has not and will not request
a
duplicate refund through the vendor.
New Sec. 19. (a) For the purpose of the proper administration
of
the Kansas retailers' sales tax act and to prevent evasion of the
tax imposed
thereunder, it shall be presumed that all gross receipts from the
sale of
tangible personal property or enumerated services are subject to
tax until
the contrary is established. The burden of proving that a sale is
not subject
to tax is upon the vendor unless the vendor takes from the
purchaser an
exemption certificate to the effect that the property or service
purchased
is not subject to tax.
(b) An exemption certificate shall relieve the vendor from
collecting
and remitting tax when taken in good faith. A vendor shall be
presumed
to have accepted an exemption certificate in good faith in the
absence of
evidence to the contrary. A vendor shall be deemed to have accepted
an
exemption certificate in good faith if the vendor: (1) Maintains a
com-
pleted exemption certificate; (2) has ascertained the identity of
the person
or entity who presented the exemption certificate; and (3) has not
been
shown by a preponderance of the evidence to have had knowledge
that
the presentation of the certificate was improper.
(c) The exemption certificate shall be substantially in such
form as
the director may prescribe. A vendor may require a purchaser to
provide
a copy of the purchaser's sales tax registration certificate with a
resale
certificate as a condition for honoring the purchaser's resale
exemption
claim.
(d) To lawfully present a resale exemption certificate the
purchaser
must be engaged in the business of selling property or services of
the
same kind that is purchased, hold a registration certificate, and
at the
time of purchase, either intend to resell the property in the
regular course
of business or be unable to ascertain whether the property will be
resold
or used for some other purpose.
(e) Any person who issues a resale certificate or other
exemption
certificate in order to unlawfully avoid payment of tax for
business or
personal gain shall be guilty of a misdemeanor and upon conviction
shall
be punished by a fine of not more than $1,000 or imprisonment for
not
more than one year, or by both. In addition, if the director
determines
that a person issued a resale certificate in order to unlawfully
avoid pay-
ment of tax for business or personal gain, the director shall
increase any
penalty that is due from the person under K.S.A. 79-3615, and
amend-
658 1997 Session Laws of Kansas Ch. 126
ments thereto, by $250 or 10 times the tax due, whichever is
greater, on
each transaction where the misuse of a resale certificate
occurred.
(f) Exemption certificates issued by a nonprofit entity claiming
a spe-
cific exemption under K.S.A. 79-3606, and amendments thereto,
shall
bear the name and address of the entity and indicate the subsection
under
which the exemption is being claimed. Such certificate shall be
signed by
an officer, office manager or other administrator of the nonprofit
entity
and contain the driver's license number of the signer. The
certificate shall
be substantially in such form as the director may prescribe.
Payments
made on an exempt entity's check, warrant, voucher or is charged to
the
entity's account shall relieve the vendor from collecting and
remitting the
tax if it is taken in good faith.
(g) It shall be the duty of every person who purchases tangible
per-
sonal property or services that are taxable under this act to pay
the full
amount of tax that is lawfully due to the retailer making the sale.
Any
person who willfully and intentionally refuses to pay such tax to
the re-
tailer shall be guilty of a misdemeanor and upon conviction shall
be pun-
ished and fined as provided by subsection (g) of K.S.A. 79-3615,
and
amendments thereto.
Sec. 20. K.S.A. 1996 Supp. 79-3615 is hereby amended to read
as
follows: 79-3615. (a) If any taxpayer shall fail to pay the tax
required under
this act at the time required by or under the provisions of this
act, there
shall be added to the unpaid balance of the tax, interest at the
rate per
month prescribed by subsection (a) of K.S.A. 79-2968 and
amendments
thereto from the date the tax was due until paid.
(b) If any taxpayer due to negligence or intentional disregard
fails to
file a return or pay the tax due at the time required by or under
the
provisions of this act, there shall be added to the tax a penalty
in an
amount equal to 10% of the unpaid balance of tax due.
(c) If any person fails to make a return, or to pay any tax,
within six
months from the date the return or tax was due, except in the case
of an
extension of time granted by the secretary of revenue or the
secretary's
designee, there shall be added to the tax due a penalty equal to
25% of
the unpaid balance of such tax due. Notwithstanding the foregoing,
in the
event an assessment is issued following a field audit for any
period for
which a return was filed by the taxpayer and all of the tax was
paid pur-
suant to such return, a penalty shall be imposed for the period
included
in the assessment in the amount of 10% of the unpaid balance of tax
due
shown in the notice of assessment. If after review of a return for
any
period included in the assessment, the secretary or secretary's
designee
determines that the underpayment of tax was due to the failure of
the
taxpayer to make a reasonable attempt to comply with the provisions
of
this act, such penalty shall be imposed for the period included in
the
assessment in the amount of 25% of the unpaid balance of tax
due.
Ch. 126 1997 Session Laws of Kansas 659
(d) If any taxpayer, with fraudulent intent, fails to pay any
tax or make,
render or sign any return, or to supply any information, within the
time
required by or under the provisions of this act, there shall be
added to
the tax a penalty in an amount equal to 50% of the unpaid balance
of tax
due.
(e) Penalty or interest applied under the provisions of
subsections (a)
and (d) shall be in addition to the penalty added under any other
provi-
sions of this section, but the provisions of subsections (b) and
(c) shall be
mutually exclusive of each other.
(f) Whenever the secretary or the secretary's designee
determines
that the failure of the taxpayer to comply with the provisions of
subsec-
tions (b) and (c) of this section was due to reasonable causes, the
secretary
or the secretary's designee may waive or reduce any of the
penalties and
may reduce the interest rate to the underpayment rate prescribed
and
determined for the applicable period under section 6621 of the
federal
internal revenue code as in effect on January 1, 1994, upon making
a
record of the reasons therefor.
(g) In addition to all other penalties provided by this section,
any
person who willfully fails to make a return or to pay any tax
imposed
under the Kansas retailers' sales tax act, or who makes a false or
fraudulent
return, or fails to keep any books or records prescribed by this
act, or
who willfully violates any regulations of the secretary of revenue,
for the
enforcement and administration of this act, or who aids and abets
another
in attempting to evade the payment of any tax imposed by this act,
or
who violates any other provision of this act, shall, upon
conviction thereof,
be fined not less than $100 $500, nor more
than $1,000 $10,000, or be
imprisoned in the county jail not less than one month, nor more
than six
months, or be both so fined and imprisoned, in the discretion of
the court.
Sec. 21. K.S.A. 79-1701a is hereby amended to read as follows:
79-
1701a. Any taxpayer, the county appraiser or the county clerk
shall, on
their own motion, request the board of county commissioners to
order
the correction of the clerical errors in the appraisal, assessment
or tax
rolls as described in K.S.A. 79-1701, and amendments thereto. The
board
of county commissioners of the several counties are hereby
authorized to
order the correction of clerical errors, specified in K.S.A.
79-1701, and
amendments thereto, in the appraisal, assessment or tax rolls for
the cur-
rent year and the immediately preceding two years during the period
on
and after November 1 of each year. If a county treasurer has
collected
and distributed the property taxes of a taxpayer and it shall
thereafter be
determined that the tax computed and paid was based on an
erroneous
assessment due to a clerical error which resulted in an overpayment
of
taxes by the taxpayer, and such error is corrected under the
provisions
hereof then the county commissioners may direct a refund in the
amount
of the overpayment plus interest at the rate prescribed by
K.S.A. 79-2968,
660 1997 Session Laws of Kansas Ch. 126
and amendments thereto, from the date of payment from tax
moneys col-
lected during the current year and approve a claim therefor. If all
or any
portion of the taxes on such property remain unpaid, the board of
county
commissioners shall cancel that portion of such unpaid taxes which
were
assessed on the basis of the error which is being corrected. In
lieu of
taking such a refund the taxpayer may, at the taxpayer's option, be
allowed
a credit on the current year's taxes in the amount of the
overpayment
plus interest at the rate prescribed by K.S.A. 79-2968, and
amendments
thereto, from the date of payment for the previous year. In the
event the
error results in an understatement of value or taxes as a result of
a mistake
on the part of the county, the board of county commissioners of
the
several counties are hereby authorized to correct such error and
order an
additional assessment or tax bill, or both, to be issued, except
that, in no
such case shall the taxpayer be assessed interest or penalties on
any tax
which may be assessed. If such error applies to property which has
been
sold or otherwise transferred subsequent to the time the error was
made,
no such additional assessment or tax bill shall be issued.
Sec. 22. K.S.A. 79-1702 is hereby amended to read as follows:
79-
1702. If any taxpayer or any municipality or taxing district shall
have a
grievance not remediable under the provisions of K.S.A. 79-1701 or
79-
1701a, and amendments thereto, or which was remediable
thereunder
and reported to the proper official or officials within the time
prescribed
but which has not been remedied by such official or officials, such
griev-
ance may be presented to the state board of tax appeals and if it
shall be
satisfied from competent evidence produced that there is a real
grievance,
it may direct that the same be remedied either by canceling the
tax, if
uncollected, together with all penalties charged thereon, or if the
tax has
been paid, by ordering a refund of the amount found to have been
un-
lawfully charged and collected and interest at the rate
prescribed by
K.S.A. 79-2968, and amendments thereto, minus two percentage
points.
In all cases where property has been acquired by the state, a
political
subdivision or an institution exempt from general property
taxation, the
general property tax for all the years prior to 1975 that are
unpaid on the
taking effect of this act shall be canceled and abated upon proper
appli-
cation hereunder.
In all cases where the identical property owned by any taxpayer
has
been assessed for the current tax year in more than one county in
the
state, the board is hereby given authority to determine which
county is
entitled to the assessment of the property and to charge legal
taxes
thereon, and if the taxes have been paid in a county not entitled
thereto,
the board is hereby empowered to direct the authorities of the
county
which has so unlawfully collected the taxes to refund the same to
the
taxpayer with all penalties charged thereon.
No tax grievance shall be considered by the board of tax appeals
unless
Ch. 126 1997 Session Laws of Kansas 661
the same is filed within three years from the date the tax would
have
become a lien on real estate, except that the board shall have the
au-
thority, upon a finding of excusable neglect or undue hardship, to
waive
the limitations period, and that in no event shall the board order
a refund
of taxes, pursuant to the authority granted herein, that extends
back more
than three years from the date of the most recent tax year without
the
aggrieved person showing proof of a unanimous vote by the board
of
county commissioners recommending the same. Such vote shall be
taken
at a regularly scheduled meeting of the board of county
commissioners
and filed with the state board of tax appeals. In any county,
such board,
upon the adoption of a resolution so providing, may elect to
recommend
any such tax refund upon a majority vote.
In all cases where an error results in an understatement of
values or
taxes as a result of a mistake on the part of a county, the board
of tax
appeals, if it shall be satisfied from competent evidence produced
that
there is an understatement as a result of a clerical error, may
order an
additional assessment or tax bill, or both, to be issued so that
the proper
value of the property in question is reflected, except that, in no
such case
shall the taxpayer be assessed interest or penalties on any tax
which may
be assessed. No increase shall be ordered to correct such error
that ex-
tends back more than two years from the date of the most recent tax
year.
If such error applies to property which has been sold or otherwise
trans-
ferred subsequent to the time the error was made, no such
additional
assessment or tax bill shall be issued.
Errors committed in the valuation and assessment process that
are not
specifically enumerated in K.S.A. 79-1701, and amendments thereto,
shall
be remediable only under the provisions of K.S.A. 79-2005, and
amend-
ments thereto.
Sec. 23. K.S.A. 1996 Supp. 79-2004 is hereby amended to read
as
follows: 79-2004. (a) Except as provided by K.S.A. 1996 Supp.
79-4521,
any person charged with real property taxes on the tax books in the
hands
of the county treasurer may pay, at such person's option, the full
amount
thereof on or before December 20 of each year, or 1/2 thereof on or
before
December 20 and the remaining 1/2 on or before June 20 next
ensuing.
If the full amount of the real property taxes listed upon any tax
statement
is $10 or less the entire amount of such tax shall be due and
payable on
or before December 20.
In case the first half of the real property taxes remains unpaid
after
December 20, the first half of the tax shall draw interest at the
rate of prescribed by K.S.A. 79-2968, and amendments
thereto, plus two
12%
percentage points, per annum and may be paid at any time prior
to June
20 following by paying 1/2 of the tax together with interest at
such rate
from December 20 to date of payment. Subject to the provisions of
sub-
section (d), all real property taxes of the preceding year and
accrued
662 1997 Session Laws of Kansas Ch. 126
interest thereon which remain due and unpaid on June 21 shall
accrue
interest at the rate of 12% prescribed by
K.S.A. 79-2968, and amendments
thereto, plus two percentage points, per annum from June 20
until paid,
or until the real property is sold for taxes by foreclosure as
provided by
law. Except as provided by subsection (c), all interest herein
provided
shall be credited to the county general fund, and whenever any
such
interest is paid the county treasurer shall enter the amount of
interest so
paid on the tax rolls in the proper column and account for such
sum.
(b) Whenever any date prescribed in subsection (a) for the
payment
of real property taxes occurs on a Saturday or Sunday, such date
for
payment shall be extended until the next-following regular business
day
of the office of the county treasurer.
(c) The board of county commissioners may enter into an
agreement
with the governing body of any city located in the county for the
distri-
bution of part or all of the interest paid on special assessments
levied by
the city which remain unpaid.
(d) All real property taxes of any year past due and unpaid on
the
effective date of this section and interest accrued thereon
pursuant to
this section prior to its amendment by this act shall draw interest
at the
rate of 12% prescribed by K.S.A. 79-2968, and
amendments thereto, plus
two percentage points, per annum from the effective date of
this section
until paid or until the real property is sold for taxes by
foreclosure as
provided by law.
Sec. 24. K.S.A. 1996 Supp. 79-2004a is hereby amended to read
as
follows: 79-2004a. (a) Any taxpayer charged with personal property
taxes
on the tax books in the hands of the county treasurer may at such
tax-
payer's option pay the full amount thereof on or before December 20
of
each year, or 1/2 thereof on or before December 20 and the
remaining 1/2
thereof on or before June 20 next ensuing, except that: (1) All
unpaid
personal property taxes of the preceding year must first be paid;
and (2)
if the full amount of the personal property taxes listed upon any
tax state-
ment shall be $10 or less the entire amount of such taxes shall be
due
and payable on or before December 20.
In the event anyone charged with personal property taxes shall
fail to
pay the first half thereof on or before December 20, the full
amount
thereof shall become immediately due and payable.
In case the first half of the taxes remains unpaid after
December 20,
the entire and full amount of personal property taxes charged shall
draw
interest at the rate of 12% prescribed by
K.S.A. 79-2968, and amendments
thereto, plus two percentage points, per annum from December 20
to
date of payment. Subject to the provisions of subsection (c) all
personal
property taxes of the preceding year and interest thereon which
shall
remain due and unpaid on June 21 shall draw interest at the rate
of 12%prescribed by K.S.A. 79-2968, and
amendments thereto, plus two per-
Ch. 126 1997 Session Laws of Kansas 663
centage points, per annum from June 20 until paid. All
interest herein
provided for shall be credited to the county general fund and
retained by
the county, and whenever any such interest is paid, the county
treasurer
shall enter the amount of interest so paid on the tax rolls in the
proper
column and account for such sum.
(b) Whenever any date prescribed in subsection (a) for the
payment
of personal property taxes occurs on a Saturday or Sunday, such
date for
payment shall be extended until the next-following regular business
day
of the office of the county treasurer.
(c) All personal property taxes of any year past due and unpaid
on
the effective date of this section and interest accrued thereon
pursuant
to this section prior to its amendment by this act shall draw
interest at
the rate of 12% prescribed by K.S.A. 79-2968,
and amendments thereto,
plus two percentage points, per annum from the effective date
of this
section until paid.
Sec. 25. K.S.A. 1996 Supp. 79-2005 is hereby amended to read
as
follows: 79-2005. (a) Any taxpayer, before protesting the payment
of such
taxpayer's taxes, shall be required, either at the time of paying
such taxes,
or, if the whole or part of the taxes are paid prior to December
20, no
later than December 20, or, with respect to taxes paid in whole on
or
before December 20 by an escrow or tax service agent, no later
than
January 31 of the next year, to file a written statement with the
county
treasurer, on forms approved by the state board of tax appeals and
pro-
vided by the county treasurer, clearly stating the grounds on which
the
whole or any part of such taxes are protested and citing any law,
statute
or facts on which such taxpayer relies in protesting the whole or
any part
of such taxes. When the grounds of such protest is that the
valuation or
assessment of the property upon which the taxes are levied is
illegal or
void, the county treasurer shall forward a copy of the written
statement
of protest to the county appraiser who shall within 15 days of the
receipt
thereof, schedule an informal meeting with the taxpayer or such
tax-
payer's agent or attorney with reference to the property in
question. The
county appraiser shall review the appraisal of the taxpayer's
property with
the taxpayer or such taxpayer's agent or attorney and may change
the
valuation of the taxpayer's property, if in the county appraiser's
opinion
a change in the valuation of the taxpayer's property is required to
assure
that the taxpayer's property is valued according to law, and shall,
within
15 business days thereof, notify the taxpayer in the event the
valuation of
the taxpayer's property is changed, in writing of the results of
the meeting.
In the event the valuation of the taxpayer's property is changed
and such
change requires a refund of taxes and interest thereon, the
county treas-
urer shall process the refund in the manner provided by subsection
(l).
(b) No protest appealing the valuation or assessment of property
shall
be filed pertaining to any year's valuation or assessment when an
appeal
664 1997 Session Laws of Kansas Ch. 126
of such valuation or assessment was commenced pursuant to K.S.A.
79-
1448, and amendments thereto, nor shall the second half payment of
taxes
be protested when the first half payment of taxes has been
protested.
Notwithstanding the foregoing, this provision shall not prevent any
sub-
sequent owner from protesting taxes levied for the year in which
such
property was acquired, nor shall it prevent any taxpayer from
protesting
taxes when the valuation or assessment of such taxpayer's property
has
been changed pursuant to an order of the director of property
valuation.
(c) A protest shall not be necessary to protect the right to a
refund
of taxes in the event a refund is required because the final
resolution of
an appeal commenced pursuant to K.S.A. 79-1448, and amendments
thereto, occurs after the final date prescribed for the protest of
taxes.
(d) If the grounds of such protest shall be that the valuation
or as-
sessment of the property upon which the taxes so protested are
levied is
illegal or void, such statement shall further state the exact
amount of
valuation or assessment which the taxpayer admits to be valid and
the
exact portion of such taxes which is being protested.
(e) If the grounds of such protest shall be that any tax levy,
or any
part thereof, is illegal, such statement shall further state the
exact portion
of such tax which is being protested.
(f) Upon the filing of a written statement of protest, the
grounds of
which shall be that any tax levied, or any part thereof, is
illegal, the county
treasurer shall mail a copy of such written statement of protest to
the
state board of tax appeals and the governing body of the taxing
district
making the levy being protested.
(g) Within 30 days after notification of the results of the
informal
meeting with the county appraiser pursuant to subsection (a), the
pro-
testing taxpayer may, if aggrieved by the results of the informal
meeting
with the county appraiser, appeal such results to the state board
of tax
appeals.
(h) After examination of the copy of the written statement of
protest
and a copy of the written notification of the results of the
informal meet-
ing with the county appraiser in cases where the grounds of such
protest
is that the valuation or assessment of the property upon which the
taxes
are levied is illegal or void, the board shall conduct a hearing in
accor-
dance with the provisions of the Kansas administrative procedure
act,
unless waived by the interested parties in writing. If the grounds
of such
protest is that the valuation or assessment of the property is
illegal or void
the board shall notify the county appraiser thereof.
(i) In the event of a hearing, the same shall be originally set
not later
than 90 days after the filing of the copy of the written statement
of protest
and a copy, when applicable, of the written notification of the
results of
the informal meeting with the county appraiser with the board.
With
regard to any matter properly submitted to the board relating to
the
determination of valuation of residential property for taxation
purposes,
Ch. 126 1997 Session Laws of Kansas 665
it shall be the duty of the county appraiser to initiate the
production of
evidence to demonstrate, by a preponderance of the evidence, the
validity
and correctness of such determination. No presumption shall exist
in fa-
vor of the county appraiser with respect to the validity and
correctness of
such determination. In all instances where the board sets a request
for
hearing and requires the representation of the county by its
attorney or
counselor at such hearing, the county shall be represented by its
county
attorney or counselor.
(j) When a determination is made as to the merits of the tax
protest,
the board shall render and serve its order thereon. The county
treasurer
shall notify all affected taxing districts of the amount by which
tax reve-
nues will be reduced as a result of a refund.
(k) If a protesting taxpayer fails to file a copy of the written
statement
of protest and a copy, when applicable, of the written notification
of the
results of the informal meeting with the county appraiser with the
board
within the time limit prescribed, such protest shall become null
and void
and of no effect whatsoever.
(l) (1) In the event the board orders that a refund be
made pursuant
to this section or the provisions of K.S.A. 79-1609, and
amendments
thereto, or a court of competent jurisdiction orders that a refund
be made,
and no appeal is taken from such order, or in the event a change
in
valuation which results in a refund pursuant to subsection (a),
the county
treasurer shall, as soon thereafter as reasonably practicable,
refund to the
taxpayer such protested taxes and, with respect to protests or
appeals
commenced after the effective date of this act, interest computed
at the
rate prescribed by K.S.A. 79-2968, and amendments thereto, minus
two
percentage points, per annum from the date of payment of such
taxes
from tax moneys collected but not distributed. Upon making such
refund,
the county treasurer shall charge the fund or funds having received
such
protested taxes, except that, with respect to that portion of
any such re-
fund attributable to interest the county treasurer shall charge the
county
general fund. In the event that the board or court finds that any
time
delay in making its decision is unreasonable and is attributable to
the
taxpayer, it may order that no interest or only a portion thereof
be added
to such refund of taxes.
(2) No interest shall be allowed pursuant to paragraph (1) in
any case
where the tax paid under protest was inclusive of delinquent
taxes.
(m) Whenever, by reason of the refund of taxes previously
received
or the reduction of taxes levied but not received as a result of
decreases
in assessed valuation, it will be impossible to pay for imperative
functions
for the current budget year, the governing body of the taxing
district
affected may issue no-fund warrants in the amount necessary. Such
war-
rants shall conform to the requirements prescribed by K.S.A.
79-2940,
and amendments thereto, except they shall not bear the notation
required
by such section and may be issued without the approval of the state
board
666 1997 Session Laws of Kansas Ch. 126
of tax appeals. The governing body of such taxing district shall
make a tax
levy at the time fixed for the certification of tax levies to the
county clerk
next following the issuance of such warrants sufficient to pay such
war-
rants and the interest thereon. All such tax levies shall be in
addition to
all other levies authorized by law.
(n) The county treasurer shall disburse to the proper funds all
por-
tions of taxes paid under protest and shall maintain a record of
all portions
of such taxes which are so protested and shall notify the governing
body
of the taxing district levying such taxes thereof and the director
of ac-
counts and reports if any tax protested was levied by the
state.
(o) This statute shall not apply to the valuation and assessment
of
property assessed by the director of property valuation and it
shall not be
necessary for any owner of state assessed property, who has an
appeal
pending before the board of tax appeals, to protest the payment of
taxes
under this statute solely for the purpose of protecting the right
to a refund
of taxes paid under protest should that owner be successful in that
appeal.
Sec. 26. K.S.A. 1996 Supp. 79-2001 is hereby amended to read
as
follows: 79-2001. (a) As soon as the county treasurer
receives the tax roll
of the county, the treasurer shall enter in a column opposite the
descrip-
tion of each tract or parcel of land the amount of unpaid taxes and
the
date of unredeemed sales, if any, for previous years on such land.
The
treasurer shall cause a notice to be published in the official
county paper
once each week for three consecutive weeks, stating in the notice
the
amount of taxes charged for state, county, township, school, city
or other
purposes for that year, on each $1,000 of valuation.
(b) Each year after receipt of the tax roll from the
county clerk and
before December 15, the treasurer shall mail to each taxpayer, as
shown
by the rolls, a tax statement which indicates the taxing unit,
assessed value
of real and personal property, the mill levy and tax due. In
addition, with
respect to land devoted to agricultural use, such statement shall
indicate
the acreage and description of each parcel of such land. The tax
statement
shall also indicate separately each parcel of real property which
is sepa-
rately classified for property tax purposes. The county appraiser
shall pro-
vide the information necessary for the county treasurer to comply
with
the provisions of this section. The tax statement also may include
the
intangible tax due the county. All items may be on one statement or
may
be shown on separate statements and may be on a form prescribed
by
the county treasurer. The statement shall be mailed to the last
known
address of the taxpayer or to a designee authorized by the taxpayer
to
accept the tax statement, if the designee has an interest in
receiving the
statement. When any statement is returned to the county treasurer
for
failure to find the addressee, the treasurer shall make a diligent
effort to
find a forwarding address of the taxpayer and mail the statement to
the
new address. All tax statements mailed pursuant to this section
shall be
Ch. 126 1997 Session Laws of Kansas 667
mailed by first-class mail. The requirement for mailing a tax
statement
shall extend only to the initial statement required to be mailed in
each
year and to any follow-up required by this section.
(c) For tax year 1998, and all tax years thereafter, after
receipt of the
tax roll from the county clerk and before December 15, the
treasurer shall
mail to each taxpayer, as shown by the tax rolls, a tax information
form
which indicates the taxing unit, assessed value of real property
for the
current and next preceding taxable year, the mill levy for the
current and
next preceding taxable year and, in the case of unified school
districts, the
mill levy required by K.S.A. 72-6431, and amendments thereto, shall
be
separately indicated, the tax due and an itemization of each taxing
unit's
mill levy for the current and next preceding taxable year and the
per-
centage change in the amount of revenue produced therefrom, if any.
In
addition, with respect to land devoted to agricultural use, such
form shall
indicate the acreage and description of each parcel of such land.
The tax
information form shall also indicate separately each parcel of real
prop-
erty which is separately classified for property tax purposes. The
county
appraiser shall provide the information necessary for the county
treasurer
to comply with the provisions of this section. The tax information
form
may be separate from the tax statement or a part of the tax
statement.
The tax information form shall be in a format prescribed by the
director
of property valuation. The tax information form shall be mailed to
the last
known address of the taxpayer. When a tax information form is
returned
to the county treasurer for failure to find the addressee, the
treasurer shall
make a diligent effort to find a forwarding address of the taxpayer
and
mail the tax information form to the new address. All tax
information
forms mailed pursuant to this section shall be mailed by first
class mail.
Sec. 27. K.S.A. 1996 Supp. 79-32,107 is hereby amended to read
as
follows: 79-32,107. (a) All penalties and interest prescribed by
K.S.A.
79-3228, and amendments thereto, for noncompliance with the
income
tax laws of Kansas shall be applicable for noncompliance with the
provi-
sions of the Kansas withholding and declaration of estimated tax
act re-
lating to withholding tax which shall be enforced in the same
manner as
the Kansas income tax act. A penalty at the same rate per annum
pre-
scribed by subsection (b) of K.S.A. 79-2968, and amendments
thereto,
for interest upon delinquent or unpaid taxes shall be applied and
added
to a taxpayer's amount of underpayment of estimated tax due from
the
date the estimated tax payment was due until the same is paid or
until
the 15th day of the fourth month following the close of the taxable
year
for which such estimated tax is a credit, whichever date is
earlier, but
such penalty shall not be added if the total amount thereof does
not
exceed $1. For purposes of this subsection, the amount of
underpayment
of estimated tax shall be the excess of the amount of the
installment which
would be required to be paid if the estimated tax were equal to 90%
of
668 1997 Session Laws of Kansas Ch. 126
the tax shown on the return for the taxable year or, if no
return was filed,
90% of the tax for such year, over the amount, if any, of the
installment
paid on or before the last date prescribed for payment. Amounts
due
from any employer on account of withholding or from any taxpayer
for
estimated tax may be collected by the director in the manner
provided
for the collection of state income tax in K.S.A. 79-3235, and
amendments
thereto. For purposes of this subsection, ``underpayment of
tax'' means
the difference between the amount of tax actually paid and the
amount of
tax which would have been required to be paid to avoid penalty
pursuant
to subsection (b) or (c).
(b) No penalty or interest shall be imposed upon any individual
with
respect to any underpayment of any installment if the total amount
of all
payments of estimated tax made on or before the last date
prescribed for
the payment of such installment equals or exceeds the amount
which
would have been required to be paid on or before such date if the
esti-
mated tax were whichever of the following is the least:
(1) The tax shown on the return of the individual for the
preceding
taxable year, if a return showing a liability for tax was filed by
the indi-
vidual for the preceding taxable year and such preceding
year was a tax-;
able year of 12 months
(2) zero if no return was required to be filed or if the tax
liability on
the individual's return was less than $200 for the preceding
taxable year;
(2) (3) an amount equal to 662/3%, in
the case of individuals referred
to in subsection (b) of K.S.A. 79-32,102, and amendments thereto,
and
90%, in the case of all other individuals, of the tax for the
taxable year
computed by placing on an annualized basis, pursuant to rules and
reg-
ulations adopted by the secretary of revenue, the taxable income
for the
months in the taxable year ending before the month in which the
install-
ment is required to be made.
(c) No penalty or interest shall be imposed upon any corporation
with
respect to any underpayment of any installment of estimated tax if
the
total amount of all payments of estimated tax made on or before the
last
date prescribed for the payment of such installment equals or
exceeds
the amount which would have been required to be paid on or before
such
date if the estimated tax were whichever of the following is the
least:
(1) The tax shown on the return of the corporation for the
preceding
taxable year, if a return showing a liability for tax was filed by
the cor-
poration for the preceding taxable year and such preceding
year was a, or zero if no return was
required to be filed,
taxable year of 12 months
or if the tax liability on the corporation's return was less than
$500 for
the preceding taxable year; or
(2) (A) an amount equal to 90% of the tax for the taxable year
com-
puted by placing on an annualized basis the taxable income: (i) For
the
first three months of the taxable year, in the case of the
installment re-
quired to be paid in the fourth month; (ii) for the first three
months or
Ch. 126 1997 Session Laws of Kansas 669
for the first five months of the taxable year, in the case of
the installment
required to be paid in the sixth month; (iii) for the first six
months or for
the first eight months of the taxable year in the case of the
installment
required to be paid in the ninth month; and (iv) for the first nine
months
or for the first 11 months of the taxable year, in the case of the
installment
required to be paid in the 12th month of the taxable year.
(B) For purposes of this subsection (2), the taxable income
shall be
placed on an annualized basis by (i) multiplying by 12 the taxable
income
referred to in subsection (2)(A), and (ii) dividing the resulting
amount by
the number of months in the taxable year (three, five, six, eight,
nine, or
11, as the case may be) referred to in subsection (2)(A).
(d) If the employer, in violation of the provisions of this act,
fails to
deduct and withhold under this chapter, and thereafter the tax
against
which such withholding may be credited is paid, the amount
otherwise
required to be deducted and withheld shall not be collected from
the
employer; but this subsection shall in no case relieve the employer
from
liability for any penalties or additions to the tax otherwise
applicable in
respect of such failure to deduct and withhold.
(e) Any person required to collect, truthfully account for, and
pay
over any tax imposed by this act, who willfully fails to collect
such tax, or
truthfully account for and pay over such tax, or willfully attempts
in any
manner to evade or defeat any such tax or the payment thereof,
shall in
addition to the other penalties of this section be liable to a
penalty equal
to the total amount of the tax evaded, or not collected, or not
accounted
for and paid over.
(f) In case of failure by any employer required by subsection
(b) of
K.S.A. 79-3298, and amendments thereto, to remit any amount of
with-
held taxes by the date prescribed therefor, unless it is shown that
such
failure is due to reasonable cause and not due to willful neglect,
there
shall be imposed upon such person a penalty of 15% of the amount
of
the underpayment. For purposes of this subsection, the term
``underpay-
ment'' means the excess of the amount of the tax required to be
withheld
and remitted over the amount, if any, remitted on or before the
date
prescribed therefor. The failure to remit for any withholding
period shall
be deemed not to continue beyond the last date prescribed for
filing the
annual return as required by subsection (d) of K.S.A. 79-3298,
and
amendments thereto. Penalty and interest as prescribed by K.S.A.
79-
3228, and amendments thereto, shall not begin to accrue under
subsec-
tion (a) of this section on the amount of any such underpayment
until the
due date of the annual return for the calendar year in which such
failure
to remit occurs.
(g) Whenever the secretary or the secretary's designee
determines
that the failure of the taxpayer to comply with the provisions of
subsec-
tions (a), (e), or (f) of this section was due to reasonable
causes, the
secretary or the secretary's designee may waive or reduce any of
said
670 1997 Session Laws of Kansas Ch. 126
penalties and may reduce the interest rate to the underpayment
rate
prescribed and determined for the applicable period under section
6621
of the federal internal revenue code as in effect on January 1,
1994, upon
making a record of the reasons therefor.
Sec. 28. K.S.A. 1996 Supp. 79-1460 is hereby amended to read
as
follows: 79-1460. The county appraiser shall notify each taxpayer
in the
county annually on or before March 1 for real property and May 1
for
personal property, by mail directed to the taxpayer's last known
address,
of the classification and appraised valuation of the taxpayer's
property,
except that for tax year 1995, and each year
thereafter, the valuation for
all real property shall not be increased unless: (a) The record of
the latest
physical inspection was reviewed by the county or district
appraiser, and
documentation exists to support such increase in valuation in
compliance
with the directives and specifications of the director of property
valuation,
and such record and documentation is available to the affected
taxpayer;
and (b) for the taxable year next following the taxable year that
the val-
uation for real property has been reduced due to a final
determination
made pursuant to the valuation appeals process, documented
substantial
and compelling reasons exist therefor and are provided by the
county
appraiser. For the purposes of this section and in the case of real
property,
the term ``taxpayer'' shall be deemed to be the person in ownership
of
the property as indicated on the records of the office of register
of deeds
or county clerk. Such notice shall specify separately both the
previous and
current appraised and assessed values for each property class
identified
on the parcel. Such notice shall also contain the uniform parcel
identifi-
cation number prescribed by the director of property valuation.
Such
notice shall also contain a statement of the taxpayer's right to
appeal and
the procedure to be followed in making such appeal. In any year
in which
no change in appraised valuation of any real property from its
appraised
valuation in the next preceding year is determined, an alternative
form of
notification which has been approved by the director of property
valua-
tion may be utilized by a county. Failure to timely mail or
receive such
notice shall in no way invalidate the classification or appraised
valuation
as changed. The secretary of revenue shall adopt rules and
regulations
necessary to implement the provisions of this section.
Sec. 29. K.S.A. 12-1678a is hereby amended to read as follows:
12-
1678a. (a) For the purposes of this section, taxes shall include ad
valorem
property taxes, local gross earnings taxes, special assessments and
all other
taxes and fees collected with or at the same time as ad valorem
property
taxes.
(b) The board of county commissioners of any county may invest
the
undistributed taxes of any taxing subdivision in the possession of
the
county treasurer pursuant to the provisions of this section. The
moneys
Ch. 126 1997 Session Laws of Kansas 671
shall be invested pursuant to K.S.A. 12-1675 and 12-1676, and
amend-
ments thereto.
(c) The county treasurer shall distribute the taxes collected
for each
taxing subdivision within or partially within the county as
follows:
(1) On or before January 20, July 20 and October 31, the
estimated
amount collected for and owed to the taxing subdivision, but not
less than
the amount actually collected as of not more than 20 days prior to
the
distribution date, and on or before the last business day before
March 520, May 20 and September
5 20, not less than 95% of the
estimated
amount collected for and owed to each taxing subdivision but not
less
than the amount actually collected as of not more than 20 days
prior to
the distribution date. Except as provided in subsection (d), no
payments
of any interest earned on the investment of the tax collections
shall be
paid to the taxing subdivisions.
(2) In addition to the distributions required by the foregoing
provi-
sions of this section, the county treasurer shall make a
distribution on
February 5, 1990, of the estimated amount collected for and owed
to
each taxing subdivision, but not less than the amount actually
collected
as of January 17, 1990.
(3) To those taxing subdivisions which request special payment
in
advance of the dates provided by subsection (c)(1), in order to
meet the
expenditure needs of the taxing subdivisions as certified by the
chief fi-
nancial officer or governing body thereof, as follows: The amount
re-
quested, but not exceeding the amount actually collected for and
owed
to the taxing subdivision. When requesting an advance payment, the
chief
financial officer or the governing body of the taxing subdivision
shall cer-
tify that the taxing subdivision has neither sufficient cash on
hand nor any
investment which can be converted to cash to meet the expenditure
needs
of the taxing subdivision. Except as provided by this subsection,
the
county treasurer shall distribute the payment requested. No
payment
shall be made under this subsection between December 1 of any
year
and January 1 of the next succeeding year, or between June 1 and
July 1
of any year.
(d) The board of county commissioners and the governing body
of
any taxing subdivision within or partially within the county may
enter into
agreements providing for the distribution of taxes and any interest
earn-
ings thereon in a manner alternative to the methods provided by
this
section, and any such agreements now in existence shall not be
deemed
to be invalidated by this enactment.
(e) All moneys received by the county as interest upon the
investment
of undistributed taxes, and not paid to taxing subdivisions as
provided or
authorized shall be retained by the county treasurer and shall be
paid
into the general fund of the county.
Sec. 30. K.S.A. 1996 Supp. 79-5109 is hereby amended to read
as
672 1997 Session Laws of Kansas Ch. 126
follows: 79-5109. (a) All moneys received from taxes levied upon
motor
vehicles under the provisions of K.S.A. 79-5101 to 79-5115,
inclusive, and
amendments thereto shall be allocated to the tax levy unit in which
the
tax situs of each motor vehicle is located. The term ``tax levy
unit'' means
an area within a county the tangible property of which is subject
to the
same total tax levies, levied by the same taxing subdivisions of
the state.
Moneys allocated to such tax levy units shall be distributed among
the
state and all taxing subdivisions levying taxes against tangible
property
within such unit in the proportion prescribed by K.S.A. 79-5111
and
amendments thereto for estimating the amounts thereof for
budgeting.
(b) The county treasurer shall remit all moneys allocated and
credited
to the state from the proceeds of taxes levied upon motor vehicles
to the
state treasurer as provided in this subsection. The county
treasurer, on
or before October 31, January 20, March 5
20, May 20, July 20 and
September 5 20 of each year, shall
distribute to the state treasurer all
such taxes allocated and credited to the state from the proceeds of
taxes
collected through the month prior to the month of the distribution
date.
Upon receipt of such moneys, the state treasurer shall deposit the
same
in the state treasury and shall credit 2/3 of each such deposit to
the Kansas
educational building fund and 1/3 of each such deposit to the state
insti-
tutions building fund except that for moneys received during the
period
from July 1, 1990, to June 30, 1991, inclusive, 2/3 of each such
deposit
shall be credited to the Kansas educational building fund, 1/6 of
each such
deposit shall be credited to the state institutions building fund
and 1/6 of
each such deposit shall be credited to the correctional
institutions build-
ing fund.
Sec. 31. K.S.A. 1996 Supp. 79-412 is hereby amended to read
as
follows: 79-412. It shall be the duty of the county or district
appraiser to
value the land and improvements; but the value of the land and
improve-
ments shall be entered on the assessment roll in a single
aggregate, except
as hereinafter provided. Improvements owned by entities other than
a
city and located on land owned by a city may be assessed to the
owners
of such improvements, and the taxes imposed on such improvements
may
be collected by levy and sale of the interests of such owners the
same as
in cases of the collection of taxes on personal
property.
Sec. 32. K.S.A. 1996 Supp. 79-3606 is hereby amended to read
as
follows: 79-3606. The following shall be exempt from the tax
imposed by
this act:
(a) All sales of motor-vehicle fuel or other articles upon which
a sales
or excise tax has been paid, not subject to refund, under the laws
of this
state except cigarettes as defined by K.S.A. 79-3301 and
amendments
thereto, cereal malt beverages and malt products as defined by
K.S.A. 79-
3817 and amendments thereto, including wort, liquid malt, malt
syrup
and malt extract, which is not subject to taxation under the
provisions of
Ch. 126 1997 Session Laws of Kansas 673
K.S.A. 79-41a02 and amendments thereto, and motor vehicles as
defined
by K.S.A. 79-1017 and amendments thereto;
(b) all sales of tangible personal property or service,
including the
renting and leasing of tangible personal property, purchased
directly by
the state of Kansas, a political subdivision thereof, other than a
school or
educational institution, or purchased by a public or private
nonprofit hos-
pital or nonprofit blood, tissue or organ bank and used exclusively
for
state, political subdivision, hospital or nonprofit blood, tissue
or organ
bank purposes, except when: (1) Such state or hospital is engaged
or
proposes to engage in any business specifically taxable under the
provi-
sions of this act and such items of tangible personal property or
service
are used or proposed to be used in such business, or (2) such
political
subdivision is engaged or proposes to engage in the business of
furnishing
gas, water, electricity or heat to others and such items of
personal prop-
erty or service are used or proposed to be used in such
business;
(c) all sales of tangible personal property or services,
including the
renting and leasing of tangible personal property, purchased
directly by
a public or private elementary or secondary school or public or
private
nonprofit educational institution and used primarily by such school
or
institution for nonsectarian programs and activities provided or
sponsored
by such school or institution or in the erection, repair or
enlargement of
buildings to be used for such purposes. The exemption herein
provided
shall not apply to erection, construction, repair, enlargement or
equip-
ment of buildings used primarily for human habitation;
(d) all sales of tangible personal property or services
purchased by a
contractor for the purpose of constructing, equipping,
reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling
facilities for
any public or private nonprofit hospital, public or private
elementary or
secondary school or a public or private nonprofit educational
institution,
which would be exempt from taxation under the provisions of this
act if
purchased directly by such hospital, school or educational
institution; and
all sales of tangible personal property or services purchased by a
contrac-
tor for the purpose of constructing, equipping, reconstructing,
maintain-
ing, repairing, enlarging, furnishing or remodeling facilities for
any polit-
ical subdivision of the state, the total cost of which is paid from
funds of
such political subdivision and which would be exempt from taxation
under
the provisions of this act if purchased directly by such political
subdivision.
Nothing in this subsection or in the provisions of K.S.A. 12-3418
and
amendments thereto, shall be deemed to exempt the purchase of
any
construction machinery, equipment or tools used in the
constructing,
equipping, reconstructing, maintaining, repairing, enlarging,
furnishing
or remodeling facilities for any political subdivision of the
state. As used
in this subsection, K.S.A. 12-3418 and 79-3640, and amendments
thereto,
``funds of a political subdivision'' shall mean general tax
revenues, the
proceeds of any bonds and gifts or grants-in-aid. Gifts shall not
mean
674 1997 Session Laws of Kansas Ch. 126
funds used for the purpose of constructing, equipping,
reconstructing,
repairing, enlarging, furnishing or remodeling facilities which are
to be
leased to the donor. When any political subdivision of the state,
public or
private nonprofit hospital, public or private elementary or
secondary
school or public or private nonprofit educational institution shall
contract
for the purpose of constructing, equipping, reconstructing,
maintaining,
repairing, enlarging, furnishing or remodeling facilities, it shall
obtain
from the state and furnish to the contractor an exemption
certificate for
the project involved, and the contractor may purchase materials for
in-
corporation in such project. The contractor shall furnish the
number of
such certificate to all suppliers from whom such purchases are
made, and
such suppliers shall execute invoices covering the same bearing the
num-
ber of such certificate. Upon completion of the project the
contractor
shall furnish to the political subdivision, hospital, school or
educational
institution concerned a sworn statement, on a form to be provided
by the
director of taxation, that all purchases so made were entitled to
exemption
under this subsection. As an alternative to the foregoing
procedure, any
such contracting entity may apply to the secretary of revenue for
agent
status for the sole purpose of issuing and furnishing project
exemption
certificates to contractors pursuant to rules and regulations
adopted by
the secretary establishing conditions and standards for the
granting and
maintaining of such status. All invoices shall be held by the
contractor for
a period of five years and shall be subject to audit by the
director of
taxation. If any materials purchased under such a certificate are
found
not to have been incorporated in the building or other project or
not to
have been returned for credit or the sales or compensating tax
otherwise
imposed upon such materials which will not be so incorporated in
the
building or other project reported and paid by such contractor to
the
director of taxation not later than the 20th day of the month
following
the close of the month in which it shall be determined that such
materials
will not be used for the purpose for which such certificate was
issued, the
political subdivision, hospital, school or educational institution
concerned
shall be liable for tax on all materials purchased for the project,
and upon
payment thereof it may recover the same from the contractor
together
with reasonable attorney fees. Any contractor or any agent,
employee or
subcontractor thereof, who shall use or otherwise dispose of any
materials
purchased under such a certificate for any purpose other than that
for
which such a certificate is issued without the payment of the sales
or
compensating tax otherwise imposed upon such materials, shall be
guilty
of a misdemeanor and, upon conviction therefor, shall be subject to
the
penalties provided for in subsection (g) of K.S.A. 79-3615, and
amend-
ments thereto;
(e) all sales of tangible personal property or services
purchased by a
contractor for the erection, repair or enlargement of buildings or
other
projects for the government of the United States, its agencies or
instru-
Ch. 126 1997 Session Laws of Kansas 675
mentalities, which would be exempt from taxation if purchased
directly
by the government of the United States, its agencies or
instrumentalities.
When the government of the United States, its agencies or
instrumen-
talities shall contract for the erection, repair, or enlargement of
any build-
ing or other project, it shall obtain from the state and furnish to
the
contractor an exemption certificate for the project involved, and
the con-
tractor may purchase materials for incorporation in such project.
The
contractor shall furnish the number of such certificates to all
suppliers
from whom such purchases are made, and such suppliers shall
execute
invoices covering the same bearing the number of such certificate.
Upon
completion of the project the contractor shall furnish to the
government
of the United States, its agencies or instrumentalities concerned a
sworn
statement, on a form to be provided by the director of taxation,
that all
purchases so made were entitled to exemption under this subsection.
As
an alternative to the foregoing procedure, any such contracting
entity may
apply to the secretary of revenue for agent status for the sole
purpose of
issuing and furnishing project exemption certificates to
contractors pur-
suant to rules and regulations adopted by the secretary
establishing con-
ditions and standards for the granting and maintaining of such
status. All
invoices shall be held by the contractor for a period of five years
and shall
be subject to audit by the director of taxation. Any contractor or
any agent,
employee or subcontractor thereof, who shall use or otherwise
dispose of
any materials purchased under such a certificate for any purpose
other
than that for which such a certificate is issued without the
payment of
the sales or compensating tax otherwise imposed upon such
materials,
shall be guilty of a misdemeanor and, upon conviction therefor,
shall be
subject to the penalties provided for in subsection (g) of K.S.A.
79-3615
and amendments thereto;
(f) tangible personal property purchased by a railroad or public
utility
for consumption or movement directly and immediately in
interstate
commerce;
(g) sales of aircraft including remanufactured and modified
aircraft,
sales of aircraft repair, modification and replacement parts and
sales of
services employed in the remanufacture, modification and repair of
air-
craft sold to persons using such aircraft and aircraft repair,
modification
and replacement parts as certified or licensed carriers of persons
or prop-
erty in interstate or foreign commerce under authority of the laws
of the
United States or any foreign government or sold to any foreign
govern-
ment or agency or instrumentality of such foreign government and
all
sales of aircraft, aircraft parts, replacement parts and services
employed
in the remanufacture, modification and repair of aircraft for use
outside
of the United States;
(h) all rentals of nonsectarian textbooks by public or private
elemen-
tary or secondary schools;
676 1997 Session Laws of Kansas Ch. 126
(i) the lease or rental of all films, records, tapes, or any
type of sound
or picture transcriptions used by motion picture
exhibitors;
(j) meals served without charge or food used in the preparation
of
such meals to employees of any restaurant, eating house, dining
car, hotel,
drugstore or other place where meals or drinks are regularly sold
to the
public if such employees' duties are related to the furnishing or
sale of
such meals or drinks;
(k) any motor vehicle, semitrailer or pole trailer, as such
terms are
defined by K.S.A. 8-126 and amendments thereto, or aircraft sold
and
delivered in this state to a bona fide resident of another state,
which motor
vehicle, semitrailer, pole trailer or aircraft is not to be
registered or based
in this state and which vehicle, semitrailer, pole trailer or
aircraft will not
remain in this state more than 10 days;
(l) all isolated or occasional sales of tangible personal
property, serv-
ices, substances or things, except isolated or occasional sale of
motor
vehicles specifically taxed under the provisions of subsection (o)
of K.S.A.
79-3603 and amendments thereto;
(m) all sales of tangible personal property which become an
ingre-
dient or component part of tangible personal property or services
pro-
duced, manufactured or compounded for ultimate sale at retail
within or
without the state of Kansas; and any such producer, manufacturer
or
compounder may obtain from the director of taxation and furnish to
the
supplier an exemption certificate number for tangible personal
property
for use as an ingredient or component part of the property or
services
produced, manufactured or compounded;
(n) all sales of tangible personal property which is consumed in
the
production, manufacture, processing, mining, drilling, refining or
com-
pounding of tangible personal property, the treating of by-products
or
wastes derived from any such production process, the providing of
serv-
ices or the irrigation of crops for ultimate sale at retail within
or without
the state of Kansas; and any purchaser of such property may obtain
from
the director of taxation and furnish to the supplier an exemption
certifi-
cate number for tangible personal property for consumption in such
pro-
duction, manufacture, processing, mining, drilling, refining,
compound-
ing, treating, irrigation and in providing such services;
(o) all sales of animals, fowl and aquatic plants and animals,
the pri-
mary purpose of which is use in agriculture or aquaculture, as
defined in
K.S.A. 47-1901, and amendments thereto, the production of food
for
human consumption, the production of animal, dairy, poultry or
aquatic
plant and animal products, fiber or fur, or the production of
offspring for
use for any such purpose or purposes;
(p) all sales of drugs, as defined by K.S.A. 65-1626 and
amendments
thereto, dispensed pursuant to a prescription order, as defined by
K.S.A.
65-1626 and amendments thereto, by a licensed practitioner;
(q) all sales of insulin dispensed by a person licensed by the
state
Ch. 126 1997 Session Laws of Kansas 677
board of pharmacy to a person for treatment of diabetes at the
direction
of a person licensed to practice medicine by the board of healing
arts;
(r) all sales of prosthetic and orthopedic appliances prescribed
in
writing by a person licensed to practice the healing arts,
dentistry or
optometry. For the purposes of this subsection, the term prosthetic
and
orthopedic appliances means any apparatus, instrument, device, or
equip-
ment used to replace or substitute for any missing part of the
body; used
to alleviate the malfunction of any part of the body; or used to
assist any
disabled person in leading a normal life by facilitating such
person's mo-
bility; such term shall include accessories to be attached to motor
vehicles,
but such term shall not include motor vehicles or personal property
which
when installed becomes a fixture to real property;
(s) all sales of tangible personal property or services
purchased di-
rectly by a groundwater management district organized or operating
un-
der the authority of K.S.A. 82a-1020 et seq. and amendments
thereto,
which property or services are used in the operation or maintenance
of
the district;
(t) all sales of farm machinery and equipment or aquaculture
ma-
chinery and equipment, repair and replacement parts therefor and
serv-
ices performed in the repair and maintenance of such machinery
and
equipment. For the purposes of this subsection the term ``farm
machinery
and equipment or aquaculture machinery and equipment'' shall
include
machinery and equipment used in the operation of Christmas tree
farm-
ing but shall not include any passenger vehicle, truck, truck
tractor, trailer,
semitrailer or pole trailer, other than a farm trailer, as such
terms are
defined by K.S.A. 8-126 and amendments thereto. Each purchaser
of
farm machinery and equipment or aquaculture machinery and
equipment
exempted herein must certify in writing on the copy of the invoice
or
sales ticket to be retained by the seller that the farm machinery
and
equipment or aquaculture machinery and equipment purchased will
be
used only in farming, ranching or aquaculture production. Farming
or
ranching shall include the operation of a feedlot and farm and
ranch work
for hire and the operation of a nursery;
(u) all leases or rentals of tangible personal property used as
a dwell-
ing if such tangible personal property is leased or rented for a
period of
more than 28 consecutive days;
(v) all sales of food products to any contractor for use in
preparing
meals for delivery to homebound elderly persons over 60 years of
age and
to homebound disabled persons or to be served at a group-sitting at
a
location outside of the home to otherwise homebound elderly
persons
over 60 years of age and to otherwise homebound disabled persons,
as
all or part of any food service project funded in whole or in part
by
government or as part of a private nonprofit food service project
available
to all such elderly or disabled persons residing within an area of
service
designated by the private nonprofit organization, and all sales of
food
678 1997 Session Laws of Kansas Ch. 126
products for use in preparing meals for consumption by indigent
or home-
less individuals whether or not such meals are consumed at a place
des-
ignated for such purpose;
(w) all sales of natural gas, electricity, heat and water
delivered
through mains, lines or pipes: (1) To residential premises for
noncom-
mercial use by the occupant of such premises; (2) for agricultural
use and
also, for such use, all sales of propane gas; (3) for use in the
severing of
oil; and (4) to any property which is exempt from property taxation
pur-
suant to K.S.A. 79-201b Second through Sixth. As used
in this paragraph,
``severing'' shall have the meaning ascribed thereto by subsection
(k) of
K.S.A. 79-4216, and amendments thereto;
(x) all sales of propane gas, LP-gas, coal, wood and other fuel
sources
for the production of heat or lighting for noncommercial use of an
oc-
cupant of residential premises;
(y) all sales of materials and services used in the repairing,
servicing,
altering, maintaining, manufacturing, remanufacturing, or
modification of
railroad rolling stock for use in interstate or foreign commerce
under
authority of the laws of the United States;
(z) all sales of tangible personal property and services
purchased di-
rectly by a port authority or by a contractor therefor as provided
by the
provisions of K.S.A. 12-3418 and amendments thereto;
(aa) all sales of materials and services applied to equipment
which is
transported into the state from without the state for repair,
service, al-
teration, maintenance, remanufacture or modification and which is
sub-
sequently transported outside the state for use in the transmission
of
liquids or natural gas by means of pipeline in interstate or
foreign com-
merce under authority of the laws of the United States;
(bb) all sales of used mobile homes or manufactured homes. As
used
in this subsection: (1) ``Mobile homes'' and ``manufactured homes''
shall
have the meanings ascribed thereto by K.S.A. 58-4202 and
amendments
thereto; and (2) ``sales of used mobile homes or manufactured
homes''
means sales other than the original retail sale thereof;
(cc) all sales of tangible personal property or services
purchased for
the purpose of and in conjunction with constructing,
reconstructing, en-
larging or remodeling a business or retail business which meets
the
requirements established in K.S.A. 74-50,115 and amendments
thereto,
and the sale and installation of machinery and equipment purchased
for
installation at any such business or retail business. When a person
shall
contract for the construction, reconstruction, enlargement or
remodeling
of any such business or retail business, such person shall obtain
from the
state and furnish to the contractor an exemption certificate for
the project
involved, and the contractor may purchase materials, machinery
and
equipment for incorporation in such project. The contractor shall
furnish
the number of such certificates to all suppliers from whom such
purchases
are made, and such suppliers shall execute invoices covering the
same
Ch. 126 1997 Session Laws of Kansas 679
bearing the number of such certificate. Upon completion of the
project
the contractor shall furnish to the owner of the business or retail
business
a sworn statement, on a form to be provided by the director of
taxation,
that all purchases so made were entitled to exemption under this
subsec-
tion. All invoices shall be held by the contractor for a period of
five years
and shall be subject to audit by the director of taxation. Any
contractor
or any agent, employee or subcontractor thereof, who shall use or
oth-
erwise dispose of any materials, machinery or equipment purchased
un-
der such a certificate for any purpose other than that for which
such a
certificate is issued without the payment of the sales or
compensating tax
otherwise imposed thereon, shall be guilty of a misdemeanor and,
upon
conviction therefor, shall be subject to the penalties provided for
in sub-
section (g) of K.S.A. 79-3615 and amendments thereto. As used in
this
subsection, ``business'' and ``retail business'' have the meanings
respec-
tively ascribed thereto by K.S.A. 74-50,114 and amendments
thereto;
(dd) all sales of tangible personal property purchased with
food
stamps issued by the United States department of
agriculture;
(ee) all sales of lottery tickets and shares made as part of a
lottery
operated by the state of Kansas;
(ff) on and after July 1, 1988, all sales of new mobile homes or
man-
ufactured homes to the extent of 40% of the gross receipts,
determined
without regard to any trade-in allowance, received from such sale.
As used
in this subsection, ``mobile homes'' and ``manufactured homes''
shall have
the meanings ascribed thereto by K.S.A. 58-4202 and amendments
thereto;
(gg) all sales of tangible personal property purchased in
accordance
with vouchers issued pursuant to the federal special supplemental
food
program for women, infants and children;
(hh) all sales of medical supplies and equipment purchased
directly
by a nonprofit skilled nursing home or nonprofit intermediate
nursing
care home, as defined by K.S.A. 39-923, and amendments thereto,
for
the purpose of providing medical services to residents thereof.
This ex-
emption shall not apply to tangible personal property customarily
used
for human habitation purposes;
(ii) all sales of tangible personal property purchased directly
by a non-
profit organization for nonsectarian comprehensive multidiscipline
youth
development programs and activities provided or sponsored by such
or-
ganization. This exemption shall not apply to tangible personal
property
customarily used for human habitation purposes;
(jj) all sales of tangible personal property or services,
including the
renting and leasing of tangible personal property, purchased
directly on
behalf of a community-based mental retardation facility or mental
health
center organized pursuant to K.S.A. 19-4001 et seq., and
amendments
thereto, and licensed in accordance with the provisions of K.S.A.
75-
680 1997 Session Laws of Kansas Ch. 126
3307b and amendments thereto. This exemption shall not apply to
tan-
gible personal property customarily used for human habitation
purposes;
(kk) on and after January 1, 1989, all sales of machinery and
equip-
ment used directly and primarily for the purposes of manufacturing,
as-
sembling, processing, finishing, storing, warehousing or
distributing ar-
ticles of tangible personal property in this state intended for
resale by a
manufacturing or processing plant or facility or a storage,
warehousing or
distribution facility:
(1) For purposes of this subsection, machinery and equipment
shall
be deemed to be used directly and primarily in the manufacture,
assem-
blage, processing, finishing, storing, warehousing or distributing
of tan-
gible personal property where such machinery and equipment is
used
during a manufacturing, assembling, processing or finishing,
storing,
warehousing or distributing operation:
(A) To effect a direct and immediate physical change upon the
tangible
personal property;
(B) to guide or measure a direct and immediate physical change
upon
such property where such function is an integral and essential part
of
tuning, verifying or aligning the component parts of such
property;
(C) to test or measure such property where such function is an
in-
tegral part of the production flow or function;
(D) to transport, convey or handle such property during the
manu-
facturing, processing, storing, warehousing or distribution
operation at
the plant or facility; or
(E) to place such property in the container, package or wrapping
in
which such property is normally sold or transported.
(2) For purposes of this subsection ``machinery and equipment
used
directly and primarily'' shall include, but not be limited
to:
(A) Mechanical machines or major components thereof
contributing
to a manufacturing, assembling or finishing process;
(B) molds and dies that determine the physical characteristics
of the
finished product or its packaging material;
(C) testing equipment to determine the quality of the finished
prod-
uct;
(D) computers and related peripheral equipment that directly
control
or measure the manufacturing process or which are utilized for
engi-
neering of the finished product; and
(E) computers and related peripheral equipment utilized for
research
and development and product design.
(3) ``Machinery and equipment used directly and primarily''
shall not
include:
(A) Hand tools;
(B) machinery, equipment and tools used in maintaining and
repair-
ing any type of machinery and equipment;
(C) transportation equipment not used in the manufacturing,
assem-
Ch. 126 1997 Session Laws of Kansas 681
bling, processing, furnishing, storing, warehousing or
distributing process
at the plant or facility;
(D) office machines and equipment including computers and
related
peripheral equipment not directly and primarily used in controlling
or
measuring the manufacturing process;
(E) furniture and buildings; and
(F) machinery and equipment used in administrative,
accounting,
sales or other such activities of the business;
(ll) all sales of educational materials purchased for
distribution to the
public at no charge by a nonprofit corporation organized for the
purpose
of encouraging, fostering and conducting programs for the
improvement
of public health;
(mm) all sales of seeds and tree seedlings; fertilizers,
insecticides,
herbicides, germicides, pesticides and fungicides; and services,
purchased
and used for the purpose of producing plants in order to prevent
soil
erosion on land devoted to agricultural use;
(nn) except as otherwise provided in this act, all sales of
services ren-
dered by an advertising agency or licensed broadcast station or any
mem-
ber, agent or employee thereof;
(oo) all sales of tangible personal property purchased by a
community
action group or agency for the exclusive purpose of repairing or
weath-
erizing housing occupied by low income individuals;
(pp) all sales of drill bits and explosives actually utilized in
the explo-
ration and production of oil or gas;
(qq) all sales of tangible personal property and services
purchased by
a nonprofit museum or historical society or any combination
thereof, in-
cluding a nonprofit organization which is organized for the purpose
of
stimulating public interest in the exploration of space by
providing edu-
cational information, exhibits and experiences, which is exempt
from fed-
eral income taxation pursuant to section 501(c)(3) of the federal
internal
revenue code of 1986;
(rr) all sales of tangible personal property which will admit
the pur-
chaser thereof to any annual event sponsored by a nonprofit
organization
which is exempt from federal income taxation pursuant to
section
501(c)(3) of the federal internal revenue code of 1986;
(ss) all sales of tangible personal property and services
purchased by
a public broadcasting station licensed by the federal
communications
commission as a noncommercial educational television or radio
station;
and
(tt) all sales of tangible personal property and services
purchased by
or on behalf of a not-for-profit corporation which is exempt from
federal
income taxation pursuant to section 501(c)(3) of the federal
internal rev-
enue code of 1986, for the sole purpose of constructing a Kansas
Korean
War memorial.
682 1997 Session Laws of Kansas Ch. 126
Sec. 33. K.S.A. 19-430 is hereby amended to read as follows:
19-430.
(a) On July 1, 1993, and on July 1 of each fourth year
thereafter, the
board of county commissioners of each county shall by resolution
appoint
a county appraiser for such county who shall serve for a term of
four years
and until a successor is appointed. County appraisers appointed in
coun-
ties having a population of more than 20,000
25,000 shall devote full time
to the duties of such office but county appraisers appointed in
counties
having a population of 20,000 25,000 or
less may be appointed either as
a full-time or a part-time county appraiser as prescribed in the
resolution
providing for such appointment. No person shall be appointed or
reap-
pointed to or serve as county appraiser in any county under the
provisions
of this act unless such person shall have at least one year
of three years
of mass appraisal experience and be qualified by the director
of property
valuation as an eligible Kansas appraiser under the provisions of
this act.
Whenever a vacancy shall occur in the office of county appraiser
the board
of county commissioners shall appoint an eligible Kansas appraiser
to fill
such vacancy for the unexpired term and until a successor is
appointed.
The person holding the office of county assessor
or district appraiser or
performing the duties thereof on the effective date of this act
shall con-
tinue to hold such office and perform such duties until a county
appraiser
is appointed under the provisions of this act. No person shall be
appointed
to the office of county or district appraiser or to fill a vacancy
therein
unless such person is currently a state licensed real
property appraiser, a: (1) A
certified general real
certified general real property appraiser or certified residential
real prop-
erty appraiser pursuant to article 41 of chapter 58 of the Kansas
Statutes
Annotated, and amendments thereto, except that from and after July
1,
1997, no person shall be appointed to the office of county or
district
appraiser or to fill a vacancy therein, in any county under the
provisions
of this act unless such person is currently
property appraiser pursuant to article 41 of chapter 58 of the
Kansas
Statutes Annotated and amendments thereto; (2) a registered mass
ap-
praiser pursuant to rules and regulations adopted by the secretary
of
revenue; or (3) holding a valid residential evaluation specialist
or certified
assessment evaluation designation from the International
Association of
Assessing Officers. Notwithstanding the foregoing provision,
any person
who holds the office of county or district appraiser
upon the expiration on the effective date of
this act and who is not
of the term of such office
eligible for reappointment pursuant to this section shall be
eligible for
reappointment to such office regardless of whether such
person is so or appointment as a county or
district appraiser in
certified or licensed
another county for a term expiring on July 1, 1999, and if any such
person
qualifies for an original appointment or reappointment prior to
July 1,
1999, such person may be reappointed for a full term, and any
other
person who has at least three years of mass appraisal experience
and is
qualified by the director of property valuation as an eligible
Kansas ap-
Ch. 126 1997 Session Laws of Kansas 683
praiser shall be eligible for appointment to such office for
a term expiring
on July 1, 1999, and if any such person qualifies for an original
appoint-
ment prior to July 1, 1999, such person may be reappointed for a
full
term.
(b) The secretary of revenue shall adopt rules and
regulations prior
to October 1, 1997, necessary to establish qualifications for the
designa-
tion of a registered mass appraiser.
Sec. 34. K.S.A. 79-2002 is hereby amended to read as follows:
79-
2002. Receipts shall be given for all taxes received by the county
treasurer,
except that with respect to payments received by mail, receipts
shall be
given only upon request of the taxpayer. Payment of current ad
valorem
property taxes shall be validated by a statement indicating the
date re-
ceived and the amount paid on all copies of such receipts.
Sec. 35. K.S.A. 1996 Supp. 79-213 is hereby amended to read
as
follows: 79-213. (a) Any property owner requesting an exemption
from
the payment of ad valorem property taxes assessed, or to be
assessed,
against their property shall be required to file an initial request
for ex-
emption, on forms approved by the board of tax appeals and provided
by
the county appraiser.
(b) The initial exemption request shall identify the property
for which
the exemption is requested and state, in detail, the legal and
factual basis
for the exemption claimed.
(c) The request for exemption shall be filed with the county
appraiser
of the county where such property is principally located.
(d) After a review of the exemption request, and after a
preliminary
examination of the facts as alleged, the county appraiser shall
recommend
that the exemption request either be granted or denied, and, if
necessary,
that a hearing be held. If a denial is recommended, a statement of
the
controlling facts and law relied upon shall be included on the
form.
(e) The county appraiser, after making such written
recommenda-
tion, shall file the request for exemption and the recommendations
of the
county appraiser with the board of tax appeals.
(f) Upon receipt of the request for exemption, the board shall
docket
the same and notify the applicant and the county appraiser of such
fact.
(g) After examination of the request for exemption, and the
county
appraiser's recommendation related thereto, the board may fix a
time and
place for hearing, and shall notify the applicant and the county
appraiser
of the time and place so fixed. In any case where a party to such
request
for exemption requests a hearing thereon, the same shall be
granted.
Hearings shall be conducted in accordance with the provisions of
the
Kansas administrative procedure act. In all instances where the
board sets
a request for exemption for hearing, the county shall be
represented by
its county attorney or county counselor.
684 1997 Session Laws of Kansas Ch. 126
(h) In the event of a hearing, the same shall be originally set
not later
than 90 days after the filing of the request for exemption with the
board.
(i) During the pendency of a request for exemption, no person,
firm,
unincorporated association, company or corporation charged with
real
estate or personal property taxes pursuant to K.S.A. 79-2004 and
79-
2004a, and amendments thereto, on the tax books in the hands of
the
county treasurer shall be required to pay the tax from the date the
request
is filed with the county appraiser until the expiration of 30 days
after the
board issued its order thereon and the same becomes a final order.
In
the event that taxes have been assessed against the subject
property, no
interest shall accrue on any unpaid tax for the year or years in
question
nor shall the unpaid tax be considered delinquent from the date the
re-
quest is filed with the county appraiser until the expiration of 30
days
after the board issued its order thereon. In the event the board
deter-
mines an application for exemption is without merit and filed in
bad faith
to delay the due date of the tax, the tax shall be considered
delinquent
as of the date the tax would have been due pursuant to K.S.A.
79-2004
and 79-2004a, and amendments thereto, and interest shall accrue as
pre-
scribed therein.
(j) In the event the board grants the initial request for
exemption,
the same shall be effective beginning with the date of first exempt
use
except that, with respect to property the construction of which
com-
menced not to exceed 24 months prior to the date of first exempt
use, the
same shall be effective beginning with the date of commencement of
con-
struction.
(k) In conjunction with its authority to grant exemptions, the
board
shall have the authority to abate all unpaid taxes that have
accrued from
and since the date of first exempt use
effective date of the exemption. In
the event that taxes have been paid during the period where the
subject
property has been determined to be exempt, the board shall have
the
authority to order a refund of taxes for a period not to exceed
three years.
(l) The provisions of this section shall not apply to: (1) Farm
machin-
ery and equipment exempted from ad valorem taxation by K.S.A.
79-201j,
and amendments thereto; (2) personal property exempted from ad
valo-
rem taxation by K.S.A. 79-215, and amendments thereto; (3)
wearing
apparel, household goods and personal effects exempted from ad
valorem
taxation by K.S.A. 79-201c, and amendments thereto; (4) livestock;
(5)
hay and silage exempted from ad valorem taxation by K.S.A. 79-201d,
and
amendments thereto; (6) merchants' and manufacturers' inventories
ex-
empted from ad valorem taxation by K.S.A. 79-201m and
amendments
thereto; (7) grain exempted from ad valorem taxation by K.S.A.
79-201n,
and amendments thereto; (8) property exempted from ad valorem
taxa-
tion by K.S.A. 79-201a Seventeenth and amendments thereto,
including
all property previously acquired by the secretary of transportation
or a
predecessor in interest, which is used in the administration,
construction,
Ch. 126 1997 Session Laws of Kansas 685
maintenance or operation of the state system of highways. The
secretary
of transportation shall at the time of acquisition of property
notify the
county appraiser in the county in which the property is located
that the
acquisition occurred and provide a legal description of the
property ac-
quired; (9) property exempted from ad valorem taxation by K.S.A.
79-
201a Ninth, and amendments thereto, including all property
previously
acquired by the Kansas turnpike authority which is used in the
adminis-
tration, construction, maintenance or operation of the Kansas
turnpike.
The Kansas turnpike authority shall at the time of acquisition of
property
notify the county appraiser in the county in which the property is
located
that the acquisition occurred and provide a legal description of
the prop-
erty acquired; (10) aquaculture machinery and equipment exempted
from
ad valorem taxation by K.S.A. 79-201j, and amendments thereto. As
used
in this section, ``aquaculture'' has the same meaning ascribed
thereto by
K.S.A. 47-1901, and amendments thereto; (11) Christmas tree
machinery
and equipment exempted from ad valorem taxation by K.S.A.
79-201j,
and amendments thereto; (12) property used exclusively by the state
or
any municipality or political subdivision of the state for
right-of-way pur-
poses. The state agency or the governing body of the municipality
or
political subdivision shall at the time of acquisition of property
for
right-of-way purposes notify the county appraiser in the county in
which
the property is located that the acquisition occurred and provide a
legal
description of the property acquired; (13) machinery, equipment,
mate-
rials and supplies exempted from ad valorem taxation by K.S.A.
1996
Supp. 79-201w, and amendments thereto; and (14) vehicles owned by
the
state or by any political or taxing subdivision thereof and used
exclusively
for governmental purposes.
(m) The provisions of this section shall apply to property
exempt pur-
suant to the provisions of section 13 of article 11 of the Kansas
consti-
tution.
(n) The provisions of subsection (j) and (k) as amended by
this act
shall be applicable to all taxable years commencing after December
31,
1995.
Sec. 36. K.S.A. 1996 Supp. 79-201a is hereby amended to read
as
follows: 79-201a. The following described property, to the extent
herein
specified, shall be exempt from all property or ad valorem taxes
levied
under the laws of the state of Kansas:
First. All property belonging exclusively to the United
States, except
property which congress has expressly declared to be subject to
state and
local taxation.
Second. All property used exclusively by the state or any
municipality
or political subdivision of the state. All property owned, being
acquired
pursuant to a lease-purchase agreement or operated by the state or
any
municipality or political subdivision of the state, including
property which
686 1997 Session Laws of Kansas Ch. 126
is vacant or lying dormant, which is used or is to be used for
any govern-
mental or proprietary function and for which bonds may be issued
or
taxes levied to finance the same, shall be considered to be
``used exclu-
sively'' by the state, municipality or political
subdivision for the purposes
of this section. The lease by a municipality or political
subdivision of the
state of any real property owned or being acquired pursuant to a
lease-
purchase agreement for the purpose of providing office space
necessary
for the performance of medical services by a person licensed to
practice
medicine and surgery or osteopathic medicine by the board of
healing
arts pursuant to K.S.A. 65-2801 et seq., and amendments thereto,
den-
tistry services by a person licensed by the Kansas dental board
pursuant
to K.S.A. 65-1401 et seq., and amendments thereto,
optometry services by
a person licensed by the board of examiners in optometry pursuant
to
K.S.A. 65-1501 et seq., and amendments thereto, or
K.S.A. 74-1501 et
seq., and amendments thereto or podiatry services by a
person licensed
by the board of healing arts pursuant to K.S.A. 65-2001 et
seq., and
amendments thereto, shall be construed to be a governmental
function,
and such property actually and regularly used for such purpose
shall be
deemed to be used exclusively for the purposes of this paragraph.
The
lease by a municipality or political subdivision of the state of
any real
property, or portion thereof, owned or being acquired pursuant to a
lease-
purchase agreement to any entity for the exclusive use by it for an
exempt
purpose, including the purpose of displaying or exhibiting personal
prop-
erty by a museum or historical society, if no portion of the lease
payments
include compensation for return on the investment in such leased
prop-
erty shall be deemed to be used exclusively for the purposes of
this par-
agraph. All property leased, other than property being acquired
pursuant
to a lease-purchase agreement, to the state or any municipality or
political
subdivision of the state by any private entity shall not be
considered to
be used exclusively by the state or any municipality or political
subdivision
of the state for the purposes of this section except that the
provisions of
this sentence shall not apply to any such property subject to lease
on the
effective date of this act until the term of such lease expires but
property
taxes levied upon any such property prior to tax year 1989, shall
not be
abated or refunded. Any property constructed or purchased with the
pro-
ceeds of industrial revenue bonds issued prior to July 1, 1963, as
author-
ized by K.S.A. 12-1740 to 12-1749, or purchased with proceeds of
im-
provement district bonds issued prior to July 1, 1963, as
authorized by
K.S.A. 19-2776, or with proceeds of bonds issued prior to July 1,
1963,
as authorized by K.S.A. 19-3815a and 19-3815b, or any property
im-
proved, purchased, constructed, reconstructed or repaired with the
pro-
ceeds of revenue bonds issued prior to July 1, 1963, as authorized
by
K.S.A. 13-1238 to 13-1245, inclusive, or any property improved,
reim-
proved, reconstructed or repaired with the proceeds of revenue
bonds
issued after July 1, 1963, under the authority of K.S.A. 13-1238 to
13-
Ch. 126 1997 Session Laws of Kansas 687
1245, inclusive, which had previously been improved,
reconstructed or
repaired with the proceeds of revenue bonds issued under such act
on or
before July 1, 1963, shall be exempt from taxation for so long as
any of
the revenue bonds issued to finance such construction,
reconstruction,
improvement, repair or purchase shall be outstanding and unpaid.
Any
property constructed or purchased with the proceeds of any
revenue
bonds authorized by K.S.A. 13-1238 to 13-1245, inclusive, 19-2776,
19-
3815a and 19-3815b, and amendments thereto, issued on or after July
1,
1963, shall be exempt from taxation only for a period of 10
calendar years
after the calendar year in which the bonds were issued. Any
property, all
or any portion of which is constructed or purchased with the
proceeds of
revenue bonds authorized by K.S.A. 12-1740 to 12-1749, inclusive,
and
amendments thereto, issued on or after July 1, 1963 and prior to
July 1,
1981, shall be exempt from taxation only for a period of 10
calendar years
after the calendar year in which the bonds were issued. Except as
here-
inafter provided, any property constructed or purchased wholly with
the
proceeds of revenue bonds issued on or after July 1, 1981, under
the
authority of K.S.A. 12-1740 to 12-1749, inclusive, and
amendments
thereto, shall be exempt from taxation only for a period of 10
calendar
years after the calendar year in which the bonds were issued.
Except as
hereinafter provided, any property constructed or purchased in part
with
the proceeds of revenue bonds issued on or after July 1, 1981,
under the
authority of K.S.A. 12-1740 to 12-1749, inclusive, and
amendments
thereto, shall be exempt from taxation to the extent of the value
of that
portion of the property financed by the revenue bonds and only for
a
period of 10 calendar years after the calendar year in which the
bonds
were issued. The exemption of that portion of the property
constructed
or purchased with the proceeds of revenue bonds shall terminate
upon
the failure to pay all taxes levied on that portion of the property
which is
not exempt and the entire property shall be subject to sale in the
manner
prescribed by K.S.A. 79-2301 et seq., and amendments
thereto. Property
constructed or purchased in whole or in part with the proceeds of
revenue
bonds issued on or after January 1, 1995, under the authority of
K.S.A.
12-1740 to 12-1749, inclusive, and amendments thereto, and used in
any
retail enterprise identified under the standard industrial
classification
codes, major groups 52 through 59, inclusive, except facilities
used exclu-
sively to house the headquarters or back office operations of such
retail
enterprises identified thereunder, shall not be exempt from
taxation. For
the purposes of the preceding provision ``standard industrial
classification
code'' means a standard industrial classification code published in
the
Standard Industrial Classification manual, 1987, as prepared by the
sta-
tistical policy division of the office of management and budget of
the
office of the president of the United States. ``Headquarters or
back office
operations'' means a facility from which the enterprise is provided
direc-
tion, management, administrative services, or distribution or
warehousing
688 1997 Session Laws of Kansas Ch. 126
functions in support of transactions made by the enterprise.
Property
purchased, constructed, reconstructed, equipped, maintained or
repaired
with the proceeds of industrial revenue bonds issued under the
authority
of K.S.A. 12-1740 et seq., and amendments thereto, which is
located in a
redevelopment project area established under the authority of
K.S.A. 12-
1770 et seq. shall not be exempt from taxation. Property
purchased, ac-
quired, constructed, reconstructed, improved, equipped, furnished,
re-
paired, enlarged or remodeled with all or any part of the proceeds
of
revenue bonds issued under authority of K.S.A. 12-1740 to
12-1749a,
inclusive, and amendments thereto for any poultry confinement
facility
on agricultural land which is owned, acquired, obtained or leased
by a
corporation, as such terms are defined by K.S.A. 17-5903 and
amend-
ments thereto, shall not be exempt from such taxation. Property
pur-
chased, acquired, constructed, reconstructed, improved, equipped,
fur-
nished, repaired, enlarged or remodeled with all or any part of
the
proceeds of revenue bonds issued under the authority of K.S.A.
12-1740
to 12-1749a, inclusive, and amendments thereto, for a rabbit
confinement
facility on agricultural land which is owned, acquired, obtained or
leased
by a corporation, as such terms are defined by K.S.A. 17-5903 and
amend-
ments thereto, shall not be exempt from such taxation.
Third. All works, machinery and fixtures used exclusively
by any rural
water district or township water district for conveying or
production of
potable water in such rural water district or township water
district, and
all works, machinery and fixtures used exclusively by any entity
which
performed the functions of a rural water district on and after
January 1,
1990, and the works, machinery and equipment of which were
exempted
hereunder on March 13, 1995.
Fourth. All fire engines and other implements used for
the extinguish-
ment of fires, with the buildings used exclusively for the
safekeeping
thereof, and for the meeting of fire companies, whether belonging
to any
rural fire district, township fire district, town, city or village,
or to any fire
company organized therein or therefor.
Fifth. All property, real and personal, owned by county
fair associations
organized and operating under the provisions of K.S.A. 2-125 et
seq. and
amendments thereto.
Sixth. Property acquired and held by any municipality
under the mu-
nicipal housing law (K.S.A. 17-2337 et seq.) and amendments
thereto,
except that such exemption shall not apply to any portion of the
project
used by a nondwelling facility for profit making
enterprise.
Seventh. All property of a municipality, acquired or held
under and for
the purposes of the urban renewal law (K.S.A. 17-4742 et
seq.) and
amendments thereto except that such tax exemption shall terminate
when
the municipality sells, leases or otherwise disposes of such
property in an
urban renewal area to a purchaser or lessee which is not a public
body
entitled to tax exemption with respect to such property.
Ch. 126 1997 Session Laws of Kansas 689
Eighth. All property acquired and held by the Kansas
armory board for
armory purposes under the provisions of K.S.A. 48-317, and
amendments
thereto.
Ninth. All property acquired and used by the Kansas
turnpike authority
under the authority of K.S.A. 68-2001 et seq., and
amendments thereto,
K.S.A. 68-2030 et seq., and amendments thereto, K.S.A.
68-2051 et seq.,
and amendments thereto, and K.S.A. 68-2070 et seq., and
amendments
thereto.
Tenth. All property acquired and used for state park
purposes by the
Kansas department of wildlife and parks.
Eleventh. The state office building constructed under
authority of
K.S.A. 75-3607 et seq., and amendments thereto, and the site
upon which
such building is located.
Twelfth. All buildings erected under the authority of
K.S.A. 76-6a01 et
seq., and amendments thereto, and all other student union
buildings and
student dormitories erected upon the campus of any institution
men-
tioned in K.S.A. 76-6a01, and amendments thereto, by any other
non-
profit corporation.
Thirteenth. All buildings, as the same is defined in
subsection (c) of
K.S.A. 76-6a13, and amendments thereto, which are erected,
constructed
or acquired under the authority of K.S.A. 76-6a13 et seq.,
and amend-
ments thereto, and building sites acquired therefor.
Fourteenth. All that portion of the waterworks plant and
system of the
city of Kansas City, Missouri, now or hereafter located within the
territory
of the state of Kansas pursuant to the compact and agreement
adopted
by chapter 304 of the 1921 Session Laws of the state of Kansas.
[See
K.S.A. 79-205].
Fifteenth. All property, real and personal, owned by a
groundwater
management district organized and operating pursuant to K.S.A.
82a-
1020, and amendments thereto.
Sixteenth. All property, real and personal, owned by the
joint water
district organized and operating pursuant to K.S.A. 80-1616 et
seq., and
amendments thereto.
Seventeenth. All property, including interests less than
fee ownership,
acquired for the state of Kansas by the secretary of transportation
or a
predecessor in interest which is used in the administration,
construction,
maintenance or operation of the state system of highways,
regardless of
how or when acquired.
Except as otherwise specifically provided, the provisions
of this section
shall apply to all taxable years commencing after December 31,
19941996.
New Sec. 37. For all purposes associated with property taxation,
the
provisions of K.S.A. 79-412 notwithstanding, that portion of the
fair mar-
ket value of real property attributable to the leasing of real
property, or
690 1997 Session Laws of Kansas Ch. 126
the creation of any other interest of less than fee simple in
real property,
for the purpose of the placement of a wireless communication
tower,
antenna or relay site upon the real property, shall be entered on
the
assessment roll separate from the remaining fair market value. Such
por-
tion of the fair market value shall be separately taxed to the
owner of
such wireless communication tower, antenna or relay site as real
property
at the same classification and same tax rate as the real property
upon
which the wireless communications tower, antenna or relay site is
located
except that, in the event the real property upon which the wireless
com-
munications tower, antenna or relay site is located is exempt from
prop-
erty taxation, such real property shall continue to be exempt from
prop-
erty taxation, except that portion of the fair market value of
such
tax-exempt real property attributable to the leasing of such
tax-exempt
real property, or the creation of any other interest of less than
fee simple
in such tax-exempt real property, for the purpose of the placement
of a
wireless communications tower, antenna or relay site upon such
tax-ex-
empt real property, shall be taxable and shall be assessed to the
owner of
such wireless communications tower, antenna or relay site as real
property
at 25% of value. Such tax shall be a lien on the interest in the
real property
of such owner of the wireless communications tower, antenna or
relay
site and shall be collected in the same manner as the collection of
other
taxes on real property.
New Sec. 38. (a) Any real property, or portion thereof, which is
oth-
erwise exempt from property taxation pursuant to the provisions of
K.S.A.
79-201, 79-201a, 79-201b, 79-201g and amendments thereto, and
which
is leased or otherwise used for the location of a wireless
communications
tower, antenna or relay site, shall be deemed to be used
exclusively for
the purposes of such sections.
(b) The provisions of this section shall be applicable to all
taxable
years commencing after December 31, 1995.
Sec. 39. K.S.A. 75-5105a is hereby amended to read as follows:
75-
5105a. The director of property valuation shall:
(a) Devise and prescribe uniform assessment forms and
records,
property-identification maps, land-classification maps, land-value
maps,
permanent record cards, and other essential assessment tools, and
to assist
each county with the installation and maintenance of the
same.
(b) Devise or prescribe guides, or both, showing fair
market value in for the valuation of personal property. The
director of property
money
valuation may furnish to each county one copy of each guide so
prescribed
and a copy or copies of each guide so devised. In the preparation
of such
guides, the director of property valuation shall confer with
representatives
of the county appraisers and district appraisers, and shall seek
counsel
from official representatives of organized groups interested in and
famil-
iar with the value of classes of property with which they are
concerned.
Ch. 126 1997 Session Laws of Kansas 691
(c) Render all assistance possible toward uniform assessments
within
the counties and throughout the state.
(d) Assist county appraisers and district appraisers to
determine the
fair market value in money of nonstate assessed properties, the
valuation
of which requires specialized technical knowledge.
(e) Compile assessment sales ratio data
as provided by K.S.A. 79-1435 1996 Supp. 79-1486 through
79-1493, and amend-
to 79-1438, inclusive
ments thereto, and to analyze such assessment data.
(f) Perform such other duties as may be prescribed by
law.
Sec. 40. K.S.A. 1996 Supp. 79-1476 is hereby amended to read
as
follows: 79-1476. The director of property valuation is hereby
directed
and empowered to administer and supervise a statewide program of
re-
appraisal 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
di-
rector of property valuation and of updating the same on an
annual bi-
ennial 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 biennial basis.
Commencing in 1994, every parcel of real property shall be
actually
viewed and inspected by the county or district appraiser once every
four
years. Any county or district appraiser shall be deemed to be in
compli-
ance with the foregoing requirement in any year if 25% or more of
the
parcels in such county or district are actually viewed and
inspected.
Compilation of data for the initial preparation or updating of
invento-
ries for each parcel of real property and entry thereof into the
state com-
puter system as provided for in K.S.A. 79-1477, and amendments
thereto,
shall be completed not later than January 1, 1989. Whenever the
director
determines that reappraisal of all real property within a county is
com-
plete, notification thereof shall be given to the governor and to
the state
board of tax appeals.
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.
In addition thereto 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
produc-
tion 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
depart-
692 1997 Session Laws of Kansas Ch. 126
ment of agriculture soil conservation service. For all taxable
years com-
mencing after December 31, 1989, all land devoted to agricultural
use
which 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. 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 which immediately precedes
the
year of valuation, at a degree of management reflecting median
produc-
tion 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 soil conservation
service, and
any other sources of data that the director considers
appropriate.
The share of net income from land in the various land classes
within
each county or homogeneous region which 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 which is normally received
by
the landlord shall be determined by deducting expenses normally
in-
curred from the gross income normally received by the landlord.
Com-
modity prices, crop yields and pasture and rangeland rental rates
and
expenses shall be based on an average of the eight calendar years
im-
mediately preceding the calendar year which 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
which
includes the five years immediately preceding the calendar year
which
immediately precedes the year of valuation, except that from and
after
December 31, 1997, the director of property valuation shall phase
in the
second quarter federal reserve farm loan interest rate with the
rate de-
termined above until such time as the five-year average of the
second
quarter federal reserve farm loan interest rate is used exclusively
and
without regard to the contract rate of interest on new federal land
bank
loans in Kansas, plus a percentage not less than .75% nor more
than
2.75%, as determined by the director of property valuation.
Based on the foregoing procedures 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
Ch. 126 1997 Session Laws of Kansas 693
or homogeneous region and furnish the same to the several county
ap-
praisers 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.
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 sec-
tion.
For the purpose of the foregoing provisions of this section the
phrase
``land devoted to agricultural use'' shall mean and include land,
regardless
of whether it is located in the unincorporated area of the county
or within
the corporate limits of a city, which 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 poul-
try products; beef cattle, sheep, swine and horses; bees and apiary
prod-
ucts; trees and forest products; fruits, nuts and berries;
vegetables; nurs-
ery, floral, ornamental and greenhouse products. Land devoted
to
agricultural use shall not include those lands which are used for
recrea-
tional purposes, other than that land 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, suburban residential
acre-
ages, rural home sites or farm home sites and yard plots whose
primary
function is for residential or recreational purposes even though
such prop-
erties may produce or maintain some of those plants or animals
listed in
the foregoing definition.
The term ``expenses'' shall mean those expenses typically
incurred in
producing the plants, animals and horticultural products described
above
including management fees, production costs, maintenance and
depre-
ciation of fences, irrigation wells, irrigation laterals and real
estate taxes,
but the term shall not include those expenses incurred in providing
tem-
porary or permanent buildings used in the production of such
plants,
animals and horticultural products.
The provisions of this act 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. 41. K.S.A. 1996 Supp. 79-1439 is hereby amended to read
as
follows: 79-1439. (a) All real and tangible personal property which
is sub-
ject to general ad valorem taxation shall be appraised uniformly
and
equally as to class and, unless otherwise specified herein, shall
be ap-
praised at its fair market value, as defined in K.S.A. 79-503a, and
amend-
ments thereto.
694 1997 Session Laws of Kansas Ch. 126
(b) Property shall be classified into the following classes and
assessed
at the percentage of value prescribed therefor:
(1) Real property shall be assessed as to subclass at the
following
percentages of value:
(A) Real property used for residential purposes including
multi-fam-
ily residential real property, real property necessary to
accommodate a
residential community of mobile or manufactured homes including
the
real property upon which such homes are located and residential
real
property used partially for day care home purposes if such home has
been
registered or licensed pursuant to K.S.A. 65-501 et seq.,
and amendments
thereto at 12% 11.5%;
(B) land devoted to agricultural use valued pursuant to K.S.A.
79-
1476, and amendments thereto, at 30%;
(C) vacant lots at 12%; and
(D) real property which is owned and operated by a
not-for-profit
organization not subject to federal income taxation pursuant to
section
501 of the federal internal revenue code and included herein
pursuant to
K.S.A. 79-1439a, and amendments thereto, at 12%;
(E) public utility real property, except railroad property
which shall
be assessed at the average rate all other commercial and industrial
prop-
erty is assessed, at 33%. As used in this paragraph, ``public
utility'' shall
have the meaning ascribed thereto by K.S.A. 79-5a01, and
amendments
thereto;
(F) real property used for commercial and industrial purposes
and
buildings and other improvements located upon land devoted to
agricul-
tural use at 25%; and
(D) (G) all other urban and rural real
property not otherwise specif-
ically subclassed at 30%.
(2) Personal property shall be classified into the following
classes and
assessed at the percentage of value prescribed therefor:
(A) Mobile homes used for residential purposes at
12% 11.5%;
(B) mineral leasehold interests, except oil leasehold
interests the av-
erage daily production from which is five barrels or less, and
natural gas
leasehold interests, the average daily production from which is 100
mcf
or less, which shall be assessed at 25%, at 30%;
(C) public utility tangible personal property at 30%. As
used in this public utility
tangible personal
paragraph, ``public utility'' shall have the meaning ascribed
thereto by
K.S.A. 79-5a01, and amendments thereto;
property including inventories thereof, except railroad personal
property
including inventories thereof, which shall be assessed at the
average rate
all other commercial and industrial property is assessed, at 33%.
As used
in this paragraph, ``public utility'' shall have the meaning
ascribed thereto
by K.S.A. 79-5a01, and amendments thereto;
(D) all categories of motor vehicles listed and taxed pursuant
to
K.S.A. 79-306d, and amendments thereto, and over-the-road motor
ve-
Ch. 126 1997 Session Laws of Kansas 695
hicles defined pursuant to K.S.A. 79-6a01, and amendments
thereto, at
30%;
(E) commercial and industrial machinery and equipment,
including
rolling equipment defined pursuant to K.S.A. 79-6a01, and
amendments
thereto, which, if its economic life is seven years or more,
shall be valued
at its retail cost when new less seven-year straight-line
depreciation, or
which, if its economic life is less than seven years, shall be
valued at its
retail cost when new less straight-line depreciation over its
economic life,
except that, the value so obtained for such property as long as it
is being
used shall not be less than 20% of the retail cost when new of
such
property at 20% 25%; and
(F) all other tangible personal property not otherwise
specifically
classified at 30%.
Sec. 42. K.S.A. 1996 Supp. 79-503a is hereby amended to read
as
follows: 79-503a. ``Fair market value'' means the amount in terms
of
money that a well informed buyer is justified in paying and a well
in-
formed seller is justified in accepting for property in an open and
com-
petitive market, assuming that the parties are acting without undue
com-
pulsion. For the purposes of this definition it will be assumed
that
consummation of a sale occurs as of January 1.
A variance of 10% in any individual appraisal at fair
market value shall
not be considered willful neglect of the county appraiser's duty to
achieve
fair market value. The foregoing provision shall not be construed
to mean
that a series of such variances does not constitute willful
neglect.
Sales in and of themselves shall not be the sole criteria of
fair market
value but shall be used in connection with cost, income and other
factors
including but not by way of exclusion:
(a) The proper classification of lands and improvements;
(b) the size thereof;
(c) the effect of location on value;
(d) depreciation, including physical deterioration or
functional, eco-
nomic or social obsolescence;
(e) cost of reproduction of improvements;
(f) productivity;
(g) earning capacity as indicated by lease price, by
capitalization of
net income or by absorption or sell-out period;
(h) rental or reasonable rental values;
(i) sale value on open market with due allowance to abnormal
infla-
tionary factors influencing such values;
(j) restrictions imposed upon the use of real estate by local
governing
bodies, including zoning and planning boards or commissions;
and
(k) comparison with values of other property of known or
recognized
value. The assessment-sales ratio study shall not be used as an
appraisal
for appraisal purposes.
696 1997 Session Laws of Kansas Ch. 126
The appraisal process utilized in the valuation of all real and
tangible
personal property for ad valorem tax purposes shall conform to
generally
accepted appraisal procedures which are adaptable to mass appraisal
and
consistent with the definition of fair market value unless
otherwise spec-
ified by law.
Sec. 43. K.S.A. 1996 Supp. 79-1448 is hereby amended to read
as
follows: 79-1448. Any taxpayer may complain or appeal to the
county
appraiser from the classification or appraisal of the taxpayer's
property by
giving notice to the county appraiser on or before April
15 within 30 days
subsequent to the date of mailing of the valuation notice required
by
K.S.A. 79-1460, and amendments thereto, for real
property, and on or
before May 15 for personal property. The county appraiser or the
ap-
praiser's designee shall arrange to hold an informal meeting with
the
aggrieved taxpayer with reference to the property in question. At
such
meeting it shall be the duty of the county appraiser or the county
ap-
praiser's designee to initiate production of evidence to
substantiate the
valuation of such property. The county appraiser may extend the
time in
which the taxpayer may informally appeal from the classification or
ap-
praisal of the taxpayer's property for just and adequate reasons.
Except
as provided in K.S.A. 79-1404, and amendments thereto, no
informal
meeting regarding real property shall be scheduled to take place
after
May 15, nor shall a final determination be given by the appraiser
after
May 20. Any taxpayer who is aggrieved by the final determination of
the
county appraiser may appeal to the hearing officer or panel
appointed
pursuant to K.S.A. 1996 Supp. 79-1611, and amendments thereto,
and
such hearing officer, or panel, for just cause shown and recorded,
is au-
thorized to change the classification or valuation of specific
tracts or in-
dividual items of real or personal property in the same manner
provided
for in K.S.A. 79-1606, and amendments thereto. Any taxpayer
who is
aggrieved by the final determination of a hearing officer or panel
may
appeal to the state board of tax appeals as provided in K.S.A.
79-1609,
and amendments thereto. An informal meeting with the county
appraiser
or the appraiser's designee shall be a condition precedent to an
appeal to
the county or district hearing panel.
Sec. 44. K.S.A. 1996 Supp. 45-221 is hereby amended to read
as
follows: 45-221. (a) Except to the extent disclosure is otherwise
required
by law, a public agency shall not be required to disclose:
(1) Records the disclosure of which is specifically prohibited
or re-
stricted by federal law, state statute or rule of the Kansas
supreme court
or the disclosure of which is prohibited or restricted pursuant to
specific
authorization of federal law, state statute or rule of the Kansas
supreme
court to restrict or prohibit disclosure.
(2) Records which are privileged under the rules of evidence,
unless
the holder of the privilege consents to the disclosure.
Ch. 126 1997 Session Laws of Kansas 697
(3) Medical, psychiatric, psychological or alcoholism or drug
depend-
ency treatment records which pertain to identifiable
patients.
(4) Personnel records, performance ratings or individually
identifia-
ble records pertaining to employees or applicants for employment,
except
that this exemption shall not apply to the names, positions,
salaries and
lengths of service of officers and employees of public agencies
once they
are employed as such.
(5) Information which would reveal the identity of any
undercover
agent or any informant reporting a specific violation of
law.
(6) Letters of reference or recommendation pertaining to the
char-
acter or qualifications of an identifiable individual.
(7) Library, archive and museum materials contributed by
private
persons, to the extent of any limitations imposed as conditions of
the
contribution.
(8) Information which would reveal the identity of an individual
who
lawfully makes a donation to a public agency, if anonymity of the
donor
is a condition of the donation.
(9) Testing and examination materials, before the test or
examination
is given or if it is to be given again, or records of individual
test or ex-
amination scores, other than records which show only passage or
failure
and not specific scores.
(10) Criminal investigation records, except that the district
court, in
an action brought pursuant to K.S.A. 45-222, and amendments
thereto,
may order disclosure of such records, subject to such conditions as
the
court may impose, if the court finds that disclosure:
(A) Is in the public interest;
(B) would not interfere with any prospective law enforcement
action;
(C) would not reveal the identity of any confidential source or
un-
dercover agent;
(D) would not reveal confidential investigative techniques or
proce-
dures not known to the general public;
(E) would not endanger the life or physical safety of any
person; and
(F) would not reveal the name, address, phone number or any
other
information which specifically and individually identifies the
victim of any
sexual offense in article 35 of chapter 21 of the Kansas Statutes
Anno-
tated, and amendments thereto.
(11) Records of agencies involved in administrative adjudication
or
civil litigation, compiled in the process of detecting or
investigating vio-
lations of civil law or administrative rules and regulations, if
disclosure
would interfere with a prospective administrative adjudication or
civil
litigation or reveal the identity of a confidential source or
undercover
agent.
(12) Records of emergency or security information or procedures
of
a public agency, or plans, drawings, specifications or related
information
for any building or facility which is used for purposes requiring
security
698 1997 Session Laws of Kansas Ch. 126
measures in or around the building or facility or which is used
for the
generation or transmission of power, water, fuels or
communications, if
disclosure would jeopardize security of the public agency, building
or
facility.
(13) The contents of appraisals or engineering or feasibility
estimates
or evaluations made by or for a public agency relative to the
acquisition
of property, prior to the award of formal contracts
therefor.
(14) Correspondence between a public agency and a private
individ-
ual, other than correspondence which is intended to give notice of
an
action, policy or determination relating to any regulatory,
supervisory or
enforcement responsibility of the public agency or which is widely
dis-
tributed to the public by a public agency and is not specifically
in response
to communications from such a private individual.
(15) Records pertaining to employer-employee negotiations, if
dis-
closure would reveal information discussed in a lawful executive
session
under K.S.A. 75-4319, and amendments thereto.
(16) Software programs for electronic data processing and
documen-
tation thereof, but each public agency shall maintain a register,
open to
the public, that describes:
(A) The information which the agency maintains on computer
facil-
ities; and
(B) the form in which the information can be made available
using
existing computer programs.
(17) Applications, financial statements and other information
sub-
mitted in connection with applications for student financial
assistance
where financial need is a consideration for the award.
(18) Plans, designs, drawings or specifications which are
prepared by
a person other than an employee of a public agency or records which
are
the property of a private person.
(19) Well samples, logs or surveys which the state corporation
com-
mission requires to be filed by persons who have drilled or caused
to be
drilled, or are drilling or causing to be drilled, holes for the
purpose of
discovery or production of oil or gas, to the extent that
disclosure is limited
by rules and regulations of the state corporation
commission.
(20) Notes, preliminary drafts, research data in the process of
anal-
ysis, unfunded grant proposals, memoranda, recommendations or
other
records in which opinions are expressed or policies or actions are
pro-
posed, except that this exemption shall not apply when such records
are
publicly cited or identified in an open meeting or in an agenda of
an open
meeting.
(21) Records of a public agency having legislative powers, which
re-
cords pertain to proposed legislation or amendments to proposed
legis-
lation, except that this exemption shall not apply when such
records are:
(A) Publicly cited or identified in an open meeting or in an
agenda
of an open meeting; or
Ch. 126 1997 Session Laws of Kansas 699
(B) distributed to a majority of a quorum of any body which has
au-
thority to take action or make recommendations to the public agency
with
regard to the matters to which such records pertain.
(22) Records of a public agency having legislative powers, which
re-
cords pertain to research prepared for one or more members of
such
agency, except that this exemption shall not apply when such
records are:
(A) Publicly cited or identified in an open meeting or in an
agenda
of an open meeting; or
(B) distributed to a majority of a quorum of any body which has
au-
thority to take action or make recommendations to the public agency
with
regard to the matters to which such records pertain.
(23) Library patron and circulation records which pertain to
identi-
fiable individuals.
(24) Records which are compiled for census or research purposes
and
which pertain to identifiable individuals.
(25) Records which represent and constitute the work product of
an
attorney.
(26) Records of a utility or other public service pertaining to
individ-
ually identifiable residential customers of the utility or service,
except that
information concerning billings for specific individual customers
named
by the requester shall be subject to disclosure as provided by this
act.
(27) Specifications for competitive bidding, until the
specifications
are officially approved by the public agency.
(28) Sealed bids and related documents, until a bid is accepted
or all
bids rejected.
(29) Correctional records pertaining to an identifiable inmate,
except
that:
(A) The name, sentence data, parole eligibility date,
disciplinary rec-
ord, custody level and location of an inmate;
(B) the ombudsman of corrections, the attorney general, law
enforce-
ment agencies, counsel for the inmate to whom the record pertains
and
any county or district attorney shall have access to correctional
records to
the extent otherwise permitted by law;
(C) the information provided to the law enforcement agency
pursu-
ant to the sex offender registration act, K.S.A. 22-4901, et seq.,
and
amendments thereto, shall be subject to disclosure to any person;
and
(D) records of the department of corrections regarding the
financial
assets of an offender in the custody of the secretary of
corrections shall
be subject to disclosure to the victim, or such victim's family, of
the crime
for which the inmate is in custody as set forth in an order of
restitution
by the sentencing court.
(30) Public records containing information of a personal
nature
where the public disclosure thereof would constitute a clearly
unwar-
ranted invasion of personal privacy.
(31) Public records pertaining to prospective location of a
business
700 1997 Session Laws of Kansas Ch. 126
or industry where no previous public disclosure has been made of
the
business' or industry's interest in locating in, relocating within
or expand-
ing within the state. This exception shall not include those
records per-
taining to application of agencies for permits or licenses
necessary to do
business or to expand business operations within this state, except
as
otherwise provided by law.
(32) The bidder's list of contractors who have requested bid
proposals
for construction projects from any public agency, until a bid is
accepted
or all bids rejected.
(33) Engineering and architectural estimates made by or for any
pub-
lic agency relative to public improvements.
(34) Financial information submitted by contractors in
qualification
statements to any public agency.
(35) Records involved in the obtaining and processing of
intellectual
property rights that are expected to be, wholly or partially vested
in or
owned by a state educational institution, as defined in K.S.A.
76-711, and
amendments thereto, or an assignee of the institution organized and
ex-
isting for the benefit of the institution.
(36) Any report or record which is made pursuant to K.S.A.
65-4922,
65-4923 or 65-4924, and amendments thereto, and which is
privileged
pursuant to K.S.A. 65-4915 or 65-4925, and amendments
thereto.
(37) Information which would reveal the precise location of an
ar-
cheological site.
(38) Any financial data or traffic information from a railroad
company,
to a public agency, concerning the sale, lease or rehabilitation of
the
railroad's property in Kansas.
(39) Risk-based capital reports, risk-based capital plans and
corrective
orders including the working papers and the results of any analysis
filed
with the commissioner of insurance in accordance with K.S.A. 1996
Supp.
40-2c20, and amendments thereto.
(40) Memoranda and related materials required to be used to
support
the annual actuarial opinions submitted pursuant to subsection (b)
of
K.S.A. 40-409, and amendments thereto.
(41) Disclosure reports filed with the commissioner of insurance
un-
der subsection (a) of K.S.A. 1996 Supp. 40-2,156, and
amendments
thereto.
(42) All financial analysis ratios and examination synopses
concerning
insurance companies that are submitted to the commissioner by the
na-
tional association of insurance commissioners' insurance regulatory
infor-
mation system.
(43) Any records the disclosure of which is restricted or
prohibited
by a tribal-state gaming compact.
(b) Except to the extent disclosure is otherwise required by law
or as
appropriate during the course of an administrative proceeding or on
ap-
peal from agency action, a public agency or officer shall not
disclose fi-
Ch. 126 1997 Session Laws of Kansas 701
nancial information of a taxpayer which may be required or
requested by
a county appraiser or the director of property valuation to
assist in the
determination of the value of the taxpayer's property for ad
valorem tax-
ation purposes; or any financial information of a personal nature
required
or requested by a public agency or officer, including a name, job
descrip-
tion or title revealing the salary or other compensation of
officers, em-
ployees or applicants for employment with a firm, corporation or
agency,
except a public agency. Nothing contained herein shall be construed
to
prohibit the publication of statistics, so classified as to prevent
identifi-
cation of particular reports or returns and the items
thereof.
(c) As used in this section, the term ``cited or identified''
shall not
include a request to an employee of a public agency that a document
be
prepared.
(d) If a public record contains material which is not subject to
dis-
closure pursuant to this act, the public agency shall separate or
delete
such material and make available to the requester that material in
the
public record which is subject to disclosure pursuant to this act.
If a public
record is not subject to disclosure because it pertains to an
identifiable
individual, the public agency shall delete the identifying portions
of the
record and make available to the requester any remaining portions
which
are subject to disclosure pursuant to this act, unless the request
is for a
record pertaining to a specific individual or to such a limited
group of
individuals that the individuals' identities are reasonably
ascertainable, the
public agency shall not be required to disclose those portions of
the record
which pertain to such individual or individuals.
(e) The provisions of this section shall not be construed to
exempt
from public disclosure statistical information not descriptive of
any iden-
tifiable person.
(f) Notwithstanding the provisions of subsection (a), any public
rec-
ord which has been in existence more than 70 years shall be open
for
inspection by any person unless disclosure of the record is
specifically
prohibited or restricted by federal law, state statute or rule of
the Kansas
supreme court or by a policy adopted pursuant to K.S.A. 72-6214,
and
amendments thereto.
Sec. 45. K.S.A. 1996 Supp. 75-5133 is hereby amended to read
as
follows: 75-5133. (a) Except as otherwise more specifically
provided by
law, all information received by the director of taxation from
applications
for licensure or registration made or returns or reports filed
under the
provisions of any law imposing any excise tax administered by the
director,
or from any investigation conducted under such provisions, shall be
con-
fidential, and it shall be unlawful for any officer or employee of
the de-
partment of revenue to divulge any such information except in
accordance
with other provisions of law respecting the enforcement and
collection of
702 1997 Session Laws of Kansas Ch. 126
such tax, in accordance with proper judicial order and as
provided in
K.S.A. 74-2424, and amendments thereto.
(b) Nothing herein in this section shall
be construed to prohibit the
publication of statistics, so classified as to prevent
identification of partic-
ular reports or returns and the items thereof, or the inspection of
returns
by the attorney general. Nothing in this section shall prohibit the
post
auditor from access to all such excise tax reports or returns in
accordance
with and subject to the provisions of subsection (g) of K.S.A.
46-1106,
and amendments thereto. Nothing in this section shall be construed
to
prohibit the disclosure of the taxpayer's name, social
security number,taxpayer information from excise tax
returns to
last known address and total tax liability, including penalty and
interest,a debt collection agencypersons
or entities contracting with the secretary of revenue
pursuant to where the
K.S.A. 75-5140 to 75-5143, inclusive, and amendments
thereto
secretary has determined disclosure of such information is
essential for
completion of the contract and has taken appropriate steps to
preserve
confidentiality.
(c) Notwithstanding the foregoing provisions of this section,
the di-
rector of taxation may provide such information from returns and
reports
filed under article 42 of chapter 79 of the Kansas Statutes
Annotated to
county appraisers as is necessary to insure proper valuations of
property.
Information from such returns and reports may also be exchanged
with
any other state agency administering and collecting conservation or
other
taxes and fees imposed on or measured by mineral production.
Nothing
in this section shall prohibit the disclosure of oil and gas
production sta-
tistics.
(d) Any person receiving any information under the provisions of
sub-
section (b) or (c) of this section shall be
subject to the confidentiality
provisions of subsection (a) of this section and
to the penalty provisions
of subsection (e) of this section.
(e) Any violation of this section shall be a class B
nonperson misde-
meanor, and if the offender is an officer or employee of this
state, such
officer or employee shall be dismissed from office.
Sec. 46. K.S.A. 1996 Supp. 79-3234 is hereby amended to read
as
follows: 79-3234. (a) All reports and returns required by this act
shall be
preserved for three years and thereafter until the director orders
them
to be destroyed.
(b) Except in accordance with proper judicial order, or as
provided
in subsection (c) or in K.S.A. 17-7511, subsection (g) of K.S.A.
46-1106,
K.S.A. 46-1114, or K.S.A. 79-32,153a, and amendments thereto, it
shall
be unlawful for the director, any deputy, agent, clerk or other
officer,
employee or former employee of the department of revenue or any
other
state officer or employee or former state officer or employee to
divulge,
or to make known in any way, the amount of income or any
particulars
Ch. 126 1997 Session Laws of Kansas 703
set forth or disclosed in any report, return, federal return or
federal return
information required under this act; and it shall be unlawful for
the di-
rector, any deputy, agent, clerk or other officer or employee
engaged in
the administration of this act to engage in the business or
profession of
tax accounting or to accept employment, with or without
consideration,
from any person, firm or corporation for the purpose, directly or
indi-
rectly, of preparing tax returns or reports required by the laws of
the state
of Kansas, by any other state or by the United States government,
or to
accept any employment for the purpose of advising, preparing
material
or data, or the auditing of books or records to be used in an
effort to
defeat or cancel any tax or part thereof that has been assessed by
the
state of Kansas, any other state or by the United States
government.
(c) Nothing herein in this section shall
be construed to prohibit the
publication of statistics, so classified as to prevent the
identification of
particular reports or returns and the items thereof, or the
inspection of
returns by the attorney general or other legal representatives of
the state.
Nothing in this section shall prohibit the post auditor from access
to all
income tax reports or returns in accordance with and subject to the
pro-
visions of subsection (g) of K.S.A. 46-1106 or K.S.A. 46-1114, and
amend-
ments thereto. Nothing in this section shall be construed to
prohibit the
disclosure of the taxpayer's name, social security number,
last known ad- taxpayer in-
dress and total tax liability, including penalty and
interest,
formation from income tax returns to a debt collection
agency persons or
entities contracting with the secretary of revenue
pursuant to K.S.A. 75- where the
secretary has
5140 through 75-5143, and amendments thereto
determined disclosure of such information is essential for
completion of
the contract and has taken appropriate steps to preserve
confidentiality.
Nothing in this section shall be construed to prohibit the
disclosure of
job creation and investment information derived from tax schedules
re-
quired to be filed under the Kansas income tax act to the secretary
of
commerce. Nothing in this section shall be construed to prohibit
the
disclosure of the taxpayer's name, last known address and residency
status
to the department of wildlife and parks to be used solely in its
license
fraud investigations. Any person receiving any information under
the pro-
visions of this subsection shall be subject to the confidentiality
provisions
of subsection (b) and to the penalty provisions of subsection
(d).
(d) Any violation of subsection (b) or (c) is a class B
nonperson mis-
demeanor and, if the offender is an officer or employee of the
state, such
officer or employee shall be dismissed from office.
(e) Notwithstanding the provisions of this section, the
secretary of
revenue may permit the commissioner of internal revenue of the
United
States, or the proper official of any state imposing an income tax,
or the
authorized representative of either, to inspect the income tax
returns
made under this act and the secretary of revenue may make available
or
furnish to the taxing officials of any other state or the
commissioner of
704 1997 Session Laws of Kansas Ch. 126
internal revenue of the United States or other taxing officials
of the fed-
eral government, or their authorized representatives, information
con-
tained in income tax reports or returns or any audit thereof or the
report
of any investigation made with respect thereto, filed pursuant to
the in-
come tax laws, as the secretary may consider proper, but such
information
shall not be used for any other purpose than that of the
administration
of tax laws of such state, the state of Kansas or of the United
States.
(f) Notwithstanding the provisions of this section, the
secretary of
revenue may:
(1) Communicate to the executive director of the Kansas lottery
in-
formation as to whether a person, partnership or corporation is
current
in the filing of all applicable tax returns and in the payment of
all taxes,
interest and penalties to the state of Kansas, excluding items
under formal
appeal, for the purpose of determining whether such person,
partnership
or corporation is eligible to be selected as a lottery
retailer;
(2) communicate to the executive director of the Kansas racing
com-
mission as to whether a person, partnership or corporation has
failed to
meet any tax obligation to the state of Kansas for the purpose of
deter-
mining whether such person, partnership or corporation is eligible
for a
facility owner license or facility manager license pursuant to the
Kansas
parimutuel racing act; and
(3) provide such information to the president of Kansas, Inc. as
re-
quired by K.S.A. 1996 Supp. 74-8017, and amendments thereto.
The
president and any employees or former employees of Kansas, Inc.
re-
ceiving any such information shall be subject to the
confidentiality pro-
visions of subsection (b) and to the penalty provisions of
subsection (d).
Sec. 47. K.S.A. 1996 Supp. 79-3614 is hereby amended to read
as
follows: 79-3614. All information received by the director from
returns
filed under this act, or from any investigations conducted under
the pro-
visions of this act, shall be confidential, except for official
purposes, and
it shall be unlawful for any officer or employee of such director
to divulge
any such information in any manner, except in accordance with a
proper
judicial order, or as provided in K.S.A. 74-2424, and amendments
thereto.
The post auditor shall have access to all such information in
accordance
with and subject to the provisions of subsection (g) of K.S.A.
46-1106,
and amendments thereto. Nothing in this section shall be construed
to
prohibit the disclosure of the taxpayer's name, social
security number,taxpayer information from sales tax
returns to
last known address and total tax liability, including penalty and
interest,a debt collection agencypersons
or entities contracting with the secretary of revenue
pursuant to where the
secretary has determined
K.S.A. 75-5140 to 75-5143, inclusive
disclosure of such information is essential for completion of the
contract
and has taken appropriate steps to preserve confidentiality.
Notwithstand-
ing the provisions of this section, the secretary of revenue may
provide
Ch. 126 1997 Session Laws of Kansas 705
such information to the president of Kansas, Inc. as required by
K.S.A.
1996 Supp. 74-8017, and amendments thereto. The president
and any Any person receiving
any such infor-
employees or former employees
mation pursuant to this section shall be subject to the same
duty of con-
fidentiality imposed on officers and employees of the department of
rev-
enue by this section and shall be subject to any civil or criminal
penalties
imposed by law for violations of such duty of
confidentiality.
Sec. 48. K.S.A. 79-32,111 is hereby amended to read as
follows:
79-32,111. (a) The amount of income tax paid to another state by a
res-
ident individual, resident estate or resident trust on income
derived from
sources in another state shall be allowed as a credit against the
tax com-
puted under the provisions of this act. Such credit shall not be
greater in
proportion to the tax computed under this act than the adjusted
gross
income for such year derived in another state while such taxpayer
is a
resident of this state is to the total Kansas adjusted gross income
of the
taxpayer. As used in this subsection, state shall have the
meaning ascribed
thereto by subsection (h) of K.S.A. 79-3271, and amendments
thereto. The
credit allowable hereunder for income tax paid to a foreign country
or
political subdivision thereof shall not exceed the difference of
such income
tax paid less the credit allowable for such income tax paid by the
federal
internal revenue code.
(b) There shall be allowed as a credit against the tax computed
under
the provisions of the Kansas income tax act, and acts amendatory
thereof
and supplemental thereto, on the Kansas taxable income of an
individual,
corporation or fiduciary the amount determined under the provisions
of
K.S.A. 79-32,153 to 79-32,158, and amendments
thereto.
New Sec. 49. (a) Whenever the appraised valuation of any
single-
family owner-occupied residential real property established for
property
taxation purposes exceeds by 75% or more the appraised valuation of
such
property for such purposes established for utilization for the next
pre-
ceding taxable year, and if such increase is not due to such
property being
improved, a portion of the property tax attributable to such
increase shall
be refunded to the taxpayer as provided by this section.
(b) Any person who qualifies for a refund pursuant to the
provisions
of subsection (a) and has completed an appeal pursuant to K.S.A.
79-
1448, and amendments thereto, from the appraised valuation
established
for such residential real property may apply for a refund of
property tax
to the division of taxation of the department of revenue. For the
taxable
year for which such increase is established, the amount of such
refund
shall be equal to 80% of the property tax attributable to such
increase;
for the taxable year next succeeding the taxable year for which
such in-
crease is established, the amount of such refund shall be equal to
50% of
the property tax attributable to such increase; and for the second
taxable
year succeeding the taxable year for which such increase is
established,
706 1997 Session Laws of Kansas Ch. 126
the amount of such refund shall be equal to 25% of the property
tax
attributable to such increase.
(c) The secretary of revenue shall adopt rules and regulations
nec-
essary to effectively implement the provisions of this section, and
shall
devise forms necessary for the implementation of this
section.
(d) The provisions of this section shall be applicable to all
taxable
years commencing after December 31, 1996.
Sec. 50. K.S.A. 1996 Supp. 79-4216 is hereby amended to read
as
follows: 79-4216. As used in this act, unless the context clearly
requires
otherwise, the following words and phrases shall have the meanings
as-
cribed to them herein:
(a) ``Barrel'' for oil measurement means a barrel of 42 U.S.
gallons of
231 cubic inches per gallon, computed at a temperature of 60
degrees
Fahrenheit.
(b) ``Director'' means the director of taxation.
(c) ``Gas'' means natural gas taken from below the surface of
the earth
or water in this state, regardless of whether from a gas well or
from a well
also productive of oil or any other product.
(d) ``Gross value'' means the sale price of oil or gas at the
time of
removal of the oil or gas from the lease or production unit and if
oil or
gas is exchanged for something other than cash, or if no sale
occurs at
the time of removal or if the director determines that the
relationship
between the buyer and the seller is such that the consideration
paid, if
any, is not indicative of the true value or market price, then the
director
shall determine the value of the oil or gas subject to
tax, based on the
cash price paid to one or more producers for the oil or gas or
based on
the cash price paid to producers for like quality oil or gas in the
vicinity
of the lease or production unit at the time of the removal of the
oil or
gas from the lease or production unit. Notwithstanding the
foregoing, if
no sale of gas occurs at the time of removal and such gas is not
stored,
then the gross value of gas for the purpose of taxation under this
act shall
be the price for which such gas is sold at the time of sale if such
sale is
not between related parties.
(e) ``Oil'' means petroleum, or other crude oil, condensate,
casing-
head gasoline, or other mineral oil which is severed or withdrawn
from
below the surface of the soil or water in this state.
(f) ``Operator'' means the person primarily responsible for the
man-
agement and operation of coal, oil or gas productions from a lease,
pro-
duction unit or mine.
(g) ``Person'' means any natural person, firm, copartnership,
joint
venture, association, corporation, estate, trust or any other group
or com-
bination acting as a unit, and the plural as well as the singular
number.
(h) ``Producer'' means any person owning, controlling, managing
or
leasing any coal, oil or gas property or oil or gas well or coal or
salt mine,
Ch. 126 1997 Session Laws of Kansas 707
and any person who serves in any manner any coal, oil or gas in
this state,
and shall include any person owning any direct and beneficial
interest in
any coal, oil or gas produced, whether severed by such person or
some
other person on their behalf, either by lease, contract or
otherwise, in-
cluding a royalty owner.
(i) ``Remove'' or ``removal'' means the physical transportation
of coal,
oil or gas off of the lease or production unit or from the mine
where
severed; and if the manufacture or conversion of crude oil or
natural gas
into refined products occurs on the premises where severed, oil or
gas
shall be deemed to have been removed on the date such manufacture
or
conversion begins.
(j) ``Secretary'' means the secretary of revenue.
(k) ``Severed'' or ``severing'' means: (1) The production of oil
through
extraction or withdrawal of the same from below the surface of the
soil
or water, whether such extraction or withdrawal shall be by natural
flow,
mechanical flow, forced flow, pumping or any other means employed
to
get the oil from below the surface of the soil or water and shall
include
the withdrawal by any means whatsoever of oil upon which the tax
has
not been paid, from any surface reservoir, natural or artificial,
or from a
water surface; (2) the production of gas through the extraction or
with-
drawal of the same by any means whatsoever, from below the surface
of
the earth or water; and (3) the physical removal of coal from the
earth.
(l) ``Taxpayer'' means any person liable for the taxes imposed
by this
act.
(m) ``Disruption of production'' means, in the case of oil, a
continuous
24-hour period during which a well is not producing. Circulating
and
missed production days shall be considered production days if the
oper-
ator can demonstrate that any lost production is subsequently
recovered
during a later production day. In the case of gas, a continuous
one-hour
period during which a well is not open to the pipeline shall be
deemed
to be a disruption of production. Missed production hours shall be
con-
sidered production hours if the operator can demonstrate that any
lost
production is subsequently recovered during later production
hours.
Sec. 51. K.S.A. 79-4225 is hereby amended to read as follows:
79-
4225. (a) If any taxes imposed under this act and determined and
assessed
by the director are unpaid: (1) Not due to negligence or to
intentional
disregard of this act or rules and regulations promulgated by the
secretary,
interest on such taxes shall be added at the rate per month
prescribed by
subsection (a) of K.S.A. 79-2968, and amendments thereto, from the
date
the tax was due until paid; (2) due to negligence or to intentional
disregard
of this act or rules and regulations promulgated by the secretary,
but
without intent to defraud, a penalty of 10% of the amount of such
taxes
shall be added, together with interest at the rate per month
prescribed
by subsection (a) of K.S.A. 79-2968, and amendments thereto, from
the
708 1997 Session Laws of Kansas Ch. 126
date the tax was due until paid; (3) due to fraud with intent to
evade the
tax imposed by this act, there shall be added thereto a penalty of
50% of
the amount of such tax, together with interest at the rate per
month
prescribed by subsection (a) of K.S.A. 79-2968, and amendments
thereto,
from the date the tax was due until paid.
(b) If any person fails or refuses to make any return, when
required
to do so under the provisions of this act, such person shall be
subject to
a penalty of $25 per day for each return which such person fails or
refuses
to file.
(c) Whenever, in the judgment of the director, the failure of
any
person to comply with the provisions of subsection (a)(1), (a)(2),
and (b)
of this section, was due to reasonable cause, the director may, in
the
exercise of discretion, waive or reduce any of the penalties upon
making
a record of the reason therefor.
(d) In addition to all other penalties herein provided, any
person who
fails to make a return, or to pay any tax herein provided, or who
makes a
false or fraudulent return, or fails to keep any books or records
prescribed
by this act, or who willfully violates any rules and regulations
promulgated
by the secretary for the enforcement and administration of this
act, or
who aids and abets another in attempting to evade the payment of
any
tax imposed by this act, or who violates any other provisions of
this act,
shall, upon conviction thereof, be guilty of a class C
misdemeanor.
(e) The director of taxation shall examine all returns filed
under the
provision of this act, and shall issue notices and final
determinations of
tax liability hereunder in the manner prescribed by K.S.A. 79-3226,
and
amendments thereto, relating to income taxes.
New Sec. 52. In addition to any other rights and privileges
provided
by law under the Kansas retailers' sales tax and Kansas
compensating tax
acts, the secretary of revenue shall promulgate rules and
directives under
which the taxpayer shall be provided:
(a) A copy of all work-papers compiled as a result of an audit
of such
taxpayer;
(b) a personal or telephonic conference conducted by the
director of
taxation or agent of the director with the taxpayer or a
representative of
the taxpayer after completion of audit field work; and, if
additional audit
desk work is performed in the office subsequent to audit field
work, a
telephonic conference conducted by the director or agent of the
director
with the taxpayer or a representative of the taxpayer after
completion of
such subsequent audit desk work; and
(c) consideration of the taxpayer's convenience, normal hours of
op-
eration, and the availability of administrative personnel resources
in the
scheduling of an audit by the director.
Sec. 53. On and after October 16, 1997, K.S.A. 79-3635 is
hereby
amended to read as follows: 79-3635. (a) A claimant shall be
entitled to
Ch. 126 1997 Session Laws of Kansas 709
a refund of retailers' sales taxes paid upon food during the
calendar year
1986 1997 and each year thereafter in the
amount hereinafter provided.
For households having a household income of less than $5,000, a
refund
in the amount of $40 shall be allowed for the head of household and
a
refund of $30 shall be allowed for each additional member of the
house-
hold. For households having a household income of at least $5,000
but
less than $10,000, a refund in the amount of $30 shall be allowed
for the
head of household and a refund of $25 shall be allowed for each
additional
member of the household. For households having a household income
of
at least $10,000 but not more than $13,000, a refund in the amount
of
$20 shall be allowed for the head of household and a refund of $15
shall
be allowed for each additional member of the household. All such
claims
shall be paid from the sales tax refund fund upon warrants of the
director
of accounts and reports pursuant to vouchers approved by the
director of
taxation or by a person or persons designated by the
director.
(b) A head of household shall make application for refunds for
all
members of the same household upon a common form provided for
the
making of joint claims. All claims paid to members of the same
household
shall be paid as a joint claim by means of a single
warrant.
(c) No claim for a refund of taxes under the provisions of
K.S.A.
79-3620 and 79-3632 to 79-3639
et seq. shall be paid or allowed unless
such claim is actually filed with and in the possession of the
department
of revenue on or before October April 15 of
the year next succeeding the
year in which said such taxes were paid.
The director of taxation may: (1)
Extend the time for filing any claim under the provisions of this
act when
good cause exists therefor; or (2) accept a claim filed after the
deadline
for filing in the case of sickness, absence or disability of the
claimant if
said such claim has been filed within four
(4) years of said such
deadline.
Sec. 54. On and after October 16, 1997, K.S.A. 79-3635 is
hereby
repealed.
Sec. 55. K.S.A. 12-1678a, 19-430, 75-5105a, 77-548, 79-1701a,
79-
1702, 79-2002, 79-2969, 79-3230, 79-3268, 79-32,111 and 79-4225
and
K.S.A. 1996 Supp. 45-221, 74-2438, 75-5133, 77-549, 77-550,
79-201a,
79-213, 79-412, 79-503a, 79-1439, 79-1448, 79-1460, 79-1476,
79-1575,
79-2001, 79-2004, 79-2004a, 79-2005, 79-2968, 79-3226, 79-3234,
79-
32,105, 79-32,107, 79-3420, 79-3606, 79-3609, 79-3610, 79-3614,
79-3615, 79-4216, 79-4226 and 79-5109 are hereby repealed.
Sec. 56. This act shall take effect and be in force from and
after its
publication in the statute book.
Approved April 25, 1997.