79-1439. (a) All real and tangible personal property which is subject to general ad valorem taxation shall be appraised uniformly and equally as to class and, unless otherwise specified herein, shall be appraised at its fair market value, as defined in K.S.A. 79-503a, and amendments thereto.
(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-family 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, 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, and real property used for bed and breakfast purposes at 11.5%. As used in this paragraph "bed and breakfast" means a property with five or fewer bedrooms available for overnight guests who stay for not more than 28 consecutive days for which there is compliance with all zoning or other applicable ordinances or laws which pertain to facilities which lodge and feed guests;
(B) land devoted to agricultural use valued pursuant to K.S.A. 79-1476, and amendments thereto, at 30%;
(C) vacant lots at 12%;
(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 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;
(F) real property used for commercial and industrial purposes and buildings and other improvements located upon land devoted to agricultural use at 25%; and
(G) all other urban and rural real property not otherwise specifically 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 11.5%;
(B) mineral leasehold interests, except oil leasehold interests the average 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 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, prior to January 1, 2014, over-the-road motor vehicles 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 25%; and
(F) all other tangible personal property not otherwise specifically classified at 30%.
History: L. 1963, ch. 460, § 1; L. 1969, ch. 433, § 6; L. 1982, ch. 391, § 33; L. 1988, ch. 375, § 7; L. 1992, ch. 107, § 1; L. 1997, ch. 126, § 41; L. 2004, ch. 173, § 11; L. 2012, ch. 87, § 9; L. 2016, ch. 112, § 12; July 1.
Cross References to Related Sections:
Rate of assessment and taxation, see Kansas Constitution, article 11, § 1.
Land devoted to agricultural use, see Kansas Constitution, article 11, § 12.
Law Review and Bar Journal References:
Discussed in comment on uniformity in assessment and taxation of property, 14 W.L.J. 178, 179, 180, 181 (1975).
"Differential Assessment of Agricultural Land in Kansas: A Discussion and Proposal," 25 K.L.R. 215, 219, 220 (1977).
"Kansas Ad Valorem Property Tax Relief—A Current Review," Bruce F. Landeck, 49 J.B.A.K. 269, 271 (1980).
"The Kansas Property Tax: Understanding and Surviving Reappraisal," P. John Brady, Brian T. Howes, and Greg L. Musil, 57 J.K.B.A. No. 3, 23, 25 (1988).
"Reappraisal—How Long Will It Last?" Bruce Landeck, 58 J.K.B.A. No. 1, 15, 18 (1989).
"Survey of Kansas Law: Taxation," Sandra Craig McKenzie and Eric B. Milstead, 37 K.L.R. 961, 962 (1989).
Attorney General's Opinions:
Factors for determining fair market value of property. 80-82.
Powers and responsibilities of county boards of equalization. 81-69.
Valuation based on agricultural income or productivity. 85-135.
Oil and gas property as personalty; property held by federal land bank exempt from taxation. 86-16.
Classification of property; constitutionality. 90-10.
Effect of failure to consider factors to determine fair market value. 92-12.
Property taxation; classification; commercial and industrial machinery and equipment not in use. 94-52.
Use of real estate ratio study as evidence of fair market value for tax purposes. 94-69.
Valuation of property in year following reduction on appeal; effect of K.S.A. 79-1460. 95-71.
Classification and valuation of machinery and equipment; "used factor"; ownership by not-for-profit organizations. 95-99.
Beds, sheets and forks, valued and taxed as commercial and industrial machinery and equipment. 96-41.
CASE ANNOTATIONS
1. Ratio studies may be considered in determining necessity for reappraisal; justifiable value considered. Board of County Commissioners v. Brookover, 198 Kan. 70, 71, 72, 73, 422 P.2d 906.
2. Referred to; action under K.S.A. 60-907 administrative in character; district court without authority. Harshbarger v. Board of County Commissioners, 201 Kan. 592, 593, 442 P.2d 5.
3. Assessment and valuation of property are administrative in character; absent evidence that assessment was arrived at fraudulently, arbitrarily or capriciously, a difference of opinion as to value does not warrant judicial interference. Cities Service Oil Co. v. Murphy, 202 Kan. 282, 284, 285, 292, 293, 295, 447 P.2d 791.
4. Assessment schedules of property valuation director failed to consider factors prescribed by K.S.A. 79-503; invalid. Garvey Grain, Inc. v. MacDonald, 203 Kan. 1, 9, 10, 453 P.2d 59.
5. Cited in holding that assessment of oil and gas properties at statutory rate, while real estate was knowingly assessed by the same officials at fourteen percent, was so grossly discriminatory and oppressive as to constitute constructive fraud. Beardmore v. Ling, 203 Kan. 803, 805, 807, 809, 457 P.2d 117.
6. Cited in consideration of scope of review as to assessment of property taxes. McManaman v. Board of County Commissioners, 205 Kan. 118, 123, 124, 127, 468 P.2d 243.
7. Assessment of interstate gas pipeline and distribution property considered. Northern Natural Gas Co. v. Dwyer, 208 Kan. 337, 338, 345, 355, 365, 369, 492 P.2d 147.
8. An appeal from order of state board of tax appeals to board of county commissioners to reappraise is administrative. Northern Natural Gas Co. v. Dwyer, 208 Kan. 337, 345, 355, 365, 492 P.2d 147.
9. Deviation in assessment from 30% of value considered in action alleging discrimination in valuation and assessment of property. Northern Natural Gas Co. v. Williams, 208 Kan. 407, 408, 420, 432, 493 P.2d 568.
10. Assessment of property at 43% of fair market value arbitrary and oppressive; constructive fraud. Gordon v. Hiett, 214 Kan. 690, 694, 697, 522 P.2d 942.
11. Applied in upholding valuation and assessment of shopping center property. Kellogg Mall Associates v. Board of Sedgwick County Comm'rs, 227 Kan. 231, 234, 235, 237, 238, 607 P.2d 1330.
12. Statute cited; provisions of K.S.A. 79-342 declared unconstitutional as being violative of uniform and equal rate of assessment requirement of article 11, section 1 of Kansas constitution. State ex rel. Stephan v. Martin, 227 Kan. 456, 459, 463, 608 P.2d 880.
13. County board of equalization not arbitrary and capricious in rescinding order reducing valuation of property below 30% of value. Shields Oil Producers, Inc. v. County of Russell, 229 Kan. 579, 583, 629 P.2d 152 (1981).
14. Considered in denying petition of attorney general for writ of quo warranto to prevent utilization of K.S.A. 79-331 and challenging constitutionality thereof. State ex rel. Stephan v. Martin, 230 Kan. 747, 754, 641 P.2d 1011 (1982).
15. Considered in holding K.S.A. 79-343, relating to assessment of farm machinery and equipment, unconstitutional and void; quo warranto granted. State ex rel. Stephan v. Martin, 230 Kan. 759, 768, 772, 641 P.2d 1020 (1982).
16. Cited; allegations regarding illegal or void valuations or assessments of real property prohibited before exhausting administrative remedies examined. Board of Osage County Comm'rs v. Schmidt, 12 Kan. App. 2d 812, 813, 758 P.2d 254 (1988).
17. Noted in holding BOTA erred in allowing taxes on building improvements separate from underlying land, contrary to K.S.A. 79-412. In re Tax Protest of Spangles, Inc., 17 Kan. App. 2d 335, 337, 835 P.2d 699 (1992).
18. Personal property of one-way radio paging service company should be locally appraised and property tax calculated pursuant to paragraph (b)(2)(E). First Page, Inc. v. Cunningham, 252 Kan. 593, 596, 847 P.2d 1238 (1993).
19. Whether developer's discount method of property valuation violated statutory tax scheme examined. Hixon v. Lario Enterprises, Inc., 19 Kan. App. 2d 643, 646, 875 P.2d 297 (1994); aff'd. as modified, 257 Kan. 377, 381, 892 P.2d 507 (1995).
20. Radio common carrier not considered a public utility for property tax purposes. In re Appeal of Topeka SMSA Ltd. Partnership, 260 Kan. 154, 156, 162, 917 P.2d 827 (1996).
21. "Retail cost when new" does not include sales tax nor add-on costs charged separately and which are readily discernable from actual sales price of item. Board of Leavenworth County Comm'rs. v. McGraw Fertilizer Serv., Inc., 261 Kan. 901, 902, 933 P.2d 698 (1997).
22. Oil lease experiencing production decline late in year previous to assessment properly valued by consideration of post-January production data. Board of Ness County Commr's v. Bankoff Oil Co., 265 Kan. 525, 528, 960 P.2d 1279 (1998).
23. To qualify for 12% assessment rate, property must be both owned and operated by organization exempt from federal income taxation. Main Line, Inc. v. Board of Reno County Comm'rs, 33 Kan. App. 2d 875, 112 P.3d 951 (2004).
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