HB 2440

                           HOUSE BILL No. 2440
AN ACT concerning property taxation; relating to exemptions; excluding owners of oil
   leases from having to file request for exemption with the board of tax appeals;
   amending K.S.A. 2025 Supp. 79-213 and repealing the existing section.
 Be it enacted by the Legislature of the State of Kansas:
    Section 1. K.S.A. 2025 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
exemption, on forms approved by the state 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
recommendation, shall file the request for exemption and the
recommendations of the county appraiser with the state board of tax
appeals. With regard to a request for exemption from property tax
pursuant to the provisions of K.S.A. 79-201g and 82a-409, and
amendments thereto, not filed with the board of tax appeals by the
county appraiser on or before the effective date of this act July 1, 2014,
if the county appraiser recommends the exemption request be granted,
the exemption shall be provided in the amount recommended by the
county appraiser and the county appraiser shall not file the request for
exemption and recommendations of the county appraiser with the state
board of tax appeals. The county clerk or county assessor shall annually
make such adjustment in the taxes levied against the real property as
the owner may be entitled to receive under the provisions of K.S.A. 79-
201g, and amendments thereto, as recommended by the county
appraiser, beginning with the first period, following the date of issue of
the certificate of completion on which taxes are regularly levied, and
during the years which the landowner is entitled to such adjustment.
    (f) Upon receipt of the request for exemption, the board shall
docket the same request for exemption 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. A request for exemption
pursuant to: (1) Section 13 of article 11 of the constitution of the state
of Kansas; or (2) K.S.A. 79-201a Second, and amendments thereto, for
property constructed or purchased, in whole or in part, with the
proceeds of revenue bonds under the authority of K.S.A. 12-1740
through 12-1749, and amendments thereto, prepared in accordance with
instructions and assistance which shall be provided by the department
of commerce, shall be deemed approved unless scheduled for hearing
within 30 days after the date of receipt of all required information and
data relating to the request for exemption, and such hearing shall be
conducted within 90 days after such date. Such time periods shall be
determined without regard to any extension or continuance allowed to
either party to such request. 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.
                    HOUSE BILL No. 2440—page 2
    (h) Except as otherwise provided by subsection (g), in the event of
a hearing, the same hearing 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 request is filed with the county appraiser until the expiration of
30 days after the board issued its order thereon. In the event the board
determines 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 prescribed therein.
    (j) In the event the board grants the initial request for exemption,
the same request for exemption shall be effective beginning with the
date of first exempt use except that, with respect to property the
construction of which commenced 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
determined to be exempt, the board shall have the authority to order a
refund of taxes for the year immediately preceding the year in which
the exemption application is filed in accordance with subsection (a).
    (l) The provisions of this section shall not apply to: (1) Farm
machinery and equipment exempted from ad valorem taxation by
K.S.A. 79-201j, and amendments thereto; (2) personal property
exempted from ad valorem 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) all property exempted
from ad valorem taxation by K.S.A. 79-201d, and amendments thereto;
(6) merchants' and manufacturers' inventories exempted 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 taxation
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 acquired; (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 administration, 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
                   HOUSE BILL No. 2440—page 3
and provide a legal description of the property 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
purposes. 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,
materials and supplies exempted from ad valorem taxation by K.S.A.
79-201w, and amendments thereto; (14) vehicles owned by the state or
by any political or taxing subdivision thereof and used exclusively for
governmental purposes; (15) property used for residential purposes
which is exempted pursuant to K.S.A. 79-201x, and amendments
thereto, from the property tax levied pursuant to K.S.A. 72-5142, and
amendments thereto; (16) from and after July 1, 1998, vehicles which
are owned by an organization having as one of its purposes the
assistance by the provision of transit services to the elderly and to
disabled persons and which are exempted pursuant to K.S.A. 79-201
Ninth, and amendments thereto; (17) from and after July 1, 1998, motor
vehicles exempted from taxation by K.S.A. 79-5107(e), and
amendments thereto; (18) commercial and industrial machinery and
equipment exempted from property or ad valorem taxation by K.S.A.
79-223, and amendments thereto; (19) telecommunications machinery
and equipment and railroad machinery and equipment exempted from
property or ad valorem taxation by K.S.A. 79-224, and amendments
thereto; (20) property exempted from property or ad valorem taxation
by K.S.A. 79-234, and amendments thereto; (21) recreational vehicles
exempted from property or ad valorem taxation by K.S.A. 79-5121(e),
and amendments thereto; (22) property acquired by a land bank exempt
from property or ad valorem taxation pursuant to K.S.A. 12-5909 or
K.S.A. 19-26,111, and amendments thereto; (23) property belonging
exclusively to the United States and exempted from ad valorem
taxation by K.S.A. 79-201a First, and amendments thereto, except that
the provisions of this subsection (l)(23) shall not apply to any such
property that the congress of the United States has expressly declared to
be subject to state and local taxation; (24) watercraft exempted from
property or ad valorem taxation by K.S.A. 79-5501, and amendments
thereto; and (25) property exempted from property or ad valorem
taxation by K.S.A. 2025 Supp. 79-267, and amendments thereto; and
(26) oil leases exempted from property or ad valorem taxation by
K.S.A. 79-201t, and amendments thereto.
    (m) The provisions of this section shall apply to property exempt
pursuant to the provisions of section 13 of article 11 of the constitution
of the state of Kansas.
    (n) The provisions of subsection (k) as amended by this act shall
be applicable to all exemption applications filed in accordance with
subsection (a) after December 31, 2001.
    (o) No exemption authorized by K.S.A. 79-227, and amendments
thereto, of property from the payment of ad valorem property taxes
assessed shall be granted unless the requesting property owner files an
initial request for exemption pursuant to this section within two years
of the date in which construction of a new qualifying pipeline property
began. The provisions of this subsection shall be applicable to all
requests for exemptions filed in accordance with subsection (a) after
                           HOUSE BILL No. 2440—page 4
June 30, 2017.
   Sec. 2. K.S.A. 2025 Supp. 79-213 is hereby repealed.
   Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and passed
that body
                                                                                     Speaker of the House.
                                                                                Chief Clerk of the House.
Passed the SENATE  ______________________________________________________________________________
                                                                                   President of the Senate.
                                                                                   Secretary of the Senate.
APPROVED   __________________________________________________________________________________________________
                                                                                                       Governor.