Ch. 187             1997 Session Laws of Kansas             1523

An Act relating to property taxation; amending K.S.A. 1996 Supp. 72-6431, as amended by
section 6 of 1997 House Bill No. 2031, 79-201a, as amended by section 36 of 1997
House Bill No. 2105, 79-213, as amended by section 35 of 1997 House Bill No. 2105,
and 79-1476, as amended by section 40 of 1997 House Bill No. 2105, and repealing the
existing sections; also repealing K.S.A. 79-5037 and K.S.A. 1996 Supp. 79-201a, as
amended by section 1 of 1997 Senate Bill No. 22.

Be it enacted by the Legislature of the State of Kansas:

Section 1. (a) The governing body of any taxing subdivision may elect
to have the bonded indebtedness limitation of the taxing subdivision com-
puted on the basis of a percentage of assessed valuation, which percentage
is determined by dividing the amount of indebtedness authorized for such
taxing district in 1988 by the assessed valuation of all tangible taxable
property in the taxing subdivision in 1989.

(b) The board of trustees of any community college may elect to have
the bonded indebtedness limit of the district exceeded by the amount of
any general obligation bonded indebtedness approved by a majority of
the voters of the district prior to the effective date of this act.

Sec. 2. K.S.A. 1996 Supp. 79-201a, as amended by section 36 of 1997
House Bill No. 2105, is hereby amended to read as follows: 79-201a. The
following described property, to the extent herein specified, shall be ex-
empt 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
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 exclusively
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, dentistry 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

1524             1997 Session Laws of Kansas             Ch. 187

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 amend-
ments 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 ac-
tually 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 property by a museum or
historical society, if no portion of the lease payments include compensa-
tion for return on the investment in such leased property shall be deemed
to be used exclusively for the purposes of this paragraph. 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 proceeds of
industrial revenue bonds issued prior to July 1, 1963, as authorized by
K.S.A. 12-1740 to 12-1749, or purchased with proceeds of improvement
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 improved, purchased,
constructed, reconstructed or repaired with the proceeds 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, reimproved, reconstructed or
repaired with the proceeds of revenue bonds issued after July 1, 1963,
under the authority of K.S.A. 13-1238 to 13-1245, 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 pur-
chase shall be outstanding and unpaid. Any property constructed or pur-
chased 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

Ch. 187             1997 Session Laws of Kansas             1525

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 hereinafter pro-
vided, 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 pro-
vided, 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 cal-
endar 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 pur-
chased 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 enter-
prise identified under the standard industrial classification codes, major
groups 52 through 59, inclusive, except facilities used exclusively to house
the headquarters or back office operations of such retail enterprises iden-
tified 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 statistical 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 fa-
cility from which the enterprise is provided direction, management, ad-
ministrative services, or distribution or warehousing 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 pro-
ject area established under the authority of K.S.A. 12-1770 et seq. shall
not be exempt from taxation. Property purchased, acquired, constructed,
reconstructed, improved, equipped, furnished, repaired, enlarged or re-
modeled 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 amend-
ments 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 amendments thereto, shall not

1526             1997 Session Laws of Kansas             Ch. 187

be exempt from such taxation. Property purchased, acquired, constructed,
reconstructed, improved, equipped, furnished, repaired, enlarged or re-
modeled 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 amend-
ments 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 amendments 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.

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

Ch. 187             1997 Session Laws of Kansas             1527

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.

Eighteenth. Any building used primarily as an industrial training cen-
ter for academic or vocational education programs designed for and op-
erated under contract with private industry, and located upon a site
owned, leased or being acquired by or for an area vocational school, an
area vocational-technical school, a technical college, or a community col-
lege, as defined by K.S.A. 72-4412, and amendments thereto, and the site
upon which any such building is located.

Except as otherwise specifically provided, the provisions of this section
shall apply to all taxable years commencing after December 31, 1996.

Sec. 3. K.S.A. 1996 Supp. 79-213, as amended by section 35 of 1997
House Bill No. 2105, 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 exemption, on forms ap-
proved by the board of tax appeals and provided by the county appraiser.

(b) The initial exemption request shall identify the property for which

1528             1997 Session Laws of Kansas             Ch. 187

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.

(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-

Ch. 187             1997 Session Laws of Kansas             1529

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
construction.

(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 effective date of the exemption. In the event that taxes have
been paid during the period where the subject property has been deter-
mined 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,
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

1530             1997 Session Laws of Kansas             Ch. 187

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; and (15) property used for residential pur-
poses which is exempted pursuant to section 1 of 1997 Senate Bill No. 41
from the property tax levied pursuant to K.S.A. 1996 Supp. 72-6431, and
amendments thereto.

(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. 4. K.S.A. 1996 Supp. 79-1476, as amended by section 40 of 1997
House Bill No. 2105, is hereby amended to read as follows: 79-1476. The
director of property valuation is hereby directed and empowered to ad-
minister and supervise a statewide program of reappraisal of all real prop-
erty 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 director of property valuation
and of updating the same on an biennial annual 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 biennial annual 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 compliance 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

Ch. 187             1997 Session Laws of Kansas             1531

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-
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

1532             1997 Session Laws of Kansas             Ch. 187

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
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;
nursery, 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. 5. Notwithstanding any other provision of law to the contrary,

Ch. 187             1997 Session Laws of Kansas             1533

for tax year 1998, the amount of personal property tax imposed upon
motor vehicles having a gross vehicle weight of more than 12,000 pounds
but less than 20,001 pounds, shall be computed in accordance with the
provisions of K.S.A. 79-5101 et seq., and amendments thereto, but shall
be required to be paid at the time required by K.S.A. 79-2004a, and
amendments thereto, and the provisions of such section shall be appli-
cable to the collection thereof.

Sec. 6. K.S.A. 1996 Supp. 72-6431, as amended by section 6 of 1997
House Bill No. 2031, is hereby amended to read as follows: 72-6431. (a)
The board of each district shall levy an ad valorem tax upon the taxable
tangible property of the district in the school years specified in subsection
(b) for the purpose of:

(1) Financing that portion of the district's general fund budget which
is not financed from any other source provided by law;

(2) paying a portion of the costs of operating and maintaining public
schools in partial fulfillment of the constitutional obligation of the legis-
lature to finance the educational interests of the state; and

(3) with respect to any redevelopment district established prior to
July 1, 1996 1997, pursuant to K.S.A. 12-1771, and amendments thereto,
paying a portion of the principal and interest on bonds issued by cities
under authority of K.S.A. 12-1774, and amendments thereto, for the fi-
nancing of redevelopment projects upon property located within the dis-
trict.

(b) The tax required under subsection (a) shall be levied at a rate of
27 mills in the 1997-98 school year and in the 1998-99 school year.

(c) The proceeds from the tax levied by a district under authority of
this section, except the proceeds of such tax levied for the purpose of
paying a portion of the principal and interest on bonds issued by cities
under authority of K.S.A. 12-1774, and amendments thereto, for the fi-
nancing of redevelopment projects upon property located within the dis-
trict, shall be deposited in the general fund of the district.

(d) On June 1 of each year, the amount, if any, by which a district's
local effort exceeds the amount of the district's state financial aid, as
determined by the state board, shall be remitted to the state treasurer.
Upon receipt of any such remittance, the state treasurer shall deposit the
same in the state treasury to the credit of the state school district finance
fund.

(e) No district shall proceed under K.S.A. 79-1964, 79-1964a or 79-
1964b, and amendments to such sections.

Sec. 7. K.S.A. 79-5037 and K.S.A. 1996 Supp. 72-6431, as amended
by section 6 of 1997 House Bill No. 2031, 79-201a, as amended by section
36 of 1997 House Bill No. 2105, 79-201a, as amended by section 1 of
1997 Senate Bill No. 22, 79-213, as amended by section 35 of 1997 House

1534             1997 Session Laws of Kansas             Ch. 187

Bill No. 2105 and 79-1476, as amended by section 40 of 1997 House Bill
No. 2105, are hereby repealed.

Sec. 8. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 15, 1997.