Session Law

Identifying Information:L. 2001 ch. 207
Other Identifying Information:2001 House Bill 2268
Tax Type:Property Tax
Brief Description:An Act concerning electric public utilities; relating to inclusion of certain property in ra- tebase; providing for issuance of bonds for certain purposes; providing for certain prop- erty tax exemptions; amending K.S.A. 2000 Supp. 66-128 and repealing the existing section.
Keywords:


Body:

CHAPTER 207

HOUSE BILL No. 2268


An Act concerning electric public utilities; relating to inclusion of certain property in ra-

tebase; providing for issuance of bonds for certain purposes; providing for certain prop-

erty tax exemptions; amending K.S.A. 2000 Supp. 66-128 and repealing the existing section.




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

Section 1. K.S.A. 2000 Supp. 66-128 is hereby amended to read as

follows: 66-128. (a) The state corporation commission shall determine the

reasonable value of all or whatever fraction or percentage of the property

of any common carrier or public utility governed by the provisions of this

act which property is used and required to be used in its services to the

public within the state of Kansas, whenever the commission deems the

ascertainment of such value necessary in order to enable the commission

to fix fair and reasonable rates, joint rates, tolls and charges. In making

such valuations the commission may avail itself of any reports, records or

other things available to the commission in the office of any national, state

or municipal officer or board.

(b) (1) For the purposes of this act, except as provided by subsection

(b)(2), property of any public utility which has not been completed and

dedicated to commercial service shall not be deemed to be used and

required to be used in the public utility's service to the public, except

that, any property of a public utility.

(2) Any public utility property described in subsection (b)(1) may be

deemed to be completed and dedicated to commercial service if: (1) (A)

Construction of the property will be commenced and completed in one

year or less; (2) (B) the property is an electric generation facility that has

a capacity of 100 megawatts or less and converts wind, solar, biomass,

landfill gas or any other renewable source of energy; or (3)(C) construc-

tion of the property has been authorized by a siting permit issued under

K.S.A. 66-1,158 et seq. or 66-1,177 et seq., and amendments thereto; (D)

the property is an electric generation facility or addition to an electric

generation facility, which facility or addition to a facility is placed in

service on or after January 1, 2001; or (E) the property is an electric

transmission line, as defined by K.S.A. 66-1,177, and amendments thereto,

including all towers, poles and other necessary appurtenances to such

lines, which will be connected to an electric generation facility and which

is placed in service on or after January 1, 2001.

(3) Electric generation facilities under the provisions of subsection

(b)(2)(D) or (b)(2)(E) shall not include facilities used in generating elec-

tricity by nuclear resources or technologies or by using renewable energy

resources or technologies, as defined in K.S.A. 79-201, and amendments

thereto.

New Sec. 2. The following described property, to the extent herein

specified, shall be exempt from all property taxes levied under the laws

of the state of Kansas:

(a) All electric generation facilities and additions to electric genera-

tion facilities described in subsection (b)(2)(D) of K.S.A. 66-128, and

amendments thereto.

(b) The provisions of subsection (a) shall apply: (1) Except as pro-

vided in paragraph (2), from and after commencement of construction of

such property and for the 10 taxable years immediately following the

taxable year in which construction of such property is completed; or (2)

for a peak load plant, from and after commencement of construction of

such peak load plant and for the four taxable years immediately following

the taxable year in which construction of such property is completed.

(c) All pollution control devices purchased for or constructed or in-

stalled at electric generation facilities described in subsection (b)(2)(D)

of K.S.A. 66-128, and amendments thereto.

(d) The provisions of subsection (c) shall apply: (1) Except as pro-

vided in paragraph (2), from and after purchase or commencement of

construction or installation of such property and for the 10 taxable years

immediately following the taxable year in which such property is pur-

chased or construction or installation of such property is completed; or

(2) for a peak load plant, from and after purchase or commencement of

construction or installation of such property and for the four taxable years

immediately following the taxable year in which such property is pur-

chased or construction or installation of such property is completed.

(e) As used in this section, ``peak load plant'' means an electric gen-

eration facility used during maximum load periods.

(f) The provisions of this section shall apply to all taxable years com-

mencing after December 31, 2000.

New Sec. 3. (a) For the purpose of financing the construction, pur-

chase and installation of pollution control devices at electric generation

facilities and additions to electric generation facilities described in sub-

section (b)(2)(D) of K.S.A. 66-128, and amendments thereto, the Kansas

development finance authority is hereby authorized to issue revenue

bonds in amounts sufficient to pay the costs of such construction, pur-

chase and installation, including any required interest on the bonds during

construction and installation, plus all amounts required for the costs of

bond issuance and any required reserves on the bonds. The bonds, and

interest thereon, issued pursuant to this section shall be payable from

revenues derived from sales of generation from the electric generation

facility. As used in this subsection, ``pollution control devices'' means any

device or structure required to meet air emission or water discharge stan-

dards imposed by state or federal law.

(b) The provisions of subsection (a) of K.S.A. 74-8905, and amend-

ments thereto, shall not prohibit the issuance of bonds by the Kansas

development finance authority for the purposes of this section and any

such issuance of bonds is exempt from the provisions of subsection (a) of

K.S.A. 74-8905, and amendments thereto, which would operate to pre-

clude such issuance.

(c) Revenue bonds, including refunding revenue bonds, issued here-

under shall not constitute an indebtedness of the state of Kansas, nor

shall they constitute indebtedness within the meaning of any constitu-

tional or statutory provision limiting the incurring of indebtedness.

(d) Revenue bonds, including refunding revenue bonds, issued here-

under and the income derived therefrom are and shall be exempt from

all state, county and municipal taxation in the state of Kansas, except

Kansas estate taxes.

New Sec. 4. 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:

(a) All electric transmission lines and appurtenances described in sub-

section (b)(2)(E) of K.S.A. 66-128, and amendments thereto, and the

right-of-way on which such lines are located.

(b) The provisions of this section shall apply to property the construc-

tion of which is completed after December 31, 2000, and for the 10

taxable years immediately following the taxable year in which construction

of such property is completed.

(c) The provisions of this section shall apply to all taxable years com-

mencing after December 31, 2000.

Sec. 5. K.S.A. 2000 Supp. 66-128 is hereby repealed.

Sec. 6. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved May 22, 2000.

Published in the Kansas Register May 31, 2000.


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