Session Law

Identifying Information:L. 2001 ch. 214
Other Identifying Information:2001 House Bill 2063
Tax Type:Property Tax
Brief Description:An Act relating to property taxation; amending K.S.A. 79-2801 and K.S.A. 2000 Supp. 79-201a and repealing the existing sections.
Keywords:


Body:

CHAPTER 214

HOUSE BILL No. 2063


An Act relating to property taxation; amending K.S.A. 79-2801 and K.S.A. 2000 Supp. 79-

201a and repealing the existing sections.

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

Section 1. K.S.A. 2000 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

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

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, podiatry services by a person licensed by the board of

healing arts pursuant to K.S.A. 65-2001 et seq., and amendments thereto,

or the practice of psychology by a person licensed by the behavioral sci-

ences regulatory board pursuant to K.S.A. 74-5301 et seq., and amend-

ments 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-

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

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.

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.

Eighteenth. Any building used primarily as an industrial training center

for academic or vocational education programs designed for and operated

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 college,

as defined by K.S.A. 72-4412, and amendments thereto, and the site upon

which any such building is located.

Nineteenth. For all taxable years commencing after December 31,

1997, all buildings of an area vocational school, an area vocational-tech-

nical school, a technical college or a community college, as defined by

K.S.A. 72-4412, and amendments thereto, which are owned and operated

by any such school or college as a student union or dormitory, and the

site upon which any such building is located.

Twentieth. For all taxable years commencing after December 31,

1997, all personal property which is contained within a dormitory that is

exempt from property taxation and which is necessary for the accom-

modation of the students residing therein.

Except as otherwise specifically provided, the provisions of this section

shall apply to all taxable years commencing after December 31, 1998

2000.

Sec. 2. K.S.A. 79-2801 is hereby amended to read as follows: 79-

2801. (a) Except as provided by K.S.A. 79-2811, and amendments thereto,

whenever real estate has been or shall be sold and bid in by the county

at any delinquent tax sale and remains unredeemed on September 1 of

the second year after the sale, or any extension thereof as provided by

subsection (b) of K.S.A. 79-2401a, and amendments thereto, or whenever

real estate described by subsection (a)(2) of K.S.A. 79-2401a, and amend-

ments thereto, has been or shall be sold and bid in by the county at any

delinquent tax sale and remains unredeemed on September 1 of the first

year after the sale, the board of county commissioners shall order the

county attorney or county counselor and it shall be the duty of the county

attorney or county counselor to institute an action in the district court, in

the name of the board of county commissioners, against the owners or

supposed owners of the real estate and all persons having or claiming to

have any interest therein or thereto, by filing a petition with the clerk of

the court. The board of county commissioners may provide for special

legal and other assistance necessary to secure the timely performance of

duties required by this act. Whenever the real estate involved is a mineral

interest in land which has been severed from the fee, the bringing of the

action for the foreclosure of the mineral interest shall be within the dis-

cretion of the board of county commissioners. Whenever the aggregate

assessed valuation of the real estate subject to sale is less than $300,000,

or the aggregate amount of delinquent taxes, including special assess-

ments, is less than $10,000, the bringing of the action shall be within the

discretion of the board of county commissioners. The petition shall con-

tain a description of each tract, lot or piece of real estate including, if in

a city of the first or second class, the street number or location. The

petition shall state, as far as practicable, the amount of taxes, charges,

interest and penalties chargeable to each tract, lot or piece of real estate,

the name of the owner, supposed owner and party having or claiming to

have any interest therein or thereto, and giving the year the real estate

was sold for delinquent taxes under the provisions of K.S.A. 79-2302, and

amendments thereto. The petition shall request that the court determine

the amount of taxes, charges, interest and penalties chargeable to each

particular tract, lot or piece of real estate, the name of the owner or party

having any interest therein and. The petition also shall request that the

court adjudge and decree the amount due to be a first and prior lien upon

the real estate and that the same be sold at public sale for the satisfaction

of the lien, costs, charges and expenses of the proceedings and sale and

other necessary relief. The petition shall be filed in duplicate and a copy

delivered by the clerk to the county treasurer, who thereafter shall accept

no payments of taxes upon the real estate included in the petition except

as provided by K.S.A. 79-2801 to 79-2810, inclusive, and amendments

thereto.

A summons shall be issued and personally served or publication made

as provided in other cases under the code of civil procedure. If service is

made by publication, the notice, in addition to the requirements pre-

scribed by the code of civil procedure, shall contain a description of the

real estate. Any member of the board of county commissioners, county

attorney or county counselor who fails to perform the duties required by

this section shall forfeit the office held by the officer. Any person may

secure enforcement of the provisions of this act through mandamus. Such

proceeding shall be initiated by filing a petition in a court of competent

jurisdiction.

(b) The governing body of any city may provide for the rendering of

legal and other assistance to the county attorney or county counselor to

secure the expeditious judicial foreclosure of real estate on which there

is unredeemed delinquent tax liens, including delinquent special assess-

ments. The provision of such services by the city shall not relieve any

county officer of the requirement to perform the duties required by this

act. The actual and necessary costs incurred by a city in providing such

assistance shall be considered as costs incident to the sale of the real estate

and the city may be reimbursed therefor from the proceeds of the sale

in an amount apportioned pursuant to K.S.A. 79-2805, and amendments

thereto.

(c) If the board of county commissioners fails to initiate proceedings

for a judicial tax foreclosure sale on property located within the corporate

limits of a city and if the taxes on such property have remained delinquent

for at least three years after such property first becomes eligible for sale

by the county at a judicial tax foreclosure sale pursuant to K.S.A. 79-2801

et seq., and amendments thereto, the governing body of the city in which

such property is located may initiate a judicial tax foreclosure sale on such

property. The governing body of such city shall have the same powers

and duties of the board of county commissioners under K.S.A. 79-2801 et

seq., and amendments thereto, which are necessary to effectuate the sale

of such property. The city attorney of such city shall have the same powers

and duties of the county attorney or county counselor under K.S.A. 79-

2801 et seq., and amendments thereto, relating to the judicial tax foreclo-

sure sale of such property. All other county officers shall perform the

duties prescribed by law relating to the sale of such property in the same

manner as if such sale had been initiated by the board of county com-

missioners.

New Sec. 3. Notwithstanding the provisions of any law to the con-

trary, the tax imposed upon a motor vehicle pursuant to K.S.A. 79-5101

et seq., and amendments thereto, which is delinquent and more than one

year past due, and any penalty and interest resulting from such delin-

quency, shall be canceled and forgiven if such vehicle is donated to a

nonprofit charitable organization which is exempt from payment of fed-

eral income tax. In the event any such vehicle is purchased from any such

organization by the donor, or on behalf of the donor, of such vehicle,

liability for all such tax, interest and penalty shall vest in such purchaser,

and shall be collected in the manner prescribed by K.S.A. 79-5116, and

amendments thereto.

Sec. 4. K.S.A. 79-2801 and K.S.A. 2000 Supp. 79-201a are hereby

repealed.

Sec. 5. This act shall take effect and be in force from and after its

publication in the statute book.

Approved May 22, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001