Kansas Attorney General Opinion 1992-065

ROBERT T. STEPHAN
ATTORNEY GENERAL
May 18, 1992
ATTORNEY GENERAL OPINION NO. 92- 65
Scott A. Eads
Counsel for Hospital District
No. 1 of Sumner County
1600 Epic Center
301 N. Main
Wichita, Kansas 67202-4800
Re: Taxation--Aggregate Tax Levy Limitations--
Suspension of Statutory Fund and Levy Limitations;
Fund Levy Limit Adjustments; Hospital Districts
Synopsis: Hospital district no. 1 of Sumner county is a
taxing subdivision for purposes of K.S.A. 79-5021
et seq., the tax lid law. Thus, the hospital
districts' fund and aggregate levy limitations were
suspended by K.S.A. 1991 Supp. 79-5022(a), any
increase in its fund levy limitations is subject to
K.S.A. 1991 Supp. 79-5022(c) and it has the
authority to exempt itself from the provisions of
the tax lid law pursuant to K.S.A. 1991 Supp
79-5036(c). Cited herein: K.S.A. 19-101b; K.S.A.
1991 Supp. 79-5021; 79-5022; 79-5032; 79-5036;
K.S.A. 80-2516.
*
Dear Mr. Eads:
As counsel for hospital district no. 1 of Sumner county, you
request our opinion regarding the application of K.S.A.
79-5021 et seq., the tax lid law, to the hospital
district. Specifically you question whether the hospital
district is a "taxing subdivision" for purposes of this act,

whether the hospital district is subject to the provisions of
K.S.A. 1991 Supp. 79-5022(c), and if so whether the hospital
district may exempt itself from those provisions pursuant to
K.S.A. 1991 Supp. 79-5036(c).
K.S.A. 1991 Supp. 79-5022 provides as follows:
"(a) In 1990 and in each year thereafter,
all existing statutory fund mill levy rate
and aggregate levy rate limitations on
taxing subdivisions are hereby suspended.
"(b) Except as otherwise provided in
K.S.A. 79-5024 to 79-5027, inclusive, and
amendments thereto, no city, county,
township, municipal university or
community college shall certify to the
county clerk of the county any tax levies
upon tangible property, excluding levies
specified in K.S.A. 79-5028, and
amendments thereto, which in the aggregate
will produce an amount in excess of the
amount which was levied by such taxing
subdivision in the base year.
"(c) In 1990, and each year thereafter,
the fund levy limits shall be increased by
multiplying the dollar amount produced by
the levy limit for 1988 by the quotient
determined by dividing the assessed
tangible valuation amount of the current
year by the assessed valuation amount for
1989. The provisions of this subsection
shall not be applicable to any city,
county, township, municipal university or
community college."
The term "tax subdivision" is defined in K.S.A. 1991 Supp.
79-5021 as "every taxing district in the state of Kansas other
than the state." In Attorney General Opinion No. 87-167 this
office concluded that any entity "which can mandatorily
require a city, county or township to levy a tax [for its
governmental purposes] is a taxing district and thus a taxing
subdivision for purposes of K.S.A. [1991] Supp. 79-5022."
This conclusion has been reaffirmed in Attorney General
Opinions No. 89-20, 89-130, 90-11, 91-46A and 91-100. You
advise that the hospital district is subject to the provisions
of K.S.A. 80-2501 et seq. K.S.A. 80-2516 authorizes the

hospital district's board to "determine and fix an annual tax
to be levied for the purpose of operating, equipping,
maintaining and improving the hospital." There is no
provision allowing the county or any other entity to modify or
decline to levy the amount fixed by the hospital board. Thus,
it is our opinion that the hospital district is a taxing
district, and therefore a taxing subdivision, for purposes of
K.S.A. 79-5021 et seq. (We further note that K.S.A.
80-2516 refers to hospital districts under its auspices as
"taxing districts.")
As a taxing subdivision, the hospital district's "statutory
fund mill levy rate and aggregate levy rate limitations" are
suspended by operation of K.S.A. 1991 Supp. 79-5022(a).
Subsection (b) of K.S.A. 1991 Supp. 79-5022 does not apply to
the hospital district since it is not a "city, county,
township, municipal university or community college."
Subsection (c) of K.S.A. 1991 Supp 79-5022 is applicable to
the hospital district. This provision applies to all taxing
subdivisions other than cities, counties, townships, municipal
universities and community colleges. See Attorney General
Opinion No. 90-78; K.S.A. 1991 Supp. 79-5032. Thus,
notwithstanding the provisions of K.S.A. 80-2516 [which were
suspended pursuant to K.S.A. 1991 Supp. 79-5022(a)], the
hospital district may increase its fund levy limits only as
authorized by K.S.A. 1991 Supp. 79-5022(c).
The language of K.S.A. 80-2516(a) stating that the hospital
district's tax levy "shall not be subject to the aggregate tax
levy limitation imposed by law upon the political subdivision"
does not negate the effect of K.S.A. 1991 Supp 79-5022(c).
Subsection (c) is not an aggregate tax limitation, it is a
fund levy limitation.
Finally, you inquire about the application of K.S.A. 1991
Supp. 79 - 5036(c), which provides:
"(c) The governing body of any other
taxing subdivision subject to the
provisions of K.S.A. 79-5021 to 79-5033,
inclusive, may elect, in the manner
prescribed by and subject to the
limitations of K.S.A. 19-101b, and
amendments thereto, insofar as such
section may be made applicable, to exempt
such subdivision from the provisions of
K.S.A. 79-5021 to 79-5033, inclusive, or
to modify the provisions thereof."

Since we have determined that the hospital district is a
taxing subdivision subject to the provisions of K.S.A. 79-5021
et seq., the district is authorized by K.S.A. 1991 Supp.
79-5036(c) to exempt itself from the provisions of that act in
the manner prescribed by K.S.A. 19-101b. See Attorney
General Opinions No. 89-130, 90-11.
In conclusion, hospital district no. 1 of Sumner county is a
taxing subdivision for purposes of K.S.A. 79-5021 et seq.,
thetaxlidlaw.Thus,thehospitaldistricts"fundand
aggregate levy limitations were suspended by K.S.A. 1991 Supp.
79-5022(a), any increase in its fund levy limitations is
subject to K.S.A. 1991 Supp. 79-5022(c) and it has the
authority to exempt itself from the provisions of the tax lid
law pursuant to K.S.A. 1991 Supp. 79-5036(c).
Very truly yours,
ROBERT T. STEPHAN
Attorney General of Kansas
Julene L. Miller
Deputy Attorney General
RTS:JLM:jm